UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported): April 4, 2017
Trilogy
Metals Inc.
(Exact name of registrant as specified in its charter)
British Columbia |
001-35447 |
98-1006991 |
(State or other jurisdiction of incorporation) |
(Commission
File Number) |
(I.R.S.
Employer Identification Number)
|
Suite 1950, 777 Dunsmuir Street
Vancouver, British Columbia
Canada, V7Y 1K4
(Address of principal executive offices,
including zip code)
(604) 638-8088
(Registrant’s telephone number, including
area code)
N/A
(Former name or former address, if changed
since last report)
Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(see General Instruction A.2 below):
[_] Written communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)
[_] Soliciting material pursuant to
Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[_] Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.24d-2(b))
[_] Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.23e-4(c))
Item 2.02 Results of Operations and
Financial Condition
The information set forth in Item 7.01 below
and in Exhibit 99.1 hereto is, to the extent required, incorporated herein by reference.
Item 7.01 Regulation FD Disclosure
On April 4, 2017, Trilogy
Metals Inc. (the “Registrant”) issued a press release announcing its financial results for the first quarter ended
February 28, 2017. A copy of the press release is furnished as Exhibit 99.1 to this report.
In accordance with General
Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to
be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement
or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth
by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit Number |
Description |
99.1 |
Trilogy Reports First Quarter Fiscal 2017 Financial Results |
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
Trilogy
Metals INC.
Dated:
April 4, 2017 | By: | /s/ Elaine Sanders |
| | Elaine M. Sanders, Chief Financial Officer |
Exhibit 99.1
Trilogy Metals Reports First Quarter Fiscal 2017 Financial
Results
VANCOUVER, April 4, 2017 /CNW/ - Trilogy Metals Inc.
(TSX, NYSE-MKT: TMQ) ("Trilogy Metals" or "the Company") is pleased to report its first quarter results for
the period ended February 28, 2017. Details of the Company's financial results are contained in the unaudited interim consolidated
financial statements and Management's Discussion and Analysis which will be available on the Company's website at www.trilogymetals.com,
on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All amounts are in United States dollars unless otherwise stated.
First Quarter Fiscal 2017 Highlights:
| · | Strong working capital position of $12.5 million with
cash on hand of $6.4 million. |
| · | Cash flow used in operating activities of $1.4 million
for the three months ended February 28, 2017. |
| · | Loss for the three month period ended February 28,
2017 of $3.0 million, including an unrealized loss on held for trading investments of $1.2 million. |
| · | Significant milestone reached with the publishing
of the Notice of Intent ("NOI") for the Ambler Mining District Industrial Access Project ("AMDIAP") by the
Bureau of Land Management on February 28, 2017. The NOI initiates the permitting process under the National Environmental Policy
Act for the preparation of an Environmental Impact Statement ("EIS") on the AMDIAP. This notice initiates the public
scoping process for the EIS with comments due by May 30, 2017. |
| · | Considerable progress on pre-feasibility level engineering
studies incorporating field results from the past two seasons which will form the basis for a pre-feasibility study announced in
March to be completed on the very high-grade polymetallic volcanogenic massive sulphide ("VMS") Arctic deposit. |
Selected Results
The following selected financial information is prepared in
accordance with U.S. GAAP.
in thousands of dollars,
except for per share amounts |
Three months ended |
Selected expenses |
February 28,
2017
$ |
February 29,
2016
$ |
General and administrative |
370 |
346 |
Mineral properties expense |
639 |
532 |
Professional fees |
125 |
136 |
Salaries |
239 |
213 |
Salaries – stock-based compensation |
395 |
282 |
Unrealized loss on held for trading investments |
1,239 |
- |
Loss from continuing operations for the period |
2,996 |
1,523 |
Loss from discontinued operations for the period |
- |
172 |
Loss and comprehensive loss for the period |
2,996 |
1,695 |
Basic and diluted loss per common share |
$0.03 |
$0.02 |
For the three months ended February 28, 2017, Trilogy Metals
reported a net loss of $3.0 million (or $0.03 basic and diluted loss per common share) compared to a net loss of $1.7 million for
the corresponding period in 2016 (or $0.02 basic and diluted loss per common share). This variance was primarily due to an unrealized
loss on investments of $1.2 million classified as held for trading for which movements in the fair value of the investments are
recorded through the statement of loss. The investments consist of common shares and warrants in GoldMining Inc. ("GMI")
acquired as consideration for the sale of Sunward Investments Limited and its Titiribi gold-copper exploration project in Colombia.
A gain on the sale of 410,000 common shares of GMI sold during the period of $3,000 was recognized during the three months ended
February 28, 2017. There are no comparable amounts for the three months ended February 29, 2016 as the Company acquired the investments
in September 2016.
Adjusting for the unrealized loss on held for trading investments,
a loss from continued operations of $1.8 million for the three months ended February 28, 2017 is comparable to the loss from continued
operations of $1.5 million for the three months ended February 29, 2016. The increase is due to an increase in mineral properties
expenses and stock-based compensation. We incurred $0.6 million in mineral properties expense for the three months ended February
28, 2017 compared to $0.5 million for the three months ended February 29, 2016. The increase in mineral property expenses in 2017
is attributable to several ongoing engineering studies, specifically an updated 3D geology model and resource estimate for the
Arctic deposit, metallurgical test programs on the Arctic and Bornite Projects, completion of a pre-feasibility level slope geotechnical
and hydrology study on the Arctic deposit, and a review of the hydrogeological conditions at the Bornite property. Waste characterization
is also continuing on the Arctic Project which began in 2016. The increase in stock-based compensation is due to a higher share
price contributing to an overall greater fair value for option grants in the period compared to the prior period. General
and administrative expenses, salaries, and professional fees continue to be at comparable levels in the periods presented.
Outlook
Our 2017 program has a budget of $7.1 million to be expended
during the fiscal year to advance the Arctic Project to pre-feasibility. The pre-feasibility study ("PFS") will be supported
by information collected during the 2015 and 2016 field seasons as well as additional information to be collected during the 2017
summer field program. We will be completing geotechnical drilling, hydrology installations, and test pits for site facility
locations and mine design, and geophysical ground surveys to evaluate ground conditions. A significantly expanded environmental
baseline program will be underway in 2017 to further the ongoing baseline data collection at the Arctic Project. Aquatics, avian
and large mammal surveys will be continued and expanded, water balance programs will be expanded, and collection of data from the
existing meteorological station will continue. Surface water quality testing will continue the programs initiated in earlier years
and groundwater quality monitoring will begin. Previous wetlands delineation information will be analyzed during the year for submission
of a jurisdictional determination application. The completion of the 2017 field program will complete a staged three-year site
investigation program where the first two years focused almost exclusively on collecting data in and around the proposed Arctic
open-pit, and the third year focuses on infrastructure and mine design.
The completion of the field program in 2017 will support the
prefeasibility study on the Arctic Project expected to be completed in the first quarter of 2018.
About Trilogy Metals
Trilogy Metals Inc., formerly NovaCopper Inc., is a metals
exploration company focused on exploring and developing the Ambler mining district located in northwestern Alaska. It is one of
the richest and most-prospective known copper-dominant districts located in one of the safest geopolitical jurisdictions in the
world. It hosts world-class polymetallic VMS deposits that contain copper, zinc, lead, gold and silver, and carbonate replacement
deposits which have been found to host high grade copper mineralization. Exploration efforts have been focused on two deposits
in the Ambler mining district - the Arctic VMS deposit and the Bornite carbonate replacement deposit. Both deposits are located
within the Company's land package that spans approximately 143,000 hectares. The Company has an agreement with NANA Regional Corporation,
Inc., a Regional Alaska Native Corporation that provides a framework for the exploration and potential development of the Ambler
mining district in cooperation with local communities. Our vision is to develop the Ambler mining district into a premier North
American copper producer.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain "forward-looking
information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning
of applicable Canadian and United States securities legislation including the United States Private Securities Litigation Reform
Act of 1995. All statements, other than statements of historical fact, included herein, including, without limitation, statements
relating to the future operating or financial performance of the Company, planned expenditures and the anticipated activity, including
with respect to the 2017 field program at the UKMP Projects, and the potential timing and preparation of a PFS on the Arctic deposit,
are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects",
"anticipates", "believes", "intends", "estimates", "potential", "possible",
and similar expressions, or statements that events, conditions, or results "will", "may", "could",
or "should" occur or be achieved. These forward-looking statements may include statements regarding perceived merit of
properties; exploration plans and budgets; mineral reserves and resource estimates; work programs; capital expenditures; timelines;
strategic plans; market prices for precious and base metals; or other statements that are not statements of fact. Forward-looking
statements involve various risks and uncertainties. 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 the uncertainties involving the need for additional
financing to explore and develop properties and availability of financing in the debt and capital markets; uncertainties involved
in the interpretation of drilling results and geological tests and the estimation of reserves and resources; the need for cooperation
of government agencies and native groups in the development and operation of properties as well as the construction of the access
road; the need to obtain permits and governmental approvals; risks of construction and mining projects such as accidents, equipment
breakdowns, bad weather, non-compliance with environmental and permit requirements, unanticipated variation in geological structures,
metal grades or recovery rates; unexpected cost increases, which could include significant increases in estimated capital and operating
costs; fluctuations in metal prices and currency exchange rates; and other risks and uncertainties disclosed in the Company's Annual
Report on Form 10-K for the year ended November 30, 2016 filed with Canadian securities regulatory authorities and with the United
States Securities and Exchange Commission and in other Company reports and documents filed with applicable securities regulatory
authorities from time to time. The Company's forward-looking statements reflect the beliefs, opinions and projections on the date
the statements are made. The Company assumes no obligation to update the forward-looking statements or beliefs, opinions, projections,
or other factors, should they change, except as required by law.
SOURCE Trilogy Metals Inc.
To view the original version on PR Newswire, visit: http://www.newswire.ca/en/releases/archive/April2017/04/c1394.html
%CIK: 0001543418
For further information: Company Contacts: Rick Van Nieuwenhuyse,
President & Chief Executive Officer, rickvann@trilogymetals.com; Elaine Sanders, Vice President & Chief Financial Officer,
elaine.sanders@trilogymetals.com; 604-638-8088 or 1-855-638-8088
CO: Trilogy Metals Inc.
CNW 07:00e 04-APR-17
This regulatory filing also includes additional resources:
ex991.pdf
Trilogy Metals (AMEX:TMQ)
Historical Stock Chart
From Jun 2024 to Jul 2024
Trilogy Metals (AMEX:TMQ)
Historical Stock Chart
From Jul 2023 to Jul 2024