Red Dragon Resources Corp. 2008 Financial Results
Release No. 1/09
Vancouver, BC, Apr. 24, 2009
Red Dragon Resources Corp. (the "Company") (TSX.V: DRA) has released its financial and operating results for the year ended Dec. 31, 2008. The highlights provided in this release should be read in conjunction with the company's year-end financial statements, and management discussion and analysis, which are available on SEDAR. All dollar amounts are in Canadian dollars unless otherwise stated.
2008 Highlights:
The company's consolidated net loss for the year was $8,330,786, or 12 cents per share, including $5,372,883 for write-off of mineral interests.
The net loss is attributable to:
- Expending $683,536 on project generation costs;
- Expending $1,401,627 on corporate expenses;
- Accounting for $6,719,619 on other non-cash accounting items;
- Earning interest income of $473,996.
The company ended the year with $10,271,346 in cash and cash equivalents which equates to 15 cents per share.
Company chairman and chief executive officer, Alvin Jackson, comments for the past year: "Two thousand eight was a difficult year for Red Dragon Resource Corp. The company not only tried to preserve the cash on hand but also tried to increase the cash position by investing in a corporation with undervalued assets, resulting in a healthy balance sheet of $10,271,346 cash balance and of $ 2.3 million in the investments at year-end. These are sufficient funds for the company to continue with our corporate development activity and to seek attractive investment opportunities."
For Red Dragon Resources Corp, the focus has been to engage in projection generation. The company believes it has the opportunity, particularly in the current climate of low valuations for the junior resource companies, to identify and invest in new projects to achieve a sound long-term investment that has potential for significant appreciation in value from good project fundamentals and strong fundamentals in physical demand.
Red Dragon Resources Corp. is looking to utilize its financial strength and technical expertise for resource projects. The company has evaluated approximately 40 opportunities to date and will continue to monitor carefully value-driven opportunities and weigh these opportunities against the necessity to conserve capital during the restricted financial markets.
For More Information
Red Dragon Resources Corp.
Alvin Jackson, Chairman and Chief Executive Officer
Tel: +1 604 602-8188
Harbour Financial Inc.
Brian N. Barbour
Tel: +1 403 813-5832
The TSX Venture Exchange neither approved nor disapproved the contents of this news release.
