SOURCE: Ventura Gold Corp.

December 03, 2007 08:00 ET

Ventura Reports Second Quarter Results and Advancement of Business Strategy

SCOTTSDALE, AZ--(Marketwire - December 3, 2007) - Ventura Gold Corp. (the "Company") (TSX-V: VGO) reported a net loss of $314,641 ($0.01 per share) for the three months ended September 30, 2007. The Company also completed the period with approximately $3.5 million in cash, working capital of $3.9 million and $1.5 million in securities held-for-trading and long-term investments (the latter representing an increase of approximately $859,800 from year-end March 31, 2007).

The Company has filed its interim unaudited financial statements and management discussion and analysis (MD&A) for the three and six months ended September 30, 2007 on SEDAR. (All amounts are reported in US dollars except as otherwise indicated).

Other highlights of the financial statements for the second quarter ended September 30, 2007 are discussed below:

--  The Company reported a net loss of $314,641 ($0.01 per share) for its
    second quarter ended September 30, 2007, primarily attributable to general
    and administrative overhead expenses.
    
--  The Company commenced drilling on the Gold Gulch copper-gold project
    in Arizona, adjacent to the Phelps Dodge Morenci copper mine on August 14,
    2007 where it has the right to acquire up to a 100% interest.
    
--  On September 25, 2007, the Company entered into an option agreement
    with Columbus Gold Corporation for its Del Oro gold property located in the
    Getchell/Battle Mountain Trend south of Winnemucca, Nevada, where it has
    the rights to earn up to a 51% interest.
    
--  The Board of Directors named Mr. Eric H. Edwards as the new President
    and Chief Executive Officer of the Company effective July 10, 2007, with
    Mr. Stephen Kay appointed as Executive Chairman. In addition, Ms. Wendy
    Yang was appointed Vice President of Investor Relations and Mr. Scott Weger
    was appointed Corporate Controller.
    
--  Subsequent to the end of the quarter on October 1, 2007, the Company
    completed a Cdn$250,000 investment in Colombian Mines Corporation , a
    private company with early-stage gold properties in Colombia.
    
--  Subsequent to the end of the quarter on November 20, 2007, the Company
    announced that it has arranged a non-brokered private placement to provide
    gross proceeds to the Company of Cdn$8.4 million (approximately US$8.6
    million).
    

Financial and Exploration Activities Overview

During the first six months of FY2008, capitalized mineral exploration costs were $917,345, compared with $222,410 in the same period one year ago, with $452,000 for exploration activities at the Inmaculada project, $747,100 for drilling, assaying and consulting services at the Gold Gulch project adjacent to the Morenci copper pit in Arizona, and the remaining $106,000 for consulting and options payments at the Cottonwood Peak project, located in the Carlin Trend in Nevada.

Working capital at the end of the first quarter decreased to $3.9 million from $4.8 million at year end March 31, 2007, due primarily to the Company's exploration and investing activities. The Company carried out significant exploration programs at the Gold Gulch and Inmaculada properties and also completed strategic, long-term investments in private companies, Santa Barbara Resources and African Aura Resources, which totaled approximately $614,500 during the first six months of FY2008. Cash used in investing activities totaled $1.5 million including the strategic investments and deferred exploration costs at the Company's mineral properties.

At the Gold Gulch project in Arizona, the Company is nearing completion of the planned core drilling program that commenced in August 2007. Assay results are expected to be available and final core logging compilation completed before fiscal year end March 2008.

Drilling has commenced on the Inmaculada gold-silver property in Peru, where the Company has the right to acquire up to a 70% interest. Drill assay results should be available by the fiscal year end March 2008.

The Company continues to evaluate additional investment opportunities in private, early-stage gold and silver companies using a consistent methodology to evaluate investments, specifically: a) companies with experienced and successful management, b) projects in historic mining areas with compelling geology, and c) companies located in countries with stable political and resource development environments. All investments are made with a view to establishing strategic, long-term relationships that can result in generative exploration properties and future, repeatable financing opportunities for the Company.

Outlook

Ventura expects to invest approximately $1.5 million in exploration for this fiscal year ending March 31, 2008, mainly focusing on the Inmaculada and Gold Gulch projects. This exploration expenditure will be based on results from the various ongoing exploration programs. It is anticipated that the Company's existing cash reserves will be sufficient to finance current planned exploration and investment activities for this fiscal year.

The key objectives for the immediate future are to:

--  Complete the Phase I drilling program on the Gold Gulch gold-copper
    project;
--  Complete Phase I drilling on the Inmaculada silver-gold project;
--  Commence exploration on the Del Oro gold property in Nevada
--  Pursue new exploration project opportunities to expand the exploration
    pipeline; and,
--  Continue to develop relationships with those companies and management
    that have unique capabilities that are complementary to those of the
    Company.
    

Ventura Gold Corp. is a United States-based precious metals exploration and development company with a business plan to a) acquire, evaluate and develop high-grade, low-cost gold-silver and base-metal deposits with a view to establishing strategic alliances and/or joint ventures with larger companies, and b) conduct strategic private equity investing and partnering where Ventura believes those companies and management have the resources and expertise to optimize the potential value of their asset bases. In addition to exploration projects in Peru, Arizona and Nevada, Ventura has almost $1.5 million in strategic investments in emerging exploration companies with exposure to projects in the USA, Mexico, China, Africa, Colombia and Ecuador.

VENTURA GOLD CORP.
CONSOLIDATED BALANCE SHEETS
(Expressed in United States Dollars)
(Unaudited - Prepared by Management)

                                                  ===========  ===========
                                                   September      March
                                                    30, 2007     31, 2007
                                                  -----------  -----------
                                                                 (Audited)
ASSETS

Current
  Cash and cash equivalents                       $ 3,539,227  $ 5,114,105
  Receivables                                           1,646        4,179
  Advances                                             17,932       37,025
  Securities held for trading                         804,298            -
                                                  -----------  -----------

                                                    4,363,103    5,155,309

Equipment                                               1,132            -
Reclamation bonds                                      25,585       21,946
Mineral properties and deferred exploration costs   2,725,885    1,808,540
Long-term investments                                 665,123      609,608
                                                  -----------  -----------

                                                  $ 7,780,828  $ 7,595,403
                                                  ===========  ===========


LIABILITIES AND SHAREHOLDERS' EQUITY

Current
  Accounts payable and accrued liabilities        $    98,638  $    61,681
  Accounts payable to related parties                 128,935       87,868
  Loans payable to related parties                    239,548      232,585
                                                  -----------  -----------

                                                      467,121      382,134
                                                  -----------  -----------

Shareholders' equity
  Capital stock                                    10,933,842   10,925,235
  Contributed surplus                                 707,420      574,574
  Deficit                                          (4,327,555)  (4,286,540)
                                                  -----------  -----------

                                                    7,313,707    7,213,269
                                                  -----------  -----------

                                                  $ 7,780,828  $ 7,595,403
                                                  ===========  ===========




VENTURA GOLD CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
(Expressed in United States Dollars)
(Unaudited - Prepared by Management)

                    ============  ============  ============  ============
                    Three Month   Three Month    Six Month     Six Month
                    Period Ended  Period Ended  Period Ended  Period Ended
                     September     September     September     September
                      30, 2007     30, 2006      30, 2007      30, 2006
                    ------------  ------------  ------------  ------------

EXPENSES
  Administration
   and management
   services         $     58,027  $     24,360  $     92,886  $     41,074
  Amortization                19             -            19             -
  Bank charges and
   interest               38,085            33        38,864           103
  Consulting               1,500             -        20,632             -
  Exploration costs        6,480         5,709        14,686        14,850
  Interest accrued
   on loans payable        3,487         3,514         6,963         4,575
  Office and
   miscellaneous           8,557         1,069        10,084         1,890
  Professional fees       35,128        43,187        47,118        46,685
  Rent and
   utilities              22,369             -        25,285             -
  Salaries                74,375             -       108,886             -
  Shareholder
   information             4,578         2,375         4,578         3,248
  Stock-based
   compensation           58,112         4,806       134,379         9,613
  Transfer agent,
   exchange and
   filing fees             5,155         5,029         9,156         6,705
  Travel and
   related                16,003             -        20,111           333
                    ------------  ------------  ------------  ------------

                        (331,875)      (90,082)     (533,647)     (129,076)
                    ------------  ------------  ------------  ------------

OTHER ITEMS
  Foreign exchange
   gain(loss)           (163,418)       (1,116)      160,663        10,238
  Interest income         61,717         5,252        86,671        10,573
 Unrealized gain on
  securities held
  for trading            118,935             -       245,298             -
  Write-down of
   accounts payable            -             -             -        24,425
                    ------------  ------------  ------------  ------------

                          17,234         4,136       492,632        45,236
                    ------------  ------------  ------------  ------------

Income (loss) for
 the period             (314,641)      (85,946)      (41,015)      (83,840)


Deficit, beginning
 of period            (4,012,914)   (3,862,410)   (4,286,540)   (3,864,516)
                    ------------  ------------  ------------  ------------


Deficit, end of
 period             $ (4,327,555) $ (3,948,356) $ (4,327,555) $ (3,948,356)
                    ============  ============  ============  ============

Basic and diluted
 earnings (loss)
 per common share   $      (0.01) $      (0.01) $      (0.01) $      (0.01)
                    ============  ============  ============  ============

Weighted average
 number of common
 shares
outstanding          118,453,791    88,654,878   118,435,261    88,654,878
                    ============  ============  ============  ============






VENTURA GOLD CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in United States Dollars)
(Unaudited - Prepared by Management)

                        ===========  ===========  ===========  ===========
                        Three Month  Three Month   Six Month    Six Month
                          Period       Period        Period       Period
                          Ended        Ended         Ended        Ended
                        September,    September,   September,   September,
                         30, 2007      30, 2006     30, 2007     30, 2006
                        -----------  -----------  -----------  -----------

CASH FLOWS FROM
 OPERATING ACTIVITIES
  Net income (loss) for
   the period           $  (314,641) $   (85,946) $   (41,015) $   (83,840)
  Items not affecting
   cash:
    Amortization                 19            -           19            -
    Interest accrued on
     loans payable            3,486        3,514        6,963        4,575
    Stock-based
     compensation            58,112        4,806      134,379        9,613
     Unrealized gain
     in securities
     held for trading      (118,935)           -     (245,298)           -
    Write-down of
     accounts payable             -            -            -      (24,425)

  Changes in non-cash
   working capital
   items:
    (Increase) decrease
     in receivables             954       (1,020)       2,533         (866)
    (Increase) decrease
     in advances             76,497            -       19,093            -
    Increase (decrease)
     in accounts
     payable
    and accrued
     liabilities              7,607        1,563       36,957          588
    Increase (decrease)
     in accounts
     payable to
    related parties         103,501       36,466       41,067       79,851
                        -----------  -----------  -----------  -----------

  Cash used in
   operating activities    (183,400)     (40,617)     (45,302)     (14,504)
                        -----------  -----------  -----------  -----------

CASH FLOWS FROM
 FINANCING ACTIVITIES
  Issuance of capital
   stock                      2,380            -        7,074            -
  Refund of issue costs           -            -            -           69
                        -----------  -----------  -----------  -----------

  Cash provided by
   financing activities       2,380            -        7,074           69
                        -----------  -----------  -----------  -----------

CASH FLOWS FROM
 INVESTING ACTIVITIES
 Acquisition of
  securities held for
  trading                                      -     (169,425)           -
 Acquisition of
  equipment                  (1,151)           -       (1,151)           -
 Acquisition of
  long-term investments           -            -     (445,090)           -
    Return of
     exploration
     advances                     -            -            -      140,322
    Mineral properties
     and deferred
     exploration costs     (720,065)     (84,480)    (917,345)    (222,410)
    Mineral property
     reclamation bond             -            -       (3,639)     (21,945)
                        -----------  -----------  -----------  -----------

    Cash used in
     investing
     activities            (721,216)           -   (1,536,650)    (104,033)
                        -----------  -----------  -----------  -----------

Decrease in cash and
 cash equivalents
 during the period         (902,236)    (125,097)  (1,574,878)    (118,468)

Cash and cash
 equivalents, beginning
 of period                4,441,463      604,462    5,114,105      597,833
                        -----------  -----------  -----------  -----------

Cash and cash
 equivalents, end of
 period                 $ 3,539,227  $   479,365  $ 3,539,227  $   479,365
                        ===========  ===========  ===========  ===========
Cash and equivalents is
 comprised of:
  Cash                    3,535,734      171,101    3,535,734      171,101
  Short-term commercial
   paper                      3,493      308,264        3,493      308,264
                        -----------  -----------  -----------  -----------
                        $ 3,539,227  $   479,365  $ 3,539,227  $   479,365
                        ===========  ===========  ===========  ===========

The TSX Venture Exchange neither approves nor disapproves the information contained in this News Release.

Contact Information

  • For additional information, contact
    Investor Relations:
    Wendy Yang
    Tel: (303) 357-4863

    Eric Edwards
    President and CEO
    Tel: (303) 357-4861