The Conversation (0)
Timberline Resources Corporation(TSXV:TBR) announced the financial results for the fiscal year ending September 30, 2011.The Company also closed the sale on Timberline Drilling, Inc in November 2011.
As quoted in the press release:
In November 2011, Timberline closed the sale of its Timberline Drilling, Inc. (“TDI”) subsidiary and received an initial cash payment from the buyers of $8 million along with $2 million of cash from TDI. A portion of the proceeds was used to repay $5 million in convertible debt, which resulted in Timberline becoming debt-free. At present, the Company has approximately $5.4 million in cash and working capital of approximately $6.4 million.
Timberline, President &CEO, Paul Dircksen, said:
We are very pleased with our corporate progress during 2011. After a thorough market investigation and in-depth discussions with several companies, we accepted an offer from the TDI management team for the sale of our contract core drilling subsidiary. The cash received and the terms of the drilling services agreement allow us to continue our aggressive exploration at our Lookout Mountain Project and maintain access to lower-than-market-cost core drilling with no dilution of our shareholders. We have continued a significant and focused exploration campaign at South Eureka, and we expect to announce an increased gold resource in the first quarter of 2012. We have increased the confidence in our resource, and we have stepped out into other project areas on the property where we have found mineralization to target further exploration and expansion. In addition, the Butte Highlands Joint Venture continues to advance the planning and permitting of our projected underground gold mine in Montana. Underground definition drilling, sampling, assaying, water sampling, hydrological evaluations, and geologic mine modeling and planning have all been advanced this year. We expect to release a more detailed Butte Highlands JV update soon.
Click here to read the Timberline Resources Corporation (TSXV:TBR) press release
Click here to see the Timberline Resources Corporation (TSXV:TBR) profile.