RENO, Nev., Aug. 17, 2006 (PRIMEZONE) -- Battle Mountain Gold Exploration Corp. (OTCBB:BMGX) ("Battle Mountain") is pleased to report results for the quarter ended June 30, 2006. Revenue for the period was $1.549 million. The revenue includes royalty income earned from January 2006 to June 30, 2006, and represents an approximate 35% increase from what the portfolio generated for the same period last year, under the previous owner. A breakdown of Battle Mountain's first and second quarter royalty revenue is provided in Table 1 below.
Table 1: Breakdown of Battle Mountain's Royalty Revenue for Six Months Ending June 30, 2006 (Unaudited)
Six Months
Ending
Royalty Q1 Q2 June 30, 2006
Williams Mine $ 267,859 $ 250,000 $ 517,859
El Limon Mine $ 131,442 $ 149,543 $ 280,985
Don Mario Mine $ 359,457 $ 332,825 $ 692,282
Joe Mann Mine $ 38,752 $ 19,396 $ 58,148
Total $ 797,510 $ 751,764 $ 1,549,274
Battle Mountain incurred a net loss for the first six months ended June 30, 2006, under US GAAP, of ($6,969,853), or ($0.13) per basic and diluted share, as a result of numerous non recurring and non cash charges associated with the purchase and financing of the royalty assets. The significant non cash charges include $3,953,488 for the expense associated with the value of the warrants issued to investors in the unit offering, $599,850 in non cash bank fees, and $1,937,042 in non cash compensation expenses. The company generated cash flow from operations for the six months ended June 30, 2006 of approximately $303,000. Cash, which includes restricted cash held by our senior lender, was $409,327 at June 30, 2006.
The recently acquired portfolio of gold royalty assets is meeting management's expectations. Management looks forward to continued growth from the existing royalty assets and continues to review potential acquisitions.
For more information, please see our form 10QSB for the period ending June 30, 2006, which has recently been filed with the SEC.
About Battle Mountain
Battle Mountain is a gold royalty company headquartered in Reno, Nevada. Battle Mountain has a diversified portfolio of thirteen producing, developing, and exploration gold royalties in seven gold producing countries.
On behalf of the Board of Directors, Mark Kucher Chairman and CEO
To learn more please visit www.bmegold.com or email info@bmegold.com.
Battle Mountain Exploration Gold Corp. Sixth Floor, Suite 9 One East Liberty Street Reno, Nevada 89504
Safe Harbor for Forward-Looking Statements: This release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions and ventures discussed in this release. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the risks inherent in mineral exploration, the need to obtain additional financing, the availability of needed personnel and equipment for future exploration and development, fluctuations in the price of minerals, and general economic conditions.