Ascot Resources Ltd. (TSX: AOT; OTCQX:
AOTVF) (“
Ascot” or the
“
Company”) announces the Company’s unaudited
financial results for the three and six months ended June 30,2020
(“
Q2 2020”). For details of the unaudited
condensed interim consolidated financial statements and
Management's Discussion and Analysis for the three and six months
ended June 30, 2020, please see the Company’s filings on SEDAR
(www.sedar.com).
All amounts herein are reported in $000s of
Canadian dollars (“C$”) unless otherwise specified.
Q2 2020 AND RECENT HIGHLIGHTS
- On April 15, 2020, the Company reported robust feasibility
study results with after-tax internal rate of return (“IRR”) of 51%
based on US $1400/oz gold price. The feasibility study was prepared
in accordance with an NI 43-101 technical report for Ascot’s 100%
owned Premier (“PGP”) and Red Mountain (“RMP”) gold projects and
filed on SEDAR on May 22, 2020. The feasibility study outlines
a low capital restart plan to feed the Premier mill at 2500 tonnes
per day to produce approximately 1.1 million ounces of gold and 3.0
million ounces of silver over eight years;
- On June 17, 2020, the Company closed its previously announced
bought deal financing (the “Bought Deal”). A total of 29,412,000
common shares of the Company were sold under the Bought Deal at a
price of C$0.85 per Share for aggregate gross proceeds to the
Company of $25 million. The net proceeds of the Bought Deal will be
used for the continued development of the Company's Premier Gold
Project, including the purchase of long lead time equipment and for
general working capital purposes;
- The Company commenced its 2020 exploration program at PGP and
RMP in early June. Exploration activities this season consist
of prospecting, geophysics and drill testing of a variety of
different exploration targets at PGP and RMP. The focus of the
program is on four highly prospective exploration areas, the west
of the Premier deposit (“Premier West”), Silver Hill, Lost Valley
and Woodbine;
- On July 29, 2020, the Company announced high gold grades in the
first seven drill holes (1,930 metres) of the 2020 season. The
drill site is strategically located at Premier West, potentially
adding to existing resources outlined in the feasibility
study;
- Drilling has been completed at Premier West for now and has
moved to higher elevations as weather conditions permitted. One
drill is on the Day zone and the other is on the Silver Hill
prospect. The Exploration team will sequence back to low elevation
targets as weather conditions dictate later in the season.
Ascot’s President and CEO, Derek White
commented, “The funds that we raised this year have allowed us to
carry out our 2020 exploration program, further progress
engineering and the preparation required for ordering important
long-lead time equipment items for the Premier Mill. As we continue
on our path towards production, we continue to communicate closely
with our First Nation partners—the Nisga’a, and with the local
communities of Stewart, BC and Hyder, Alaska that have been
supporting us during this current exploration and drilling season
while we follow the safety protocols put in place for Covid-19.
The Ascot team is working on a number of
activities, including advancing the project financing, exploration
drilling, the permit amendments and preconstruction engineering. I
would like to invite our shareholders and interested stakeholders
to listen to a Webinar that Ascot will be a part of on August 18,
2020, to learn more about the British Columbia Regional Mining
Alliance (“BCRMA”) and how we work together with our First Nation
partners, the Province and Industry.”
FINANCIAL RESULTS – SIX MONTHS ENDED
JUNE 30, 2020
The Company reported a net loss of $1,189 for Q2
2020 compared to $1,274 for Q2 2019. The Company reported a net
loss of $4,673 for the first half of 2020 compared to $2,610 for
the first half of 2019. The higher loss in the first half of 2020
is attributable to a combination of factors, including a $465
accounting loss related to fair value movements on the convertible
note, a $551 foreign exchange loss and a $421 decrease in
flow-through share premium due to lower exploration expenditures in
the first half of 2020 compared to the first half of 2019. There
was a $277 increase in stock-based compensation charges due to more
stock options granted in the first half of 2020 compared to the
first half of 2019, and a $140 increase in depreciation mainly due
to depreciation of IDM assets acquired at the end of Q1 2019.
LIQUIDITY AND CAPITAL
RESOURCES
In February 2020, the Company raised $10,253
through a private placement to fund its 2020 exploration program
and other corporate expenditures. During the six months ended June
30, 2020, the Company spent $514 on qualifying flow-through
exploration expenditures. As at June 30, 2020, the Company had a
balance of $4,510 required to be spent on flow-through expenditures
prior to December 31, 2022. On June 17, 2020, the Company raised
$25,000 through a Bought Deal by issuing 29,412,000 common shares
at $0.85 per share. The net proceeds of the Bought Deal will be
used for the continued development of PGP, including the purchase
of long lead time equipment and for general working capital
purposes. As at June 30, 2020, the Company had working capital of
$15,148 and cash & cash equivalents balance of $31,197. The
increase in cash & cash equivalents was due to the net proceeds
of $9,518 from the private placement as well as the net proceeds of
$23,328 from the Bought Deal. The Company has sufficient funding to
meet its obligations for the next twelve months.
BC REGIONAL MINING ALLIANCE
WEBINAR
Tuesday, August 18, 2020 at 8:00
AM | Pacific Time (US & Canada)
For those interested in investing or learning
more about BC’s Golden Triangle, we invite you to join us for a
summary of recent developments and activities happening in the
region. During this session, you’ll learn why the rocks in this
area are unique and so well suited to hosting mineral deposits.
You’ll hear project highlights from four active companies working
in the region, and you’ll come to appreciate the open and
collaborative relationships that continue to grow between First
Nations, the Province and Industry. We’ll also touch on the
infrastructure in the region and discuss the permitting
process.
https://www.bigmarker.com/Showkraft/BC-Regional-Mining-Alliance-Webinar
QUALIFIED PERSONS AND NI 43-101
DISCLOSURE
John Kiernan, P.Eng., Chief Operating Officer of
the Company is the Company’s Qualified Person as defined by
National Instrument 43-101 and has reviewed and approved the
technical contents of this news release.
ON BEHALF OF THE BOARD OF DIRECTORS OF
ASCOT RESOURCES LTD.
“Derek C. White”, President and
CEO
For further information contact:Kristina Howe
VP, Investor Relations 778-725-1060 / khowe@ascotgold.com
About Ascot Resources Ltd.
Ascot is a Canadian-based exploration and
development company focused on re-starting the past producing
historic Premier gold mine, located in British Columbia's Golden
Triangle. The Company continues to define high-grade resources for
underground mining with the near-term goal of converting the
underground resources into reserves, while continuing to explore
nearby targets on its Premier/Dilworth and Silver Coin properties
(collectively referred to as the Premier Gold Project). Ascot's
acquisition of IDM Mining added the high-grade gold and silver Red
Mountain Project to its portfolio and positions the Company as a
leading consolidator of high-quality assets in the Golden
Triangle.
For more information about the Company, please
refer to the Company’s profile on SEDAR at www.sedar.com or visit
the Company’s web site at www.ascotgold.com, or for a virtual tour
visit www.vrify.com under Ascot Resources.
The TSX Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this
release.
Cautionary Statement Regarding Forward-Looking
Information
All statements, trend analysis and other
information contained in this press release about anticipated
future events or results constitute forward-looking statements.
Forward-looking statements are often, but not always, identified by
the use of words such as “seek”, “anticipate”, “believe”, “plan”,
“estimate”, “expect” and “intend” and statements that an event or
result “may”, “will”, “should”, “could” or “might” occur or be
achieved and other similar expressions. All statements, other than
statements of historical fact, included herein are forward-looking
statements, including statements in respect of the closing of the
Private Placement and the use of proceeds. Although Ascot believes
that the expectations reflected in such forward-looking statements
and/or information are reasonable, undue reliance should not be
placed on forward-looking statements since the Ascot can give no
assurance that such expectations will prove to be correct. These
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements, including the risks, uncertainties and other factors
identified in the Ascot’s periodic filings with Canadian securities
regulators, and assumptions made with regard to: the estimated
costs associated with construction of the Project; the timing of
the anticipated start of production at the Projects; the ability to
maintain throughput and production levels at the Premier Mill; the
tax rate applicable to the Company; future commodity prices; the
grade of Resources and Reserves; the ability of the Company to
convert inferred resources to other categories; the ability of the
Company to reduce mining dilution; the ability to reduce capital
costs. Forward-looking statements are subject to business and
economic risks and uncertainties and other factors that could cause
actual results of operations to differ materially from those
contained in the forward-looking statements. Important factors that
could cause actual results to differ materially from Ascot’s
expectations include risks associated with the business of Ascot;
risks related to exploration and potential development of Ascot’s
projects; business and economic conditions in the mining industry
generally; fluctuations in commodity prices and currency exchange
rates; uncertainties relating to interpretation of drill results
and the geology, continuity and grade of mineral deposits; the need
for cooperation of government agencies and indigenous groups in the
exploration and development of properties and the issuance of
required permits; the need to obtain additional financing to
develop properties and uncertainty as to the availability and terms
of future financing; the possibility of delay in exploration or
development programs and uncertainty of meeting anticipated program
milestones; uncertainty as to timely availability of permits and
other governmental approvals; risks associated with COVID-19
including adverse impacts on the world economy, construction timing
and the availability of personnel; and other risk factors as
detailed from time to time and additional risks identified in
Ascot’s filings with Canadian securities regulators on SEDAR in
Canada (available at www.sedar.com). The timing of future economic
studies; labour disputes and other risks of the mining industry;
delays in obtaining governmental approvals, financing or in the
completion of Project as well as those factors discussed in the
Annual Information Form of the Company dated March 13, 2020 in the
section entitled "Risk Factors," under Ascot’s SEDAR profile at
www.sedar.com. Forward-looking statements are based on estimates
and opinions of management at the date the statements are made.
Ascot does not undertake any obligation to update forward-looking
statements.
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