TORONTO, March 17th, 2008 – Gold Eagle Mines Ltd. (TSX: GEA) (“Gold Eagle” or the “Company”) is pleased to announce its financial results for the period ended December 31st, 2007. (To review the complete audited Financial Statements and Management Discussion and Analysis, please see the Company's SEDAR filings at www.sedar.com or the Company's website at www.goldeaglemines.com).
The Company has a strong balance sheet with assets totalling $419.0 million at December 31, 2007. The assets consist mainly of mineral exploration properties and expenditures thereon of $312.1 million, cash and cash equivalents of $106.0 million and accounts receivable, prepaid and other expenses of $0.5 million. The Company has $1.9 million of current liabilities and holds no long-term debt as all funding for exploration expenditures has been provided through the issuance of shares from the Company’s treasury.
The Company experienced a significant increase of cash and cash equivalents during fiscal 2007. The $85.2 million increase in cash and cash equivalents was propelled by the Company successfully completing the Financing for net proceeds of $84.2 million and the exercise of 1,031,642 stock options and 2,903,845 warrants for additional proceeds of $12.1 million.
Gold Eagle is a development stage entity involved in the exploration and development of gold assets on its 100% owned Gold Eagle property. Accordingly, the Company does not generate revenues from its operations.
Exploration expenditures on the Company’s Gold Eagle property were $12.0 million during fiscal 2007 compared to $7.6 million during fiscal 2006. As a result of the merger on December 21, 2006 with Southern Star Resources Inc., the amount spent on exploration increased significantly during 2007 as compared to 2006 as the Gold Eagle property was, and remains, the primary focus of the Company’s efforts.
During the preparation of the Company's 2007 financial statements, an error was identified on the 2006 balance sheet relating to the accounting for unvested stock options granted to the Company's Board of Directors on December 21, 2006. The value of the unvested stock options and related future taxes was previously capitalized to mineral exploration properties. The restatement is a non-cash adjustment and the affect has no impact on either the Consolidated Statement of Operations and Deficit, or the Consolidated Statement of Cash Flows for the year ended December 31, 2006. Additional information is provided in Note 18 to the December 31, 2007 Financial Statements.
As at March 17, 2008, Gold Eagle is well funded with a current cash position of approximately CDN$103 million and no long-term debt, and 101,078,568 million shares outstanding (107,156,831 shares outstanding on a fully diluted basis).
About Gold Eagle
Gold Eagle Mines Ltd is a Canadian based junior natural resource company developing a significant new gold discovery in the prolific Red Lake gold camp, located in Northern Ontario, Canada.
The statements made in this News Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company’s expectations and projections. Accordingly, readers should not place undue reliance on forward-looking statements. For a more detailed discussion of such risks and other factors, refer to Gold Eagle’s filings with Canadian securities regulators available on www.sedar.com or the Company’s website at www.goldeaglemines.com
For further information please feel free to contact our offices at:
Tel: 416-867-8998; Fax: 416-867-9393
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release and the information contained herein.