Aurora Reports 2007 Annual Results
VANCOUVER, BRITISH COLUMBIA–( EMWNews – March 31, 2008) – Aurora Energy Resources Inc. (the “Company”) (TSX:AXU) reports its financial and operating results for the year ended December 31, 2007. Details of the Company’s financial results are described in the audited financial statements and Management’s Discussion and Analysis for the year ended December 31, 2007. Further details on each of the Company’s projects and activities can be found on the Company’s website http://www.aurora-energy.ca and on SEDAR at http://www.sedar.com. All amounts are in Canadian dollars unless otherwise stated.
The Corporation was incorporated on June 8, 2005, and operates in the mineral resource industry. Its principle focus is on the exploration and development of uranium projects in the Central Mineral Belt (“CMB”) in Labrador, Canada one of the most promising uranium districts in the world, as well as potential evaluation and acquisition of opportunities throughout the world. Aurora is committed to responsible development with lasting local benefits and the highest standards of safety, health, and environmental protection.
Aurora’s properties consist of a total of 223,074 acres in 28 licenses or groups of mineral claims. On November 27, 2007, the Company completed its 2007 drill program which had commenced on April 16, 2007. A total of 141 diamond drill holes totaling 49,793 metres were completed, utilizing up to 11 helicopter-supported drill rigs over the course of the program. This work significantly expanded the size of the Michelin and Jacques Lake deposits, and tested a number of new and historic uranium targets on the property. During the first quarter of 2008, the Company released an updated NI 43-101 compliant resource estimate for the Michelin and Jacques Lake deposits, and initial NI 43-101 compliant resource estimates for the Gear, Inda, Nash and Rainbow deposits.
For 2008, an $8 million, 20,000 metre winter infill drilling program has recently concluded at the Michelin and Jacques Lake deposits, to convert inferred resources to indicated resources. This will be followed by a $20 million, 50,000 metre summer diamond drilling program, aimed at advancing the development of deposits and exploration targets. The main focus of the 2008 drilling program will be to continue to expand and convert inferred resources to indicated resources at the Michelin and Jacques Lake deposits, expand the size of the Gear, Inda, Nash and Rainbow deposits and to test a number of other targets on the property.
Selected Financial Data
This summary of selected financial data should be read in conjunction with the Management Discussion and Analysis (“MD&A”) of the financial position and operating results of the company for the twelve months ended December 31, 2007 and 2006 and the audited consolidated financial statements and related notes for the same period.
Year ended Year ended
December 31, December 31,
Loss for year $7,414,906 $12,571,640
Basic and diluted loss per share $0.11 $0.23
Cash invested in mineral properties $27,981,820 $14,534,070
Cash generated by financing activities $110,244,554 $68,515,868
Cash and cash equivalents $131,094,585 $53,137,862
Working capital $129,898,119 $52,386,417
Total assets $192,186,937 $76,419,309
Shareholders' equity $184,879,251 $74,570,752
The Company’s net loss for the year ended December 31, 2007 was $7,414,906, or a loss per share of $0.11, compared to a net loss of $12,571,640 and loss per share of $0.23 for the year ended December 31, 2006. An increase in interest income and reduction in stock-based compensation are the primary factors for the improvement in the Corporation’s net loss in 2007 vs. 2006.
The net loss for the year ended December 31, 2007 consists primarily of stock-based compensation expenses ($5.8 million), wages and benefits ($2.5 million) and investor relations, promotion and advertising expenses ($1 million), offset by interest income of $2.2 million.
The Company incurred expenditures of $27.98 million for the year ended December 31, 2007 on the development and exploration of its CMB uranium assets (net of stock-based compensation of $4.19 million, amortization of $0.3 million and future income taxes of $1.9 million) as compared to a budget of $27.6 million.
At December 31, 2007, the Company had cash on its balance sheet of $131 million and working capital of $129.9 million, as compared to cash of $53.1 million and working capital of $52.4 million at December 31, 2006. The change in cash and working capital of $77.9 million and $77.5 million, respectively, is primarily related to the receipt of November 27, 2007 bought deal financing with gross proceeds of $111.6 million, proceeds from the exercise of stock options and warrants throughout 2007 of $3.5 million, offset by deferred development and exploration expenditures of $27.98 million and cash operating costs of $2.99 million.
The Company currently has no operating revenues other than interest income and relies primarily on equity financing as well as the exercise of warrants and stock options to fund its exploration, development and administrative costs.
Aurora is a uranium exploration and development company focused on the Central Mineral Belt in coastal Labrador. It owns 100% of one of Canada’s largest undeveloped uranium deposits. Aurora is committed to generating superior shareholder value and responsible development, with lasting local benefits. Aurora has offices in Postville, Makkovik, Happy Valley – Goose Bay, Labrador, St. John’s, Newfoundland, Toronto and Vancouver.
The Company will be hosting its annual general meeting on June 10, 2008 at The Rooms in St. John’s, Newfoundland and Labrador.
Except for the statements of historical fact contained herein, certain information presented constitutes “forward-looking statements”. Such forward-looking statements, including but not limited to the timing and level of exploration activities, including drilling activities, the timing of completion of a pre-feasibility study and anticipated results of the 2007 work program; involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Aurora to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the actual results of current exploration activities, conclusions of economic evaluations, uncertainty in the estimation of mineral resources, changes in project parameters as plans continue to be refined, future prices of uranium, economic and political stability in Canada, environmental risks and hazards, increased infrastructure and/or operating costs, labor and employment matters, and government regulation as well as those factors discussed in the section entitled “Risk Factors” in Aurora’s Annual Information Form on file with the Canadian Securities Commissions. Although Aurora has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Aurora disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.
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