Mines Management, Inc. (NYSE Amex: MGN) (TSX: MGT) (the "Company") is pleased to announce financial and operating results for the second quarter.
Mr. Glenn Dobbs, the Company’s President and Chief Executive Officer, stated, “Significant progress has been made to advance the Montanore Silver-Copper Project through the re-permitting process. We anticipate completion of the Supplemental Draft Environmental Impact Study (“SDEIS”) in the near term, and commencement of the final phase of permitting following shortly thereafter. We remain in excellent financial condition as we move closer to the completion of permitting of the Montanore Project, and look forward to commencement of the underground delineation drilling program.”
Overview Second Quarter 2011
- On April 4, 2011, the Company completed an underwritten public offering of 5,120,000 shares of common stock that yielded net proceeds of approximately $15.2 million before deducting offering expenses. The Company intends to use the net proceeds for advancement of the permitting process for its Montanore Project, the commencement of the Company’s planned delineation drilling program which will include advancement of the adit, establishment of drilling stations and commencement of exploratory drilling, and for general corporate purposes, including possible acquisition and exploration of new mining properties.
- The U.S. Forest Service (“USFS”) and the Montana Department of Environmental Quality (“MDEQ”) continued their environmental review of the Montanore Project, and are in the process of formulating responses to comments received from the public and from the Environmental Protection Agency (“EPA”) in the SDEIS for the project.
- The Company continued meetings with federal and state agencies, Montana legislators, and local Lincoln County Commissioners, Libby City officials, business leaders and community members.
- The Company continued its program to reduce expenditures and conserve cash pending the completion of permitting.
- Cash and investment position remained strong at $22 million at June 30, 2011.
- The Company’s exploration and corporate development team continued to examine and evaluate additional opportunities in North America and Latin America.
The net decrease in cash and cash equivalents for the quarter ended June 30, 2011 was approximately $0.8 million. Management has reviewed the near term spending forecast and continued a plan to diligently conserve cash where prudent. Given our current cash and investment position of approximately $22 million on June 30, 2011, we have sufficient funds to complete the permitting process and initiate the adit rehabilitation and drill station development. Additional financing will be required to complete the evaluation drilling program and a bankable feasibility study.