Mega Uranium Mining & Exploration in  Canada, Cameroon, Australia, Argentina, Bolivia, Columbia and Mongolia.

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Mega Uranium Ltd.
211 Yonge Street, Suite 502
Toronto, Ontario, Canada
M5B 1M4

Phone 416.643.7630
Fax 416.941.1090
 

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2006 News Releases

Mega Uranium Releases Results As At and For Three and Six Months Ended March 31, 2006 and Announces Planned 2-For-1 Stock Split


May 30, 2006
  • Financial results show strong working capital position
     
  • Uranium Drilling and Exploration programmes continue in Australia, Argentina and Mongolia
     
  • 2-for-1 stock split planned

Toronto, Ontario, Canada, May 30, 2006 – Mega Uranium Ltd. (“Mega”) (MGA-TSX-V) today announces its results for the three and six months ended March 31, 2006:
As at March 31, 2006:

  • Working capital increased to $16,603,375 as at March 31, 2006 as compared to $12,081,574 as at September 30, 2005;
     
  • Asset value of total mineral properties and related expenditures increased to $17,565,810 as compared to $4,725,662 as at September 30, 2005;

For the three months ended March 31, 2006 (compared with March 31, 2005):

  • Operating, general, and administrative expenses increased to $632,741 as compared to $319,044 for the three months ended March 31, 2005;
     
  • Stock-based compensation increased to $2,855,417 as compared to $471,147 for the three months ended March 31, 2005;
     
  • Net loss was $3,527,972 ($0.084 per share) for the three months ended March 31, 2006 as compared to $759,592 ($0.046 per share) for the three months ended March 31, 2005.

For the six months ended March 31, 2006 (compared with March 31, 2005):

  • Revenue (primarily comprised of interest income) increased to $248,692 as compared to $40,982 for the six months ended March 31, 2005;
     
  • Operating, general, and administrative expenses increased to $1,362,237 as compared to $390,607 for the six months ended March 31, 2005;
     
  • Stock-based compensation increased to $3,645,372 as compared to $510,519 for the six months ended March 31, 2005;
     
  • Write-off of mineral properties and related expenditures was nil as compared to $42,827 for the six months ended March 31, 2005;
     
  • Net loss was $4,758,917 ($0.123 per share) for the six months ended March 31, 2006 as compared to $902,971 ($0.060 per share) for the six months ended March 31, 2005.

Other highlighted activities subsequent to March 31, 2006:

  • Completed non-brokered private placement In April 2006, Mega completed a non-brokered private placement for total gross proceeds of $31,531,600, leaving the Company with cash reserves of approximately $45,000,000 at the date of this release. (See press release dated April 21, 2006.)
     
  • Mega closed on over 90% of the previously announced Hindmarsh acquisition As of late April, 2006, Mega had acquired over 90% of the outstanding shares and options in Hindmarsh Resources Ltd. and was moving to compulsory acquisition of the remaining outstanding shares to acquire 100% of the company. (See press releases dated January 10, 2006 and April 24, 2006.)
     
  • Mega’s board approved a two-for-one stock split.

    Mega’s Board of Directors approved a proposed two (2) for one (1) stock split to increase the total number of outstanding common shares. Mega thinks that a two-for-one stock split will enhance the liquidity and distribution of Mega’s common shares. The stock split is subject to regulatory approval, including without limitation, approval of the TSX Venture Exchange, and shareholder approval. A further news release will be issued when the date of the shareholders’ meeting has been established.
     
  • Uranium Drilling and Exploration

    In Australia, Mega will soon commence drilling in its Georgetown Project in Queensland, where Mega will focus initially in testing extensions to our Maureen uranium deposit (see press release dated November 18, 2005).

In South Australia, Mega is currently drilling one of the properties obtained in its recent acquisition of Hindmarsh, and is scheduled to be drilling three other Hindmarsh properties later this year.

In Argentina, Mega has just completed a phase one drilling programme in its Patagonia Project just east of the Cerro Solo uranium deposit (for which results are pending), and plans to do additional drilling both at this location and elsewhere in its extensive Argentinean ground holdings.

In Mongolia, Mega’s joint venture partner, UGL Enterprises (UGS-TSXV), commenced exploration programmes on five priority projects in April with a view to identifying targets for drill testing later this year.

Other major exploration initiatives planned for 2006 are detailed airborne magnetic-radiometric surveys of Mega’s entire ground holdings in the Georgetown area of Queensland, Australia and the Sierra Pintada Uranium District of Mendoza Province, Argentina.

Mr. Stewart Taylor, Mega’s President, commented as follows, “Following Mega’s recently completed $31.5 million financing we are very well positioned for substantial growth through the expansion of our exploration programmes in Australia, Argentina and Mongolia, and the on-going acquisition of additional uranium resources worldwide. We are now intensifying our efforts to increase Mega’s uranium assets through the acquisition of quality uranium resources worldwide.”

Mega Uranium Ltd. is a Toronto–based mineral resources company with a focus on uranium properties in Australia, Argentina, Mongolia, and Canada. Further information on Mega can be found on the company’s website at www.megauranium.com

This news release contains forward-looking statements within the meaning of the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause Mega’s results to differ materially from expectations. These include risks relating to market fluctuations, property performance and other risks. These forward-looking statements speak only as of the date hereof. Mega Uranium disclaims any intent or obligation to update these forward-looking statements and cautions investors from placing undue reliance on forward-looking statements. Mega does have an ongoing obligation to disclose material information as it becomes available.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

For further information, please contact:

Mega Uranium Ltd.
Sheldon Inwentash, CEO
Telephone: (416) 643-7630
info@megauranium.com 
www.megauranium.com