Pacific Iron Ore Corp.
TSX VENTURE : POC

Pacific Iron Ore Corp.

April 04, 2011 09:00 ET

Pacific Iron Corporation Announces Release of 2010 Financial Statements and Management Discussion and Analysis

CALGARY, ALBERTA--(Marketwire - April 4, 2011) - Pacific Iron Ore Corporation (TSX VENTURE:POC), announces that it has filed its Financial Statements and Management Discussion and Analysis for the years ended December 31, 2010 and 2009. These documents are now available on SEDAR. 

2010 Results

During 2010 the Corporation generated interest revenue of $4,704 (2009 - $7,398) and incurred a net loss of $1,108,539 or $0.02 per common share (2009 - $352,956 or $0.01 per common share). Its major expenses included: operating expenses of $196,403 (2009 - $152,023); general and administrative costs of $357,968 (2009 - $289,167), stock based compensation expenses of $234.795 (2009 - $153,670), the write-down of mineral properties of $606,761 (2009 - $245,186). The Corporation also received the benefit of recognizing future income tax recoveries of $282,684 (2009 - $481,804) during the year.

Operating expenses totaled $196,403 in 2010 as compared to $152,023 in 2009 an increase of $44,380. In 2010, the major categories of expenditure were as follows:

  • Amortization of equipment of $51,629 ($30,805 in 2009).
  • Consulting costs of $49,200 ($36,000 in 2009) relating to operational management services provide to the Corporation which did not pertain to exploration or financial services
  • Part XII taxes of $20,776 ($29,646 in 2009) incurred on deferred exploration program costs renounced by the Corporation.
  • Travel costs of $18,411 ($17,181 in 2009) incurred in transporting staff, advisors and investors to the Corporation's principal mining properties.
  • Office, rent and utility expenses of $22,361 ($22,922 in 2009).
  • Automotive related costs of $7,236 ($4,581 in 2009).
  • Insurance costs of $14,370 ($9,082 in 2009).
  • Exploration costs expensed of $12,272 ($nil in 2009) as the Corporation expensed incidental costs incurred on minor projects in 2010.

General and administrative expenses totaled $357,968 in 2010 as compared to $289,167 in 2009, an increase of $73,801. In 2010, the major categories of expenditure included:

  • Legal and accounting fees $284,263 ($232,386 in 2009). The costs are associated with annual audit, adoption of International Financial Accounting Standards ("IFRS") and review procedures, filing of tax returns, consulting services provided in the preparation of interim statements and regulatory filings and general corporate advisory services. Also see disclosures with respect to related party transactions.
  • Advertising, Investor relations, corporate communication and security exchange fees totalling $50,102 ($29,923 in 2009). 
  • Insurance costs of $12,517 ($16,500 in 2009)
  • Interest expenses and bank charges totalled which $2,476 ($3,024 in 2009).

Write downs of mineral properties totaled $606,761 in 2010 as compared to $245,186 in 2009. After accessing the preliminary results of the 2008 to 2010 Exploration Programs, the remaining financial resources of the Corporation, the ability to raise additional capital and management's believe of the future potential of certain mining claims in British Columbia and Ontario, the Corporation wrote-off the deferred costs associated with certain claims. 

Stock based compensation expense totaled $234,795 ($153,670 in 2009) and arises from the issuance of stock options and broker warrants during the period.

Company Contacts:

For further information please refer to the Corporations profile on SEDAR which can be accessed at www.sedar.com.

Forward Looking Statements:

The TSX.V Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed "forward looking statements". All statements in this release, other than statements of historical facts, that address future production, reserves potential, exploration drilling, exploration activities and events or developments that the Corporation expects are forward looking statements. Although the Corporation beliefs the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause results to differ materially from those in the forward looking statements include, but are not limited to: market prices; exploitation and exploration successes; continued availability of capital, financing and personnel; government regulation and laws; the Corporations relationship with First Nations; environmental developments; and general economic, market or business conditions. Investors are cautioned that such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward looking statements. For more information on Pacific Iron Ore Corporation, Investors should review the Corporation's registered filings which are available at www.sedar.com.

Neither the 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

  • Pacific Iron Ore Corporation
    Todd Montgomery
    Chief Executive Officer
    (403) 228-0607
    (403) 262-4860 (FAX)
    or
    Pacific Iron Ore Corporation
    Jeffery Austin
    President
    (250) 763-4892
    (403) 265-2887 (FAX)
    www.pacificironorecorp.com