Abcourt Announces its Results for the Fourth Quarter and the Year ended June 30, 2023
25 November 2023 - 9:23AM
Abcourt Mines Inc. (“Abcourt” or the
“Corporation”) (TSX Venture: ABI) announces that
following the management cease trading order (“MCTO”) issued by the
Corporation’s principal regulator, the Autorité des marchés
financiers (Québec), on November 1, 2023 and the subsequent news
release update issued by the Corporation, Abcourt has completed on
November 24, 2023 the filing of its audited consolidated financial
statements, its management’s discussion and analysis as well as the
CEO and CFO certificates for the year ended June 30, 2023
(collectively, the “Annual Filings”) under its SEDAR+ profile at
www.sedarplus.ca and on its website. Consequently, the Corporation
expects the MCTO to be revoked by securities regulators in
accordance with Policy Statement 12-203 respecting Management Cease
Trade Orders after the end of the trading day today.
The results for the fourth quarter and the year
ended June 30, 2023 represents a net loss of $5,337,044, or a net
loss per share of $0.02, compared to a net loss of $21,621,251 or a
loss per share of $0.07, for the same period in 2022.
Following the cessation of the production at the
Elder mine in August 2022, all of the Corporation's sites were
placed in care and maintenance mode, and the Corporation
transferred all equipment and materials from the Elder mine to the
Sleeping Giant mine. Then, the Corporation initiated the mineral
resource estimate (“MRE”) on the Sleeping Giant, Discovery, and
Flordin gold properties. Following the ERM on Sleeping Giant,
Abcourt completed a preliminary economic study published in June
2023. Since then, Abcourt has restarted underground work towards a
small operation while the technical teams advance the work towards
a pre-feasibility study planned towards the end of 2024.
Highlights of the Financial
Year
- Revenues
of $7,014,494 for the year ended June 30, 2023, from the sale of
gold from the cleaning of the Sleeping Giant mill.
- Proceeds
from the sale of gold and silver from the Sleeping Giant property
in the amount of $6,684,299 from the sale of ounces of gold and
silver from the cleaning of the Sleeping Giant processing
plant.
- A net
loss of $5,337,044 for the year ended June 30, 2023, compared to a
net loss of $21,621,251 for the same period in 2022.
- Cost of
sales of $4,235,799 for the year ended June 30, 2023, compared to
$22,808,329, for the same period in 2022, a significant reduction
explained by the cessation of the production Elder mine.
- The
number of ounces sold was 5,545 for the year ended June 30, 2023,
compared to 10,157 for the same period in 2022, coming from the
mill cleanout. The average price realized from gold sales for the
year was $2,439 (US$1,825) per ounce of gold, compared to $2,305
(US$1,833) in 2022, which is comparable.
- Cash of
$963,974 on June 30 2023, compared to $720,512 in 2022.
Corporation’s working capital of $(4,476,223) compared to
$(5,246,416) in 2022; an improvement in liquidity as well as
working capital during the year partly linked to financing
activities and the sale of the royalty on the Sleeping Giant and
Dormex properties.
- As of
August 1, 2022, the Corporation ceased operations at the Elder
mine, and placed the mine in care and maintenance mode. All
equipment located underground has been brought to the surface. The
skips and cables from the mine shaft have been recovered. The site
was secured and the mine was flooded.
- On
September 22, 2022, the Corporation sold a royalty to Maverix
Metals Inc. (« Maverix») of 2% of net smelter revenue on all
metallic and non-metallic minerals mined or otherwise recovered on
each of the Sleeping Giant and Dormex properties for US$2,000 000
in cash.
- Under the
royalty agreement, the Corporation may, at any time before the
third anniversary of the signing of the agreement, choose to reduce
the royalty rate by 0.5% upon payment of an amount of US$2,000,000
to Maverix Metals Inc., and may, at any time prior to the sixth
anniversary of the signing of the royalty agreement, elect to
reduce the royalty rate by 0.5% upon payment of US$4,000,000 to
Maverix Metals Inc, thus reducing the royalty rate to 1.0%, to the
extent that Abcourt will have exercised the option before the third
anniversary of the signing of the agreement to reduce the royalty
rate by 0.5% by paying the US$2,000,000 to Maverix Metals Inc.
- On
September 27, 2022, the Corporation closed a private placement
consisting of 5,000,000 units at a price of $0.065 per unit for
gross proceeds of $325,000. Each unit is composed of one Class “B”
common share and one warrant. Each warrant allows you to subscribe
to a class “B” common share at an exercise price of $0.15 for a
period of 3 years from the date of issue of the warrant.
- On
December 13, 2022, the Corporation announced an update to the
Mineral Resources Estimate (MRE) for the Sleeping Giant mine. This
MRE reflects the results of approximately 1.19 million meters of
drilling, of which 9,281 meters were completed by Abcourt from 2016
through May 2022, as well as all assay results received through
September 2022. The MRE was carried out by the firm InnovExplo of
Val d'Or.
- On April
6, 2023, the Corporation announced its first MRE for the Discovery
project, a gold deposit wholly owned by the Corporation and located
in the Abitibi greenstone belt, 80 km east of the Sleeping Giant
mill and 35 km north of the town of Lebel-sur-Quévillon in Quebec.
This MRE reflects the results of approximately 158 thousand meters
of drilling, of which 35,551 meters were carried out from 2010 to
2018. The MRE was carried out by the firm InnovExplo of Val
d'Or.
- On May
11, 2023, the Corporation announced that it had completed the
previously announced acquisition of all of the issued and
outstanding common shares of Pershimex (the “Pershimex Shares”) by
way of a three-way merger (the “Merger”) under the Canadian
Business Corporations Act. Pursuant to the Merger, Abcourt acquired
all of the shares of Pershimex for consideration of 0.5712 common
shares of Abcourt for each share of Pershimex.
- On May
18, 2023, the Corporation announced its first MRE for the Flordin
project, a gold deposit wholly owned by the Corporation and located
in the Abitibi greenstone belt, 85 km east of the Géant plant
Dormant and 30 km north of the town of Lebel-sur-Quévillon in
Quebec. This MRE reflects the results of approximately 73.4
thousand meters of drilling, of which 34,900 meters were carried
out from 2010 to 2020. The MRE was carried out by the firm
InnovExplo of Val d'Or.
- On June
5, 2023, the Corporation announced the death of the Corporation's
founder, Renaud Hinse. Mr. Hinse founded the Corporation in 1979
and served as President and Chief Executive Officer until April
2022. He was still a director of the Corporation at the time of his
death.
- On June
7, 2023, the Corporation announced the positive results of an
independent Preliminary Economic Assessment (“PEA”) prepared in
accordance with National Instrument 43-101 Disclosure for Mineral
Projects (“NI 43-101”) for the Sleeping Giant mine.
Strategy and outlook
- During the year, the Corporation
issued MREs for the Sleeping Giant mine, the Discovery deposit and
the Flordin deposit, and acquired the Pershing-Manitou deposit with
an MRE. The Corporation now has 4 deposits with MREs in compliance
with Regulation 43-101.
- Following the release of the PEA in
June 2023, the mine management team continued to develop the
geological model of the Sleeping Giant mine. Based on the
information collected since the June PEA, the Corporation has
decided to start small underground production at the Sleeping Giant
mine while it continues to develop the geological model in order to
update the MRE and prepare for the following a prefeasibility
study.
- During the months of September to
November 2023, the Corporation completed the work required to
restart the mill. Before starting a small-scale production at the
Sleeping Giant mine, the Corporation plans to process a 5,000-ton
bulk sample from the Pershing-Manitou deposit.
- As the Corporation proceeds with
small-scale production from the upper 4 levels of the Sleeping
Giant mine, the technical team plans to convert inferred resources
to indicated resources by increasing drilling density on areas
identified in the PEA.
- The Corporation plans to publish an
MRE following drilling to convert inferred resources to indicated
resources to support a prefeasibility study in late 2024.
- For other assets, a drilling
campaign is underway on its Flordin and Discovery deposits, and the
Corporation plans to complete it in December 2023.
-
Following completion of processing the bulk sample from the
Pershing-Manitou deposit at the Sleeping Giant mill, the
Corporation will evaluate the possibility of performing an update
of the MRE at Pershing-Manitou.
ABOUT ABCOURT MINES INC.
Abcourt Mines Inc. is a Canadian gold
exploration Corporation with properties strategically located in
northwestern Quebec, Canada. Abcourt 100% owns the Sleeping Giant
mill and mine where it concentrates its activities. The Sleeping
Giant mine has a mining lease, as well as environmental
certificates of authorization to extract up to 750 tonnes per day
from its underground mine.
For further information, please visit our
website at www.abcourt.ca, and consult our filings under Abcourt's
profile at www.sedarplus.ca, or contact:
Pascal HamelinPresident and CEOT:
(819) 768-2857E: phamelin@abcourt.com |
Dany Cenac Robert, Investor
RelationsReseau ProMarket Inc.,T: (514)
722-2276, post 456E: dany.cenac-robert@reseaupromarket.com |
CAUTIONARY STATEMENT ON FORWARD-LOOKING
INFORMATION
This news release contains “forward-looking
information” within the meaning of applicable Canadian securities
legislation based on expectations, estimates and projections as at
the date of this news release. Such forward-looking information
includes, but is not limited to, statements concerning the
revocation of the MCTO. Forward-looking information involves risks,
uncertainties and other factors that could cause actual events,
results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Factors that could cause actual results to differ
materially from such forward-looking information include, but are
not limited to, delays in obtaining or failures to obtain required
approvals; uncertainties relating to the availability and costs of
financing needed in the future; changes in equity markets;
inflation; fluctuations in commodity prices; delays in the
development of projects; other risks involved in the mineral
exploration and development industry; and those risks set out in
the Corporation’s public documents filed on SEDAR+ at
www.sedarplus.ca. Although the Corporation believes that the
assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance
should not be placed on such information, which only applies as of
the date of this news release, and no assurance can be given that
such events will occur in the disclosed time frames or at all. The
Corporation disclaims any intention or obligation to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
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