Ascot Resources Reports Second Quarter 2021 Financial Results
10 August 2021 - 2:50PM
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, 2021
(“
Q2 2021”). 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, 2021, please see the Company’s filings on SEDAR
(www.sedar.com).
Derek White, President and CEO, commented,
"Ascot’s pace of advance continued in Q2 with significant progress
being made on many fronts. The company closed equity financings
totalling C$81M, which de-risked project funding requirements and
saw Yamana Gold’s entrance as a new strategic shareholder. Once
snow levels subsided, crews mobilized to progress through the Early
Works program, which is primarily focused on refurbishing and
preparing the mill building for ball and SAG mill deliveries in Q3.
Subsequent to quarter end we were pleased to announce the signing
of an updated Benefits Agreement with Nisga’a Nation which now
encompasses both PGP and RMP and sets the basis for the long-term
success of the projects for all stakeholders. We are in the third
and final round of technical review comments for the project permit
amendment, and continue to expect its issuance in Q3 which will
allow full-scale construction at PGP. The exploration program has
kicked off by identifying new areas of high-grade mineralization
outside of existing resources. We anticipate a higher cadence of
exploration results throughout the remainder of 2021 as drilling
moves to Woodbine and the Day Zone, and as we add a second surface
drill rig in the coming weeks.”
All amounts herein are reported in $000s of
Canadian dollars (“C$”) unless otherwise specified
Q2 2021 AND RECENT HIGHLIGHTS
- On August 9,
2021, the Company announced high-grade exploration drill results
including 21.13 g/t Au over 7.00m in a step-out hole at PGP.
- On July 19,
2021, the Company announced the signing of an updated Benefits
Agreement with Nisga’a Nation, which now encompasses both PGP and
RMP. The updated Benefits Agreement replaces the former agreement
which only pertained to RMP. The comprehensive Benefits Agreement
sets the basis for the long-term success of the Project and how it
will benefit Nisga'a Nation, its citizens and businesses as well as
the shareholders and stakeholders of Ascot.
- On July 8, 2021,
the Company announced the discovery of new high-grade copper, gold,
and silver mineralization at the PGP property.
- Throughout Q2
and currently, the Early Works program is making significant
progress on site in a few construction areas. The mill building
overhead crane was successfully rebuilt, certified, and set up.
Crews began extensive cleaning of the mill building. Temporary
power has been installed by repairing and energizing the existing
power line. Crews have also begun modifying the mill foundations in
advance of installing ball and SAG mill components, some of which
have already arrived on site.
- On June 7, 2021,
the Company closed a non-brokered private placement of 2,651,796
flow-through shares at an average price of $1.42 per flow-through
share for gross proceeds of $3,765.
- On June 3, 2021,
the Company appointed David Stewart as Vice President Corporate
Development & Shareholder Communications. Mr. Stewart has a
decade of mining sector experience spanning both domestic and
overseas mine development, operations and engineering, and
including five years of sell-side precious metals equity
research.
- On May 17, 2021,
the Company announced its planned 2021 exploration program that
involves approximately 25,000 metres of drilling both from surface
and underground starting in the last week of May 2021.
- On April 20,
2021, the Company closed a bought deal private placement. A total
of 24,000,000 common shares of the Company were sold at a price of
$0.86 per common share for gross proceeds of $20,640. The proceeds
will be used to fund the construction of PGP as well as for working
capital and general corporate purposes.
- On April 9,
2021, the Company closed a bought deal financing. A total of
70,700,000 common shares of the Company were sold at a price of
$0.86 per common share for gross proceeds of $60,802. The proceeds
will be used to fund the construction of PGP and for general
working capital purposes. This bought deal financing met the
minimum equity raise requirement in the credit agreement of the
Company’s credit facilities.
FINANCIAL RESULTS FOR THE THREE MONTHS
ENDED JUNE 30, 2021
The Company reported a net loss of $3,751 for Q2
2021 compared to a net loss of $1,189 for Q2 2020. The loss in Q2
2021 is mainly driven by a $1,988 accounting loss on change in fair
value of derivatives and a $687 decrease in gain on marketable
securities driven by fluctuations in quoted share prices of the
securities held by the Company.
LIQUIDITY AND CAPITAL
RESOURCES
As at June 30, 2021, the Company had cash &
cash equivalents balance of $109,251. Included in cash and cash
equivalents is $3,156, which is required to be spent on
flow-through expenditures prior to December 31, 2022. During the
six months ended June 30, 2021, the company issued 97,351,796
common shares and granted 403,190 stock options, 26,984 DSUs and no
RSUs.
MANAGEMENT’S OUTLOOK FOR 2021
Management is planning a number of activities
for the remainder of 2021, which include:
- Continuing to
progress on 2021 exploration plan at higher elevations to focus on
prospective area near the Day Zone and north of Premier deposit. A
second surface drill rig is planned to be added in the coming
weeks.
- Progressing to
the third stage of review comments from the regulators and NLG on
Joint MA/EMA Application with a target to completion in Q3,
2021.
- Continuing to
advance detailed engineering, Early Works construction program
including the installation of the Ball and SAG mill in Q3 2021 and
ordering of other long lead time equipment.
- Progressing the
early works on the water treatment plant and water distribution
system and haul road upgrades and installation of the construction
camp.
On behalf of the Board of Directors of
Ascot Resources Ltd.“Derek C. White”President &
CEO
For further information contact:David Stewart,
P.Eng.VP, Corporate Development & Shareholder
Communicationsdstewart@ascotgold.com778-725-1060 ext. 1024
About Ascot Resources Ltd.
Ascot is a Canadian-based junior exploration and
development company focused on re-starting the past-producing
Premier gold mine, located in British Columbia’s prolific Golden
Triangle. Concurrent with progressing the development of Premier,
the Company continues to successfully explore its properties for
additional high-grade underground resources. Ascot is committed to
the safe and responsible development of Premier in partnership with
Nisga’a Nation as outlined in the Benefits Agreement.
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 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 regarding the Company’s
exploration and development plans, the success of the Projects, the
implementation of the Agreement, the benefits of the Agreement to
Nisga’a Nation, its citizens and businesses as well as the
shareholders and stakeholders of Ascot, and related matters.
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 anticipated benefits of the Agreement, the estimated costs
associated with construction of the Premier Gold 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
implementation of the Agreement, 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 the Premier Gold Project as well
as those factors discussed in the Annual Information Form of the
Company dated March 26, 2021 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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