|July 26, 2011|
CANICKEL ANNOUNCES SECOND QUARTER 2011 FINANCIAL RESULTS
|Vancouver, British Columbia -- July 26, 2011 -- CANICKEL MINING LIMITED, formerly "Crowflight Minerals Inc.", ("CaNickel" or the "Company") (TSX: CML) announce its financial results for the second quarter of 2011 ended June 30, 2011. Complete interim condensed financial statements and related Management's Discussion and Analysis are filed under the Company's profile on www.sedar.com. All amounts are in Canadian dollars unless otherwise indicated. |
HIGHLIGHTS FOR THE SECOND QUARTER OF 2011
• Net loss for the three months ended June 30, 2011 was $4.5 million compared to loss of $5.9 million in same period last year.
• Mining operation at Bucko Lake Mine was resumed on April 22, 2011 and mill was re-commissioned on June 16, 2011 after the operation suspended in October 2010. In the second quarter of 2011, the Company mined 14,192 tonnes of ores and milled 9,723 tonnes of ore to produced 190,304 pounds of nickel compared to a total of 67,189 tonnes of ore mined, and a total of 58,605 tonnes of milled to produced a total of 1.2 million pounds of nickel in same period last year;
• Exploration program of 5,202 metres diamond drilling completed at M11A North Deposit of the Company's Thompson Nickel Belt Exploration Properties and intersected 9.98 metres of 2.35% nickel;
• Raised US$5.0 million through a loan facility to address any potential issue during the restart of operation at Bucko Lake Mine; and,
• Working capital improved to a deficit of $2.5 million with cash and cash equivalent of $1.1 million on hand as at June 30, 2011 compared to working capital of deficit of $24.6 million with cash and cash equivalent of $4.1 million on hand as at December 31, 2010.
OUTLOOK FOR THE THIRD QUARTER OF 2011
The Company expects to complete the backfill paste plant upgrade construction and obtain all necessary permits for the expansion of the tailing facilities in the third quarter 2011or in October 2011.
There is no change to the Company's 2011 production guidance, and the Company expects to ramp up the mining operation to 1,000 tonnes per day in the third quarter 2011 from the current averaging 550 tonnes per day level.
DEBT FACILITY OF UP TO US$15 MILLION
The Company also announced that the Company has entered into another one year term debt facility of up to US$15 million (the "Facility") with Luckyup Investment Limited, an arms' length party based in Hong Kong. The Facility may be drawn down in the option of the Company and bears interest rate of 12% per annum. The Company intends to use the funds from the Facility to meet the capital investment needs of the Company to complete the upgrade of backfill paste plant and the expansion of tailing facilities, and to retire the Loan of US$5.0 million arranged in May 2011 from Hebei Wenfeng Industrial Group Limited ("Hebei Wenfeng"), the largest shareholder of the Company (please also refer to our press release dated May 30, 2011 regarding the loan facility with Hebei Wenfeng), to minimize transactions with related parties.
The Facility involves no equity or voting component and is designed to minimize the dilution to current shareholders' interest but meets the current capital investment needs of the Company.
About CaNickel Mining Limited.
CaNickel Mining Limited, formerly "Crowflight Minerals Inc.", (TSX: CML) is a Canadian junior mining company that owns and operates the Bucko Lake Nickel Mine near Wabowden, Manitoba. The Company also holds nickel, copper and Platinum Group Mineral (PGM) projects in the Thompson Nickel Belt and Sudbury Basin.
Further information is available on the Company's website at www.canickel.com or contact:
CFO and Corporate Secretary
CANICKEL MINING LIMITED
(Formerly "Crowflight Minerals Inc.")
P.O. Box 35 1655-999 West Hastings Street Vancouver, British Columbia Canada V6C 2W2
Tel: 778-372-1806 Fax: 604-254-8863
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