Aldridge Minerals Inc. (TSX-V: AGM) (“Aldridge” or the
“Company”) announced today the filing of its audited consolidated
financial statements for the year ending December 31, 2015 (the
“2015 Financials”), and the Management’s Discussion & Analysis
related thereto (the “2015 MD&A”), which are available on SEDAR
and at www.aldridgeminerals.ca.
Han Ilhan, President & CEO, commented, “Our focus in 2015
was the advancement of the land acquisition within the fully
permitted Yenipazar Project fence line. Land acquisitions are
always a sensitive task as their effective execution is so closely
tied to maintaining a Social Licence to Operate. Accordingly, in
2015 we continued our strategy of offering the landowners a price
of 5.1 Turkish lira per square meter. As expected, some of the
landowners have not yet sold their land in the hope that they will
receive a higher offer price, which is a common community
expectation in the mining industry.
“As a result, midway through 2015 Aldridge applied for the
State-led Compulsory Land Acquisition Process and received approval
from the Ministry of Natural Resources in Turkey, which determined
that the development of the Yenipazar Project is in the best
interest of the local and national economies. This approval is
intended to provide legal certainty to the Company that it will be
able to access required land for mine development and is based on
well-established laws that have been regularly implemented in
Turkey, particularly over the last 15 years during a period of
significant infrastructure development in Turkey.”
Mr. Ilhan added, “In January the State initiated the legal
process to complete the Compulsory Land Acquisition Process. During
the legal phase of the process, the State is the plaintiff and
individual landowners are the defendants. The court will determine
the final price for the land taking into account the findings of a
court-appointed independent expert panel. Although the State will
acquire the land, Aldridge will be required by law to cover the
costs of the land acquisition. In parallel with this legal process,
we continue to purchase land from landowners willing to sell
voluntarily. The court cases of any landowners that decide to sell
voluntarily to Aldridge will be dropped by the State.
“Aldridge has completed the acquisition of private land
representing approximately 34% of the Project total at a total cost
of approximately US$8,395,000. This total does not include an
additional 13% of land classified as Treasury land and meadow
lands. The mining laws in Turkey provides Aldridge with full access
to Treasury lands within our mining concession. In due course we
expect the meadow lands to be reclassified as Treasury land.”
In closing, Mr. Ilhan added, “As we advance towards completion
of the Land Acquisition Process, we will continue project financing
discussions that have been initiated with multiple financial
institutions that have expressed interest in the Yenipazar Project.
Aldridge is also analyzing all of the alternatives for a
refinancing of the bridge loan facility with Orion Mine Finance
prior to its maturity date of August 29, 2016.”
Strategy and Outlook
The Company’s most important objectives of 2016 include
advancing the land acquisition, refinancing the bridge loan
facility, as well as positioning the Company to obtain project
financing. The Company’s engineering and exploration initiatives
will also continue in 2016.
Upon completion of project financing the Company expects a
project development period of approximately 24 months involving
engineering, construction, commissioning and leading to commercial
production. As a result, the Company’s focus in 2016 is on
advancing the following initiatives already underway:
- Land Acquisition – The land
acquisition process includes two components that are continuing in
parallel, namely the Company’s voluntary purchase process and the
State-led Compulsory Land Acquisition Process. As of March 2016,
114 court cases have been opened by the State to acquire
substantially all of the remaining privately held land within the
Yenipazar Project fence line. In accordance with land acquisition
laws in Turkey, the landowners cannot object to the State-led LAP
and must sell based on the final price determined by the court.
There is a risk the price to be determined by the court could
exceed the Company’s offer price, thereby increasing total land
costs.
- Loan Facility Refinancing – The
Company ended 2015 with US$8,520,566 in cash and negative working
capital of US$10,005,830. As at December 31, 2015 the Company had
drawn down US$17,500,000 of its US$35,000,000 loan facility, which
matures August 29, 2016 (the “Loan”). Aldridge is analyzing all of
the alternatives for a refinancing of the Loan prior to its
maturity date.
- Engineering – The Company
expects to start basic engineering in the second half of 2016, with
continuation in 2017. Aldridge will continue to refine its basic
engineering schedule and execution to ensure the focus is on
critical path items while considering the variability of the timing
of land acquisition and project financing. Basic engineering,
detailed engineering, equipment procurement, construction and
commissioning will be executed in compliance with project financing
requirements.
- Exploration – Given the
promising results of the exploration program completed in May 2015,
the Company is in the process of finalizing plans to investigate
the additional potential within our licence area immediately
adjacent to the existing ore body and other areas within the 100
square kilometre Yenipazar licence area, where encouraging ground
survey results, geophysical and geochemical anomalies, and outcrops
indicate potential for further upside.
- Project Financing – The Company
will actively consider various project financing alternatives,
which may include senior and subordinated debt, equity, metal
streams, and strategic investments. The timing of progress towards
completion of the land acquisition process is anticipated to affect
the timing of further project evaluation by prospective financing
organizations. Consequently, the Company plans to increase its
project financing efforts later in 2016 as the land acquisition
process continues. The timing of the project financing will likely
be affected by general market conditions.
Selected Financial Information
The following table provides selected consolidated financial
information that should be read in conjunction with the 2015
Financials.
United States Dollars
YEARENDED AND AS
ATDECEMBER 31, 2015
YEARENDED AND AS
ATDECEMBER 31, 2014
YEARENDED AND AS
ATDECEMBER 31, 2013
Loss before income tax and
discontinued operations
$(5,279,998) $(3,191,177)
$(7,174,079) Net loss
(5,279,998) (3,191,177) (6,840,585)
Net loss per share
(0.05) (0.04) (0.08) Cash and cash
equivalents
8,520,566 14,331,409 6,597,969 Working
capital(i)
(10,005,830) 14,103,639 6,468,652 Total assets
30,814,033 25,829,329 10,452,416
Total non-current financial
liabilities
126,974 8,445,579 115,740
(i)
Working capital equals current assets less current
liabilities, and is a non-GAAP measure used by management.
About Aldridge
Aldridge is a development stage mining company focused on its
wholly owned Yenipazar polymetallic Massive Sulfide Project (Gold,
Silver, Copper, Lead, Zinc) in Turkey, a country that is committed
to developing its natural resources. Aldridge completed the
Yenipazar Optimization Study and filed the related technical report
in May 2014, which updated the original May 2013 Feasibility Study.
The Company is currently advancing the Yenipazar Project on key
aspects including land acquisition, project financing, and
engineering.
Caution Regarding Forward-Looking Information
This news release includes certain forward-looking statements
within the meaning of Canadian securities laws, including, but are
not limited to the ability to accomplish remaining milestones,
completing the Yenipazar land acquisition, refinancing the
Company’s existing Loan facility, securing project financing,
advancing the Yenipazar Project to production, economic
performance, future plans and objectives of the Company.
Forward-looking statements involve risks, uncertainties and
other factors that could cause actual results, performance,
prospects and opportunities to differ materially from those
expressed in such forward-looking statements. Such risks,
uncertainties and factors including meeting conditions for advances
under the Loan and the other factors discussed under the heading
“Risk Factors” in the Company’s Management’s Discussion and
Analysis for the year ended December 31, 2015 and in other
continuous disclosure filings made by the Company with Canadian
securities regulatory authorities and available at www.sedar.com.
Any number of important factors could cause actual results to
differ materially from these forward-looking statements as well as
future results.
Forward-looking information is based on a number of factors and
assumptions which have been used to develop such information but
which may prove to be incorrect, including, but not limited to,
assumptions in connection with the continuance of Aldridge and its
subsidiaries as a going concern, general economic and market
conditions, mineral prices, the accuracy of mineral resource
estimates. Although Aldridge believes that the assumptions and
factors used in making the forward-looking statements are
reasonable, undue reliance should not be placed on these
statements, which only apply 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. Aldridge disclaims any intention
or obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise
unless 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160329005453/en/
Aldridge Minerals Inc.Han Ilhan, 416-477-6988President
& CEOorDavid Carew, 416-477-6984Director of Corporate
Development
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