PhosCan Chemical Corp.
TSX : FOS

PhosCan Chemical Corp.

June 14, 2013 09:54 ET

PhosCan Chemical Announces Results for Quarter Ended April 30, 2013

TORONTO, ONTARIO--(Marketwired - June 14, 2013) -

(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, 2013.

PhosCan reported a net loss of $134,800 for the three months ended April 30, 2013 compared to a net loss of $98,652 for the same period of the previous year. The increase in net loss of $36,148 was primarily due to an increase in administration and share-based payment expenses, partially offset by an increase in foreign exchange gains.

For the three months ended April 30, 2013, the Company reported other comprehensive loss of $20,303, resulting in a comprehensive loss for the period of $155,103. At April 30, 2013, the Company owned marketable securities with a total market value of $708,165. The reported other comprehensive loss of $20,303 represented unrealized losses on these investments.

Cash and short-term investments were $58,599,001 at April 30, 2013 versus $59,607,711 at January 31, 2013. Working capital was $59,208,887 versus $60,005,891. The decrease in working capital of $797,004 was primarily due to expenditures of $650,471 on the repurchase of the Company's common shares under a normal course issuer bid. Capitalized expenditures on the Martison Project were $93,839,023 at April 30, 2013, an increase of $56,199 from January 31, 2013.

The Company repurchased for cancellation during the quarter an aggregate of 2,405,520 of its common shares under a normal course issuer bid. Subsequent to quarter end, the Company repurchased for cancellation 158,784 common shares. To date, PhosCan has repurchased and cancelled an aggregate of 9,045,164 of its common shares under its normal course issuer bids at an average price per share of $0.281, which represents a price discount to the pro forma sum of cash, short-term investments and marketable securities per share of 25.1%. Under its current normal course issuer bid, the Company may purchase up to 12 million of its common shares, representing at the time of renewal approximately 9.4% of the Company's public float. The bid will remain open until October 18, 2013 or any such earlier date as the Company may complete its purchases or otherwise terminate the bid. Purchases pursuant to the normal course issuer bid are being conducted through RBC Dominion Securities Inc.'s institutional equity trading desk.

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, 2013 may be found on SEDAR (www.sedar.com) or the Company's website at www.phoscan.ca.

About PhosCan

PhosCan owns a 100% interest in the Martison Project and currently has cash, short term investments and marketable securities of approximately $59.2 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
    www.phoscan.ca