Spur Ventures Announces Update on Progress in China and Third Quarter, 2011 Results
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 2, 2011) -
All amounts are expressed in U.S. dollars, unless otherwise stated
Spur Ventures Inc. ("Spur" or the "Company") (TSX:SVU)(OTCBB:SPVEF) announced that there have been several significant milestones achieved in the 3rd quarter with respect to Spur's phosphate project in China.
On July 22, 2011, the Central Ministry of Land and Resources ("MOLAR") officially approved the transfer of the title for the Dianziping and Shukongping mining licenses from Spur's joint venture partner, Hubei Yichang Phosphate Chemical Co. Ltd. ("YPCC ") to Yichang Maple Leaf Chemicals ("YMC") as part of YPCC's equity contribution to the YMC joint venture.
On October 13, 2011, Yichang Xingfa Group Co. Ltd. ("Xingfa") received final approval from Hubei Province State Owned Assets Supervision and Administration Commission ("SASAC") for its acquisition of 100% of YPCC. Legally, YPCC will remain the formal Chinese partner in the YMC joint venture.
The Company continues to work towards receiving official government approval for the modification to the YMC joint venture agreement described in the Company's March 30, 2011 news release, under which Spur would retain a minimum 20% ownership in YMC with no requirement for further investment. However, at present, Chinese government authorities are exerting pressure on both Spur and Xingfa to proceed towards to the completion of their respective registered capital contributions under the current approved YMC joint venture agreement where Spur is required to contribute RMB 231.4 million ($36 million) to maintain a 49% equity interest in YMC, rather than await approval for the modified agreement referred to above.
Further updates will be provided in due course.
Third Quarter, 2011 Results
The Company continues to maintain a solid cash position with cash and cash equivalents and short-term GICs at the end of Q3 2011 amounting to $21.48 million compared to $ 23.35 million at December 31, 2010. As of the date of this press release, the Company has approximately $22.25 million Canadian dollars (versus $CDN 23.20 in 3Q2010) equivalent to $CDN 0.368 per share, considerably more than its current stock trading price.
The Company's continued focus on cost control resulted in a 15% reduction in year to date net cash used in operating activities (before working capital changes and interest income) of $756,000 versus $885,000 for the same 9 months in 2010. Net cash used in operating activities (before working capital changes and interest income) for the quarter was $276,000.
The Company posted a net loss of $476,000 ($0.007 per share) in Q3 2011 compared to $500,000 ($0.008 per share) in Q2 2011 and $379,000 ($0.006 per share) in Q3 2010. The increase in loss between years was mainly due to $46,000 more in non-cash stock-based compensation expenses, $16,000 more non-cash charge on share of loss on investment in affiliate, and $18,000 in non-recurring recovery of bad debts in Q3 2010.
More information can be found in the audited financial statements and the related notes and the management discussions and analysis of the period filed with Canadian regulators on SEDAR at www.sedar.com and on the company's website: www.spur-ventures.com
This news release contains "forward-looking statements". Forward-looking statements include, but are not limited to, statements with respect to the estimation of mineral resources, the timing and content of upcoming programs, the realization of mineral resource estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to international operations; actual results of planned expansion activities; changes in project parameters as plans continue to be refined; future prices of resources; exchange rates for Canadian, U.S. and Chinese currencies; possible variations in grade or recovery rates, accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; Chinese government policies on fertilizer and agriculture; general economic, market or business conditions as well as those factors discussed under "Description of the Business – Risk Factors" in the Annual Information Form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements or information made in this press release, except as required under applicable securities legislation.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Spur Ventures Inc.
(604) 689-5564 or Toll Free: 1-877-689-5599
(604) 609-9836 (FAX)
Spur Ventures Inc.
Dr. Robert Rennie