VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/12/13 -- Oracle Mining Corp. ("Oracle Mining" or the "Corporation") (TSX: OMN)(OTCQX: OMCCF)(FRANKFURT: OMC) announces its financial results for the year and quarter ended December 31, 2012. This news release should be read in conjunction with the audited annual financial statements and notes thereto for the year ended December 31, 2012, and management's discussion & analysis ("MD&A") for the year ended December 31, 2012, both available on SEDAR at www.sedar.com.
Advances were made on the three primary areas of activity at the Corporation's principal property, the Oracle Ridge copper project ("Oracle Ridge"), during the quarter ended December 31, 2012, including the continuation of the validation drilling program; geological, mining and engineering studies ("Project Development Studies"); and permitting and regulatory programs. A detailed discussion of the progress made on these activities during the fourth quarter is available in the MD&A.
For the year ended December 31, 2012, the Oracle Mining had a net loss of $21.7 million compared to net loss of $16.0 million in the 2011 comparative period. Net loss in the current period is primarily due to exploration and evaluation expenditures of $14.0 million at the Oracle Ridge copper project, $6.8 million in general and administrative costs, and $0.4 million in other costs. The increase in general and administrative expenses of $1.1 million for the current year compared to the equivalent 2011 period consisted of increased salaries and benefits of $0.4 million, increased professional and consulting fees of $0.3 million, increased investor relations costs of $0.3 million, and increased travel expenses of $0.2 million, slightly offset by decreased share-based payment expenses of $0.1 million.
The increase in exploration and evaluation expenditures of $3.9 million for the year compared to the equivalent 2011 period consisted of increased design and technical studies costs of $2.0 million, increased site and safety services costs of $0.3 million, increased site and advisory costs of $1.1 million, and increased underground exploration and development of $1.4 million, partially offset by decreased permitting costs of $0.4 million and decreased drilling costs of $0.5 million. The increased costs compared to the prior year are due to increased activities as Oracle Mining works toward completing a technical report and advancing Project Development Studies.
As at December 31, 2012, total assets were $26.8 million compared to $30.9 million as at December 31, 2011. The difference resulted from increased expenditures relating to the ongoing development of the Oracle Ridge copper project, including the exploration program, technical studies and permitting activities.
As at December 31, 2012, total liabilities were $3.5 million compared to $4.7 million as at December 31, 2011. Liabilities at December 31, 2012, mainly consist of trade and other payables. The prior year's balance included $2.9 million in promissory notes payable that were secured by an interest in the Oracle Ridge property. In May 2012, the Corporation paid $0.5 million of principal owing under the promissory notes. In November 2012, Oracle Mining paid the full outstanding balance on the promissory notes payable plus accrued interest of $2.7 million.
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