Polaris Announces 2005 Year-End Results and Appointment of New CFO
March 30, 2006
VANCOUVER, British Columbia - Polaris Minerals Corporation (TSX:PLS) today reported financial results for the year ended December 31, 2005. As of December 31, 2005, the Company had working capital of $229,000, including cash of $1.2 million, compared to working capital of $5.8 million and cash of $6.2 million at December 31, 2004. Subsequent to year end, the Company closed its 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 gross proceeds of $79.8 million. The Company also arranged a bridge debt facility of US$47 million, which it subsequently elected to reduce to US$31 million.
The Company had no operating revenues in either 2005 or 2004 and incurred a loss of $3.4 million, ($0.27 per share) for the year-ended December 31, 2005, compared to a loss of $2.8 million ($0.22 per share) for the year ended December 31, 2004. The increase in the loss was primarily attributable to a $0.4 million increase in stock-based compensation as a result of the Company extending the exercise period of options outstanding.
During the year ended December 31, 2005, the Company capitalized $1.5 million to the Orca Sand & Gravel Project and $0.8 million to the Richmond Terminal, compared with $1.2 million and $0.5 million respectively in 2004. No costs were capitalized to the Eagle Rock Quarry during the year ended December 31, 2005, compared with $60,000 in 2004.
This financial summary should be read in conjunction with the Company's 2005 audited financial statements and Management's Discussion and Analysis, both of which are available on www.sedar.com.
Highlights for 2005
The Company made substantial progress during 2005, which culminated in the filing of a final prospectus for an Initial Public Offering in December. Other significant achievements were:
- Secured long-term agreements with the First Nations who assert territorial rights over the Orca Project area.
- Obtained all provincial and federal permits required for development of the Orca Quarry.
- Completed a NI 43-101 compliant feasibility study for the Orca Quarry.
- Secured a 50-year tenure over the Orca Quarry from Western Forest Products Inc., the private land owner.
- Signed a 10-year freight contract with CSL International Inc., the operator of the largest fleet of Panamax-class, self-unloading vessels in the world.
- Secured a 20-year sales agreement for construction aggregates from the Orca Quarry, an exceptional pre-construction achievement.
- Executed a 50-year Crown lease for the fully-permitted Eagle Rock Quarry, Polaris' second potential construction aggregates project.
Appointment of New Chief Financial Officer
Polaris is pleased to announce the appointment of Lisa Dea as Vice President, Finance & Chief Financial Officer, effective May 1st, 2006, to succeed Mr. Harry Sutherland, the Company's current CFO, who is retiring on April 30. Mr. Sutherland will continue to be involved in Polaris' business by retaining his seat on the Boards of Directors of Polaris' principal operating subsidiaries, and by providing consulting services to the Company. Marco Romero said: "On behalf of Polaris' Board of Directors, management and staff, I thank Harry for his exceptional contribution to the Company and wish him all the very best in his retirement. We are very pleased to have Lisa Dea succeed Harry, as she brings a strong background of professional accounting skills and public company reporting to our team."
Lisa Dea has been the Controller of the Company since October 2005, reporting to Mr. Sutherland, and working closely with the Company's senior management. This experience with the Company and her proven abilities will ensure a smooth transition. Ms. Dea is a Chartered Accountant who joined Polaris from Deloitte & Touche LLP where she was a senior manager in their Assurance & Advisory division. In her eleven years at Deloitte & Touche LLP, her main focus was auditing and public company reporting in the junior resource mining sector, both in Canada and the United States.
Polaris Minerals Corporation is exclusively focused on the development of construction aggregate resources in British Columbia, for marine transport to urban markets on the west coast of North America. These markets are experiencing a growing local supply deficit of construction aggregates caused by diminishing local resources and increasing demand. Polaris is currently developing the Orca Quarry on Vancouver Island and the Richmond Terminal in San Francisco Bay. Shipments of highquality sand and gravel to the California ready-mix concrete industry are expected to commence in early 2007.
For further information, please contact:
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 Final Prospectus dated December 21, 2005 and filed with Canadian securitie regulatory authorities and available on SEDAR.