August 30, 2005
Mines Management, Inc. reported a net loss for the quarter ended June 30, 2005 of $1,118,794, or $0.10 per share versus a loss of $239,483, or $0.02 per share for the prior year’s quarter ending June 30, 2004. The increase in net loss for 2005 of $879,311 was due to an increase in activity on the Montanore Project for environmental, engineering, and permitting expenses.
For the six months ended June 30, 2005 the Company had a net loss of $2.3 million, or $0.21 per share compared to a net loss of $1.8 million, or $0.19 per share for the same 2004 period. The increased loss for the year is attributable to the increased activity and expenses for the Montanore Project, and fewer options granted in the 2005 period than in the 2004 period; plus there was no financing activity through the second quarter 2005 offsetting 2004 fees. Administrative expenses increased as a result of greater outlays for investor relations and compensation as a result of hiring additional employees.
For the quarter ending June 30, 2005, net cash used for operating activities was $776,260, most of which was attributed to permitting and engineering expenses for the Montanore project. This amount was offset by proceeds from the exercise of warrants for the period of $511,518. The net decrease in cash for the second quarter was $301,156. Year to date, net cash used was $916,677.
It is anticipated that expenditures will continue to increase through the end of 2005 as the company moves through re-permitting, feasibility, and development of the Montanore Project. The Company expects to spend approximately $1.0 million per quarter for the remainder of the year 2005.
Mines Management, Inc. is a U.S. based development stage mineral company focused on the exploration and development of silver dominant deposits. The company’s primary focus is the advancement of the Montanore Silver-Copper Project located in northwestern Montana near the town of Libby. The Montanore Deposit is considered to be one of the largest silver occurrences in the world.
This press release contains forward-looking statements regarding the Company, within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding anticipated expenditures for the remainder of 2005, and the sources of funding for those expenditures. These statements are based on assumptions that the Company believes are reasonable but that are subject to uncertainties and business risks. Actual results relating to any and all of these subjects may differ materially from those presented. Factors that could cause results to differ materially include fluctuations in silver and copper prices, negative results of environmental studies, problems or delays in or objections to the permitting process, the proximity of the Project to the Cabinet Wilderness Area, failure or delay of third parties to provide services, changes in the attitude of state and local officials toward the Montanore Project and other factors discussed in the Company's periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-KSB, as amended, for the year ended December 31, 2004.
Further information about Mines Management, Inc. can be reviewed on the website for the Securities and Exchange Commission at www.sec.gov or on the company's website at www.minesmanagement.com.
Contact:
Douglas Dobbs
Director, Corporate Development & Investor Relations
Mines Management, Inc. Douglas Dobbs, 509/838-6050 fax: 509/838-0486 email: info@minesmanagement.com website: www.minesmanagement.com
Source: Mines Management, Inc.