International Millennium Mining Corp.

International Millennium Mining Corp.

August 29, 2007 15:32 ET

International Millennium Mining Corp.: 2nd Quarter 2007 Report

NORTH VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2007) - International Millennium Mining Corp. (the "Company") (TSX VENTURE:IMI) announces the release of its 2nd Quarter financial statements and MD&A (the "Quarterly Report") for the six months ended June 30, 2007 (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.

2nd Quarter Highlights



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Cdn ($) 2(nd) Quarter 2(nd) Quarter Year to date Year to date
June 30, 2007 June 30, 2006 Fiscal 2007 Fiscal 2006
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Net Revenues Nil Nil Nil Nil
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General and
Administration
expenditures $ 76,389 $ 86,125 $ 201,425 $ 148,033
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Interest income $ 23,381 $ - $ 44,960 $ 31
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Stock based
compensation
expense $ 114,000 $ 80,000 $ 114,000 $ 80,000
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Net Loss $ (167,008) $ (167,324) $ (270,470) $ (228,340)
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Net Loss per share $ (0.01) $ (0.02) $ (0.02) $ (0.03)
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Deferred Mineral
Property
expenditures $ 432,652 $ 165,155 $ 671,614 $ 192,837
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Total assets $ 7,941,432 $ 965,039 $ 7,941,432 $ 965,039
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Total liabilities $ 160,278 $ 64,760 $ 160,278 $ 64,760
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Working capital $ 2,630,425 $ 113,793 $ 2,630,425 $ 113,793
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Common shares -
issued and
outstanding 30,522,944 9,386,370 30,522,944 9,386,370
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Common shares -
fully diluted 45,575,287 10,296,370 45,575,287 10,296,370
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IMMC began trading on the facility of the TSX Venture Exchange at the opening on February 27, 2007 under the trading symbol IMI.

General and administrative costs for the quarter ended June 30, 2007 were $76,389, down from $125,036 in the quarter ended March 31, 2007. The primary reasons for the difference are non-recurring legal and filing costs from the completion of the listing application during the first quarter of fiscal 2007. The Company incurred $13,128 in the second quarter of fiscal 2007 in promotion and trade show costs and travel costs, down marginally from $14,412 incurred in the first quarter of fiscal 2007 and compared to nil costs during the first quarter in fiscal 2006. In general, these costs should average $14,000 - $15,000 per quarter.

Accounting and legal costs decreased $21,252 during the second quarter of fiscal 2007 to $8,408 as compared to $29,660 in first quarter of fiscal 2007 primarily from non-recurring legal and audit fees required for the listing application and the private placements. There was no significant change between accounting and legal costs from the second quarter of fiscal 2006 of $8,288 compared to $8,408 in the second quarter of fiscal 2007.

Transfer agent and filing costs decreased by $33,252 during the second quarter of fiscal 2007 from $42,628 in first quarter of fiscal 2007 to $9,376 in the second quarter of fiscal 2007 and a decrease from $16,954 incurred in the second quarter of fiscal 2006. The decreased expenditures are due to the completion of the listing application to the TSX-Venture Exchange, however higher transfer agent costs due to the significant volume of shares issued during the first quarter of fiscal 2007 offset some of the reduction in filing costs. Promotion and trade costs increased marginally to $12,451 during the second quarter of fiscal 2007 as compared to $11,477 in the first quarter of fiscal 2007 and compared to nil costs in the fiscal 2006, these costs are primarily due to trade shows and travel costs which will likely average $14,000 to $15,000 per quarter. The investor relations for the Company are being performed jointly by the management of the Company and by an investor relations consultant.

Property payment and deferred mineral property expenditures increased to $432,652 in the second quarter of fiscal 2007 compared to $165,155 in the second quarter of fiscal 2006. The increase in expenditures is primarily due to geophysics work on the Simon Property and line cutting on the Cobalt Property. Property payments also increased to $124,371, reflecting the Company's continual interest in all properties acquired since 2005.

Cash reserves decreased during the quarter from $3,190,142 to $2,717,525 primarily due to property payments and deferred exploration expenditures. The Company's working capital position has decreased by $444,282 from $3,074,707 at March 31, 2007 to $2,630,425 at June 30, 2007.

In April 2007, the Company granted 1,085,000 stock options to employees, directors, and consultants at a price of $0.40 and an expiry date of May 1, 2010.

With the completion of the private placements, the Company has planned exploration on most of its properties in fiscal 2007. The Company continues to have a joint-venture partner on the Harrison Lake property and continues to find partners for several other properties. In the first quarter of fiscal 2007 the Company initiated several programs on the Simon Property, Harrison Lake (Jason) Property and the Cobalt Property. Effective May 31, 2007, the Company entered into an Option and Joint Venture with First Mexican Resources Inc. ("First Mex") of Toronto, Ontario, granting First Mex the right to elect to acquire 60% interest in some and 40% interest in other mineral concessions in Sonora State, Mexico. In consideration of the expenditure by First Mex of one million US dollars (US$1,000,000) in accordance with the terms of the Option Agreement, First Mex acquires the exclusive and irrevocable right and option to elect, based on an alternating right-of-election formula set out in the Agreement, to acquire sixty or forty percent undivided interests in and to the Hilda 30 and La Esperanza properties presently held under agreements by MIMSA, and in any other property acquired by MIMSA or First Mex within a defined area of interest in Sonora State. First Mex agrees to expend an aggregate total of US$1,000,000 on any one or more of the Mexican properties as follows:

a) US$175,000 on or before December 31, 2007;

b) US$175,000 on or before August 31, 2008;

c) US$275,000 on or before August 31, 2009; and

d) US$375,000 on or before August 31, 2010.

Upon completion of the expenditures and acquisition by the parties of respective interests in the properties, all subsequent expenditures for exploration or development of each property are to be carried out on a joint venture basis.

Management is focused primarily on precious metal polymetallic projects in the Americas and is working towards building a strong, stable and well financed mineral exploration and development property entity.

Future Exploration Programs - First half of 2007

The Simon Mine is a former producing polymetallic mine, located in the Walker-Lane Trend south of Reno. Shut down in the late 1960s, this project now presents itself as an exploration and development play offering both size and grade potential for longer-term mining. Historical records of ore shipped from the 905 drift (89 rail cars) indicate average grades 12 oz Ag, 0.04 oz Au, 9% Pb, 5.7% Zn and 3% Cu. (These historic figures are considered relevant and demonstrate the potential of the property, but need to be verified by the Company). The Company has begun a second phase deeper penetrating IP/Resistitivity geophysical program over the new area staked subsequent to Phase I and has also implemented mag/EM geophysics and mobile metal ion geochemical programs.

The High Lake Property has been explored in a piecemeal fashion since the early 1950s. During that time, parts of the claim group were controlled by different parties. The IMMC option agreement marks the first time that this property, covered by the 20 claims, has been held by one company. Additionally, the High Lake Property is contiguous on the south border of the Electrum Lake Property. The High Lake/Electrum Lake Properties contain several known gold and gold-copper-molybdenum prospects. Several resource estimates have been produced by previous explorers on the mineralized zones identified in the eastern and western part of the High Lake Property. Geochemistry work on this project, which will be concentrated within these two zones, has been delayed to the Fall, 2007.

The Cobalt Property has numerous classical Cobalt Type silver targets outlined within that property claim group. Sufficient preliminary work has been completed on three of these silver targets to warrant further testing. The next phase of exploration on the Cobalt Property began in the first quarter of fiscal 2007 and consisted of line cutting and geophysics work over certain areas of the property. The purpose of the geophysics work was to identify the location of volcanogenic massive sulfide and Cobalt Type targets. In the second quarter, this work was followed up by first phase mobile metal ion geochemistry work, the results of which encouraged the Company to proceed to a more detailed second phase mobile metal ion geochemical program.

At its Harrison Lake Project in British Columbia, the Company will continue exploration work with its joint venture partner Sutcliffe Resources Ltd. Active mining at the Giant Mascot Mine took place within the ultramafic belt, approximately 10 kms from the southeast corner of the Harrison Lake property between 1958 - 1974, producing 4.2 million tonnes from reserves totaling 4.7 million tonnes grading 1.19% Ni; 0.46% Cu; 0.1% Co; 1.0% Cr; and unreported grades of platinum group metals, gold and silver. The Harrison Lake ultramafic belt provides a very attractive exploration prospect for Ni/Cu and platinum group mineralization. Ground chemistry and detailed geology of priority targets is taking place on the Jason property located at Harrison Lake.

Six Months Ending June 30, 2007

General and administrative costs for the second quarter have decreased due to fewer non-recurring charges as the listing application and the financings are completed. As a result, the quarterly general and administrative costs have decreased to $76,389 in the second quarter of fiscal 2007 compared $125,036 in the first quarter of fiscal 2007. Overall, for the first six months of 2007 general and administrative costs increased by $53,392 to $201,425 compared to $148,033 in the first six months of 2006. This increase was primarily due to non-recurring charges associated with the Company's listing application on the TSX-Venture Exchange and private placements that were completed in the first quarter of fiscal 2007.

Regulatory costs and salaries have decreased $26,516 in the first six months of fiscal 2007 to $25,825 from $52,341 in the first six months of fiscal 2006 due to hiring of an employee responsible for all regulatory and land management matters previously contracted. Administration costs have decreased by $16,596 in the first six months of fiscal 2007 to $23,219 from $39,815 in the first six months of fiscal 2006 due to new lower contract rates with American Resource Management Consultants Inc. for administration services.

The Company earned interest of $44,960 in the six months ending June 30, 2007 compared to $31 in the six months ending June 30, 2006. The Company invests excess cash in conservative short-term interest bearing investments.

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 the Company's financing ability and long term value.

Financial and Mineral Property Information

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 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. (the "Company") is a mineral exploration and development company engaged in the acquisition and exploration of precious metal polymetallic mineral properties in the Americas. 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 silver, gold, cobalt, molybdenum, zinc, lead, nickel, copper and platinum group metals.

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.

Contact Information

  • International Millennium Mining Corp.
    Mr. John A. Versfelt
    President & CEO
    (604) 984-9907
    or
    International Millennium Mining Corp.
    Mr. D. Alex Caldwell
    Corporate Secretary
    (604) 984-9907
    (604) 983-8056 (FAX)
    Email: info@immc.ca