MINES MANAGEMENT, INC. (NYSE‐Amex:MGN) (TSX:MGT) is pleased to announce results for Fiscal Year 2009. Further information regarding 2009 results can be found in the Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 31, 2010.
- Completed the Draft Environmental Impact Statement (“EIS”)
- Concluded the EIS public comment period on June 29, 2009. The agencies are currently compiling responses to the comments and incorporating them into the final EIS.
- Adopted the Shareholders Rights Plan at the June 18, 2009, Annual Meeting of Shareholders
- Finished installation and testing of the sumps for the water treatment system at the Montanore site
- Obtained effectiveness of a shelf registration for up to $65 million in the fourth quarter of 2009
- Repaid a $1.8 million credit line in September 2009
- Implemented cash conservation measures pending completion of permitting, including demobilization in April 2009 of contractors
- Maintained a significant cash and investment position at December 31, 2009 of approximately $12.5 million
At December 31, 2009, the balance of our cash and unrestricted certificates of deposit was over $12 million. Our net cash expenditures for operating activities for 2009 totaled $7.4 million. Cash outlays were less than projected due to delays in the USFS approval of our EIS and decision to delay adit rehabilitation and dewatering until received.
In 2010, we plan to continue to focus on our planning for the exploration and delineation drilling program at the Montanore Project. We also intend to continue to pursue the re-permitting applications with the goal of having sufficient data to commence preparation of a phased financing plan for the Montanore Project.
We plan to engage a contractor to begin preparation of a preliminary economic assessment (PEA) and an update of our Canadian National Instrument 43-101 technical report for the Montanore Project in the second quarter of 2010. We will need to raise approximately $20 million to complete our exploration drilling and bankable feasibility study, which we expect would be undertaken over the next three years, assuming we receive a final EIS and Record of Decision in 2010. Similarly, development activities could be deferred if the permitting process is delayed or if commodity prices make the project difficult to finance or increase the expense of such financing.