IMA Exploration Inc.

2.3 million oz of Gold - 1.4 billion lbs copper: NI 43-101

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Overview

The Company is a natural resource company engaged in the business of acquisition, exploration and development of mineral properties. At present, the Company has no producing properties and consequently has no current operating income or cash flows. As of this date the Company is an exploration stage company and has not generated any revenues.

During the first quarter, the Company was paid $18,500,000 as consideration for the Navidad interest.

The Company received the $7.5 million held in trust on January 8, 2008 plus interest that had accrued in the amount of $341,380.

The balance of $11 million was received on February 11, 2008.

Liquidity and Capital Resources

The Company’s cash position at September 30, 2008 was $108,006, an decrease of $75,622 from December 31, 2007.

Short-term investments increased by $17,019,317 to $23,832,779 at September 30, 2008 from $6,813,462 at December 31, 2007.

Total assets at September 30, 2008 were $25,028,732, a decrease of $1,095,758 from $26,124,490 at December 31, 2007.

The Company has received $Nil from the exercise of options and warrants from January 1, 2008 to November 11, 2008 compared to the receipt of $59,500 from options being exercised in 2007. As at November 12, 2008, the Company had working capital of approximately $23,450,000.

The Company considers that it has adequate resources to maintain its operations for the next fiscal year. The funds on hand will allow the Company proceed with its plans for the Island Copper Project and to acquire viable advance stage exploration assets. The Company will continue to rely on successfully completing additional equity financing to further exploration and development of mineral exploration projects as needed. There can be no assurance that the Company will be successful in obtaining the required financing.

Except as disclosed the Company does not know of any trends, demand, commitments, events or uncertainties that will result in, or that are reasonably likely to result in, its liquidity either materially increasing or decreasing at present or in the foreseeable future.

The Company does not now and does not expect to engage in currency hedging to offset any risk of currency fluctuations.

Operating Cash Flow

Cash outflow from operating activities for the nine months ended September 30, 2008 was

$715,494, compared to cash outflow for the 2007 period of $1,654,814 primarily as a result of reduced professional fees and the collection of receivables in the 2008 period.

Contractual Commitments

As of September 30, 2008, the Company had the following work expenditure commitments in relation to its mineral Work expenditures $15,000,000 over 24 months

Share Data Information

The Company’s authorized share capital is an unlimited number of common shares without par value and 100,000,000 preferred shares without par value. As at September 30, 2008, there were 52,132,064 outstanding common shares and 2,815,000 stock options, which were outstanding and exercisable, with an exercise prices ranging from $0.54 to $4.16 per share. In addition, as at September 30, 2008, there were 1,666,670 warrants outstanding with exercise of $3.45 per share.

As of November 12, 2008 there were 52,132,064 common shares, 1,666,670 warrants and 2,815,000 stock options outstanding.

Principal Property

Island Copper Property, British Columbia

On May 12, 2008 the Company announced that it entered into a binding Letter of Intent with Western Copper Corporation (“Western Copper”) to further explore and develop the Island Copper Property in which the Company has the right to acquire up to a 70% interest. The Island Copper Property, which includes the Hushamu porphyry style copper-molybdenum-gold deposit is located on northern Vancouver Island, B.C., approximately 25 kilometers southwest of Port Hardy, B.C.

The Hushamu deposit hosts a NI 43-101 compliant measured and indicated resource of 230.9 million tonnes grading 0.28% Cu and 0.31 g/t Au, containing 2.08 million ounces of gold and 1.39 billion pounds of copper, as well as an inferred resource of 52.8 million tonnes grading 0.28% Cu, 0.38 g/t Au, containing 327 million pounds of copper and 0.59 million ounces of gold. The deposit also contains unclassified molybdenum mineralization.

Table 1 summarizes the April 2005 mineral resource estimate at 0.10%, 0.20% and 0.30% Cu cut-offs. Additional infill and step out drilling is required to define the molybdenum, silver, and rhenium content and define the extent of mineralization.

During Q3, the Company signed a drilling contract with Matrix Diamond Drilling Inc. of British Columbia to complete a minimum 5,000m Phase I drill program on the Island Copper project and received a drill permit from the British Columbia Ministry of Energy and Mines. Phase I drilling commenced in October with two diamond drill rigs, both initially located on the NW Expo Gold-Copper-Moly target. The Company’s drilling will step out to the north and west of previous drill intercepts to test the open extensions to the mineralization with the aim of delineating mineralized zones that will add to the already substantial copper-gold resource at Hushamu. The drill rigs will then be moved to the Hushamu resource area. Drilling on the Hushamu resource area will be focused on increasing the copper equivalent grade of the resource, by quantifying molybdenum mineralization not previously included in the estimate, as well as, increasing tonnage.

The Company is carefully reviewing a number of advanced potential-flagship projects that meet its criteria of established resources, near-term cash flow and significant exploration potential. The current market conditions are resulting in unique opportunities to acquire high-quality assets at historically low costs.

Results of Operations

The Company’s operating expenses for the nine months ended September 30, 2008 were $1,450,093, a decrease of $199,926 from $1,650,019 in the 2007 period as a result of the following:

(i)

Corporate development and investor relations costs of $139,022 in 2008, compared to $46,195 during 2007, mainly due to increased costs associated with advertising and attendance to investor conferences.

(ii)

General exploration increased by $98,366 mainly as the Company continues to expense costs associated with exploration that is not related to specific projects or properties. The costs primarily relate to the Company’s exploration activities in Argentina.

(iii) Office and sundry increased by $34,275 as a result of increased activity during the period.

(iv)

Professional fees decreased by $542,220 due to reduced legal fees.

(v)

Rent, parking and storage increased by $44,011 in the 2008 period due to increased activity during the period.

(vi)

Salaries and employee benefits increased by $75,010 in the 2008 period, compared to $170,503 in the 2007 period due to increased activity during the period.

(vii) Stock-based compensation of $62,900 is the estimated fair value of 250,000 stock options granted to a consultants during the period. No stock options were granted in 2007. Stock-based compensation is accounted for at fair value as determined by the Black-Scholes option pricing model using amounts that are believed to approximate the volatility of the trading price of the Company’s stock, the expected lives of awards of stock-based compensation, the fair value of the Company’s stock and the risk-free interest rate.

(viii) Travel and accommodation increased to $48,830 in the 2008 period compared to $17,202 due to the Company actively seeking out new exploration projects in the period.

(ix) Navidad holding costs were $Nil in the 2008 period compared to $97,423 in the 2007 period due to the Company transferring control of the Navidad project to Aquiline.

During the nine month period ending September 30, 2008, the Company recorded interest income of $578,086 compared to $256,835 in the 2007 period as a result of an increase in short-term investments.

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