VANCOUVER, May 11, 2018 /CNW/ - Mason Resources Corp.
(TSX:MNR; OTCQB: MSSNF – "Mason" or the "Company") is pleased to
report its financial results for the first quarter ended
March 31, 2018. All figures are
in US dollars unless otherwise noted.
Q1 2018 HIGHLIGHTS
- Net loss for Q1 2018 was $0.3
million, which was a reduction of 57% from the comparative
period of 2017 ($0.7 million net
loss).
- Operating cash outflow after working capital movements for Q1
2018 was $0.1 million, which was a
reduction of 85% from the comparative period of 2017 ($0.7 million cash outflow).
- The Company's cash balance at March 31,
2018 was $7.1 million with no
debt.
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 its
Ann Mason copper-molybdenum porphyry project (the "Ann Mason
Project") in Nevada 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 copper-gold porphyry property in
New Mexico and additional
potential new exploration acquisitions. Fiscal responsibility,
including restricting cash expenditures to 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 Ann Mason Project is believed to be the 4th largest
undeveloped copper porphyry resource in Canada/U.S.A.
and remains open in several directions. On May 10, 2017, Mason filed its NI 43-101 technical
report titled "2017 Updated Preliminary Economic Assessment on the
Ann Mason Project, Nevada, U.S.A."
(the "2017 PEA") on SEDAR at www.sedar.com. 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 alternative 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 2018 are mainly for claim fees and local
administration costs. The Company expects to spend
approximately $0.1 million for the
2018 year.
The Company's first quarter 2018 unaudited consolidated
financial statements and Management's Discussion and Analysis
("MD&A") are available on SEDAR at www.sedar.com and on the
Company's website at www.MasonResources.com.
SUMMARY OF FINANCIAL RESULTS
The Company's Q1 2018 net loss of $0.3
million included $0.2 million
of exploration costs and $0.3 million
of general and administration costs, which were partially offset by
$0.2 million foreign exchange
gain.
Exploration expenses for Q1 2018 included costs of $0.1 million relating to the Ann Mason
Project. Compared to the comparative 2017 and 2016 periods,
the expenses were 17% and 43% lower, respectively, due to the
moderation of exploration programs relating to the Ann Mason
Project since 2016. Exploration expenses relating to the
Lordsburg property during these
periods were minimal.
General and administrative costs in Q1 2018 included costs of
$0.2 million related to
administrative and executive services through the Administrative
Services Agreement ("ASA") with Entrée Resources Ltd. The expenses
in the current year are comparable to the comparative period in
2017 but are 32% higher than the comparative period in 2016 due to
the expenses incurred under the ASA.
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 ("NI 43-101"), 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.
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SOURCE Mason Resources