PhosCan Chemical Corp.
TSX : FOS

PhosCan Chemical Corp.

September 13, 2011 10:41 ET

PhosCan Chemical Announces Results for Quarter Ended July 31, 2011 and Resignation of Don McKinnon as Director

TORONTO, ONTARIO--(Marketwire - Sept. 13, 2011) -

(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 July 31, 2011.

PhosCan reported net income of $261,154 for the three months ended July 31, 2011 compared to a net loss of $11,061 for the same period of the previous year. The positive quarter-over- quarter result was primarily due to decreases in administration and share-based payment expenses and an increase in interest income. For the six months ended July 31, 2011 the Company reported a net loss of $769,832 compared to a net loss of $540,413 for the same period of the previous year.

Cash and cash equivalents plus short-term investments were $65,918,378 at July 31, 2011 versus $67,904,058 at January 31, 2011. Working capital was $65,628,361 versus $67,890,731. The decreases were primarily a result of expenditures on the Martison Project, administration expense and unrealized foreign exchange loss.

Capitalized expenditures on the Martison Project were $88,956,934 at July 31, 2011 as compared to $87,289,650 at January 31, 2011. During the six months ended July 31, 2011, the Company elected to pay an $812,800 fee-in-lieu of additional claim assessment work to complete its application to take a majority of the claims surrounding the Martison phosphate deposit to lease and effective May 1, 2011 the lease application was approved. The Company continues to advance the bench and pilot plant beneficiation testing of phosphate ore from the Martison Project and the test program to find a process to profitably recover niobium and rare earths contained in the Martison Deposit.

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 and six months ended July 31, 2011 may be found on SEDAR (www.sedar.com) or the Company's website at www.phoscan.ca.

PhosCan also announces that Donald McKinnon has resigned as a director of the Corporation.

Stephen Case, President and CEO of PhosCan, said "On behalf of the Board of Directors and shareholders of PhosCan, I would like to thank Don McKinnon for his contributions over the years. Don's knowledge and experience have been invaluable to the Company. We will miss his wise counsel, but wish him all the best in his well-earned retirement."

There are no immediate plans to replace Mr. McKinnon on the Board of Directors.

Contact Information

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