CALGARY, Alberta, Canada (Marketwired – June 14, 2016) – New Millennium Iron Corp. (“NML” or the “Company”) (TSX: NML) announced today several cost reduction measures designed to preserve cash and better align the Company’s operations with ongoing activities and current market conditions.
The measures include a workforce reduction of 11 full-time employees, including two at the executive level, effective immediately. Overall, this represents about 60% of the Company’s total 19 person workforce.
Robert Patzelt, NML’s President and CEO, said, “We are very disappointed that market circumstances have forced another downsizing of our organization with the loss of dedicated and long-serving employees whose efforts have greatly advanced NML’s projects and development. We are grateful for their many contributions and wish them every success in their future endeavours.”
The net annualized payroll savings will be approximately $1,350,000. Since October 2014, NML’s workforce has been reduced by 80% with resulting annualized payroll savings of approximately $3,542,000.
Other measures to be implemented are the closure of NML’s offices in St. John’s, NL, Sept-Îles, QC, and Schefferville, QC, all by the end of September 2016. The Company closed its Labrador City, NL office in 2014 and reduced office space in Montreal, QC in 2015. In addition to lowering overhead costs, NML has greatly reduced its reliance on consulting services.
Through a further, strategically important arrangement, the level of exploration spending over the next five years necessary to preserve NML’s mining claims will reduce by as much as $3,373,000 without compromising any of the Company’s mineral resources.
These latest initiatives provide NML with sufficient working capital to support activities through 2018 at present expenditure levels, and other steps are being taken to extend this timeframe.
Howard Lutley, NML’s Chairman, added, “First, I very much share Robert’s sentiments regarding our departing employees and thank them on behalf of the Board of Directors. I also wish to assure shareholders that we have retained the expertise and resources necessary to protect NML’s assets, to carefully advance development and financing activities, and to nurture the Company’s diverse relationships across industry, government and communities.”
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