Whitemud Resources Q2 net Loss C$1.3 million

Aug. 26, 2010 - Whitemud Resources Inc. reported a net loss for the second quarter of C$1.3 million or C$0.07 per share, compared to a net loss of C$2.0 million or C$0.12 per share for the year-ago quarter.
The company recorded income of C$630,000 in the second quarter that resulted from the settlement of a dispute related to the failure of the refractory lining of the plant kiln in 2008.
Sales for the second quarter rose to C$353,871 from C$149,679 a year ago.
Whitemud announced on July 28 that the Company would not make the July 31, 2010 interest payment, or the deferred January 31, 2010 interest payment on its outstanding debentures.
The company said it is currently developing a proposal for the debenture holders.
The company said despite continued improvement in the Company's outlook for sales growth, additional capital will be required to meet its future obligations and to sustain operations.
The company noted that it continues to develop and implement a strategy to raise additional funds.
As at June 30, 2010, the Company has drawn C$182,402 on the C$2 million credit facility with its bank and failed to meet its current ratio covenant. The company said it is presently working with its bank towards a remedy while seeking additional financing.