Labrador Iron Mines Third Quarter Highlights Strong Cash Position towards Production Start-up
Toronto, Canada, February 17, 2009 – Labrador Iron Mines Holdings Limited (TSX: LIR) announces that it has filed its unaudited Financial Statements and MD&A for the third quarter and nine months ended December 31, 2008. The reports are available under the Company’s profile at www.sedar.com or on the Company’s website at www.labradorironmines.ca.Cash and cash equivalents at December 31, 2008 stand at $37.7 million. The Company has no borrowings or debt and remains in excellent financial condition to initiate production from the Phase One deposits of its Schefferville Area direct shipping iron ore project. Start-up of initial production is targeted for the summer of 2009 subject to final project approvals and timely receipt of operating permits and licenses.
At present, the Company is in the development stage and does not generate income except for interest income on its cash balances. For the three and nine month periods ended December 31, 2008, the Company reported a net loss of $682,489 ($0.02 per share) and $1,279,715 (0.04 per share) respectively, the main components being stock-based compensation expense of $498,562 and $1,085,125 respectively. Corporate expenses and administration costs for the quarter totaling $417,124 and $854,100 for the nine months were partially offset by interest income of $262,785 and $971,943 respectively from cash investments in highly liquid GICs with major Canadian financial institutions.
During the quarter, the Company invested $3.9 million in its mineral properties and $10.2 million in the nine months ended December 31, 2008, the principal components of which were drilling, bulksampling, engineering, metallurgical testwork, environmental, permitting and community consultation. In the summer of 2008, a 4,500 metre reverse circulation and core drilling program was completed to provide data towards a compliant resource estimate on the Phase One deposits and to assist with mine and operational planning. This was supplemented by an exploration trenching program and detailed hydro-geological drilling of over 1,000 metres in 18 holes along with associated pump testing. Samples were sent to SGS-Lakefield for assay and results are being incorporated into the resource estimates.
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