Petaquilla Minerals Ltd. Nears Closure on Material Transaction & Informs All Parties are Committed to Closing by the End of F...
February 18 2014 - 8:39AM
Marketwired
Petaquilla Minerals Ltd. Nears Closure on Material Transaction and
Informs All Parties are Committed to Closing by the End of February
2014
Highlights of Results of Q2 Fiscal 2014
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 18, 2014) -
Petaquilla Minerals Ltd. ("Petaquilla" or the "Company")
(TSX:PTQ)(OTCBB:PTQMF)(FRANKFURT: P7Z) confirms the Company is in
the advanced stages of a negotiation process, the conclusion of
which will result in a major material event for the Company and its
shareholders. All parties involved expect the aforementioned
negotiations to close by the end of February 2014.
The Company also announces its second quarter operating and
financial results for its Molejon gold mine located in Panama.
Currency is reported in United States dollars unless otherwise
indicated.
Molejon Mine Operating
and Financial Highlights for Second Quarter of Fiscal
2014
- Gold production at 3,028 ounces, a decrease of 67% and 85%
compared to prior quarter and same quarter of fiscal 2013,
respectively;
- Gold equivalent production at 3,120 ounces, a decrease of 67%
and 85% compared to prior quarter and same quarter of fiscal 2013,
respectively;
- Gold stockpiled at 151,592 ounces, an increase of 1% and 31%
compared to prior quarter and same quarter of fiscal 2013,
respectively;
- Revenue at $10.5 million, a decrease of 49% and 67% compared to
prior quarter and same quarter of fiscal 2013, respectively;
- Cash cost per ounce of gold equivalent sold at $1,429, an
increase of 90% and 171% compared to prior quarter and same quarter
of fiscal 2013, respectively;
- Operating margin at $(13.0) million, compared to $2.5 million
in prior quarter and $14.4 million in same quarter of fiscal
2013;
- Adjusted EBITDA at $(16.3) million, compared to $(0.9) million
in prior quarter and $14.9 million in same quarter of fiscal
2013
During the second quarter of fiscal 2014 the Company announced
National Instrument 43-101 compliant In Pit Whittle Constrained
measured and indicated resources of 841,000 gold equivalent ounces
(27,020 kt averaging 0.59 g/t of gold, 0.87 g/t of silver and 0.24%
of copper) and inferred mineral resources of 269,000 gold
equivalent ounces (11,060 kt averaging 0.40 g/t of gold, 0.67 g/t
of silver and 0.22% of copper) for its Palmilla deposit, located on
the Company's wholly-owned Belencillo concession and associated
with its Molejon gold operations in the Donoso District, Colon
Province, Republic of Panama. The Qualified Person who prepared
this mineral resource estimate was Mr. Yann Camus, Eng., of SGS
Canada, an independent consultant.
The Company's business performance during the first half of
fiscal 2014 focused on continuing to stockpile low grade ore
material to increase gold production through a heap leaching
operation expected to commence during the first half of calendar
2014, consolidating its aggregates business throughout the
execution of the $100 million contract with First Quantum Minerals
Ltd. ("FQM") and expanding the potential of the aggregates and
infrastructure business with FQM.
The $100 million aggregates contract signed between the
Company's infrastructure subsidiary, Panama Desarrollo de
Infraestructuras, S.A., and Minera Panama, S.A. ("MPSA") partially
compensated for the decrease in gold production during the first
half of fiscal 2014, and contributed to keeping cash costs per
ounce of gold sold close to the break-even point despite the
significant decrease in gold sold. Sales of aggregates represented
a material recovery of the Company's mining costs at the Molejon
mine, helping also to compensate for the decrease in gold prices
that occurred during the first half of fiscal 2014.
About Petaquilla Minerals Ltd. - Petaquilla is a growing,
diversified gold producer committed to maximizing shareholder value
through a strategy of efficient production, targeted exploration
and select acquisitions. The Company operates a surface gold
processing plant at its Molejon Gold Project, located in the south
central area of Panama - a region known historically for gold
content. In addition, the Company has exploration operations at its
wholly-owned Lomero-Poyatos project located in the northeast part
of the Spanish/Portuguese (Iberian) Pyrite Belt and several other
exploration licenses in Iberia.
Disclaimer. Certain statements in this press release constitute
forward-looking statements or forward-looking information within
the meaning of applicable securities laws ("forward-looking
statements"). Any statements that express or involve discussions
with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions, potentials, future events or
performance (often, but not always, using words or phrases such as
"believes", "expects", "plans", "estimates" or "intends" or stating
that certain actions, events or results "may", "could", "would",
"might", "will" or "are projected to" be taken or achieved) are not
statements of historical fact, but are forward-looking statements.
Forward-looking statements relate to, among other things, the
estimation of mineral resources and the realization of mineral
resource estimates; all aspects of the development and future
operation and production of the Molejon gold mine and the
development of other deposits; the outcome and timing of decisions
with respect to whether and how to proceed with such development
and production; the timing and outcome of any such development and
production; estimates of future capital expenditures; estimates of
permitting time lines; statements and information regarding future
feasibility studies and their results; production forecasts; future
transactions; future metal prices; the ability to achieve
additional growth; future production costs; future financial
performance, including the ability to increase cash flow and
profits; future financing requirements; and mine development
plans.
Forward-looking statements are necessarily based upon a number
of estimates and assumptions that, while considered reasonable by
the Company as of the date of such statements, are inherently
subject to significant business, economic and competitive
uncertainties and contingencies. The estimates and assumptions of
the Company contained or incorporated by reference in this news
release, which may prove to be incorrect, include, but are not
limited to, the various assumptions set forth herein as well as:
there being no significant disruptions affecting operations,
whether due to labour disruptions, supply disruptions, power
disruptions, political change, protests by native or environmental
groups, damage to equipment or otherwise; permitting, development,
operations, expansion and acquisitions at the Molejon gold mine and
other deposits being consistent with the Company's current
expectations; prices for gold and silver and costs of labour and
supplies being consistent with expectations; and the accuracy of
the Company's current mineral reserve and mineral resource
estimates. A variety of inherent risks, uncertainties and other
factors, many of which are beyond the Company's control and may be
known or unknown, affect the operations, performance and results of
the Company and its business, and could cause actual events or
results to differ materially from estimated or anticipated events
or results expressed or implied by forward looking statements. Some
of these risks, uncertainties and factors include fluctuations in
the price of gold and silver; the need to recalculate estimates of
resources based on actual production experience; the failure to
achieve production estimates; variations in the grade of ore mined;
variations in the cost of operations; the availability of qualified
personnel; the Company's ability to obtain and maintain all
necessary regulatory approvals and licenses; the Company's ability
to use cyanide in its mining operations; risks generally associated
with mineral exploration and development, including the Company's
ability to develop its deposits; the Company's ability to acquire
and develop mineral properties and to successfully integrate such
acquisitions; the Company's ability to obtain financing when
required on terms that are acceptable to the Company; challenges to
the Company's interests in its property and mineral rights; and
current, pending and proposed legislative or regulatory
developments or changes in political, social or economic conditions
in the countries in which the Company operates; and general
economic conditions worldwide. Forward-looking statements speak
only as at the date of this document. Forward-looking statements
are based on management's current plans, estimates, projections,
beliefs and opinions and, except as required by law, the Company
does not undertake any obligation to update forward-looking
statements should assumptions related to these plans, estimates,
projections, beliefs and opinions change. Readers are cautioned not
to put undue reliance on forward-looking statements.
On behalf of the
Board of Directors of PETAQUILLA MINERALS LTD.
Joao C. Manuel,
Chief Executive Officer
NO STOCK EXCHANGE
HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
Petaquilla Minerals Ltd.Joao C. ManuelChief Executive
Officer(604) 694-0021 or Toll free: 1-877-694-0021(604)
694-0063www.petaquilla.com