| ||Mon Jan 19, 2004|
Summary Report of First Quarter
Vancouver, British Columbia, January 19, 2004: Roca Mines Inc. (the "Company") has released its quarterly report containing unaudited financial statements for the three months ended November 30, 2003. Pursuant to the requirements of National Instrument 54-102, this news release provides a summary of the information contained in the quarterly financial statements and is qualified in its entirety by the full text of the quarterly report which is available through the SEDAR website (www.sedar.com).
The Company holds an option to earn a 100% interest in the FOREMORE Project by paying four cash payments totaling $100,000 and issuing 400,000 common shares to the vendor at certain dates up to May 1, 2005. In addition, the Company must issue 200,000 common shares to the vendor upon the commencement of commercial production. As at the date of this report, $25,000 in cash payments have been made and 200,000 common shares have been issued to the vendor. The vendor will retain a 2.5% net smelter return royalty subject to various conditions.
During the quarter, the Company incurred $250,703 in exploration costs on the FOREMORE Project compared to $21,529 during the quarter ended November 30, 2002. As at November 30, 2003, the Company had expended a total of $1,316,770 on the FOREMORE Project including $60,000 in share issuance costs (200,000 shares at a deemed price of $0.30 per share), $25,000 in option payments and $24,604 in additional staking costs. Actual exploration expenditures are only slightly greater than the two-phase budget of $950,000 recommended for the Company's IPO proceeds. Highlights from the 2003 summer program include the discovery of another metal-rich volcanogenic massive sulphide outcrop at the BRT Zone, up hill and on trend from the northeast end of the North Boulder Field and expansion of the SG Zone's felsic dome package for two kilometres northeast of the Discovery Showing. Ongoing interpretation of data from the field season continues as at the date of this report. Once further funding is secured, the Company plans to drill test several targets in the spring and summer of 2004.
On April 8, 2003 the Company entered into an agreement with Homestake Canada Inc. ("Homestake"), a wholly owned subsidiary of Barrick Gold Corporation ("Barrick"), whereby the Company was granted an option to earn a 50% interest in the Pillow Basalt Ridge (PBR) Property comprising 16 claims (238 Units) covering approximately 60 square kilometres near Barrick's Eskay Creek Mine in northwestern British Columbia. In order to earn its interest, the Company must complete $2,000,000 of work on the property in stages on or before April 8, 2007, issue 100,000 shares to Barrick (issued) and pay $75,000 in staged payments in cash or shares of equivalent value. Once the Company's interest vests, Barrick may elect to participate in a joint venture and become operator. In the event that Barrick elects not to participate, the Company may earn an additional 15% interest by spending an additional $2.55 million. Barrick may then elect to participate at 35% or convert to a 3.5% net smelter return royalty.
As at November 30, 2003 the Company had spent $184,475 on the PBR Property, including $30,000 in share issuance costs (100,000 shares at a deemed price of $0.30 per share). A decision as to further exploration will be made once ongoing interpretation of the 2003 results has been completed. The Company did not incur further costs on the PBR Property during the quarter ended November 30, 2003.
For the first quarter ended November 30, 2003, the Company incurred a loss of $103,926 compared to a loss of $18,459 in first quarter 2002, during which the Company was relatively inactive prior to its IPO. The loss of $103,926 includes consulting fees of $41,200, Travel expenses of $20,853, Promotion and Shareholder Communication Expenses of $16,551, Accounting, Audit and Legal fees of $13,489.
The Company completed a private placement of 3.4 million units at a price of $0.15 per unit for gross proceeds of $510,000 during the first quarter. Each unit consisted of one common share and one warrant entitling the holder to purchase an additional common share at a price of $0.20 per share until November 19, 2005. Share issuance costs of $56,617 were incurred in connection with the private placement. An additional $1,050 was received through the exercise of 3,000 outstanding Agent's Warrants at a price of $0.35. At the end of the period, the Company had cash of $510,980 and working capital of $475,562, which is sufficient to finish its planned interpretation of the 2003 exploration results and to meet its ongoing general and administrative expenses for fiscal 2004.
On December 9, 2003, the Company announced that it signed an option agreement to acquire a 100% interest in the SEAGOLD Property, located in the Eskay/Iskut Camp in northwestern British Columbia. To earn the interest, Roca must pay $100,000 (of which $25,000 has been paid) and issue 200,000 common shares to the vendor.
On December 11, 2003, 397,000 incentive stock options were granted to directors, officers and consultants of the Company. The options have an exercise price of $0.20 per share and expire on December 11, 2008, subject to the terms of the Company's option plan. At the Company's Annual General Meeting on December 15, 2003, shareholder's approved the repricing of 1,238,000 outstanding stock options from prices of $0.35 and $0.25, to a price of $0.20.
Management's immediate business objective is to complete the interpretation of data from its extensive 2003 field programs and to plan and budget for the 2004 exploration season on the Company's Eskay/Iskut Camp portfolio. A comprehensive technical report on FOREMORE is being prepared and will be filed via SEDAR near the end of this month. Prospecting, geological and geophysical work in 2003 generated a number of new targets, which will be the focus of a major diamond-drilling program at FOREMORE in spring-summer 2004.
ROCA MINES INC.
David J. Skerlec -- Chief Financial Officer
For further information contact Scott Broughton, John Mirko or David Skerlec at:
Tel: 604-684-5900 (Broughton Ext. 114 / Mirko Ext. 110 / Skerlec Ext. 147)
Email: email@example.com / firstname.lastname@example.org / email@example.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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