Amarillo Provides Business Update and Announces Second Quarter 2018 Financial Results
August 29 2018 - 7:00AM
Amarillo Gold Corporation (“Amarillo” or the “Company”)
(TSX.V:AGC; OTCQB:AGCBF) today announces its
financial results for the second quarter (“Q2”) ended June 30,
2018. This press release should be read in conjunction with the
Company’s condensed interim consolidated financial statements and
Management’s Discussion & Analysis (“MD&A”) for the three
and six months ended June 30, 2018, available on the Company’s
website at www.amarillogold.com and under the Company’s name on
SEDAR at www.sedar.com. All monetary amounts are expressed in
Canadian dollars unless otherwise specified.
Mike Mutchler, CEO of Amarillo commented, "We
continued our exciting repositioning of the company in Q2
2018. With the proceeds from the private placement and the
sale of the royalty, we were able to clean up our balance sheet and
are in a substantially improved financial position to restart
exploration drilling at Mara Rosa. We are preparing for a
resource update on Mara Rosa later this year and a Feasibility
Study early next year in preparation for our application for the
License to Install (LI) permit by the middle of 2019. I would
like to thank all of our dedicated employees and shareholders for
their continued support."
|
FINANCIAL RESULTS |
|
Operating Expenses – Three and Six Months 2018
and 2017 |
|
Three Months ended June 30 |
|
Six Months ended June 30 |
|
2018 |
2017 |
|
2018 |
2017 |
|
|
($) |
($) |
|
($) |
($) |
|
Management and consulting fees |
353,705 |
|
135,952 |
|
|
520,000 |
|
416,501 |
|
General and administrative |
88,360 |
|
65,730 |
|
|
206,128 |
|
171,800 |
|
Stock-based compensation |
87,433 |
|
686,392 |
|
|
875,564 |
|
751,063 |
|
Professional fees |
215,448 |
|
69,739 |
|
|
309,276 |
|
136,581 |
|
Other expenses |
157,703 |
|
50,291 |
|
|
222,895 |
|
102,321 |
|
Write-off of accounts payable |
- |
|
- |
|
|
(138,816) |
|
- |
|
Subtotal before other items |
902,649 |
|
1,008,104 |
|
|
1,995,047 |
|
1,578,266 |
|
Accretion on gold loans |
366,752 |
|
322,009 |
|
|
713,271 |
|
635,425 |
|
Foreign exchange (gain)/loss |
73,949 |
|
(4,299) |
|
|
390,094 |
|
33,994 |
|
(Gain)/loss on FV of derivatives |
(487,363) |
|
(20,652) |
|
|
(284,152) |
|
674,360 |
|
Loss before tax |
855,987 |
|
1,305,162 |
|
|
2,814,260 |
|
2,922,045 |
|
Deferred tax expense |
120,000 |
|
- |
|
|
230,000 |
|
- |
|
Net Loss |
975,987 |
|
1,305,162 |
|
|
3,044,260 |
|
2,922,045 |
|
|
|
|
|
|
|
|
|
|
|
The Company’s losses include non-cash items
related to the gold linked loan consisting of accretion, mark to
market adjustments for gold price fluctuation and foreign exchange;
non-cash stock compensation expense; and non-cash deferred tax
expense which aggregate to $160,771 for Q2 2018 (Q1 2017: $983,450)
and $1,924,777 for YTD 2018 (YTD 2017: $2,094,842).
ABOUT
AMARILLO
Amarillo is developing an open pit gold resource
at its Mara Rosa Project in the mining friendly jurisdiction of
Goias State in Brazil. An Updated Pre-Feasibility Study (NI 43-101
technical report) for the Mara Rosa Project was filed on SEDAR on
May 4, 2017. The Mara Rosa Project was awarded its main (LP) permit
which provides the social and environment permission to mine.
Amarillo is progressing toward obtaining an installation permit
(LI). The Posse Deposit at the Mara Rosa Project contains 540,567
ounces of gold in the Proven category from 9.27MT at 1.81 g/t Au,
and 456,968 ounces in the Probable category from 9.74MT at 1.46 g/t
Au, for total Reserves of 997,536 ounces from 19.01 MT at 1.63 g/t
Au. In addition to the Mara Rosa Project, Amarillo has an advanced
exploration project with excellent grades at Lavras do Sul, Brazil.
A Mineral Resource Estimate Study (NI 43-101 technical report) for
Lavras do Sul was filed on SEDAR on October 4, 2010. The Lavras do
Sul Project is an advanced exploration stage property (190 sq. km.)
comprising of more than 22 prospects centered on historic gold
workings. The initial resource estimate at the Butia prospect
reported 215,000 ounces of gold in the Indicated category from 6.4
MT at 1.05 g/t Au, and 308,000 ounces of gold in the Inferred
category from 12.9 MT at 0.74 g/t Au using a 0.3 g/t cut-off grade.
Both projects have excellent nearby infrastructure.
Mike Mutchler, the President and Chief Executive
Officer of the Company, is a Qualified Person as defined by NI
43-101 guidelines, and has reviewed and approved the scientific and
technical disclosure in this news release.
For further
information, please
contact: |
|
Mike Mutchler |
or |
Karen
Mate |
President &
CEO |
|
External
Communications |
416-294-0736 |
|
416-230-6454 |
mike.mutchler@amarillogold.com |
|
karen.mate@amarillogold.com |
|
|
|
32 Richmond St. East
Suite 201 |
|
|
Toronto, ON Canada,
M5C |
|
|
1P1 |
|
|
Website:
www.amarillogold.com |
|
|
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 release.
FORWARD LOOKING STATEMENTS:
This news release contains Forward Looking
Statements regarding the Company’s current expectations regarding
future events, including with respect to the Company’s business,
operations and condition, and management’s objectives, strategies,
beliefs and intentions. Various factors may prevent or delay our
plans, including but not limited to, the trading price of the
Common Shares, the ability of the Company to obtain approvals from
the TSX-V in respect of the transactions contemplated hereby,
contractor availability and performance, weather, access, mineral
prices, and success and failure of the exploration and development
carried out at various stages of the program. Permission from the
Government and community is also required to proceed with future
mining production. Readers should review the Company’s ongoing
quarterly and annual filings, as well as any other additional
documentation comprising the Company’s public disclosure record,
for additional information on risks and uncertainties relating to
these forward-looking statements. Readers should also review the
risk factors applicable to junior mining exploration companies
generally to better understand the variety of risks that can affect
the Company. The Company undertakes no obligation to update
publicly or otherwise revise any Forward Looking Statements whether
as a result of new information or future events or otherwise,
except as me be required by law.
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