Shares Outstanding: 271,539,638
TORONTO, May 10, 2017 /CNW/ - Aquila Resources
Inc. (TSX: AQA) ("Aquila"), a permitting-stage
company advancing the zinc- and gold-rich Back Forty Project in
Michigan's Upper Peninsula
announced that it has filed its financial results for the first
quarter ended March 31, 2017.
All amounts, unless indicated, are reported in U.S. dollars.
FIRST QUARTER HIGHLIGHTS
- Closed a non-brokered private placement that resulted in gross
proceeds of CDN$7.9 million. The
offering was over-subscribed with 36,017,725 units issued, with
each unit priced at CDN$0.22 and
consisting of one share and one-half of one common share purchase
warrant. Each whole warrant will entitle the holder to acquire one
Aquila common share for C$ 30 cents
for a period of 36 months.
- Aquila's permit to mine has been challenged in an
administrative contested case proceeding to be conducted by the
Michigan Office of Administrative Hearings. A contested case is a
continuation of the permit review process where aggrieved parties
can seek a formal evidentiary hearing on issues raised in their
petition for a contested case. The process culminates in a proposal
for decision to the MDEQ director, who issues a final decision on
the case and the permit. Aquila does not anticipate the MDEQ
director will come to a different conclusion on issuing the permit
then MDEQ staff, and looks forward to participating in the
contested case process.
- Announced the start of a 4,600 meter drill program designed to
expand known resources at Back Forty and convert current inferred
resources into measured and indicated categories.
- Advanced with development of the Feasibility Study for the Back
Forty Project. Key progress included the enterprise configuration
of the mine production plan.
- Continued with efforts to refine capital and operating costs
associated with the Back Forty project, including early contractor
involvement in order to optimize execution approach and
schedule.
- Named Ian Pritchard, a mining
executive with more than 30 years of experience, to the Company's
Board as an independent director. Mr. Pritchard was also named as
Chair of the Company's Technical, Environmental, Health &
Safety Committee.
- Appointed Bill Matheson, a
mining executive with more than 30 years of operations and project
management experience, as Director, Construction. The appointment
strengthens the Company's management team.
- As at March 31, 2017, Aquila had
cash of $5.1 million and working
capital of $4.3 2 million. This
compared to cash of $1.4 million and
working capital of $0.6 million at
December 31, 2016. The working
capital increase was due to the private placement in February 2017, offset by the funding of the
Company's permitting activities and development of the Feasibility
Study.
POST QUARTER HIGHLIGHT
- Received the final National Pollutant Discharge Elimination
Systems Permit ("NPDES") from the Michigan Department of
Environmental Quality ("MDEQ"). The NPDES permit marks the
third of four permits that Aquila has received from the MDEQ
following the completion of the public hearing process.
"With the third of four permits now in hand, our near-term focus
will center on completing the Wetlands Protection permit
application process and completing assay results from our 4,600
meter winter drill program, with initial results expected in May,"
said Barry Hildred, CEO of Aquila
Resources. "In the second half of 2017, we expect to complete
our Feasibility Study, strengthen our senior leadership team in
preparation of the project execution phase and advance discussions
and examine all options to secure project financing necessary to
build Back Forty."
ABOUT AQUILA RESOURCES
Aquila Resources Inc. (TSX:
AQA) is a development-stage company with strategic assets in the
Great Lakes Region. The company's experienced management team is
currently focused on advancing permitting activities for its
100%-owned gold- and zinc-rich Back Forty Project in
Michigan.
Aquila's flagship Back Forty Project is a volcanogenic massive
sulfide (VMS) deposit located along the mineral-rich Penokean
Volcanic Belt in Michigan's Upper
Peninsula. In its updated Preliminary Economic Assessment filed in
September 2014, Back Forty
demonstrated strong economics with a pre-tax NPV of $282 million ($210.8
million after-tax) and a pre-tax IRR of 38.8% (32%
after-tax) based on mining 16.1M tonnes of measured, indicated, and
inferred resources over the 16-year life of mine, of which 12.5M
tonne will be open-pit and 3.6M tonnes will be underground.
This press release contains certain forward-looking
statements within the meaning of applicable Canadian securities
legislation. In certain cases, forward-looking statements can be
identified by the use of words such as "plans", "expects" or "does
not anticipate", or "believes", or variations of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved" and similar expressions suggesting future outcomes or
statements regarding an outlook.
Forward-looking statements relate to any matters that are not
historical facts and statements of our beliefs, intentions and
expectations about developments, results and events which will or
may occur in the future, without limitation, statement with
respect to: (i) the economic analysis contained in the PEA;
(ii) the development plan of the PEA and results thereof; (iii)
capital expenditure programs; (iv) the quality or quantity
of the mineral resources subject to estimates by Aquila; and (v)
work plans to be conducted by Aquila.
These and other forward-looking statements and information
are subject to various known and unknown risks and uncertainties,
many of which are beyond the ability of Aquila to control or
predict, that may cause their actual results, performance or
achievements to be materially different from those expressed or
implied thereby, and are developed based on assumptions about such
risks, uncertainties and other factors set out herein. Aquila
expressly disclaims any obligation to update forward-looking
information except as required by applicable law. Such
forward-looking information represents Aquila's best judgment based
on information currently available. No forward-looking statement
can be guaranteed and actual future results may vary materially.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements or information. Furthermore, mineral
resources that are not mineral reserves do not have demonstrated
economic viability.
SOURCE Aquila Resources Inc.