HONG KONG, Aug. 15, 2016 /CNW/ - St. Augustine Gold and Copper Limited (TSX: SAU)
("St. Augustine" or the "Company"), a development-stage company
advancing the King-king Copper-Gold Project ("King-king" or the
"Project") in Mindanao, Philippines, announced that it has filed its
financial results for the second quarter ended June 30 2016. All amounts, unless otherwise
indicated, are in U.S. dollars.
Q2 Corporate Highlights
- Progressed with engineering and corporate social responsibility
programs aimed at supporting the projected initiation of Project
construction in 2017.
- The Company's joint venture partner, Nadecor, received a ruling
from the Supreme Court that its President, Conrado Calalang, and current Board of Directors
are the organization's rightful and authorized
representatives. The ruling is consistent with St.
Augustine's long-held belief on the legitimacy of the Calalang
Board. St. Augustine has been interacting with NADECOR's
current Board since they were initially elected in August 2011.
- Shareholders elected Paolo
Villar, Michael McGee,
Yolanda Coronel-Amenta, Marcelino Mendoza and Patrick Caoile as Directors at the Company's
Annual General Meeting held on June
24 in Manilla.
- At June 30, 2016, St. Augustine
had cash and cash equivalents of approximately $1.3 million and working capital of approximately
$300,000. These compare to
approximately $3.2 million in cash
and cash equivalents and working capital of approximately
$2.5 million at December 31, 2015.
Highlight Subsequent to Quarter End
- The Company's joint venture partner received notification from
the Mines and Geosciences Bureau (MGB) of the Philippine Government
that the Mineral Production Sharing Agreement (MPSA) for the
King-king Copper-Gold Project has been renewed for a period of 25
years. The MPSA is an agreement under which the Philippine
Government grants an exclusive right to conduct mining activities
within the contract area and the Government receives a share of the
gross revenues of the mine operations. St. Augustine through
its joint venture partner, NADECOR, will provide the necessary
financing, technology, management and personnel for King-King's
development, construction and operation.
Outlook
"The recent renewal of the MPSA underscores our ongoing efforts
to advance and de-risk the King-king Project," said St. Augustine
Gold and Copper Ltd. President and CEO Paolo A. Villar. "With King-king now fully
permitted, we have considerably strengthened our ability to secure
financing and proceed and next phase of King-King's development,
including the completion of a Feasibility Study."
St. Augustine expects to focus its efforts completing a number
of milestones and targets over the near and longer term,
including:
- Structuring financing arrangements with strategic parties and
major financial institutions in coordination with NADECOR;
- Advancing other permitting related activities;
- Continuing efforts to re-classify King-king project lands for
industrial use; and
- Advancing critical work necessary to bring the King-king
project to a more advanced stage, including developing a
Feasibility Study.
St. Augustine's financial statements and management's discussion
for the period ended June 30, 2016
are available on the Company's website, www.sagcmining.com and via
SEDAR.
The King-king Copper-Gold Project
The King-king
Copper-Gold Project is located in Compostela Valley in the Philippines, and is expected to recover
3.16 billion pounds (1.43 million tonnes) of copper and 5.43
million troy ounces (169,000 kilograms) of gold over its 25 year
mine and process life. According to the Preliminary Feasibility
Study that was released on September 18,
2013, and then filed on www.sedar.com on November 1, 2013, the Project has a pre-tax NPV
of $2.0 billion with an IRR of 24.8%.
The estimated mineral reserves amount to 617.9 million tonnes at
0.300% total copper and 0.395 g/t gold.
About St. Augustine
St. Augustine (SAU.T) is a
TSX-listed mining company focused on the development of the
King-king Copper-Gold Project. The Project is one of the largest
undeveloped copper-gold deposits in the world, and is listed as a
top three-priority mining project by the Philippine government.
NATIONAL INSTRUMENT 43-101 COMPLIANCE
Mr. James J.
Moore, P.E., a qualified person under National Instrument 43-101
("NI 43-101") has reviewed and approved the scientific, technical
and economic information contained in this news release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This announcement includes certain
"forward-looking statements" within the meaning of Canadian
securities legislation. All statements, other than statements
of historical fact included herein are forward-looking statements.
Forward-looking statements involve various risks and uncertainties
and are based on certain factors and assumptions. There can be no
assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Important factors that could
cause actual results to differ materially from the Company's
expectations include uncertainties related to fluctuations in gold,
copper and other commodity prices and currency exchange rates;
uncertainties relating to interpretation of drill results and the
geology, continuity and grade of mineral deposits; uncertainties
relating to the completion of a bankable feasibility study;
uncertainty of estimates of capital and operating costs, recovery
rates production estimates and estimated economic return; the need
for cooperation of the Company's joint venture partner and
government agencies in the development of the Company's mineral
projects; the need to obtain further permits and additional
financing to develop the Company's mineral projects; the
possibility of delay in development programs or in construction
projects and uncertainty of meeting anticipated program milestones
for the Company's mineral projects; and other risks and
uncertainties disclosed under the heading "Risk Factors" in the
Annual Information Form dated March 30,
2016, and filed with Canadian securities regulatory
authorities on the SEDAR website at
www.sedar.com.
SOURCE St. Augustine Gold and Copper Limited