Mines Management Reports Q2 Financial and Operating Results

Mines Management Inc. (TSX:MGT,NYSEMKT:MGN) released its financial and operating results for Q2 2015, commenting that its operating expenses for the period came to $1.2 million, down from $1.8 million in the year-ago period.
Explaining the decrease, the company said:

The decrease in operating expenditures includes a $0.2 million decrease in general and administrative expenses which was primarily due to decreases in director compensation and stock compensation costs during 2015. There was also a $0.2 million decrease in technical services primarily associated with a reduction in fees paid to contractors and consultants working on the Environmental impact Study (“EIS”) as well as a decrease in the baseline studies associated with the EIS, and a reduction in stock compensation cost during 2015. The $0.2 million decrease in depreciation was a result of assets reaching the end of their depreciable lives and limited acquisitions of property and equipment during the past few years.

Other company highlights from the period include:

• The U.S. Forest Service (“USFS”) and the Montana Department of Environmental Quality (“MDEQ”) provided legal notice to the public on April 1, 2015 announcing the availability of the Final Environmental Impact Statement (“EIS”) and Draft Record of Decision (“ROD”). This initiated a 45 day public objection and resolution process, which ended May 15, 2015. The USFS has completed its review of the comments and issued a response letter requiring clarifying comments to be added to the Final EIS and Final ROD. The Company expects the permitting to be completed by late 2015 or early 2016.
• The Company continued to work with the U.S. Army Corps of Engineers (“USACE”) on the Clean Water Act 404 permitting process. This process will continue concurrently with work on the Final EIS and although not required for the Final EIS, it is required prior to beginning construction of the tailings impoundment dam.
• In May 2015, the Commissioners appointed by the U.S. District Court for the District of Montana, Missoula Division to determine just compensation for the Company’s easements across certain unpatented non-mineralized claims in the area of the Montanore Project following the conclusion of the trial in April, 2015, reported that claim-holders have lost no value and are due no compensation from the Company. On August 7, 2015, the U.S. District Court issued its final ruling affirming the Commissioners’ report.

Click here to read the full Mines Management Inc. (TSX:MGT,NYSEMKT:MGN) press release.