Pacific Iron Ore Corp.
TSX VENTURE : POC

Pacific Iron Ore Corp.

May 01, 2012 09:00 ET

Pacific Iron Ore Corporation Announces Release of 2011 Financial Statements and Management Discussion and Analysis

CALGARY, ALBERTA--(Marketwire - May 1, 2012) - 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, 2011 and 2010. These documents are now available on SEDAR.

2011 Results

During 2011 the Corporation generated interest revenue of $8,518 (2010- $4,704) and incurred a net loss of $1,126,541 or $0.02 per common share (2010- $1,218,125 or $0.02 per common share). Its major expenses included: operating expenses of $141,572 (2010- $163,350); general and administrative costs of $295,508 (2010- $355,497); stock based compensation expenses of $154,160 (2010- $372,989); the write-down of mineral properties of $312,667 (2010- $39,323). The Corporation also received the benefit of recognizing future income tax recoveries of $172,421 (2010- $215,850) during the year.

Operating expenses totaled $141,572 in 2011 as compared to $163,350 in 2010, a decrease of $21,778. In 2011, the major categories of expenditure were as follows:

  • Amortization of equipment of $41,872 ($51,629 in 2010).
  • Consulting costs of $53,200 ($49,200 in 2010) relating to operational management services provided to the Corporation which did not pertain to exploration or financial services.
  • Part XII taxes of $6,327 ($20,400 in 2010) incurred on deferred exploration program costs renounced by the Corporation.
  • Travel costs of $10,097 ($18,417 in 2010) incurred in transporting staff, advisors and investors to the Corporation's principal mining properties.
  • Office, rent and utility expenses of $20,025 ($22,361 in 2010).
  • Automotive related costs of $5,243 ($7,236 in 2010).
  • Insurance costs $10,359 ($14,370 in 2010).
  • Exploration costs expensed of $242,034 ($119,209 in 2010) as the Corporation expensed incidental costs incurred on minor projects in 2011.

General and administrative expenses totaled $295,508 in 2011 as compared to $355,497 in 2010, a decrease of $59,989. In 2011, the major categories of expenditure included:

  • Legal and accounting fees $228,028 ($284,263 in 2010). 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 totaling $51,556 ($50,102 in 2010).
  • Insurance costs of $14,342 ($12,517 in 2010).
  • Interest expenses and bank charges totaled $2,773 ($2,476 in 2010).

Write downs of mineral properties totaled $312,667 in 2011 as compared to $39,323 in 2010. After accessing the preliminary results of the 2008 to 2011 Exploration Programs, the remaining financial resources of the Corporation, the ability to raise additional capital and management's belief 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 $154,160 ($372,989 in 2010) 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, visit our website at www.pacificironorecorp.com or contact Todd Montgomery.

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 Provide (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)

    Pacific Iron Ore Corporation
    Jeffery Austin
    President
    (250) 763-4892
    (403) 265-2887 (FAX)
    www.pacificironorecorp.com