Aurora Reports 2007 Annual Results
March 31 2008 - 9:27AM
Marketwired Canada
Aurora Energy Resources Inc. (the "Company") (TSX:AXU) reports its financial and
operating results for the year ended December 31, 2007. Details of the Company's
financial results are described in the audited financial statements and
Management's Discussion and Analysis for the year ended December 31, 2007.
Further details on each of the Company's projects and activities can be found on
the Company's website http://www.aurora-energy.ca and on SEDAR at
http://www.sedar.com. All amounts are in Canadian dollars unless otherwise
stated.
Overview
The Corporation was incorporated on June 8, 2005, and operates in the mineral
resource industry. Its principle focus is on the exploration and development of
uranium projects in the Central Mineral Belt ("CMB") in Labrador, Canada one of
the most promising uranium districts in the world, as well as potential
evaluation and acquisition of opportunities throughout the world. Aurora is
committed to responsible development with lasting local benefits and the highest
standards of safety, health, and environmental protection.
Aurora's properties consist of a total of 223,074 acres in 28 licenses or groups
of mineral claims. On November 27, 2007, the Company completed its 2007 drill
program which had commenced on April 16, 2007. A total of 141 diamond drill
holes totaling 49,793 metres were completed, utilizing up to 11
helicopter-supported drill rigs over the course of the program. This work
significantly expanded the size of the Michelin and Jacques Lake deposits, and
tested a number of new and historic uranium targets on the property. During the
first quarter of 2008, the Company released an updated NI 43-101 compliant
resource estimate for the Michelin and Jacques Lake deposits, and initial NI
43-101 compliant resource estimates for the Gear, Inda, Nash and Rainbow
deposits.
For 2008, an $8 million, 20,000 metre winter infill drilling program has
recently concluded at the Michelin and Jacques Lake deposits, to convert
inferred resources to indicated resources. This will be followed by a $20
million, 50,000 metre summer diamond drilling program, aimed at advancing the
development of deposits and exploration targets. The main focus of the 2008
drilling program will be to continue to expand and convert inferred resources to
indicated resources at the Michelin and Jacques Lake deposits, expand the size
of the Gear, Inda, Nash and Rainbow deposits and to test a number of other
targets on the property.
Operations
Selected Financial Data
This summary of selected financial data should be read in conjunction with the
Management Discussion and Analysis ("MD&A") of the financial position and
operating results of the company for the twelve months ended December 31, 2007
and 2006 and the audited consolidated financial statements and related notes for
the same period.
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Year ended Year ended
December 31, December 31,
2007 2006
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Loss for year $7,414,906 $12,571,640
Basic and diluted loss per share $0.11 $0.23
Cash invested in mineral properties $27,981,820 $14,534,070
Cash generated by financing activities $110,244,554 $68,515,868
Cash and cash equivalents $131,094,585 $53,137,862
Working capital $129,898,119 $52,386,417
Total assets $192,186,937 $76,419,309
Shareholders' equity $184,879,251 $74,570,752
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The Company's net loss for the year ended December 31, 2007 was $7,414,906, or a
loss per share of $0.11, compared to a net loss of $12,571,640 and loss per
share of $0.23 for the year ended December 31, 2006. An increase in interest
income and reduction in stock-based compensation are the primary factors for the
improvement in the Corporation's net loss in 2007 vs. 2006.
The net loss for the year ended December 31, 2007 consists primarily of
stock-based compensation expenses ($5.8 million), wages and benefits ($2.5
million) and investor relations, promotion and advertising expenses ($1
million), offset by interest income of $2.2 million.
Exploration Projects
The Company incurred expenditures of $27.98 million for the year ended December
31, 2007 on the development and exploration of its CMB uranium assets (net of
stock-based compensation of $4.19 million, amortization of $0.3 million and
future income taxes of $1.9 million) as compared to a budget of $27.6 million.
Liquidity
At December 31, 2007, the Company had cash on its balance sheet of $131 million
and working capital of $129.9 million, as compared to cash of $53.1 million and
working capital of $52.4 million at December 31, 2006. The change in cash and
working capital of $77.9 million and $77.5 million, respectively, is primarily
related to the receipt of November 27, 2007 bought deal financing with gross
proceeds of $111.6 million, proceeds from the exercise of stock options and
warrants throughout 2007 of $3.5 million, offset by deferred development and
exploration expenditures of $27.98 million and cash operating costs of $2.99
million.
The Company currently has no operating revenues other than interest income and
relies primarily on equity financing as well as the exercise of warrants and
stock options to fund its exploration, development and administrative costs.
ABOUT AURORA
Aurora is a uranium exploration and development company focused on the Central
Mineral Belt in coastal Labrador. It owns 100% of one of Canada's largest
undeveloped uranium deposits. Aurora is committed to generating superior
shareholder value and responsible development, with lasting local benefits.
Aurora has offices in Postville, Makkovik, Happy Valley - Goose Bay, Labrador,
St. John's, Newfoundland, Toronto and Vancouver.
The Company will be hosting its annual general meeting on June 10, 2008 at The
Rooms in St. John's, Newfoundland and Labrador.
Except for the statements of historical fact contained herein, certain
information presented constitutes "forward-looking statements". Such
forward-looking statements, including but not limited to the timing and level of
exploration activities, including drilling activities, the timing of completion
of a pre-feasibility study and anticipated results of the 2007 work program;
involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievement of Aurora to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include, among others,
risks related to the actual results of current exploration activities,
conclusions of economic evaluations, uncertainty in the estimation of mineral
resources, changes in project parameters as plans continue to be refined, future
prices of uranium, economic and political stability in Canada, environmental
risks and hazards, increased infrastructure and/or operating costs, labor and
employment matters, and government regulation as well as those factors discussed
in the section entitled "Risk Factors" in Aurora's Annual Information Form on
file with the Canadian Securities Commissions. Although Aurora has attempted to
identify important factors that could cause actual results to differ materially,
there may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that such statements will prove
to be accurate as actual results and future events could differ materially from
those anticipated in such statements. Aurora disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Accordingly, readers
should not place undue reliance on forward-looking statements.
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