International Millennium Mining Corp.
TSX VENTURE : IMI
FRANKFURT : L9J

International Millennium Mining Corp.

August 31, 2009 21:20 ET

International Millennium Mining Corp. Reports 2nd Quarter Results

NORTH VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 31, 2009) - International Millennium Mining Corp. (the "Company") (TSX VENTURE:IMI) (FRANKFURT:L9J) reports its financial statements and MD&A (the "Quarterly Report") for the 2nd Quarter ended June 30, 2009 (BC Form 51-102F1). Pursuant to the requirements of National Instrument 54-102, this news release provides a summary of the information contained in the Quarterly Report.



Summary of 2nd Quarter Ended

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Cdn ($) 2nd Quarter 2nd Quarter
Fiscal Fiscal Year to Date
2009 2008 Fiscal 2009
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General and Administration
Expenditures $ 84,889 $ 106,765 $ 149,083
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Stock Based Compensation $ - $ 4,000 $ -
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Interest Income $ 311 $ 5,190 $ 1,151
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Net Loss $ (55,578) $ (101,575) $ (118,932)
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Net Loss per share $ (0.00) $ (0.00) $ (0.00)
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June 30, December 31,
2009 2008
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Deferred Mineral Property Expenditures $ 3,260,199 $ 3,106,807
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Total Assets 3,494,544 3,590,231
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Total Liabilities 362,863 316,618
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Share Capital 10,313,737 10,257,737
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Common Shares Outstanding 32,686,943 30,986,944
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Fully Diluted Shares Outstanding 34,386,943 30,986,944
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Summary Discussion

Given the significant changes in the financial and metals markets, as well as the uncertainty in many global economies, management of the Company (the "Management") has agreed to cut back fees and salaries, expenses have been reduced and, other than the Jason Property, exploration programs have been put on hold.

During the six month period ending June 30, 2009, the Company made the $100,000 property payment pursuant to the High Lake option agreement. The Company will recover this payment from Canadian Star Minerals Inc. ("Canadian Star") and will continue to recover property payments for the Hilda 30 and Hilda 37 & 38 properties in Mexico.

The Company signed Letter of Intent with Canadian Star to Option 100% of the High Lake Property and 51% of the Electrum Lake Property in exchange for $100,000 and 200,000 shares of Canadian Star to be paid upon closing of the agreement. (IMMC has received $75,000 from Canadian Star as a deposit). Canadian Star must also incur $750,000 in exploration expenditures over ten years and pay 500,000 shares of Canadian Star to earn a 51% interest in the Electrum Lake Property.

On August 10, 2009 the Company announced a private placement of 2,600,000 units (450,000 flow-through units and 2,150,000 non-flow-through units) for total cash proceeds of $182,000. The units are priced at $0.07 per unit, with each flow-through unit comprised of one (1) flow-through common share and one half ( 1/2) non-flow-through, non-transferable share purchase warrant, and each non-flow-through unit comprised of one (1) common share and one half ( 1/2) non-transferable share purchase warrant. Each full warrant will entitle the holder to purchase an additional share at $0.10 per share for a period of two (2) years from the date of issuance.

As a result of the recently announced private placement for $182,000; the Canadian Star transactions set out above; the continuing Mexico and Cobalt joint ventures; the termination of the Harrison Lake Property joint venture; and, the soon to be completed negotiations to extend certain property exploration commitments, the Company is in a position whereby it can maintain its existing property interests and fund its cash flow requirements for the next twelve months. However, the Company is also actively pursuing new financings and has warrants outstanding that, if exercised, would result in an additional $170,000.

General and administrative costs for the quarter ended June 30, 2009, were $84,899, down from $106,765 in the quarter ended June 30, 2008. Accounting and legal fees increased during the quarter ended June 30, 2009, to $11,470 from $8,609, in the first quarter of fiscal 2009 due to a higher accrual fees for fiscal 2008 year end audit fees. Accounting and legal fees decreased from $19,529 in the second quarter of fiscal 2008 to $11,470 in the second quarter of fiscal 2009. Primary reason for the difference from is that audit fees for fiscal 2007 were significantly higher than the audit fees for the year ended December 2008. The Company recorded $7,500 in director fees second quarter of fiscal 2009, compared to $6,000 in the first quarter of fiscal 2009 and $10,250 recorded in the second quarter of fiscal 2008. The main reason for the difference is the timing of payments of director fees. There were no significant differences in administration and Transfer agent and filing fees when comparing from quarter to quarter in fiscal 2009 and to the second quarter of fiscal 2008. Printing and Shareholder information decreased by almost $5,000 compared to the second quarter of fiscal 2008 because the Company negotiated lower annual report costs this year. Promotion and trade show costs have increased during the quarter compared to the previous quarter as well as to the second quarter 2008 because the Company has increased the investor relation costs to assist in raising new capital.

The Company recorded a net loss of $(55,578) for the quarter ending June 30, 2009 as compared to a net loss of $(101,575) in the quarter ending June 30, 2008 and the net loss of $(63,354) for the first quarter of fiscal 2009. The primary difference is the $29,000 renouncement of income tax benefit on the flow through financing that was closed in the first quarter of fiscal 2009. Interest income decreased from $5,190 in the second quarter of fiscal 2008 to $311 in the second quarter of fiscal 2009 because of the smaller investment base and lower interest rates.

Cash reserves decreased from $256,450 at December 31, 2008 to $133,136, at June 30, 2009. The Company invests excess cash in short-term interest bearing investments. Its working capital position has decreased to a deficiency of $130,556 at June 30, 2009. Subsequent to the quarter end the Company has eliminated the working capital deficiency through the announced private placement and the deposit received from Canadian Star.

The Company has executed a Joint Venture Agreement with Diamond Exploration Inc. ("DEI") whereby DEI is entitled to earn fifty-one percent (51%) interest, subject to a partially re-purchasable three percent (3%) net smelter return royalty, in thirty-six mining claims comprised of 250 claim units of IMMC's Cobalt Area property. Under terms of the agreement, DEI may earn a 51% interest in diamond production from the property by expending $1,000,000 over a period of up to ten years at an average rate of not less than $100,000 per year and by then delivering to IMMC, 500,000 shares of DEI. Following DEI's acquisition of an interest in the property, further exploration and development of the claims will be the subject of a joint venture between the parties.

Management is focused on precious metal polymetallic projects in the Americas and is working towards building a strong, stable and well financed mineral exploration and small mines mining company.

At June 30, 2009, the Company had a total of 32,686,943 common shares and 1,700,000 warrants outstanding.

Concurrently with this news release, the Company is filing its 2nd Quarter Report with the regulatory authorities through SEDAR (www.sedar.com) and has mailed it to shareholders who have requested copies and whose names appear on the Company's Supplemental List. A copy of the Quarterly Report is available on the SEDAR website, or will be mailed upon request. Additional information about International Millennium Mining Corp. and its mineral property interests, including technical reports, is available on the internet at the SEDAR website, namely www.sedar.com.

International Millennium Mining Corp. is a mineral exploration and development company engaged in the acquisition and exploration of polymetallic mineral properties in Canada and the Americas, with a particular focus on small mine deposits. To date, the Company has acquired and is exploring mineral properties in British Columbia and Ontario, Canada; Nevada, USA; and Sonora State, Mexico. Emerging mineral targets include gold, silver, cobalt, molybdenum, zinc, lead, nickel, copper and platinum group metals. The Company's common shares trade on the TSX Venture Exchange under the symbol: IMI, and on the Frankfurt Exchange under the symbol: L9J.

ON BEHALF OF THE BOARD

John A. Versfelt, President and CEO

Further information about the Company can be found on SEDAR (www.sedar.com).

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes and other business transactions timing. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • International Millennium Mining Corp.
    John A. Versfelt
    President & CEO
    (604) 984-9907
    (604) 983-8056 (FAX)
    Email: info@immc.ca
    or
    International Millennium Mining Corp.
    Lindsay Malcolm
    (604) 569-2508
    Email: lindsaym@immc.ca
    or
    International Millennium Mining Corp.
    Wayne Meredith
    (604) 569-2509
    Email: waynem@immc.ca