Ascot Resources Ltd. (
TSX: AOT; OTCQX:
AOTVF) (“
Ascot” or the
“
Company”) is pleased to announce the Company’s
unaudited financial results for the three months ended March 31,
2022 (“
Q1 2022”). Ascot also announces the hiring
of Bryant Schwengler as Vice President, Operations and General
Manager, and as previously planned has commenced underground
development work at the Company’s Premier Gold Project
(“
PGP” or the “
project”), located
on Nisga’a Nation Treaty Lands in the prolific Golden Triangle of
northwestern British Columbia. For details of the unaudited
condensed interim consolidated financial statements and
Management's Discussion and Analysis for the three months ended
March 31, 2022, please see the Company’s filings on SEDAR
(www.sedar.com).
Derek White, President and CEO, commented,
"Ascot continued to advance the Premier Gold Project at a steady
pace during Q1 2022. Among other key project areas being
progressed, we have begun underground development work starting
with blasting the S1 portal and preparing the area with mine
services. As expected, we plan on starting full-scale ramp
development this month. We also recently kicked off the 2022
exploration drilling program starting on the Sebakwe Zone. We are
also very pleased to announce the hire of Bryant Schwengler as Vice
President, Operations and General Manager, who was most recently
Operations Manager at Newcrest Mining’s Red Chris mine and brings
with him a wealth of operational and management experience, and
will play a key role in our transition towards production next
year.
As previously announced, we are currently
pursuing alternative financing options to replace the Sprott Senior
Facility. We have been encouraged by the amount of interest we have
received from potential lenders and streaming and royalty companies
and have progressed to advanced discussions with potential
partners. We endeavour to have an update on the refinancing in the
coming months and look forward to being fully financed to advance
PGP to be Canada’s next gold mine.”
All amounts herein are reported in $000s of
Canadian dollars (“C$”) unless otherwise
specified
Q1 2022 AND RECENT
HIGHLIGHTS
- Ascot has recently filled a key
role for operations management with the hire of Bryant Schwengler
as Vice President, Operations and General Manager. Bryant holds a
Bachelor of Mining Engineering degree and with over 25 years of
mining industry has direct experience in mine development,
construction, and operation phases, where responsibilities have
included contract management, team building, employee development
for both open pit and underground mines. Starting his career with
Mount Isa Mines, he grew within the company to hold several senior
positions with Xstrata and Glencore including, General Manager
roles for both surface and underground operations. He then led the
team at the Cariboo mine as the General Manager for Trevali which
was able to achieve commercial production prior to being appointed
as the COO for Trevali to integrate optimise the expanded portfolio
of four mines globally. Most recently, Bryant has been part of
Newcrest Mining at the Red Chris Joint Venture as Operations
Manager and Operations Lead for the Pretium Brucejack Mine
acquisition integration.
- On May 9, 2022, the Company
announced the start of the 2022 exploration drilling program, which
comprises approximately 18,000 metres and will be equally split
between exploration and in-fill holes. Exploration drilling will be
largely concentrated on the Sebakwe and Day Zones and in-fill
drilling will focus exclusively on the Big Missouri deposit. In
contrast to last year, assay turnaround times are expected to be
much shorter this year as a new third party assay lab is being set
up in the town of Stewart.
- In late April 2022 as planned, the
S1 portal area at the Big Missouri deposit was prepared for
underground development. Temporary services and infrastructure are
being installed on surface in May while the brow area is
established and supported. The ramp has initially been driven
approximately 20 metres where it will stop to allow for reinforced
ground support and a head cover to be completed. Upon conclusion of
this work, full ramp development will commence.
- On April 8, 2022, the Company held
an Information Session for the surrounding communities in the town
of Stewart, B.C.
- On April 4,
2022, the Company provided an update on construction financing and
development plans for PGP. In December 2020, as part of a total
construction finance package of US$105M (see News Release
dated December 10, 2020), the Company secured a US$80M senior
credit facility (the “Senior Facility”) with
Sprott Private Resource Lending II (Collector), LP
(“Sprott”). After drawing down the initial US$20M
tranche under the Senior Facility, Ascot was required to satisfy
various conditions before drawing down the remaining US$60M.
However, the Company has been unable to reach an agreement with
Sprott on the satisfaction of the drawdown conditions for the
remaining US$60M of the Senior Facility. Therefore, the initial
US$20M drawdown will remain outstanding and Ascot is pursuing
alternative financing options to replace the remainder of the
Senior Facility. Until alternative financing can be secured, Ascot
will continue advancing the project with available liquidity. The
Company anticipates that commencement of underground development
and advancement of other key construction areas will continue as
previously planned. However, certain work packages may be placed on
hold until the Company is able to secure alternative funding. While
the resulting implications to the project are uncertain at this
time, it is possible that there will be a delay to the initial
production target of Q1 2023.
- On March 21,
2022, the Company published its inaugural Sustainability Report.
This report will be updated annually and will evolve as Ascot
progresses from development into production next year.
- On March 8,
2022, the Company closed a previously announced bought deal
financing (the “Offering”) for total gross
proceeds of $64,241. The net proceeds from the Offering will be
used for capital costs at PGP, for PGP’s exploration program and
for general corporate purposes.
- On January 25,
2022, the Company provided an update on PGP with respect to
progress to date and development plans in 2022. The update included
a detailed project schedule and an updated capital cost estimate
for PGP. With the Mines Act permit amendment in hand and a more
definitive project schedule, Ascot reported an updated project
capital estimate of $224,000, reflecting an increase of 27% over
the previous (March 2021) project capital estimate.
- On January 24,
2022, Environmental Management Act (“EMA”) Permit
was received, completing the Joint MA/EMA Permit for PGP.
FINANCIAL RESULTS FOR THE THREE MONTHS
ENDED MARCH 31, 2022
The Company reported a net loss of $1,370 for Q1
2022 compared to a net income of $2,673 for Q1 2021. The loss in Q1
2022 is mainly driven by lower accounting gain on valuation of the
Company’s derivatives and higher stock-based compensation charge
due to stock options and units granted in Q1 2022 which were
deferred from Q4 2021.
LIQUIDITY AND CAPITAL
RESOURCES
As at March 31, 2022, the Company had working
capital of $78,749 and cash & cash equivalents balance of
$89,403. In Q1 2022, the Company issued 59,271,000 common shares,
13,710,500 warrants, 3,432,211 stock options, 113,665 Deferred
Share Units, 721,432 Restricted Share Units and 162,162 Performance
Share Units. Also, 906,750 stock options expired and 17,902
Restricted Share Units were exercised during Q1 2022.
MANAGEMENT’S OUTLOOK FOR
2022
Management is planning a number of activities
for 2022, which include:
- Completion of
refinancing of the Senior Facility
- Completion of
construction of the new water treatment plant and tailings storage
facility in Q4 2022
- Complete
permanent portal brow and mine services in order to commence
underground ramp development in May 2022, and advance to the
delivery of ores for pre-commissioning by Q4 2022.
- Surface
exploration drilling with a focus on the Day and Sebakwe zones
- Stope definition
drilling at Big Missouri both from Surface and Underground
- Health and
safety initiatives related to Covid and construction protocols
- Meeting a number
of permitting compliance requirements as the project transitions
from construction into operation
- Recruitment of
operating personnel
Figure 1 – S1 Portal face being
preparedhttps://www.globenewswire.com/NewsRoom/AttachmentNg/ef9a2892-c1cd-414f-a2a5-89123f3bd4dd
Figure 2 – First portal blast
takenhttps://www.globenewswire.com/NewsRoom/AttachmentNg/0325d4a7-34e4-4248-a9c9-af48d1db5364
Figure 3 – Portal
developmenthttps://www.globenewswire.com/NewsRoom/AttachmentNg/c9dc63e4-c9ee-4e0b-916d-245622cc2177
Figure 4 – Portal development
continuinghttps://www.globenewswire.com/NewsRoom/AttachmentNg/998fa44b-9f05-4a23-8d98-295ae5a70b35
Figure 5 – Mill building interior
showing Ball and SAG mills with motors
installedhttps://www.globenewswire.com/NewsRoom/AttachmentNg/46e71451-bda7-47fb-8fca-e18ab7b929d1
Figure 6 – Tailings thickener foundation
construction and cyanide destruction tank
padshttps://www.globenewswire.com/NewsRoom/AttachmentNg/6c42eb15-1124-4f6d-bc6a-63fab83540d9
Figure 7 – New clarifier pad foundation
constructionhttps://www.globenewswire.com/NewsRoom/AttachmentNg/f4d3b05f-1597-46de-9a9e-1fad47db8c11
Qualified Person
John Kiernan, P.Eng., Chief Operating Officer of
the Company is the Company’s Qualified Person (QP) as defined by
National Instrument 43-101 and has reviewed and approved the
technical contents of this news release.
On behalf of the Board of Directors of
Ascot Resources Ltd.“Derek C. White”President &
CEO
For further information
contact:
David Stewart, P.Eng.VP, Corporate Development & Shareholder
Communicationsdstewart@ascotgold.com778-725-1060 ext. 1024
About Ascot Resources Ltd.
Ascot is a Canadian junior exploration and
development company focused on re-starting the past producing
Premier gold mine, located on Nisga’a Nation Treaty Lands, in
British Columbia’s prolific Golden Triangle. Ascot shares trade on
the TSX under the ticker AOT. Concurrent with progressing the
development of Premier, the Company continues to successfully
explore its properties for additional high-grade underground
resources. Ascot is committed to the safe and responsible
development of Premier in collaboration with Nisga’a Nation as
outlined in the Benefits Agreement.
For more information about the Company, please
refer to the Company’s profile on SEDAR at www.sedar.com or
visit the Company’s web site at www.ascotgold.com, or for a virtual
tour visit www.vrify.com under Ascot Resources.
The TSX has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding
Forward-Looking Information
All statements and other information contained
in this press release about anticipated future events may
constitute forward-looking information under Canadian securities
laws ("forward-looking statements"). Forward-looking statements are
often, but not always, identified by the use of words such as
"seek", "anticipate", "believe", "plan", "estimate", "expect",
"targeted", "outlook", "on track" and "intend" and statements that
an event or result "may", "will", "should", "could" or "might"
occur or be achieved and other similar expressions. All statements,
other than statements of historical fact, included herein are
forward-looking statements, including statements in respect of the
use of proceeds of the Offering, the advancement and development of
the PGP and the timing related thereto, the exploration of the
Company’s properties and management’s outlook for the remainder of
2022. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements, including risks associated with the
business of Ascot; risks related to exploration and potential
development of Ascot's projects; business and economic conditions
in the mining industry generally; fluctuations in commodity prices
and currency exchange rates; uncertainties relating to
interpretation of drill results and the geology, continuity and
grade of mineral deposits; the need for cooperation of government
agencies and indigenous groups in the exploration and development
of properties and the issuance of required permits; the need to
obtain additional financing to develop properties and uncertainty
as to the availability and terms of future financing; the
possibility of delay in exploration or development programs and
uncertainty of meeting anticipated program milestones; uncertainty
as to timely availability of permits and other governmental
approvals; risks associated with COVID-19 including adverse impacts
on the world economy, construction timing and the availability of
personnel; and other risk factors as detailed from time to time in
Ascot's filings with Canadian securities regulators, available on
Ascot's profile on SEDAR at www.sedar.com including the Annual
Information Form of the Company dated March 21, 2022 in the section
entitled "Risk Factors". Forward-looking statements are based on
assumptions made with regard to: the estimated costs associated
with construction of the Project; the timing of the anticipated
start of production at the Project; the ability to maintain
throughput and production levels at the Premier Mill; the tax rate
applicable to the Company; future commodity prices; the grade of
Resources and Reserves; the ability of the Company to convert
inferred resources to other categories; the ability of the Company
to reduce mining dilution; the ability to reduce capital costs; and
exploration plans. Forward-looking statements are based on
estimates and opinions of management at the date the statements are
made. Although Ascot believes that the expectations reflected in
such forward-looking statements and/or information are reasonable,
undue reliance should not be placed on forward-looking statements
since Ascot can give no assurance that such expectations will prove
to be correct. Ascot does not undertake any obligation to update
forward-looking statements. The forward-looking information
contained in this news release is expressly qualified by this
cautionary statement.
Ascot Resources (TSX:AOT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Ascot Resources (TSX:AOT)
Historical Stock Chart
From Sep 2023 to Sep 2024