Amazon Mining Holding Plc
TSX VENTURE : AMZ

Amazon Mining Holding Plc

May 01, 2009 10:05 ET

Amazon Mining Holding Plc: Results for Year Ended December 31, 2008 and Corporate Update

TORONTO, ONTARIO--(Marketwire - May 1, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Amazon Mining Holding Plc (TSX VENTURE:AMZ) ("Amazon" or the "Company") announced April 30, 2009, its audited consolidated financial statements for the year ended December 31, 2008 and provides the following corporate update.

For the twelve-month period ended December 31, 2008 Amazon incurred a net loss of Pounds Sterling 2,509,249 as compared to a net loss of Pounds Sterling 343,234 for the eight-month period ended December 31, 2007. As the Company remains engaged in exploration activity, no revenues are presently generated from its operations.

The significant increase in loss reflects a full year of corporate and exploration activity. Much of the loss was generated in the first half of 2008 due to intensive exploration investment on the Tocantins and Lavras gold projects. With the decision in July 2008 to withdraw from these two projects and the Terra Branca diamond project, the Company substantially curtailed exploration activities during the latter half of 2008.

During the second half of 2008, global economic conditions deteriorated at an extraordinary pace and level. As Amazon had already significantly downsized its organization and activities by that point, it was in a good position to quickly react and adjust to the implications brought on by this global economic turmoil. With an intent to reduce expenditures and reliance on capital markets and to help mitigate the risks inherent with exploration, the Company implemented the following strategies:

- Expanded mandate beyond early stage gold exploration to include all opportunities in Brazil

-- Staked the Cerrado Verde Potash Project ("Cerrado Verde")

-- Initiated acquisition of the subsidiary of Toucan Metals which contains prospective vanadium and copper-zinc properties

- Focused on accessing funding from government and strategic partners to advance projects

-- Discussions with government development agencies to highlight strategic importance of the Cerrado Verde project and verdete slate to Brazil

-- Discussions with leading agricultural corporations and academic institutions regarding testing of new products and possible involvement in the development of the Cerrado Verde Project

-- Advancing discussions with potential partners for the Madeira gold project

- Managing treasury and seeking opportunities

-- Relinquished Tocantins, Lavras and Terra Branca projects due to unfavourable exploration results

-- Pursue low cost exploration at Cerrado Verde and Madeira

-- Created an Opportunities Review Committee and a Technical Advisory Committee

-- Maintaining minimum staffing levels

Amazon currently has a working capital position of approximately Pounds Sterling 4.8MM (Cdn$8.5MM) putting the Company in a strong position to advance its portfolio of projects, whilst investigating new opportunities.

Commenting, President & Chief Executive Officer, Cristiano Veloso, said: "This is an important period for Amazon. Momentum is building for the Cerrado Verde project. Discussions with government and strategic partners are progressing well. The business strategy we have implemented has put Amazon in a healthy position at a time of great market uncertainty."

About Amazon

Amazon Mining, listed on the TSX Venture Exchange, is a mineral exploration company engaged in creating shareholder value via cost effectively advancing its existing portfolio of projects while diligently assessing additional value-adding opportunities. Amazon is preserving cash and adopting a highly conservative and risk mitigating approach to opportunity assessment and project development.

Please see SEDAR for full financial statements under Amazon Mining Holding Plc.

On behalf of the Board of Directors of Amazon Mining Holding Plc, Cristiano Veloso, President and CEO.

Cautionary Language and Forward Looking Statements

THIS PRESS RELEASE CONTAINS CERTAIN "FORWARD LOOKING STATEMENTS", WHICH INCLUDE BUT IS NOT LIMITED TO, STATEMENTS WITH RESPECT TO THE FUTURE FINANCIAL OR OPERATING PERFORMANCE OF THE COMPANY, ITS SUBSIDIARIES AND ITS PROJECTS, STATEMENTS REGARDING USE OF PROCEEDS, EXPLORATION PROSPECTS, IDENTIFICATION OF MINERAL RESERVES, COSTS OF AND CAPITAL FOR EXPLORATION PROJECTS, EXPLORATION EXPENDITURES, TIMING OF FUTURE EXPLORATION AND PERMITTING, REQUIREMENTS FOR ADDITIONAL CAPITAL, GOVERNMENT REGULATIONS OF MINING OPERATIONS, ENVIRONMENTAL RISKS, RECLAMATION EXPENSES, TITLE DISPUTES OR CLAIMS, AND LIMITATIONS OF INSURANCE COVERAGE. FORWARD LOOKING STATEMENTS CAN GENERALLY BE IDENTIFIED BY THE USE OF WORDS SUCH AS "PLANS", "EXPECTS", OR "DOES NOT EXPECT" OR "IS EXPECTED", "ANTICIPATES" OR "DOES NOT ANTICIPATE", OR "BELIEVES", "INTENDS", "FORECASTS", "BUDGET", "SCHEDULED", "ESTIMATES" OR VARIATIONS OF SUCH WORDS OR PHRASES OR STATE THAT CERTAIN ACTIONS, EVENT, OR RESULTS "MAY", "COULD", "WOULD", "MIGHT", OR "WILL BE TAKEN", "OCCUR" OR "BE ACHIEVED". FORWARD LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SAID STATEMENTS. THERE CAN BE NO ASSURANCES THAT FORWARD-LOOKING STATEMENTS WILL PROVE TO BE ACCURATE, AS ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SAID STATEMENTS. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS.

Readers are cautioned not to rely solely on the summary of such information contained in this release and are directed to the complete set of drill results posted on Amazon's website (www.amazonplc.com) and filed on SEDAR (www.sedar.com) and any future amendments to such. Readers are also directed to the cautionary notices and disclaimers contained herein.

THE 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

  • Amazon Mining Holding Plc
    Cristiano Veloso
    President & Chief Executive Officer
    +44 (0) 20 8133 7607
    +44(0)20 7405 7773 (FAX)
    cv@amazonplc.com
    or
    Amazon Mining Holding Plc
    Jed Richardson
    VP Corporate Development
    (416) 866-2966
    (416) 867-9393 (FAX)
    jed@amazonplc.com
    www.amazonplc.com