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| |   Tue Aug 26, 2008
Black Bull Resources Continues Repositioning Program and Announces June 30, 2008 Interim Financial Statement Results
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| | Shelburne, NS---August 26, 2008---Given the softness of the North American housing market, Black Bull Resources Inc. (TSXV:BBS) is continuing to work on repositioning the company. Kaolin clay testing continues with an air separation technology that may be more environmentally sound and offers improved economics. In addition, the company continues to focus on two new applications for our Scotia White(tm) quartz material: ferro silicon and low iron glass sand.
In order to bring the kaolin clay, ferro silicon, and low iron sand projects to completion the company is also focusing on conserving cash. To do this, we have initiated a cost reduction program. The result of this will significantly reduce our monthly cash burn.
Black Bull also released its Interim Report including the Financial Statements and Management's Discussion & Analysis for the third fiscal quarter ended June 30, 2008.
The Company recorded a net and comprehensive loss for the three month period of ($767,673) vs. ($762,172) for June 30, 2007, or ($0.008) per share vs. ($0.016). Allowing for non-cash operating expense of $210,829 compared to $173,785 for June 30, 2007, the Company's operational cash flow was ($556,845) vs. ($588,387) for June 30, 2007.
Year to date, the Company recorded a net and comprehensive loss of ($2,598,304) vs. ($1,959,200) for the nine month period ended June 30, 2007, or ($0.029 per share vs. ($0.041). Allowing for non-cash operating expense of $628,829 compared to $373,639 for June 30, 2007, the Company's operational cash flow was ($1,969,415) vs. ($1,585,561) for June 30, 2007.
During the quarter, the company restarted operations after completion of the capital expansion; dry sand production reached record levels. However, due to slow sales inventory levels reached an all time high resulting in a suspension of dry sand operations in late July. Customers' sales orders will not be interrupted, and as inventory levels decline due to sales we will initiate production to meet demand.
About Black Bull Resources Inc.
Black Bull Resources Inc. is a Canadian company based in Nova Scotia that operates the White Rock Property near Shelburne. The facility produces a unique, bright, white, high-purity quartz, marketed under the Scotia WhiteTM trademark which is used in a range of value-added, specialty products.
The White Rock Property also contains an identified resource of kaolin, which is now undergoing testing, and mica which the Company hopes to further develop in the future.
Additional detailed information may be obtained from the Company's website www.blackbullresources.com or corporate filings at www.SEDAR.com. For other Company information contact:
Richard J. Shearer,
President & CEO
Black Bull Resources Inc.
Tel: 902-875-1510
Fax: 902-875-1617
FORWARD LOOKING STATEMENTS: This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation statements regarding the Company's mining properties, development results or future plans, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed elsewhere in documents that are available to the public.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. |
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| | You can view the Next News Releases item: Mon Jan 5, 2009, Black Bull Resources Inc. Announces Strategic Review
You can view the Previous News Releases item: Thu Jul 24, 2008, Black Bull Resources Inc. Implements Suspension of Dried Sand Production
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