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| |   Tue Jan 27, 2009
Black Bull Resources Inc. Announces September 30, 2008 -- Annual Financial Statement Release and Implementation of a Reduced Operations Business Plan
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| | Shelburne, NS --- January 27, 2009 --- Black Bull Resources Inc. ("Black Bull" or the "Company") has released its Audited Financial Statements and Management Discussion & Analysis (MD&A) for the fiscal year ended September 30, 2008. The Company reported a net loss for the year of $3,481,960 ($2,851,427 in 2007) or $0.038 per share ($0.045 in 2007). Net sales for the year of $257,125 ($169,874 in 2007) were primarily of Scotia White(tm) quartz to the southern U.S.A. The Company recorded $868,273 ($670,790 in 2007) in non-cash operating items for the year, resulting in a net cash loss from operations of $2,613,688 ($2,240,921 in 2007) or $0.029 per share ($0.035 in 2007).
During the fourth quarter, the Company reported a net loss of $881,430 ($892,227 in 2007) or $0.008 per share ($0.014 in 2007). Net sales for this quarter were $21,176 ($61,990 in 2007). The Company recorded $227,257 ($236,866 in 2007) in non-cash operating items in the fourth quarter, resulting in a net cash loss from operations of $654,174 ($655,361 in 2007) or $0.07 per share ($0.010 in 2007).
"The 2008 fiscal year was challenging for Black Bull, as the North American housing market was the weakest in decades. It became clear by early 2008 that the housing market was not strong enough to generate the quartz sales required to generate positive cash flow", said Rick Shearer, President & CEO. "The Company developed three additional business models in early 2008 to respond: quartz stone for the Ferro silicon industry, low iron glass sand both for the solar panel glass industry, and kaolin clay for the paper industry. The Company continued to take steps in the second half of 2008 to reduce costs as markets continued to deteriorate, including workforce reductions, suspension of processing operations at the East Kemptville mine, and salary reductions for the entire management team."
Following a review by management and Board of Directors, the Company has decided to implement a reduced operations business plan ("ROBP") for 2009, which will reduce operations to a care and maintenance type operation until mineral markets improve or significant purchase order(s) are received that justify re-commencing processing operations. The Company is still pursuing sales of Ferro silicon and spending limited resources developing its kaolin business model. The care and maintenance operation will be financed though the collection of accounts receivable, selling remaining warehoused inventory and the sale of operating assets. By implementing the ROBP plan, Black Bull believes that it will be able to care for and maintain its high quality mineral resource assets without requiring external funding for more than a year.
A complete set of Black Bull's Financial Statements, Notes to the Consolidated Financial Statements and Management's Discussion and Analysis for the year ended September 30, 2008 have been filed on SEDAR at www.sedar.com.
About Black Bull Resources Inc.
Black Bull Resources Inc. is a Canadian mining company based in Nova Scotia that owns the White Rock Mine near Shelburne. Prior to suspension of operations, the mine produced 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 and mica.
Further 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. Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in mineral prices, fluctuations in currency exchange rates, uncertainties relating to the availability and costs of financing needed in the future, the capital and operating costs varying significantly from estimates, delays in the development of projects, as well as those risk factors discussed or referred to in Management's Discussion and Analysis under the heading "[Risks and Uncertainties]" and other documents filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available at www.sedar.com.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Unless required by law, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements.
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 Feb 16, 2009, Black Bull Resources Inc. Announces December 31, 2008 Interim Financial Statement Release
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