VANCOUVER, May 12 /PRNewswire-FirstCall/ -- Polaris Minerals Corporation (TSX:PLS) today reported financial results for the period ended March 31, 2006. As of March 31, 2006, the Company had working capital of $66 million, including cash of $67 million, compared to working capital of $189,000 and cash of $1.2 million for the year ended December 31, 2005. During the quarter the Company closed its Initial Public Offering on January 10, 2006, raising net proceeds of $74 million, and commenced construction of its Orca Quarry on northern Vancouver Island, BC, Canada, with first shipments of products expected in early 2007.
Financial Results
The Company had no operating revenues and incurred a loss of $2.2 million, ($0.08 per share) for the quarter-ended March 31, 2006, compared to a loss of $1.1 million ($0.08 per share) for the quarter ended March 31, 2005.
During the quarter ended March 31, 2006, the Company capitalized $8 million to the Orca Sand & Gravel Quarry and $248,000 to the Richmond Terminal, compared with $162,000 and $48,000 respectively in the corresponding 2005 quarter. Costs capitalized to the Eagle Rock Quarry Project during the period ended March 31, 2006 were $9,000, compared with $Nil for the same period in 2005.
This financial summary should be read in conjunction with the Company's March 31, 2006 unaudited consolidated financial statements and Management's Discussion and Analysis, both of which are available on http://www.sedar.com/.
Quarter One 2006 Highlights
The Company made substantial progress during the first quarter of 2006, which began with the closing of a successful Initial Public offering on January 10, 2006 and, together with the exercise of an over-allotment option by the agents, issued a total of 16,628,185 common shares raising net proceeds of $74 million and entered into a debt facility for US$31 million. Other significant achievements were:
- Commenced construction of the Orca Quarry in March 2006.
- Entered into construction contracts for the process plant and ship
loader and supply agreements for the loadout conveyor system and
mobile equipment for the Orca Quarry.
- Executed a long-term Facility Use Agreement with Pacific Atlantic
Terminals LLC. in Richmond, San Francisco for berthing of vessels
supplying the Richmond Terminal.
- Completed the redesign of the Richmond receiving, storage and
distribution terminal.
Polaris Minerals Corporation is exclusively focused on the development of quarries and the production of construction aggregates in British Columbia for marine transport to urban markets on the west coast of North America to meet growing local supply deficits.
For further information, please contact:
Marco Romero, President and Chief Executive Officer or
Marlene Mathison, Director Corporate Development
Polaris Minerals Corporation
Tel: (604) 915-5000
Certain of the statements contained in this press release contain forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement. The Company does not expect to update any forward-looking statements as conditions change. Investors are referred to the discussion of the risk factors associated with the Company's business contained in the Company's Annual Information Form dated March 30, 2006, and filed with Canadian securities regulatory authorities and available on SEDAR.
