Amazon Mining Holding Plc
TSX VENTURE : AMZ

Amazon Mining Holding Plc

June 01, 2009 11:09 ET

Amazon Releases Results for the Quarter Ended March 31, 2009

TORONTO, ONTARIO--(Marketwire - June 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 today its unaudited interim consolidated financial statements for the three month period ended March 31, 2009 and provides the following corporate update.

Reports indicated for the three-month period ended March 31, 2009 there was a net loss of Pounds Sterling 185,674 compared to a loss of Pounds Sterling 460,767 for the three-month period ended March 31, 2008. As the Company remains engaged in exploration activity, no revenues are presently generated from its operations. The lower loss reflects reduced exploration activities during the quarter.

Subsequent Period Summary:

- Signed Agreement in principle to acquire Uaua Pesquisa Mineral Ltda, Closing of the transaction is subject to the satisfaction of certain conditions, including the approval of the TSX Venture Exchange.;

- Announced that Brazil's Centre for Mineral Technology (CETEM), a government sponsored research and development institute, had agreed to fund metallurgical tests on verdete rock from Amazon's Cerrado Verde potash project, and

- Public hearings held by the State Parliament of Minas Gerais together with Federal and State government institutions of Brazil concluded in government officials declaring their intentions to establish development partnerships to support geological, metallurgical and agronomic efficacy work related to verdete slate;

Amazon currently has a working capital position of approximately Pounds Sterling 4.7MM (Cdn$8.2MM). The company is maintaining a conservative approach to advancing its portfolio of assets. Seeking opportunities to share costs related to developing the Cerrado Verde project with help from government and strategic partners.

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 portfolio of projects. Amazon is preserving cash and adopting a highly conservative and risk mitigating approach to opportunity assessment and project development.

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.



AMAZON MINING HOLDING PLC

CONSOLIDATED INCOME STATEMENT

(Unaudited)

3 months 3 months 9 months 9 months
ended ended ended ended
30 Sept 31 Oct 30 Sept 31 Oct
2008 2007 2008 2007
Pounds Pounds Pounds Pounds
Sterling Sterling Sterling Sterling
Administrative expenses (232,782) (70,365) (663,650) (203,521)
Impairment loss (20,750) - (2,092,464) -
--------- --------- ----------- ----------

Operating loss (253,532) (70,365) (2,756,114) (203,521)

Finance income 43,036 920 116,095 6,690
Exchange gains/(losses) 374,337 - 137,434 (1,827)
--------- --------- ----------- ----------
Profit/(loss) before taxation 163,841 (69,445) (2,502,585) (198,658)

Taxation - - - 997
--------- --------- ----------- ----------

Profit/(loss) for the period 163,841 (69,445) (2,502,585) (199,655)
--------- --------- ----------- ----------
--------- --------- ----------- ----------

Basic and diluted earnings/(loss)
per ordinary share 0.59p (0.49p) (9.09p) (1.60p)
--------- --------- ----------- ----------
--------- --------- ----------- ----------



AMAZON MINING HOLDING PLC

CONSOLIDATED BALANCE SHEET

(Unaudited)

Note 30 Sept 31 Dec
2008 2007
Pounds Pounds
Sterling Sterling

Intangible exploration assets 3 337,621 878,803
Property, plant and equipment 4 37,673 10,739
----------- -----------
375,294 889,542
----------- -----------

Other receivables and prepayments 55,104 11,390
Cash and cash equivalents 5,167,443 7,393,769
----------- -----------
Total current assets 5,222,547 7,405,159
----------- -----------

Total assets 5,597,841 8,294,701
----------- -----------
----------- -----------

Equity
Issued share capital 5 6,879,789 6,879,789
Warrant reserve 6 590,480 590,480
Share premium 3,620,082 3,620,082
Translation reserve 50,314 30,082
Merger reserve (2,727,227) (2,727,227)
Accumulated losses (2,957,057) (484,036)
----------- -----------
5,456,381 7,909,170
----------- -----------

Liabilities
Trade and other payables 141,460 385,531
----------- -----------
Total liabilities 141,460 385,531
----------- -----------

Total equity and liabilities 5,597,841 8,294,701
----------- -----------
----------- -----------



AMAZON MINING HOLDING PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited) 3 months 3 months 9 months 9 months
Ended Ended Ended Ended
30 Sept 31 Oct 30 Sept 31 Oct
2008 2007 2008 2007
Pounds Pounds Pounds Pounds
Sterling Sterling Sterling Sterling
Cash flows from operating
activities:
Operating loss (253,532) (70,365) (2,756,114) (203,521)
Adjustments for:
Depreciation 1,609 69 3,391 119
Impairment loss 20,750 - 2,092,464 -
Share-based payments 10,272 - 29,564 -
Loss on disposal of fixed assets 1,919 - 1,919 -
Decrease/(increase) in other
receivables and prepayments 40,127 (177,090) (43,714) (177,846)
(Decrease)/increase in trade and
other payables (66,192) 189,419 (231,102) 227,289
---------- --------- ---------- ---------
Cash used in operating activities (245,047) (57,967) (903,592) (153,959)

Income taxes paid - - - (853)
---------- --------- ---------- ---------
Net cash outflow from operating
activities (245,047) (57,967) (903,592) (154,812)
---------- --------- ---------- ---------

Cash flows from investing
activities:
Interest received 30,065 920 103,124 6,805
Acquisition of intangible
exploration assets (192,764) (129,959) (1,434,302) (403,210)
Acquisition of property, plant
and equipment (3,716) (473) (32,162) (3,544)
---------- --------- ---------- ---------
Net cash outflow from investing
activities (166,415) (129,512) (1,363,340) (399,949)
---------- --------- ---------- ---------
Issue of share capital - - - 649,999
Payment of issue expenses - (15,744) - (15,744)
---------- --------- ---------- ---------
Net cash flow from financing
activities - (15,744) - 634,255
---------- --------- ---------- ---------
Net (decrease)/increase in cash
and cash equivalents (411,462) (203,223) (2,266,932) 79,494
Cash and cash equivalents at
start of period 5,297,506 326,280 7,393,769 41,895
Exchange differences 281,399 1,678 40,606 3,346
---------- --------- ---------- ---------
Cash and cash equivalents at end
of period 5,167,443 124,735 5,167,443 124,735
---------- --------- ---------- ---------
---------- --------- ---------- ---------



AMAZON MINING HOLDING PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(Unaudited)

From 1 May 2007 to 31 December 2007
Issued Share Warrants Merger
capital premium reserve reserve
Pounds Pounds Pounds
Sterling Sterling Sterling
Balance at 1 May 2007 3,546,456 203,259 - (2,727,227)
Shares issued during
period 3,333,333 4,006,110 - -
Share warrants issued
during period - - 590,480 -
Expenses of issue - (696,676) - -
Share based payments - 107,389 - -
Loss for the period - - - -
Foreign exchange
differences - - - -
---------- ---------- ------- -----------
Balance at 31 December
2007 6,879,789 3,620,082 590,480 (2,727,227)
---------- ---------- ------- -----------
---------- ---------- ------- -----------


From 1 May 2007 to 31 December 2007
Accumulated Translation
losses reserve Total
Pounds Pounds Pounds
Sterling Sterling Sterling
Balance at 1 May 2007 (169,601) (831) 852,056
Shares issued during
period - - 7,339,443
Share warrants issued
during period - - 590,480
Expenses of issue - - (696,676)
Share based payments 28,799 - 136,188
Loss for the period (343,234) - (343,234)
Foreign exchange
differences - 30,913 30,913
------------ ------------ ----------
Balance at 31 December
2007 (484,036) 30,082 7,909,170
------------ ------------ ----------
------------ ------------ ----------



From 1 January 2008 to 30 September 2008
Issued Share Warrants Merger
capital premium reserve reserve
Pounds Pounds Pounds
Sterling Sterling Sterling
Balance at 1 January 2008 6,879,789 3,620,082 590,480 (2,727,227)
Loss for period - - - -
Share-based payments - - - -
Foreign exchange differences - - - -
---------- ---------- --------- -----------
Balance at 30 Sept 2008 6,879,789 3,620,082 590,480 (2,727,227)
---------- ---------- --------- -----------
---------- ---------- --------- -----------


From 1 January 2008 to 30 September 2008
Accumulated Translation
losses reserve Total
Pounds Pounds Pounds
Sterling Sterling Sterling
Balance at 1 January 2008 (484,036) 30,082 7,909,170
Loss for period (2,502,585) - (2,502,585)
Share-based payments 29,564 - 29,564
Foreign exchange
differences - 20,232 20,232
------------ ------------ ----------
Balance at 30 Sept 2008 (2,957,057) 50,314 5,456,381
------------ ------------ ----------
------------ ------------ ----------


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

  • 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) 866-8829 (FAX)
    jed@amazonplc.com
    www.amazonplc.com