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CALGARY, ALBERTA–(Marketwire – Nov. 23, 2012) – Kirrin Resources Inc. (TSX VENTURE:KYM) today reported its financial results and corporate update for the third quarter of 2012. During the quarter, the Company focused on reviewing alternative strategies to complete its 2012 exploration plans, introduce new projects to the Company, and ensure continuing operations by the Company. Negotiations included potentially expanding Kirrin’s activities beyond REE and uranium exploration and beyond Canada. No financings were agreed during the quarter and no agreements have been reached arising from the aforementioned negotiations.
Kirrin recorded a net loss of $40,013 during the quarter, as against a net loss in the comparable quarter in 2011 of $125,831, which included a tax credit of $44,519. Mineral interests showed minimal change as only minimal exploration work was undertaken during the quarter. The Company had a working capital deficit of $557,464 at the quarter end as compared to a deficit of $425,815 at the year end and a deficit of $21,692 at September 30, 2011. Summary financial data is set out in tabular form below.
| September 2012 |
September 2011 |
|
| Mineral interests | $1,673,901 | $2,537,946 |
| Total assets | 1,684,464 | 2,918,192 |
| Working capital (deficit) | (557,464) | (21,692) |
| Total long-term financial liabilities | 190,000 | 200,000 |
| Shareholders’ equity | 926,437 | 2,316,254 |
| Net income (loss) for the quarter | (40,013) | (125,831) |
| Earnings per share for the quarter | (0.00) | (0.00) |
| Shares outstanding (1) | 46,559,930 | 46,484,930 |
(1) All figures in Canadian dollars except for shares outstanding.
Excluding exploration activities, expenses for the nine months ended September 30, 2012 amounted to $27,284, a decrease of 80% over 2011 largely resulting from the necessity to reduce costs occasioned by tight cash resources. Expenses under the headings Salaries and benefits, Financial administration, General office and miscellaneous and Travel and marketing, in aggregate $90,388 for the nine months ended September 30, 2012 (2011: $261,647) decreased consequent upon the lower exploration program and voluntary reductions in contractual obligations. The investor relations program has been discontinued and costs in this category, $18,299 for the nine months ended September 30, 2012 (2011: $154,053) were limited to those necessarily incurred to maintain Kirrin’s listing status. Stock based compensation reduced to $26,085 against $47,022 in 2011 as no options have been issued since Q1 2011.
Kirrin does not generate positive cash flow, has limited financial resources and must raise additional capital to implement its programs. The state of the capital markets remains challenging and the interest of investors in micro companies limited. Kirrin’s working capital deficit is a significant factor impacting the Company’s strategic options. There can be no assurance that the Company will be successful in raising additional capital to implement its programs or to conclude alternative arrangements allowing it to continue operations.
Additional information relating to Kirrin is available on Kirrin’s web site at www.kirrinresources.com and on SEDAR at www.sedar.com.
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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
