Ascot Resources Ltd.
(TSX: AOT; OTCQX: AOTVF)
(“
Ascot” or the “
Company”)
announces the Company’s unaudited financial results for the three
months ended March 31, 2020 (“
Q1 2020”). For
details of the unaudited condensed interim consolidated financial
statements and Management's Discussion and Analysis for the three
months ended March 31, 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.
Q1 2020 AND RECENT
HIGHLIGHTS
- On January 15, 2020, the Company
announced an updated Resource Estimate for the Premier Gold Project
including the Silver Coin, Big Missouri and Premier deposits,
representing a 60% increase in the Indicated Category (see News
Release dated January 15, 2020);
- On February 25, 2020, the Company
closed its non-brokered private placement (the “Private
Placement”) of 5,126,250 flow-through shares at a price
of $0.98 per Flow-Through Share, and 8,170,588 common
shares at a price of $0.64 per common share for aggregate gross
proceeds of $10.3 million;
- On April 15, 2020, the Company
reported robust feasibility study results with after-tax internal
rate of return (“IRR”) of 51%. The feasibility
study was prepared in accordance with an NI 43-101 technical report
for Ascot’s 100% owned Premier and Red Mountain gold
projects. 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.
Ascot’s President and CEO, Derek White
commented, “Ascot continues to work towards re-starting the Premier
mine. In the first quarter of 2020, we were very pleased to
announce results from an independent feasibility study,
highlighting a low capex and significant IRR of 51%. Financial
support from our shareholders via a private placement in February
provided Ascot with the necessary funds for key activities in
2020.”
FINANCIAL RESULTS – THREE MONTHS ENDED
MARCH 31, 2020
The Company reported a net loss of $3,484 for Q1
2020 compared to $1,336 for the same quarter in 2019. Higher net
loss for Q1 2020 was mainly due to $842 higher stock-based
compensation charge and $1,081 foreign exchange loss. Higher
stock-based compensation for Q1 2020 was a result of the grant of
stock options, deferred share units (“DSU”) and restricted share
units (“RSU”). There were no stock options, DSUs and RSUs issued in
Q1 2019. Foreign exchange loss for Q1 2020 was due to the effect of
strengthened U.S. Dollar on the U.S. Dollar denominated convertible
note with Sprott Private Resource Lending (Collector), LP and
Resource Income Partners Limited Partnership.
LIQUIDITY AND CAPITAL
RESOURCES
In February 2020, the Company raised $10,253
through private placement to fund its 2020 exploration program and
other corporate expenditures. As at March 31, 2020 the Company had
a cash and cash equivalents balance of $11,329 and working capital
deficit of $5,671. Included in cash and cash equivalents is $5,024,
which is required to be spent on flow-through expenditures prior to
December 31, 2021. Although the Company has sufficient funding to
meet its obligations in 2020, the Company needs to secure
additional funding for the development of its Premier Gold Project
and repayment of its convertible note, which is due in January
2021.
ANNUAL GENERAL MEETING
UPDATE
The Canadian Securities Administrators
(“CSA”) and the Toronto Stock Exchange
(“TSX”) have published temporary blanket relief
measures, including timeframe extensions for holding annual
shareholder meetings as a result of the COVID-19 pandemic. The TSX
is now permitting issuers to hold their 2020 AGM on any date up to
and including December 31, 2020. Ascot’s Board has determined that
it will hold its 2020 Annual General Meeting
(“AGM”) in the second half of 2020. Management
continues to monitor the COVID-19 situation and details for the AGM
will be communicated at a later date.
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.
Ascot Resources (TSX:AOT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ascot Resources (TSX:AOT)
Historical Stock Chart
From Apr 2023 to Apr 2024