PhosCan Chemical Corp.
TSX : FOS

PhosCan Chemical Corp.

December 12, 2014 11:30 ET

PhosCan Chemical Announces Results for Quarter Ended October 31, 2014

TORONTO, ONTARIO--(Marketwired - Dec. 12, 2014) -

(Expressed in Canadian dollars unless otherwise indicated)

PhosCan Chemical Corp. (TSX:FOS) today released its quarterly results for the period ended October 31, 2014.

PhosCan reported a net loss of $254 thousand for the three months ended October 31, 2014 compared to a net loss of $33 thousand for the same period of the previous fiscal year. During the nine months ended October 31, 2014, the Company reported a net loss of $521 thousand compared to a net loss of $244 thousand in the same period of the previous year. Professional and legal fees are higher to support increased business development activities. Directors' fees have risen in 2014 to more appropriately compensate directors for their services. Share based payments were higher in the three month period, but lower for the nine month period. Gains on the sale of marketable securities and foreign exchange were also down from last year. The remaining expenses were generally in line with prior year periods.

Cash, cash equivalents, short-term investments and marketable securities were $55.8 million at October 31, 2014 versus $56.2 million at January 31, 2014 and working capital was $55.7 million versus $57.1 million. The decrease in working capital was primarily due to administration expenses of $1,083 thousand, the repurchase of common shares of $371 thousand, the unrealized loss on marketable securities of $326 thousand (recorded as other comprehensive income) and capitalized expenditures on the Martison Project of $208 thousand, net of interest income of $610 thousand.

For a more complete review of the Company's results, copies of PhosCan's financial statements and management's discussion and analysis for the quarter ended October 31, 2014 may be found on SEDAR (www.sedar.com) or the Company's website at www.phoscan.ca.

The Company also announces that its CFO, James Pringle, has resigned effective December 18, 2014, to pursue other opportunities, and will be replaced by Mike Thome. Mike is a Chartered Accountant and an experienced financial executive. His work experience includes Deluxe Entertainment Services, Canada Brick and Magna International.

About PhosCan

PhosCan owns a 100% interest in the Martison Project and currently has cash, cash equivalents, short term investments and marketable securities of approximately $55.2 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