Spokane-based Mines Man-agement Inc., which is involved in the acquisition, exploration, and development of precious- and base-mineral properties, has reported a second-quarter net loss of $2.4 million, compared with a net loss of $1.6 million for the year-earlier period.

In a recent press release, the company said the $800,000 increase in net loss includes $400,000 in expenses related to exploration of the La Estrella gold-silver project in Peru. Early this year, Mines Management signed a letter of intent with Estrella Gold Corp. for an option to acquire up to 75 percent of the Peruvian project.

Additionally, the company said it has had a $400,000 decline in fair-market value of company stock warrants, which offered investors the right to buy additional shares at a later date and at a set price. The warrants expired in April.

Mines Management also has the Montanore Project, in northwestern Montana, which it expects will gain federal approval this year for an exploratory mining permit that could lead to a large silver and copper mine, 18 miles southwest of Libby, Mont. The project would run beneath the Cabinet Mountains Wilderness.

Meanwhile, the company said it expects to spend about $4.5 million during the final six months of this year toward developing projects. The anticipated expenses include about $3 million for general and administrative expenses, $1 million for the Montanore permitting process that includes engineering and geologic studies, and $500,000 on exploration at La Estrella.

However, Mines Management said external financing will be needed after it receives a record of decision to complete a drilling program and feasibility study at the Montanore project, as well as to fund increased 2013 exploration efforts at La Estrella. How much financing and when will depend on the record of decision's timing and other factors such as exploration results, the press release said.

Under the agreement for the La Estrella project, Mines Management, through its subsidiary, Minera Montanore Peru SAC, expects to spend $5 million over four years on drilling exploration at that site and fulfilling other terms.