Ascendant Resources Inc. (TSX: ASND) (OTCQX:
ASDRF; FRA: 2D9) ("Ascendant" or the "Company”) is pleased to
announce its wholly owned subsidiary, American Pacific Honduras
S.A. de C.V (“AMPAC”) closed a US$5 million short-term revolving
credit facility (the “credit facility”) with Banco Financiera
Comercial Hondurena S.A. (“Ficohsa”) based out of Tegucigalpa,
Honduras.
The credit facility has a 12-month term from the
closing date, bears interest at a rate of 8-13%, depending on
currency drawn down, and is renewable on an annual basis. The
facility will be used for working capital and other general
corporate purposes. The credit facility is secured by a pledge of
the Company’s real estate assets at the port of Puerto Cortés,
Honduras as well as a corporate guarantee.
“This facility strongly supports Ascendant’s
liquidity and greatly eases cash management and inventory control
for the Company.” Stated Chris Buncic, President & CEO of
Ascendant. He continued, “We look forward to a strong and fruitful
relationship with our friends at Ficohsa as we continue to grow our
operations.”
About Ascendant Resources
Inc.
Ascendant is a Toronto-based mining company
focused on its 100%-owned El Mochito Zinc-Lead-Silver Mine in
north-western Honduras, which has been in production since 1948.
After acquiring the mine in December 2016, Ascendant implemented a
rigorous optimization program aimed at restoring the historic
potential of the El Mochito mine. In 2017, the Company successfully
completed the operational turnaround with sustained production
reaching record levels and profitability restored. The Company
remains focused on cost reduction and further operational
improvements to drive robust free cash flow in 2018 and beyond.
Ascendant is also focused on expanding and upgrading known
resources through extensive exploration work for near-term growth.
With a significant land package of 11,000 hectares and an abundance
of historical data there are several regional targets providing
longer term exploration upside which could lead to further Mineral
Resource growth. The Company is also engaged in the evaluation of
producing and development stage Mineral Resource opportunities, on
an ongoing basis. The Company's common shares are principally
listed on the Toronto Stock Exchange under the symbol "ASND". For
more information on Ascendant Resources, please visit our website
at www.ascendantresources.com.
Neither the Toronto Stock Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX) accepts responsibility for the adequacy or
accuracy of this release. For further information please
contact:Katherine PrydeDirector, Communications & Investor
RelationsTel: 888-723-7413info@ascendantresources.com
Forward Looking Information
This news release contains "forward-looking
statements" and "forward-looking information" (collectively,
"forward-looking information") within the meaning of applicable
Canadian securities legislation. All information contained in this
news release, other than statements of current and historical fact,
is forward-looking information. Often, but not always,
forward-looking information can be identified by the use of words
such as "plans", "expects", "budget", "guidance", "scheduled",
"estimates", "forecasts", "strategy", "target", "intends",
"objective", "goal", "understands", "anticipates" and "believes"
(and variations of these or similar words) and statements that
certain actions, events or results "may", "could", "would",
"should", "might" "occur" or "be achieved" or "will be taken" (and
variations of these or similar expressions). Forward-looking
information is also identifiable in statements of currently
occurring matters which may continue in the future, such as
"providing the Company with", "is currently", "allows/allowing
for", "will advance" or "continues to" or other statements that may
be stated in the present tense with future implications. All of the
forward-looking information in this news release is qualified by
this cautionary note.
Forward-looking information in this news release
includes, but is not limited to, statements regarding the repayment
of the credit facility and the ability of the credit facility to
help with the Company’s working capital expenditures . The material
factors or assumptions that Ascendant identified and were applied
by Ascendant in drawing conclusions or making forecasts or
projections set out in the forward-looking information include, but
are not limited to, the ability of the Company repay the credit
facility and the ability of the credit facility to help with the
Company’s working capital expenditures.
The risks, uncertainties, contingencies and
other factors that may cause actual results to differ materially
from those expressed or implied by the forward-looking information
may include, but are not limited to, risks generally associated
with the mining industry, such as economic factors (including
future commodity prices, currency fluctuations, energy prices and
general cost escalation), uncertainties related to the development
and operation of Ascendant's projects, dependence on key personnel
and employee and union relations, risks related to political or
social unrest or change, rights and title claims, operational risks
and hazards, including unanticipated environmental, industrial and
geological events and developments and the inability to insure
against all risks, failure of plant, equipment, processes,
transportation and other infrastructure to operate as anticipated,
compliance with government and environmental regulations, including
permitting requirements and anti-bribery legislation, volatile
financial markets that may affect Ascendant's ability to obtain
additional financing on acceptable terms, the failure to obtain
required approvals or clearances from government authorities on a
timely basis, uncertainties related to the geology, continuity,
grade and estimates of Mineral Reserves and Mineral Resources, and
the potential for variations in grade and recovery rates, uncertain
costs of reclamation activities, tax refunds, hedging transactions,
the inability of the Company to meet its guidance, the inability of
the Company to repay the line of credit, the inability of the line
of credit to help with the Company’s working capital expenditures,
as well as the risks discussed in Ascendant's most recent Annual
Information Form on file with the Canadian provincial securities
regulatory authorities and available at www.sedar.com.
Should one or more risk, uncertainty,
contingency, or other factor materialize, or should any factor or
assumption prove incorrect, actual results could vary materially
from those expressed or implied in the forward-looking information.
Accordingly, the reader should not place undue reliance on
forward-looking information. Ascendant does not assume any
obligation to update or revise any forward-looking information
after the date of this news release or to explain any material
difference between subsequent actual events and any forward-looking
information, except as required by applicable law.
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