Shares Outstanding: 338,284,556
TORONTO, May 15, 2019 /PRNewswire/ - Aquila Resources Inc.
(TSX: AQA, OTCQB: AQARF) ("Aquila" or the "Company") announced the
filing of its financial results for the first quarter ended
March 31, 2019. All amounts, unless
indicated, are reported in US dollars.
Barry Hildred, President &
CEO of Aquila, commented "In 2019, Aquila has made significant
progress on our strategy of advancing the Back Forty Project to
construction and operation, highlighted by the recent contested
case decision upholding our Mining Permit. We continue to move
ahead on several key initiatives to unlock the value of Back Forty
including pre-construction activities, further evaluating a
potential underground expansion, and considering the strategic and
financial options available to the Company."
First Quarter Highlights
- On January 8, 2019, Aquila
announced the cross-trading of the Company's shares on the OTCQB
Venture Market in the United
States under the symbol OTCQB: AQARF. Cross-trading Aquila
on the OTCQB provides a trading platform for U.S. shareholders
while enhancing distribution for Canadian and international
shareholders.
- The Company progressed certain Back Forty Project
pre-construction activities including environmental field work and
site data collection, metallurgical testwork, hydrogeological
modelling, and permit amendments.
- The Company continued with its investigation of an underground
mine expansion following an open pit operation. The Company is also
assessing various plant size scenarios to better align open pit
plant and underground throughputs.
- As at March 31, 2019, Aquila had
cash of $11.9 million and working
capital of $10.2 million. This
compared to cash of $14.4 million and
working capital of $12.1 million at
December 31, 2018. The decrease in
working capital is primarily due to the funding of the Company's
pre-construction activities.
Post Quarter Highlights
- On May 3, 2019, the Michigan
Office of Administrative Hearings and Rules issued a Final Decision
and Order upholding the Michigan Nonferrous Metallic Mineral Mining
Permit for its Back Forty Project in Michigan. Following 30 days of cumulative
testimony, the administrative law judge issued a final decision
finding "that the proposed mining operation will not pollute,
impair, or destroy the air, water and other natural resources, or
the public trust in those resources," in compliance with
Michigan's Non Ferrous Metallic
Mining Statute.
Outlook
- During the balance of 2019, the Company will continue
discussions with prospective financial partners to secure the
required capital to construct the Back Forty Project. Aquila, with
the assistance from its advisors, will consider all strategic and
financial options available to the Company and the Project.
- Pre-construction activities including engineering and project
readiness will continue to advance at Back Forty.
- In addition to recently filled positions, the Company will
continue to add to its leadership team to prepare for the
construction and operational readiness phases of at Back Forty.
- The Company is also evaluating its strategy and funding
alternatives with respect to its exploration projects in
Wisconsin in light of the recent
repeal of the decades-old moratorium on non-ferrous mining in the
state. This may include a transaction to unlock value associated
with these projects including a joint venture or spin-out.
SELECTED FINANCIAL INFORMATION
The following table provides selected financial information that
should be read in conjunction with the financial statements of the
Company for the three months ended March 31,
2019:
|
Three Months
Ended
|
|
March
31,
|
March 31,
|
|
2019
|
2018
|
Administrative
expenses
|
$
1,250,683
|
$
1,152,188
|
Mineral property
exploration expenses
|
1,043,283
|
1,334,773
|
Net finance
charges
|
696,666
|
392,648
|
Loss from
operations
|
2,990,632
|
2,879,609
|
|
|
|
(Gain) loss on
foreign exchange
|
(91,999)
|
(197,303)
|
Loss (gain) on change
in value of contingent consideration
|
63,768
|
(24,470)
|
(Gain) loss on change
in fair value of warrant liability
|
(47,058)
|
(225,465)
|
Net and comprehensive
loss for the period
|
2,915,343
|
2,432,371
|
Net loss per share -
basic and diluted
|
0.01
|
0.01
|
ABOUT AQUILA RESOURCES
Aquila Resources Inc.
(TSX: AQA, OTCQB: AQARF) is a development‐stage company with
strategic assets in the Great Lakes Region. The Company's
experienced management team is focused on advancing
pre-construction activities for its 100%‐owned zinc‐ and gold‐rich
Back Forty Project in Michigan.
Aquila's flagship Back Forty Project is an open pit volcanogenic
massive sulfide deposit with underground potential located along
the mineral‐rich Penokean Volcanic Belt in Michigan's Upper Peninsula. The Project
contains approximately 1.1B pounds of
zinc and 1M ounces of gold in the
Measured & Indicated Mineral Resource categories, with
additional upside potential. Aquila has received all State and
Federal permissions required for the construction and commencement
of operations at the Back Forty Project.
The Company has two other exploration projects: Reef Gold
Project located in Marathon County,
Wisconsin and the Bend Project located in Taylor County, Wisconsin. Reef is a
gold-copper property and Bend is a volcanogenic massive sulfide
occurrence containing copper and gold.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
This press release may contain 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.
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. These risks
include those described under the heading "Risk Factors" in
Aquila's most recent annual information form and its other public
filings, copies of which can be under Aquila's profile at
www.sedar.com. 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.
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SOURCE Aquila Resources Inc.