Mega Uranium Ltd.

Mega Uranium Ltd.

February 12, 2010 12:15 ET

Mega Uranium Ltd. Releases Unaudited Results for the Three Months Ended December 31, 2009

TORONTO, ONTARIO--(Marketwire - Feb. 12, 2010) - Mega Uranium Ltd. ("Mega") (TSX:MGA) announces its unaudited results for the three months ended December 31, 2009.


As at December 31, 2009, Mega had cash, cash equivalents and marketable securities totaling $66.9 million, as compared to $22.3 million at the end of September 30, 2009, an increase of 200%. The increase is primarily attributable to the proceeds from the company's public offering completed during the current quarter.

As at December 31, 2009, the Company had mineral properties and related expenditures of $300 million, as compared to $295 million as at September 30, 2009, reflecting increased expenditures on our properties in the quarter.

Summary results for the three months ended December 31, 2009, as compared to the three months ended December 31, 2008:

  • Loss from financial and trading activities for the quarter was $0.2 million, most of which relates to unrealized losses on marketable securities, as compared to a financial loss of $2.2 million last year.
  • Total expenses were $2.5 million in the quarter as compared to $8.7 million in the prior year's first quarter.
  • Net loss in the quarter was $1.1 million ($0.01 per common share), as compared to a net loss of $10.4 million in the previous year's quarter ($0.06 per common share).


In the last three months of 2009, Mega continued its feasibility studies of the Lake Maitland project in Western Australia and progressed exploration of priority projects in Argentina and Cameroon.

During the quarter, Mega reported significant progress in the development of Lake Maitland as follows:

  • the granting of a Mining Lease (refer to Mega's news release of October 19, 2009);
  • the signing of a Memorandum of Understanding with the ASX-listed Navigator Resources regarding the sharing of services and infrastructure at the Bronzewing gold project (news release of November 17, 2009);
  • the lodgement of environmental referral documents (news release of November 19, 2009); and
  • the purchase of Barwidgee station on which Lake Maitland is located (news release of November 26, 2009).

"With $0.27 per share in cash and corporate bonds at the December 31, 2009 quarter-end, Mega is in a strong position to advance our Lake Maitland project toward production," stated Sheldon Inwentash, the Corporation's Chairman and CEO. "In 2010, we expect to complete the feasibility studies for Lake Maitland and advance the project through the environmental approvals process. In addition we are committed to realizing value from our expansive exploration portfolio both through direct exploration expenditures and through the evaluation and execution of strategic opportunities." "Notwithstanding the recent lull in the uranium sector we remain positive at the future prospects and feel we are in an ideal position to capitalize on an up-turn given our extensive property portfolio, experienced team and strong financial position."

Stewart Taylor, Mega's President and Qualified Person under NI 43-101, has reviewed the technical information in this release and has verified the contents disclosed.


Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Canada, Argentina, Colombia and Cameroon. Further information on Mega can be found on the company's website at Mega Uranium's Ben Lomond and Maureen uranium resources are subject to a Queensland State Government policy that presently prohibits the mining of uranium.


Certain information contained in this press release constitutes "forward-looking information", which is information regarding possible events, conditions or results of operations that is based upon assumptions about future economic conditions and courses of action. All information other than matters of historical fact may be forward-looking information. In some cases, forward-looking information can be identified by the use of words such as "seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target", "may", "could", "would", "might", "will" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release includes, but is not limited to, statements about our plans regarding future acquisitions and property development, our expectations regarding the uranium market, global growth and the use of nuclear power, our drill results, commodity prices and core intersection lengths, in that they constitute estimates, based on certain assumptions of mineralization that may be encountered if a deposit were to be mined.

By its nature, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to differ materially from those expressed or implied by such forward-looking information. Some of the risks and other factors that could cause actual results to differ materially from those expressed in the forward-looking information contained in this release include, but are not limited to: risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations; results of initial feasibility, pre-feasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined; mining and development risks, including risks related to accidents, equipment breakdowns, labour disputes (including work stoppages and strikes) or other unanticipated difficulties with or interruptions in exploration and development; the potential for delays in exploration or development activities or the completion of feasibility studies; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; risks related to commodity price and foreign exchange rate fluctuations; the uncertainty of profitability based upon the cyclical nature of the industry in which the Company operates; risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities; risks related to environmental regulation and liability; political and regulatory risks associated with mining and exploration; and other risks and uncertainties related to the Company's prospects, properties and business strategy.

Although we have attempted to identify important factors that could cause actual results or events to differ materially from those described in the forward-looking information, readers are cautioned that this list is not exhaustive and there may be other factors that we have not identified. Readers are cautioned not to place undue reliance on forward-looking information contained in this release. Forward-looking information is based upon our beliefs, estimates and opinions as at the date of this release, which we believe are reasonable, but no assurance can be given that these will prove to be correct. Furthermore, we undertake no obligation to update or revise forward-looking information if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.

All forward-looking information contained in this release is expressly qualified by this cautionary note.


This press release contains disclosure regarding our mineral resources. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Mineral resources may never be converted into reserves. Furthermore, inferred resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Further exploration will be required to upgrade the inferred resources to a higher resource category.

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