UMG/UMGZF 1.07 United Mining Group Reports Results for Year Ended December 31, 2010
Mar 28, 2011 9:34:00 AM
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 28, 2011) - United Mining Group, Inc. ("UMG" or the "Company") (TSX:UMG)(OTCQX:UMGZF)(FRANKFURT:UM8), focused on bringing Idaho's Crescent Silver Mine back into production, reports that it has filed its audited financial statements and MD&A for the year ended December 31, 2010. The documents are available under the Company's profile at www.sedar.com and on its website at www.unitedmininggroup.com.
Highlights for 2010:
-- Generated revenues of $10,328,952 and gross profit of $1,672,749,
through Mine Services division;
-- Graduated to the Toronto Stock Exchange in September 2010, after
completing reverse takeover in May 2010;
-- Completed three equity offerings, raising gross proceeds of $13,531,311;
-- Strengthened management team by hiring Mr. Charles Pitcher, former CEO
and Director of Western Coal Corp., as CEO;
-- Appointed new Chairman, Mr. Graham (Chip) Clark, former General Counsel
and Senior Vice President, Newmont Mining;
-- Completed $3.7 million in exploration and development expenditures
toward bringing the Crescent Silver Mine back into production;
-- Increased landholdings by approximately 265%, to 379 hectares (973
acres) by acquiring 42 patented mining claims on contiguous lands
considered by management to be under-explored and high-potential
exploration ground; and
-- Signed a letter of intent with the New Jersey Mining Company to secure
local milling capacity by investing US$2.3 million to expand the mineral
processing plant to 360 tonnes per day, giving UMG a one third equity
ownership.
Year End 2010 Financial Results
For the year ended December 31, 2010, the Company's Mine Services division generated revenues of $10,328,952 and a gross profit of $1,672,749, compared to $15,747,773 and $4,040,595 for the year ended December 31, 2009. The decline in 2010 revenues is primarily attributable to the resumption of normal funding levels by the U.S. Federal Government on an environmental reclamation contract held by the Company's Contract Services Division. Correspondingly, the increase in 2010 operating expenses was primarily driven by increased legal and accounting costs associated with the reverse takeover and the appointment of senior management. As such, the Company incurred a net loss of ($1,588,900) in 2010, compared to net income of $1,705,572 in 2009. The Company's cash and cash equivalents balance at December totaled $9,439,546, compared to $30,710 at December 31, 2009.
ABOUT UNITED MINING GROUP
United Mining Group is a vertically integrated mining company with operations in Idaho, USA. The Company is currently earning, through development and operations, an 80% interest in the Crescent Silver Mine project in Idaho's prolific Silver Belt - directly between two of the world's historically largest silver producing properties, the Sunshine and Bunker Hill mines. The Company also offers a full suite of mining services including contract mining and mine machine repair and fabrication services to silver miners in the district. UMG is committed to building a senior silver-producing mining company based on aggressive exploration and development of the highly-prospective current land position at the Crescent Silver Mine project and through the acquisition of additional precious metals interests. The Company trades on the Toronto Stock Exchange under the symbol "UMG". For more information about the Company, please visit: www.unitedmininggroup.com.
ON BEHALF OF UNITED MINING GROUP, INC.
Charles Pitcher, Chief Executive Officer
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: results of exploration activities and development of mineral properties, estimation of mineral reserves and resources, fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the inability to obtain financing, currency fluctuations, general market and industry conditions and other risks disclosed in the Company's filings with Canadian Securities Regulators.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
FOR FURTHER INFORMATION PLEASE CONTACT:
United Mining Group, Inc.
Greg Stewart
Chief Operating Officer
208.682.9018
gstewart@unitedmininggroup.com
www.unitedmininggroup.com
Source: United Mining Group, Inc.
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United Mining Group
Inc.
Greg Stewart
Chief Operating Officer
208.682.9018
gstewart@unitedmininggroup.com
www.unitedmininggroup.com
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