COEUR D'ALENE, Idaho, Feb. 23 /PRNewswire-FirstCall/ -- Metalline Mining Company, Inc. announced today that it has implemented plans to continue drilling activities on its Sierra Mojada mine project despite its limited working capital. As part of that plan, the Company's officers and independent directors have agreed to defer a significant portion of their cash compensation until the Board of Directors determines the Company has sufficient operating capital. Effective February 1, 2009, the executive officers and corporate employees entered into salary deferral agreements for 25% to 50% of their compensation while independent directors have agreed to defer 100% of the cash portion of their director's fees. Management plans to continue its efforts towards reducing administrative costs and exploring additional sources of capital. However, without additional funding, the Company may not be able to fund its operations through the end of its 2009 fiscal year.
In connection therewith, the Company also announced today that its consolidated financial statements for the year ended October 31, 2008, which were included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 13, 2009, contained a "going concern" qualification from its independent registered public accounting firm Hein & Associates LLP. This announcement is in compliance with the AMEX Company Guide Rule 610(b) requiring a public announcement of the receipt of an audit opinion that contains a going concern qualification. This announcement does not reflect any change or amendment to the consolidated financial statements as filed. Further information regarding the going concern qualification is contained in the Company's Annual Report on Form 10-K for the year ended October 31, 2008.
About the Company
Metalline Mining Company is an exploration stage enterprise engaged in the business of mining. The Company currently owns mining concessions in the municipality of Sierra Mojada, Coahuila, Mexico. The Company conducts its operations in Mexico through its wholly owned Mexican subsidiaries, Minera Metalin S.A. de C.V. and Contratistas de Sierra Mojada S.A. de C.V. To obtain more information on Metalline Mining Company, visit the Company's web site (http://www.metallinemining.com/).
Forward-Looking Statements
This news release contains forward-looking statements regarding future events and Metalline's future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). These statements are based on current expectations, estimates, forecasts, and projections about the industry in which Metalline operates and the beliefs and assumptions of Metalline's management. Words such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "continues," "may," variations of such words, and similar expressions, are intended to identify such forward-looking statements. In addition, any statements that refer to projections of Metalline's future financial performance, Metalline's anticipated growth and potentials in its business and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those identified elsewhere herein and Metalline's Annual Report on Form 10-K for the fiscal year ended October 31, 2008 under "Risk Factors." Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Metalline undertakes no obligation to revise or update any forward-looking statements for any reason.
