PhosCan Chemical Corp.

PhosCan Chemical Corp.

June 11, 2012 16:07 ET

PhosCan Chemical Announces Results for Quarter Ended April 30, 2012

TORONTO, ONTARIO--(Marketwire - June 11, 2012) -

(All dollar amounts are expressed in Canadian currency unless otherwise noted.)

PhosCan Chemical Corp. (TSX:FOS) today released its quarterly results for the period ended April 30, 2012.

PhosCan reported a net loss of $98,652 for the three months ended April 30, 2012 compared to a net loss of $1,030,986 for the same period of the previous year. The $932,334 decrease in net loss was due to: a decrease in administration expenses, in particular capital tax, professional and legal fees, and general office expenses; a decrease in share-based payment expense; a decrease in unrealized foreign exchange loss; and an increase in interest income.

Cash and short-term investments were $62,125,581 at April 30, 2012 versus $64,238,595 at January 31, 2012. Working capital was $61,335,085 versus $63,546,638. The decreases were primarily a result of expenditures on the Martison Project and administration expenses.

Capitalized expenditures on the Martison Project were $93,261,580 at April 30, 2012 as compared to $91,147,796 at January 31, 2012. During and subsequent to the quarter, PhosCan's efforts continued to be focussed on the metallurgical test programs aimed at finding a process to profitably recover niobium and/or rare earths contained in the Martison Deposit and the winter work program at the Martison Deposit site, both previously announced.

During the winter work program, carried out from January to March of this year, the Company constructed a temporary winter road to access the Martison Deposit site and conducted hydrogeological testing and sonic drilling. Of the sonic drilling, 1,956 metres were drilled in 15 holes to collect samples for further metallurgical test programs. The Company expects to have completed its current metallurgical program in the fourth quarter of calendar 2012. The Company had budgeted approximately $4.5 million, including a 5% contingency, to conduct the winter work program at the Martison Deposit site. While certain supplier invoices remain under review, the Company anticipates that the final cost of the program will be under budget.

During the quarter, the Company did not repurchase any of its common shares under the previously announced normal course issuer bid. Subsequent to the quarter end, the Company purchased 59,000 common shares for cancellation. To date, PhosCan has repurchased and cancelled 4,043,000 of the 12 million common shares permitted under the normal course issuer bid. The average price per share paid was $0.29, which represents a price discount to pro forma cash plus short-term investments per share of 24.7%. The bid will remain open until October 17, 2012 or any such earlier date as the Company may complete its purchases or otherwise terminate the bid.

For a more complete review of the Company's results, copies of PhosCan's financial statements and management's discussion and analysis for the three months ended April 30, 2012 may be found on SEDAR ( or the Company's website at

About PhosCan

PhosCan owns a 100% interest in the Martison Project and currently has cash and cash equivalents, plus short term investments of approximately $60.9 million. The Company continues to monitor economic conditions for attractively priced acquisitions and investment opportunities that would be accretive to shareholder value.

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of PhosCan, including, but not limited to, the impact of general economic conditions, industry conditions, volatility of financial markets and commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on development projects, results of future metallurgical testing, currency fluctuations, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Contact Information

  • PhosCan Chemical Corp.
    Stephen Case
    President & CEO
    (416) 972-9222