Monroe Minerals Inc.
TSX VENTURE : MMX

Monroe Minerals Inc.

April 02, 2009 13:35 ET

Monroe Reports 2008 Results; Proposes New Company Name and Capital Structure to Reflect Focus on Uranium and Expansion Plans

CALGARY, ALBERTA--(Marketwire - April 2, 2009) - Monroe Minerals Inc. (TSX VENTURE:MMX) ("Monroe") reported today its financial results and operational highlights for 2008.

Commenting on the year, Monroe CEO and President Derek Moran said, "It is pleasing to report a good year, particularly in the face of such challenging conditions. Monroe consolidated its position as a new entrant into the uranium sector and disposed of its diamond interests. Reflecting the change of focus, the directors are recommending that the company is rebranded, and a proposal to change the name of the company to Kirrin Resources Inc. will be put before shareholders at the Annual General and Special Meeting on May 1, 2009."

Summary financial highlights are set out in tabular form below. Monroe recorded net income for the year of $190,500 (2007: loss $2,189,395), of which $904,915 represented the gain on the disposal of the diamond division (2007: $nil) and $20,135 was the write-down of mineral interests (2007: $622,888). On the balance sheet, total assets increased and long-term financial liabilities decreased to add to the positive performance. General and administrative costs, before reduction for capitalized items, reduced substantially to $983,695 (2007: $1,463,253).



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2008 2007 2006
$ $ $
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Working capital (deficit) (57,808) 1,869,979 53,430
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Mineral interests 1,696,373 125,777 306,135
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Total assets 2,492,998 2,338,933 1,251,257
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Total long-term financial
liabilities 110,000 441,785 720,669
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Shareholders' equity 1,528,565 1,553,971 105,456
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Net income (loss) for the year 190,500 (2,189,395) (3,443,796)
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Loss per share 0.00 (0.03) (0.05)
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Shares outstanding(i) 123,470,023 121,970,023 70,162,194
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(i) All figures in Canadian dollars except for shares outstanding.


Operational Highlights

The Company added the Boxey Point and Lost Pond, Newfoundland, uranium properties to its portfolio during the year. Aggregate exploration expenditures were $1.8 million, of which $1.7 million was spent on the Company's continuing projects, Alexis River, Boxey Point and Lost Pond.

Drilling programs were completed at Alexis River and Lost Pond. The key drilling results from Alexis River were from two holes, with the best intercepts being: (a) in hole AL0802 being 0.754% U3O8 across 0.2 m from 58.9 m to 59.1 core length, plus a second intercept of 0.069% U3O8 across 2.0 m from 83.0 to 85.0 m; and (b) in hole AL0805 being 0.188% U3O8 across 0.85 m from 197.7 m to 198.55 m core length, with five other lower grade intercepts higher in the hole ranging down to 0.034% U3O8 across 0.4 m from 16.7 m to 17.1 m. These intersections are all from unaltered, biotitic coarse-grained granitic dykes cutting mafic rocks. The results from Lost Pond will be announced following receipt and assessment.

The Company sold its remaining diamond assets during 2008 and realised a gain of $904,915. In addition, US$300,000 of the sale consideration was placed in escrow, to be released in favour of the Company upon the earlier of the receipt of South African government approval of a part of the sale or the generation of a specific level of revenue from the relevant asset. Appropriately, this sum has not been included in either the gain on sale or the Company's assets or in working capital at December 31, 2008. Regulatory approval may take an uncertain length of time and the Company remains confident that it will receive the proceeds of the escrowed funds in due course.

Reg A. Olson, Ph.D., P. Geol. is the designated Qualified Person for Monroe on the Alexis River, Boxey Point and Lost Pond projects.

Annual General and Special Meeting

Monroe also announced that it will seek approval at an annual general and special meeting of shareholders ('AGSM'), scheduled for May 1, 2009 in Calgary, to change the name of the Company to Kirrin Resources Inc. and to consolidate its common shares at a rate of one (1) new common share for every ten (10) outstanding common shares. The resolution regarding the change of name and consolidation must be approved by at least two-thirds of the votes cast at the meeting of shareholders. The change of name and consolidation are also subject to regulatory approval.

In addition, at the AGSM, Monroe will seek approval from shareholders to adopt new corporate By-Laws; reduce the stated capital of the common shares and correspondingly reduce the accumulated deficit by $8 million; adopt a new Stock Option Plan; and reprice outstanding stock options. The foregoing resolutions must be approved by a majority of the votes cast and in the case of the repricing of stock options, disinterested shareholder approval is required. The resolutions respecting the new Stock Option Plan and repricing of stock options are also subject to regulatory approval.

Monroe disposed of its diamond interests during 2008 and has since focused on uranium exploration. It is the Board of Directors' opinion that the Company should rebrand to reflect this change. It is also the Board's opinion that the Company's existing issued and outstanding common share structure is not conducive to securing additional equity financing and that a restructuring is warranted to facilitate attracting new investment in the Company that is necessary to implement plans for expansion.

The Annual Report, Proxy and Information Circular are being mailed to shareholders on or about April 3, 2009. The complete Annual Report, including financial statements and Management's Discussion and Analysis, will be available on www.monroeminerals.com. These documents will also be available at www.sedar.com.

Monroe is engaged in uranium exploration in Newfoundland & Labrador, Canada, and in the expansion of its portfolio through acquisition, merger, strategic partnership or joint venture. Its strategy is well defined: enhancing shareholder value by combining technical expertise, corporate development skills and professional management. Monroe's shares trade on the TSX Venture Exchange under the symbol MMX. For more information please visit www.monroeminerals.com.

To receive Company news releases via e-mail, please advise catarina@chfir.com and specify "Monroe press releases" in the subject line.

Forward-looking information: Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives including statements concerning the release of escrowed funds, our plans to consolidate our shares, changes to the name of the Company, adoption of new corporate By-Laws, reduction of the stated capital, adoption of a new stock option plan and repricing of stock options constitutes forward-looking information which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those expressed or implied by such forward-looking information. Risks include delays in obtaining or failure to obtain regulatory approval or shareholder approval. Except as required by applicable securities legislation, Monroe undertakes no obligation to publically update or revise forward-looking information, whether as a result of new information, future events or otherwise.

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

  • Monroe Minerals Inc.
    Derek J Moran
    President
    27 82 440 3426
    Website: www.monroeminerals.com
    or
    CHF Investor Relations
    Robin Cook
    Senior Account Manager
    (416) 868-1079 x228
    Email: robin@chfir.com