CALGARY, Alberta, Canada (Marketwired – October 28, 2014) – New Millennium Iron Corp. (“NML” or the “Corporation”) (TSX: NML) (OTCQX: NWLNF) today announced a human resource restructuring plan which includes a workforce reduction of 12 full-time employees, or approximately 30% of the Company’s total 38 person workforce. This restructuring plan responds to presently difficult commodity market conditions, while also better aligning the Corporation’s organizational structure with ongoing activities. The Corporation will also look to adjust other related costs as part of its 2015 budgeting process presently underway.
One-time charges associated with the restructuring are currently being finalized. As this restructuring is taking place in Q4, additional details will be provided by the Corporation when it reports 2014 year-end results. The vast majority of the costs are associated with salary entitlements of the departing employees. The remaining costs are associated with professional services related to the restructuring. The annualized payroll savings (before restructuring costs) are estimated to be approximately $1,520,000.
Combined with other cost saving measures undertaken in 2014, the restructuring is expected to provide the Corporation with sufficient working capital to support activities through 2016 at present expenditure levels, and further reviews may be carried out as necessary.
“With our exploration program having established NML’s substantial certified Taconite resource base and the DSO Project organization now in place, we have as part of our strategic planning process and operational review restructured to realign our resources and focus on those activities that provide the greatest opportunity in the immediate term to maximize shareholder value, especially in this very challenging commodity market. We thank all our employees for their contributions. We have made a difficult decision to downsize the organization to further reduce our expense profile from actions already taken earlier in the year, extend our working capital and focus on the Taconite Project and other opportunities that may arise for our iron ore properties” stated Robert Patzelt, President and CEO of NML.
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