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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2009 News Releases

Mega Uranium Ltd. Releases Audited Results for the Year Ended September 30, 2009


December 22, 2009

TORONTO, Ontario (December 22, 2009) – Mega Uranium Ltd. (“Mega”) (TSX: “MGA”) announces its audited results for the year ended September 30, 2009.

SUMMARY FINANCIAL RESULTS

As at September 30, 2009, Mega had cash, cash equivalents and marketable securities totaling $22.3 million, as compared to $49.0 million at the end of September 30, 2008, a decrease of 55%. The decrease reflects Mega’s project expenditures principally on the Lake Maitland resource development in Western Australia and also on priority exploration projects in Australia, Argentina and Cameroon. Subsequent to the year end, Mega completed a financing raising approximately $50 million.

As at September 30, 2009, the Company had mineral properties and related expenditures of $295.0 million, as compared to $285.7 million as at September 30, 2008. The increase is due to Mega’s cash expenditures for exploration activities, primarily on its mineral properties in Australia, South America and Africa.

Summary results for the year ended September 30, 2009, as compared to the year ended September 30, 2008:

  • Income from financial and trading activities for the year was $6.7 million, most of which relates to unrealized gain on investments in public companies, as compared to a financial loss of $12.7 million last year.
  • Total expenses, excluding write-downs of mineral properties and related expenditures, were $17.8 million as compared to $31.8 million in the prior year.
  • Write-downs of mineral properties and related expenditures totaled $6.3 million in fiscal 2009 as compared to $233.4 million last year.
  • Net income in the year was $21.5 million ($0.11 per common share), as compared to a net loss of $195.5 million in the previous year ($1.07 per common share).

“During fiscal 2009, we concentrated our exploration activities on those properties that we felt represented the best opportunities for the Company in 2010, and secured an excellent partner for our Lake Maitland project in Western Australia”, said Sheldon Inwentash, Mega’s CEO. “Having raised $50 million just after the 2009 year-end, we are very well financed and now look forward to advancing our Lake Maitland project and continuing our focused exploration activities.”

Project Activity

In the fourth quarter of 2009, Mega continued its feasibility studies of its Lake Maitland uranium resource in Western Australia and progressed exploration of priority projects in Australia, Argentina, Colombia and Cameroon. Progress is summarized below and further details can be found in the relevant news releases on www.megauranium.com

  • A revised ore resource estimate was received for the Lake Maitland deposit based on extensive drilling conducted in 2007/2008. The new estimate showed an increase in the contained uranium and an upgrade of over 90% of the resource from the Inferred to the Indicated category (refer to Mega’s news release of July 8 2009).
  • Notification was received from the Foreign Investment Review Board of Australia that there are no objections to the investment by the Japan Australia Uranium Resources Development Company Ltd (“JAURD”) and by ITOCHU Corporation to acquire, respectively, a 30% interest and 5% interest in the Lake Maitland resource (news release of August 7 2009).
  • Mega’s joint venture partner, Aura Energy Ltd. (ASX:AEE) announced the intersection of a uranium-bearing palaeochannel in its reconnaissance drilling of its Junction tenements in the Gunbarrel Basin of Western Australia (news release of August 10 2009)
  • In Cameroon, Mega reported encouraging downhole gamma probe eU3O8 results in its initial drilling of the Salaki prospect within the Kitongo Project. Intersections included 54.1 meters @ 206ppm eU3O8, 14.7 meters @ 258ppm eU3O8 and 12.6 meters @ 461ppm eU3O8 (news release of September 24 2009).

Stewart Taylor, Mega’s President and Qualified Person under NI 43-101, has reviewed the technical information in this release and has verified the contents disclosed.

ABOUT MEGA URANIUM

Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Argentina, Cameroon, Canada and Colombia. Further information on Mega can be found on the company’s website at www.megauranium.com. Mega Uranium’s Ben Lomond and Maureen properties in Queensland, Australia, are subject to a State policy which presently prohibits the mining of uranium.

For further information, please contact:

Investor Relations
Mega Uranium Ltd.
Richard Patricio
Executive VP, Corporate Affairs
T: (416) 643-7630
info@megauranium.com
www.megauranium.com

Note Regarding Forward-Looking information

Certain information contained in this press release constitutes “forward-looking information”, which is information regarding possible events, conditions or results of operations that is based upon assumptions about future economic conditions and courses of action. All information other than matters of historical fact may be forward-looking information. In some cases, forward-looking information can be identified by the use of words such as “seek”, “expect”, “anticipate”, “budget”, “plan”, “estimate”, “continue”, “forecast”, “intend”, “believe”, “predict”, “potential”, “target”, “may”, “could”, “would”, “might”, “will” and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release includes, but is not limited to, statements about our plans regarding future acquisitions and property development, our expectations regarding the uranium market, global growth and the use of nuclear power, our drill results, commodity prices and core intersection lengths, in that they constitute estimates, based on certain assumptions of mineralization that may be encountered if a deposit were to be mined.

By its nature, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to differ materially from those expressed or implied by such forward-looking information. Some of the risks and other factors that could cause actual results to differ materially from those expressed in the forward-looking information contained in this release include, but are not limited to: risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations; results of initial feasibility, pre-feasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined; mining and development risks, including risks related to accidents, equipment breakdowns, labour disputes (including work stoppages and strikes) or other unanticipated difficulties with or interruptions in exploration and development; the potential for delays in exploration or development activities or the completion of feasibility studies; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; risks related to commodity price and foreign exchange rate fluctuations; the uncertainty of profitability based upon the cyclical nature of the industry in which the Company operates; risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities; risks related to environmental regulation and liability; political and regulatory risks associated with mining and exploration; and other risks and uncertainties related to the Company’s prospects, properties and business strategy.

Although we have attempted to identify important factors that could cause actual results or events to differ materially from those described in the forward-looking information, readers are cautioned that this list is not exhaustive and there may be other factors that we have not identified. Readers are cautioned not to place undue reliance on forward-looking information contained in this release. Forward-looking information is based upon our beliefs, estimates and opinions as at the date of this release, which we believe are reasonable, but no assurance can be given that these will prove to be correct. Furthermore, we undertake no obligation to update or revise forward-looking information if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.

All forward-looking information contained in this release is expressly qualified by this cautionary note.

Note Regarding Disclosure for Mineral Projects

This press release contains disclosure regarding our mineral resources. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Mineral resources may never be converted into reserves. Furthermore, inferred resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Further exploration will be required to upgrade the inferred resources to a higher resource category.