International Millennium Mining Corp.

International Millennium Mining Corp.

May 30, 2006 08:30 ET

International Millennium Mining Corp.: 1st Quarter Report

NORTH VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 30, 2006) - International Millennium Mining Corp. (the "Company") announces the release of its 1st Quarter financial statements and MD&A (the "Quarterly Report") for the three months to March 31, 2006. (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. Concurrently with this news release, the Company is filing the Quarterly 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 immediately on the SEDAR website, or will be mailed upon request.



1st Quarter Highlights

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1st Quarter 1st Quarter Year ended
March 31, 2006 March 31, 2005 December 31, 2005
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Cdn $ Cdn $ Cdn $
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Net Revenues Nil Nil Nil
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General and
Administration
expenditures 61,889 49,732 139,853
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Deferred Mineral
Property
expenditures 54,680 28,226 193,256
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Loss before
extraordinary
item (61,016) (45,580) (137,033)
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Loss per share
before
extraordinary
item $ (0.01) $ (0.01) $ (0.02)
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Net Loss (61,016) (45,580) (137,033)
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Net Loss per
share $ (0.01) $ (0.01) $ (0.02)
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Total assets 985,128 719,959 675,790
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Total liabilities 50,025 264,262 291,546
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Share capital 3,359,279 2,450,404 2,470,404
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Convertible debenture - 266,517 275,517
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Weighted average
number of shares
outstanding 7,610,106 5,482,148 2,588,303
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Common shares
outstanding 9,176,370 5,488,370 2,867,700
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In anticipation of a significant multi-million dollar financing, and in preparation for the Company's application to list its shares on the TSX Venture Exchange (the "Exchange"), management has expended considerable effort and time on organizing its Mexico properties into a newly incorporated Mexico subsidiary, coordinating the updating or preparation of NI 43-101 technical reports for the British Columbia, Nevada, and Cabo Ontario mineral properties and completing its audited financial statements, as well as the annual general and special shareholders' meeting AGM materials. The process of carrying out this work and of legally preparing and assembling a large amount of documents for a financing and Exchange listing, especially with a portfolio of nine mineral properties, is a large undertaking, but we made considerable progress in the first quarter 2006.

As a result of an increased work force, higher legal fees, once a year AGM costs, and more than normal regulatory work, general and administration costs increased 113% compared to the last quarter, and by 24% compared to the first quarter fiscal 2005. Foreign exchange gain was minimal in the first quarter. Total deferred mineral property expenditures increased by approximately $9,000 over that expended in the 4th quarter fiscal 2005 and they were almost double that expended in the 1st quarter fiscal 2005. Most of this increase is a result of property payments and other acquisition costs related to the Mexico and Nevada properties, as well as the Jason Claims.

The Company also experienced changes in management, announcing Cal Lucyshyn as the new Chief Financial Officer, and the director resignation of John Steele.

Management believes that with the very low metal inventories, relatively low increases in metal supplies and increased demand for virtually all precious, base and strategic metals in the early stages of a metal bull market, its strategy of acquiring and developing precious metal polymetallic projects in historic areas in the Americas is prudent and will enhance its financibility and long term value. We are presently negotiating a substantial brokered private placement, which should be filed with the Company's listing application on the Exchange and its Exchange filing for approval of the acquisition of the Cabo Ontario resource within the next month.

First quarter ended March 31, 2006

General and administrative costs for the quarter ended March 31, 2006 were $61,889, up from $49,732 in the 1st quarter fiscal 2005. The primary reasons for the difference are the increases associated with accounting, auditing, administration, and legal and regulatory costs resulting from property acquisitions, due diligence, property negotiations and preparation of agreements concerning mineral properties in Nevada, USA; the State of Sonora, Mexico; and Ontario, Canada, as well as incorporating the Mexico subsidiary and increased regulatory requirements for public companies.

The public exchange listing application process is now in full swing as the Company prepares for the listing process by acquiring property technical reports, title opinions and other required regulatory documents. The Company has also received shareholder approval to expand its mineral properties portfolio with the acquisition of four Ontario properties from Cabo, prior to submitting its Exchange listing application and filing for Exchange approval of the Cabo properties acquisition.

The Company completed a non-brokered private placement financing of $320,000 to provide for working capital and fund general corporate endeavors, property payments, and exploration work. Management is focused primarily on precious metals polymetallic projects in the Americas and is working towards building a strong, stable and well financed mineral exploration and development property entity.

Cash reserves increased during the quarter from $73,073 to $328,404. The Company's working capital position has increased from ($209,405) at March 31, 2005 to $286,774 at March 31, 2006.

Letter of Intent to Acquire Cabo Drilling Corp. Mineral Properties

On December 15, 2005, the Company signed a letter of intent with Cabo whereby, subject to certain conditions, the Company will acquire all of Cabo's mineral properties located in the Province of Ontario, Canada. John A. Versfelt, President and Chief Executive Officer of International Millennium Mining Corp. is also President, Chairman, and Chief Executive Officer of Cabo.

The transaction is subject to an independent valuation and fairness opinion (completed), completion of due diligence by both companies (completed), approval by both the Company and Cabo shareholders (received), and to approval by the Exchange. The acquisition is also contingent upon the company completing a $2.5 million financing and gaining a listing on the Exchange.

The Company can acquire 100% of Cabo's interest in the properties by payment of 10 million units of the Company to Cabo, each unit comprised of one common share and 1/3 of a 2 year warrant, each full warrant exercisable at $0.35 per common share and by spending $1,000,000 for exploration or development of the Cabo properties. Cabo will distribute not less than 75% of the units to its shareholders upon receipt from the Company.

At the Company's Annual General and Special Meeting, held Friday, April 28, 2006, the Company's disinterested shareholders voted 99.34% in favour of the purchase. The company received proxies representing over 66% of its issued and outstanding shares.

Hilda 30 Property Option Agreement Replaced

The April 21, 2005 option agreement to acquire an 80% interest in the Hilda 30 Property was replaced by a new option agreement and an addendum thereto dated January 12, 2006 and February 10, 2006, respectively, to record the ownership of Minera Cuesta S.A. de C.V. (a Mexico registered company) as trustee for the Turley Estate, Donald A. Burns and L. Keith Mortensen, and to record the assignment of the Company's interest in the Hilda 30 Property option agreement to its subsidiary, Minera Internacional Milenio S.A. de C.V. The terms and conditions of the April 21, 2005 option agreement are continued in the new option agreement and addendum thereto. All outstanding property payments held until the new option agreements were executed and filed in Mexico, totalling US$14,000, are paid.

Mineral Property Information

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 mineral properties in Canada and internationally. The Company has acquired and is exploring mineral properties in British Columbia, Canada; Nevada, USA; and, Sonora State, Mexico. Emerging mineral targets include: silver, gold, zinc, nickel, copper and platinum group elements.

ON BEHALF OF THE BOARD

"John A. Versfelt"

John A. Versfelt, President and CEO

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, receipt of property titles, potential mineral recovery processes and the timing of other business transactions. 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.

Contact Information

  • International Millennium Mining Corp.
    John A. Versfelt
    President and CEO
    (604) 984-9907
    (604) 983-8056 (FAX)
    Email: info@immc.ca