VANCOUVER, March 16, 2018 /CNW/ - Mason Resources Corp.
(TSX:MNR; OTCQB: MSSNF – "Mason" or the "Company") is pleased to
report its financial results for the year ended December 31, 2017. All figures are in US
dollars unless otherwise noted.
2017 HIGHLIGHTS
- On May 9, 2017, Mason and Entrée
Resources Ltd. (formerly Entrée Gold Inc. – "Entrée") completed a
strategic reorganization of Entrée's business through a plan of
arrangement (the "Arrangement"). Pursuant to the Arrangement,
Entrée transferred to Mason the Ann Mason copper-molybdenum project
in Nevada and the Lordsburg copper-gold property in New Mexico, and $8.84
million in cash.
- As part of the Arrangement, each existing share of Entrée was
exchanged for 0.45 of a Mason common share and one "new" common
share of Entrée. Optionholders and warrantholders of Entrée
received replacement options and warrants of Entrée and options and
warrants of Mason which are proportionate to, and reflective of the
terms of, their existing options and warrants of Entrée.
- On May 9, 2017, the Company
entered into an Administrative Services Agreement with Entrée,
pursuant to which Entrée provides office space, furnishings and
equipment, communications facilities and personnel necessary for
Mason to fulfill its basic day-to-day head office and executive
responsibilities on a pro-rata cost-recovery basis.
- On May 10, 2017, Mason filed its
National Instrument 43-101 technical report titled "2017 Updated
Preliminary Economic Assessment on the Ann Mason Project,
Nevada, U.S.A." (the "2017 PEA")
for its flagship Ann Mason Project in Nevada on SEDAR at www.sedar.com. The 2017 PEA
indicates the Ann Mason Project has positive project economics and
has the potential to be a large, long life copper-molybdenum mining
operation.
- On May 12, 2017, the Company's
common shares commenced trading on the Toronto Stock Exchange under
the symbol "MNR".
- On July 19, 2017, the Company
adopted a Shareholder Rights Plan (the "Rights Plan") to ensure, to
the extent possible, that all shareholders of the Company are
treated fairly and equally in connection with any take-over bid or
other acquisition of control of the Company. The Rights Plan was
not adopted in response to any specific take-over bid or other
proposal to acquire control of Mason and Mason was not aware of any
such pending or contemplated proposals.
- In August 2017, the Company
welcomed two new significant shareholders in Mason replacing
disinterested shareholders following the spinout of Mason from
Entrée:
-
- Mantos Copper (Bermuda)
Limited ("Mantos") purchased an aggregate of 13,664,757 common
shares of Mason at a price of C$0.20
per share for an aggregate purchase price of C$2,732,952 from Rio Tinto International Holdings
Limited and Turquoise Hill Resources Ltd., which represents
approximately 17.5% of the outstanding common shares of Mason.
- Hudbay Minerals Inc. ("Hudbay") purchased an aggregate of
10,854,170 common shares of Mason including 10,755,170 common
shares on August 24, 2017 from
Sandstorm Gold Ltd. ("Sandstorm"). The shares were purchased from
Sandstorm at a price of C$0.26 per
share for an aggregate purchase price of C$2,796,344. This represents approximately 13.9%
of the outstanding common shares of Mason.
- Effective November 9, 2017, the
Company's common shares commenced trading on the OTCQB Venture
Market in the United States under
the symbol "MSSNF".
- Following the acquisition of shares by Mantos and Hudbay, the
Board of Directors of the Company determined to allow the Rights
Plan to expire, in accordance with its terms, on January 19, 2018.
- The 2017 full year net loss was $2.2
million which included net income of $0.2 million in Q4 2017 as a result of a deferred
income tax recovery adjustment of $0.7
million. The Company's cash balance at December 31, 2017 was $7.5
million with no debt.
*The consolidated
financial operating results have been prepared on a continuity of
interest basis of accounting following the
Arrangement, which requires that prior to the May 9, 2017 effective
date thereof, the assets, liabilities, results of operations
and
cash flows of the Company be on a 'carve-out' basis from the
consolidated financial statements and accounting records of
Entrée.
|
OUTLOOK AND STRATEGY
Corporate
The Company's corporate focus going forward will be to maximize
market value through assessing and executing on options to move Ann
Mason forward, possibly including introducing one or more strategic
partners. In addition, Mason is undertaking a process to prioritize
and progress other growth strategies involving its Lordsburg property and additional new
exploration acquisitions. Fiscal responsibility and only spending
the Company's cash reserves on value adding activities remains a
high priority.
The Company expects to spend between $1.2
million and $1.4 million for
the 2018 year, which includes $0.4
million for corporate costs, investor relations and
compliance and the balance related to the Ann Mason Project and
Lordsburg property.
Ann Mason Project
The Company is currently evaluating options for its Ann Mason
Project which may include optimizing certain aspects of the 2017
PEA, commencing a Pre-Feasibility study and testing high priority
exploration targets with potential to provide early production
options.
The Company is targeting expenditures of between $0.7 million and $0.9
million for the 2018 year, including claim fees and
payments, site maintenance and local administration
costs.
Lordsburg Property
The Company is managing the costs associated with the
Lordsburg property while
management evaluates the best path forward to add value to the
project. Expenditures for 2017 were mainly for claim fees and local
administration costs. The Company expects to spend
approximately $0.1 million for the
2018 year.
The Company's Annual Financial Statements, Management's
Discussion and Analysis ("MD&A") and Annual Information Form
are available on SEDAR at www.sedar.com and on the Company's
website at www.MasonResources.com.
QUALIFIED PERSON
Robert Cinits, P.Geo., Mason's Chief Operating Officer, a
Qualified Person as defined by National Instrument 43-101 –
Standards of Disclosure for Mineral Projects, has approved
the technical information in this release.
ABOUT MASON RESOURCES CORP.
Mason Resources Corp. is
a well-funded Canadian company focused on copper exploration and
development in the U.S.A. The Company's key asset is its 100%
owned Ann Mason Project – an extensive, prospective land package
located in the Yerington District
of Nevada. The Ann Mason Project
hosts two copper-molybdenum porphyry deposits, Ann Mason and Blue
Hill, as well as numerous earlier-stage or untested priority
targets. The Ann Mason deposit is currently at a PEA level
and is among the largest undeveloped copper porphyry resources in
Canada/U.S.A. The excellent infrastructure,
year-round access, strong community support and clear permitting
process are all factors that contribute to making Yerington, Nevada one of the best mining
jurisdictions in the world. Mason also holds a 100% interest in the
Lordsburg property, an exciting
earlier-stage copper-gold porphyry project, located within an
historic mining district in New
Mexico.
Mason's strong financial position and high-quality asset
portfolio provide it with a solid foundation and flexibility for
growth, by advancing development of Ann Mason towards
Pre-Feasibility, introducing one or more strategic development
partners, exploring high priority targets or considering strategic
acquisitions. More information on Mason Resources can be found at
www.MasonResources.com.
This news release contains forward-looking statements within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and forward-looking information within the
meaning of applicable Canadian securities laws.
Forward-looking statements include, but are not limited to,
statements with respect to corporate strategies and plans of Mason;
uses of funds; the ability of Mason to maximize returns to
shareholders; the potential to optimize certain aspects of the 2017
PEA; completion of a Pre-Feasibility study on the Ann Mason
Project; a potential strategic development partner for the Ann
Mason Project; the potential impact of future exploration results
on Ann Mason mine design and economics; the potential development
of Ann Mason; plans for future exploration and development programs
and budgets; anticipated business activities; proposed acquisitions
and dispositions of assets; and future financial
performance.
While the Company has based these forward-looking statements
on its expectations about future events as at the date that such
statements were prepared, the statements are not a guarantee of the
Company's future performance and are based on numerous assumptions
regarding present and future business strategies, local and global
economic conditions and the environment in which Mason will operate
in the future, including the price of copper, gold, silver and
molybdenum. Uncertainties and factors which could cause
actual results to differ materially from future results expressed
or implied by forward-looking statements and information include,
amongst others, unanticipated costs, expenses or liabilities;
discrepancies between actual and anticipated production, mineral
resources and metallurgical recoveries; the size, grade and
continuity of deposits not being interpreted correctly from
exploration results; the results of preliminary test work not being
indicative of the results of future test work; fluctuations in
commodity prices and demand; changing foreign exchange rates;
actions by government authorities; the availability of funding on
reasonable terms; the impact of changes in interpretation to or
changes in enforcement of, laws, regulations and government
practices, including laws, regulations and government practices
with respect to mining, foreign investment, royalties and taxation;
the terms and timing of obtaining necessary environmental and other
government approvals, consents and permits; the availability and
cost of necessary items such as power, water, skilled labour,
transportation and appropriate smelting and refining arrangements;
and misjudgements in the course of preparing forward-looking
statements. In addition, there are also known and unknown risk
factors which may cause the actual results, performances or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements and information. Such factors
include, among others, risks related to international operations,
including legal and political risk; risks associated with changes
in the attitudes of governments to foreign investment; changes in
project parameters as plans continue to be refined; inability to
upgrade Inferred mineral resources to Indicated or Measured mineral
resources; inability to convert mineral resources to mineral
reserves; conclusions of economic evaluations; future prices of
copper, gold, silver and molybdenum; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and
other risks of the mining industry; delays in obtaining government
approvals, permits or licences or financing or in the completion of
development or construction activities; environmental risks; title
disputes; limitations on insurance coverage; as well as those
factors discussed in the Company's most recently filed MD&A and
in the Company's Annual Information Form for the financial year
ended December 31, 2017, dated
March 16, 2018 filed with the
Canadian Securities Administrators and available at www.sedar.com.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. The Company is under no obligation to
update or alter any forward-looking statements except as required
under applicable securities laws.
SOURCE Mason Resources