Manhattan restates losses

Vancouver — Writedowns on the sale of its Mexican operations has prompted Manhattan Minerals (MAN-T) to restate losses for the three and nine-month periods ended Sept. 30, 2000.

Excluding the charge from discontinued operations, the company tabled a loss of US$1.97 million, or 5 per share in the first nine months of this year, compared to a loss of US$1.1 million or 3 a share in the corresponding period of 2000. Including the charge, the loss remains the same for the 2001 period but jumps to US$2.58 million or 7 per share for the same period of 2000. For the three months ended Sept. 30, Manhattan recorded a loss of US$598,000 or 1 per share, compared to a loss of US$390,000 tallied in the 2000 quarter. Including the write down, the latest quarter’s loss remains the same, but the loss for the third quarter of 2000 jumps to US$803,000 or 2 per share.

Manhattan completed the sale of its Moris gold mine in Sonora state, Mexico in March of this year, resulting in a US$1 million loss. Mining at Moris was shut down in April 1999, though the leach pads continued to produce gold into 2000.

The company continued to work on the social parts of the environmental impact assessment for the Tambo Grande base metal project in Peru.

In February, the project came under attack during an organized protest involving townspeople from Tambogrande, which turned violent and lasted several days. Local police say the protests were orchestrated by leaders of the Defense Front of the San Lorenzo Valley and the Urban Defense Front of Tambogrande.

Manhattan says the actions of these groups are not representative of the town’s 15,000 residents but instead are politically motivated and part of a country-wide campaign aimed at disrupting government and industrial activities during the ongoing presidential elections.

Tambo Grande ranks among the world’s largest volcanogenic massive sulphide projects, with total sulphide mineralization in the district estimated to exceed 300 million tonnes.

In response to the February protests, the Peruvian government granted Manhattan a one-year extension to its option agreement. The key business terms of this agreement, which now extend to May 2003, require that the company complete a feasibility study and financing plan. The feasibility, originally scheduled for completion this June, has been rescheduled for completion by June 2002. Most aspects of the study are already completed, so the extension will give Manhattan time to advance its community relations.

The company is seeking a joint-venture partner or partners to help develop Tambo Grande. Manhattan spent US$16.4 million on the project in 2000, primarily on exploration drilling, feasibility work and community relations.