LAKEWOOD, Colo., Nov. 12, 2014 /PRNewswire/ -- Pershing Gold
Corporation (OTCQB:PGLC) ("Pershing Gold" or the "Company") today
announced financial results for the quarter ended September 30, 2014 and provided a business and
operational update.
Company Highlights
- Raised a total of $20.8 million
in aggregate net proceeds from private placements of common stock
and warrants, completed in July ($10.9
million) and October ($9.9
million) 2014.
- At September 30, 2014, the
Company's cash and cash equivalents totaled $10.4 million.
- Received final permit approval to start mining at Relief Canyon
within the existing open-pit mine.
- Appointed Timothy Janke Chief
Operating Officer.
- Expanded new high-grade area of mineralization (the "North
Target Area") located directly to the north of the existing pits at
the Relief Canyon mine. The North Target Area contains multiple
intercepts of a consistently higher-grade than the average grade of
the Company's latest resource estimate, including selected
core-drilling results below1:
- RC14-225 with 55.0 feet of 0.117 ounces per ton
("opt")/4.020 grams per tonne ("gpt") gold ("Au")
- RC14-203 with 58.1 feet 0.119 opt/4.070 gpt
Au
- RC14-177 with 86.1 feet of 0.104 opt/3.562 gpt Au
Relief Canyon Update
Pershing Gold's most recent
43-101 compliant resource estimate for the Relief Canyon Mine in
Pershing County, NV incorporates
drill holes completed through calendar year 2013. The Company plans
to update the resource model in early 2015 to include the 2014
drilling results. Drilling results recently published include
intervals with gold grades that are significantly higher than the
0.02 opt Au average grade used to calculate the most recent
resource estimate for the deposit. Once the resource estimate has
been updated, the Company plans to complete an independent
Preliminary Economic Assessment to analyze anticipated production
rates, cash costs, all-in-sustaining costs, life-of-mine and other
key factors.
The Company has expanded its North Target Area high-grade gold
zone at the Relief Canyon Mine including significant intercepts in
the ongoing step-out core-drilling program at the project. These
results include an intercept containing 55.0 feet of 0.117
opt/4.020 gpt Au (RC14-225) and an intercept with 58.1 feet
of 0.119 opt/4.070 gpt Au (RC14-203). Additionally,
on September 15, 2014 Pershing Gold
announced high-grade gold intercepts in seven holes at Relief
Canyon, including the thickest high-grade interval measuring 86.1
feet of 0.104 opt/3.562 gpt Au (RC14-177).
Pershing Gold recently added an additional diamond core drill
rig for the remainder of 2014 to the North Target Area of the
Relief Canyon project. One drill will focus on targets to the
southwestern extension of the deposit while the second drill rig
continues step-out drilling in the North Target Area. A third drill
rig is deployed at the Company's Buffalo Mountain target area.
Buffalo Mountain Update
The Company recently initiated
a diamond drill program at the Buffalo Mountain Project located
approximately two miles north of the Relief Canyon Mine. Pershing
Gold is in the process of drilling up to 12 holes at Buffalo
Mountain, which is an exciting, newly discovered gold and silver
target.
Cash and Cash Equivalents
At September 30, 2014, the Company's cash and cash
equivalents totaled $10.4 million.
Cash and cash equivalents increased during the nine months ended
September 30, 2014 by $2.7 million from our cash and cash equivalents
balance at December 31, 2013 of $7.7
million. The increase in cash and cash equivalents was
primarily the result of cash provided by financing activities of
$10.7 million principally from the
sale of our common stock and warrants offset by cash used in
operations of $7.9 million that was
comprised largely of exploration expenditures, primarily at the
Relief Canyon mine to establish our estimate of mineralized
material, and general and administrative functions, including
consultant fees, compensation costs, legal fees and public company
expenses.
Financing Activity
In July 2014, the Company
completed private placements to accredited investors for the
purchase of 35,854,259 shares of our common stock and 14,341,676
warrants to purchase shares of common stock for aggregate net
proceeds of approximately $10.9
million. In October 2014, the
Company completed a private placement to accredited investors for
the purchase of 35,714,287 shares of our common stock for aggregate
net proceeds of approximately $9.9
million. Combined aggregate net proceeds to the Company from
these financings were $20.8
million.
Financial Outlook
The Company anticipates the
following expenditures for the remaining quarter of 2014:
- $2.8 million on general and
administrative expenses (including all employee salaries, public
company expenses, consultants and land holding costs);
- $0.8 million on exploration
drilling to expand the current resource at the Relief Canyon mine
property;
- $0.5 million on additional work
at the Relief Canyon mine including further metallurgy results,
progress towards an internal economic analysis and
pre-development.
- $0.4 million on exploration
drilling at our Buffalo Mountain project;
- $0.2 million on additional
permitting and bonding, including an Environmental Assessment to
expand the open-pit mine at the Relief Canyon property.
1. Complete drilling results are posted at
www.pershinggold.com.
About Pershing Gold Corporation
Pershing Gold is an
emerging Nevada gold producer on a
fast-track to re-open the Relief Canyon Mine, which includes three
open-pit mines and a state-of-the-art, fully permitted and
constructed heap-leach processing facility. Pershing Gold is
currently permitted to resume mining at Relief Canyon under the
existing Plan of Operations. Mine expansion above the water table
is targeted for 2015.
Pershing Gold's landholdings cover over 25,000 acres that
include the Relief Canyon Mine asset and lands surrounding the mine
in all directions. This land package provides Pershing Gold with
the opportunity to expand the Relief Canyon Mine deposit and to
explore and make new discoveries on nearby lands.
Cautionary Note to United States Investors Regarding
Estimates of Measured, Indicated and Inferred Resources
We
use certain terms, or refer to reports that use these terms, in
this press release such as "measured", "indicated" and "inferred
resources", that are defined in Canadian National Instrument
43-101; however these terms are not recognized under the U.S. SEC
Industry Guide 7. U.S. investors are cautioned not to assume
that any or all of measured, indicated or inferred resources are
economically or legally mineable or that these resources will ever
be converted into reserves. "Inferred mineral resources" have
a high degree of uncertainty as to their existence and it cannot be
assumed that all or any part of an inferred mineral resource will
ever be upgraded to a higher category. U.S. investors are
urged to consider closely the disclosure in our Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q and other SEC
filings. You can review and obtain copies of these filings
from the SEC's website at http://www.sec.gov/edgar.shtml.
Legal Notice and Safe Harbor Statement
This press
release contains "forward-looking statements" within the meaning of
Section 21E of the Securities Exchange Act of 1934. All statements,
other than statements of historical fact, including, without
limitation, those with respect to the objectives, plans and
strategies of the Company set forth herein including the planned
reopening and recommissioning of the Relief Canyon mine and
processing facilities, anticipated additional drilling and other
exploration on Pershing Gold's Relief Canyon properties,
anticipated expansion and upgrade of the Relief Canyon deposit as a
result of drilling, planned update of estimates of mineral
resources and preparation of a Preliminary Economic Assessment,
interpretations of exploration results and other geologic
information at Relief Canyon, planned fourth quarter 2014
expenditures and those preceded by or that include the words
"believes," "expects," "given," "targets," "intends,"
"anticipates," "plans," "projects," "forecasts" or similar
expressions, are "forward-looking statements." Although the
Company's management believes that such forward-looking statements
are reasonable, it cannot guarantee that such expectations are, or
will be, correct. These forward-looking statements involve a number
of risks and uncertainties, which could cause the Company's future
results to differ materially from those anticipated. Potential
risks and uncertainties include, among others, inability to obtain
external financing to fund the development of plans for and the
reopening and commencement of production at the Relief Canyon Mine,
planned exploration, or to maintain property rights;
interpretations or reinterpretations of geologic information or
unfavorable exploration results that could negatively affect
estimates of resources or completion of a Preliminary Economic
Assessment; delay or inability to obtain permits required for
planned production, including permits to mine the deposit below the
water table, for exploration and other activities; general economic
conditions and conditions affecting the industries in which the
Company operates; the uncertainty of regulatory requirements and
approvals; decreases in gold and other mineral and commodity
prices; risks of junior exploration and pre-production activities;
and maintenance of important business relationships. Additional
information regarding the factors that may cause actual results to
differ materially from these forward-looking statements is
available in the Company's filings with the SEC including the
Annual Report on Form 10-K for the year ended December 31, 2013. The Company assumes no
obligation to update any of the information contained or referenced
in this press release.
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SOURCE Pershing Gold Corporation