Aldridge Minerals Inc. (TSX-V: AGM) (“Aldridge” or the
“Company”) announced today the filing of unaudited consolidated
interim financial statements as at and for the three and nine
months ending September 30, 2015 (the “Q3 2015 Financials”), and
the Management’s Discussion & Analysis related thereto (the “Q3
2015 MD&A”), which are available on SEDAR and at
www.aldridgeminerals.ca.
Han Ilhan, President & CEO, commented, “In Q3 our focus
continued to be advancing the Yenipazar land acquisition. This was
facilitated by the receipt of the “Public Benefit” letter at the
end of Q2, which as reported at that time, provides certainty that
Aldridge will have access to all of the land needed for the
development of the Yenipazar Project through a well-established
compulsory process. This was followed in October 2015 with the
completion by the State of its independent land valuation under the
leadership of the local Governor’s office. We were pleased by the
speed at which these two major milestones were achieved,
particularly in light of the fact that two federal elections in
Turkey took place over the same period.
“Although the State’s land price has not officially been
disclosed to the individual landowners, we are confident that this
compulsory price will be lower than the Company’s voluntary high
value proposition to landowners. In the event a landowner does not
sell to the State or to Aldridge within 15 days of being informed
of the State determined price, the State will initiate the legal
process to acquire the land. This is the final stage of the land
acquisition process, which we expect will be completed in
2016.”
Mr. Ilhan added, “In parallel with the land acquisition,
Aldridge will continue to progress its financing discussions,
refine the engineering of the Project, and formulate plans to
explore the balance of the Yenipazar concession.”
Aldridge’s Highlights and AchievementsThe following
summarizes the key achievement areas in Q3 2015. Additional details
are provided in the Q3 2015 MD&A:
- Working Capital and Debt Facility
– The Company ended the third quarter with US$5,757,574 in cash
and negative working capital of US$7,142,480. As at September 30,
2015 the Company had drawn down US$12,500,000 of its US$35,000,000
loan facility. Aldridge is currently in advanced discussions to
either extend the maturity date of the loan facility, or refinance
the loan facility, which is due August 29, 2016. Assuming these
discussions are successful, the combination of cash and the undrawn
facility provides sufficient funds for the planned expenditures in
2016 and Q1 2017.
- Land Acquisition - The land
acquisition process (“LAP”), initiated in 2014, progressed through
the third quarter of 2015. As at September 30, 2015 the total cost
of land acquired to date was US$8,010,455 or approximately 31% of
the required land. The total cost includes capitalized interest of
US$1,081,106 on its borrowings. In June 2015, the Company received
an approved “Public Benefit” letter from the Ministry of Energy and
Natural Resources in Turkey. The Public Benefit letter provides
certainty that the Company will have access to all of the land
needed for the development of the Yenipazar Project in central
Turkey. This approval represents a significant milestone of the
well-established State-led compulsory LAP, whereby the landowner is
obligated to sell at the State-determined price, which is expected
to result in completion of the LAP in 2016.In October 2015 the
Yozgat Governor’s Office, which is the agency leading the
compulsory LAP, notified the Company that it had completed its
pricing review. Consequently, individual landowners are expected to
be informed, beginning in November 2015, of the State-price offered
for their individual land parcels.
- Value Engineering - The
Company’s Value Engineering Study (“VE Study”) was completed in
April 2015. The VE Study evaluated alternative engineering and
construction strategies to ensure constructability and operational
effectiveness. The VE Study found no material changes to the
Yenipazar Project and the Optimization Study results were confirmed
(see the Technical Report on the Yenipazar Optimization Study,
Yozgat Province, Turkey available on www.sedar.com). The Company
has since developed alternative basic engineering schedules to
maximize the focus on critical path items while considering the
variability of the timing of land acquisition and project
financing. These alternative schedules allow the Company
engineering flexibility that will facilitate a timely construction
schedule following the closing of project financing.
- Exploration Program – The
Company completed, in the first half of 2015, its exploration
program on the Yenipazar site, which is primarily focused on the
northern extension from the known resource area where two outcrops
were previously identified. Eight drill holes with a combined depth
of 2,525 metres were drilled. The drilling confirmed the continuity
of mineralization to the north of the known ore body. Highlights
from assaying included 6.13% lead, 7.78% zinc, 1.06% copper, 1.79
g/t gold and 118 g/t silver over 17 metres. Additional information
regarding all holes drilled is included in the Exploration Drilling
section of the Q3 2015 MD&A.
- Investment Incentive Certificates
(“IICs”) - During the second quarter of 2015, the Company was
approved for and received both a Strategic IIC and Regional IIC
from the Turkish Ministry of Economy for the development of the
Yenipazar Project. As a result, the corporate income tax rate is
reduced from 20% to a range of 2% to 4%. Obtaining the Strategic
IIC approval increased the incentive contribution rate from 40% to
50% on the majority of qualifying capital expenditures, which will
increase the life of mine tax savings benefit to US$76,000,000 or
by US$14,000,000 from US$62,000,000 estimated in the Optimization
Study.
Strategy and OutlookThe primary objective in 2015 was to
position the Company to complete its LAP and project financing in
2016 and to advance Project engineering in parallel with the LAP.
Upon completion of the LAP the Company expects a Project
development period of approximately 24 months involving
engineering, construction, commissioning and followed by commercial
production in early 2019. As a result, the Company’s focus in Q4
2015 and 2016 is on advancing the following initiatives already
underway:
- Land Acquisition – The Company’s
LAP strategy was designed to provide a high value proposition
consistent with being fair to all stakeholders and to maintain a
social licence to operate within the region. The LAP includes a
combination of voluntary and State-led compulsory land purchases.
In October 2015 the Yozgat Governor’s Office completed their
independent land valuation. Although the Governor’s office has not
officially informed the land owners of their respective price
assessments, we are confident the average price will be lower than
the Company’s voluntary purchase offer and therefore independently
confirming our high value proposition. Confirmation of our high
value offer independently by the Governor’s office should
facilitate the voluntary LAP, which the Company intends to continue
in parallel with the State-led compulsory LAP.Individual landowners
are expected to be informed in November 2015 of the State’s price
for the individual land parcels. In the event a landowner does not
sell to the State or to Aldridge within 15 days of being informed
of the State determined price, the State will initiate the legal
process to acquire the land. During this process the court will
independently study and review the land values to confirm the final
price for the land to be paid by the State. Since the State land
acquisition is compulsory, the court’s price decision results in
the land being purchased by the State and classified as treasury
land. The court’s pricing decision will result in Aldridge funding
the government’s purchase of the land at the State determined
price. Pursuant to the mining regulations, Aldridge is awarded
access to the treasury land for the life of the mine.The voluntary
LAP and State-led LAP, including the judicial process to confirm
the compulsory land purchase price, is expected to be completed in
2016.
- Engineering – The Company will
continue to refine its basic engineering schedule and execution to
ensure the focus is on critical path items while considering the
variability of the timing of land acquisition and project
financing. Critical path basic engineering is expected to be
completed to synchronise with the expected timing of closing of
project financing and site access for construction
mobilization.
- Exploration – Given the
promising results of the exploration program completed in May 2015,
the Company is in the process of finalizing plans to investigate
the additional potential its licence area immediately adjacent to
the existing ore body and other areas of its 100 square kilometre
Yenipazar licence area, 90% of which has not been explored in
detail. The extent of exploration in the near term will be
dependent on the availability of funds, which is expected to be
affected by the timing of the LAP.
- Project Financing – The Company
will continue to actively consider various project financing
alternatives through 2016. The near term focus will be to address
the loan facility maturing in August 2016 by either extending the
maturity date of the loan facility or refinancing the loan
facility. The Company is proceeding with advanced staged
discussions to address the present loan facility.
Selected Financial InformationThe
following table provides selected consolidated financial
information that should be read in conjunction with the Q3 2015
Financials.
United States Dollars
NINE MONTHS ENDED AND AS
AT
SEPTEMBER 30,
2015
NINE MONTHS ENDED AND AS
AT
SEPTEMBER 30,
2014
YEAR
ENDED AND AS AT
DECEMBER 31, 2014
Loss before income tax
US$(4,416,404) US$(2,488,417)
US$(3,191,177) Net loss
(4,416,404) (2,488,417) (3,191,177)
Net loss per share
(0.04) (0.03) (0.04) Cash and cash
equivalents
5,757,574 19,514,161 14,331,409 Working capital
(i)
(7,142,480) 18,766,112 14,103,639 Total assets
26,359,752 26,498,234 25,829,329 Total non-current financial
liabilities
148,540 7,423,262 8,445,579
(i) Working capital equals current assets less
current liabilities, and is a non-GAAP measure used by
management
About AldridgeAldridge is a development
stage mining company focused on its wholly owned Yenipazar
polymetallic Massive Sulfide Project (Au, Ag, Cu, Pb, Zn) in
Turkey, a country that is committed to developing its natural
resources. Aldridge completed the Yenipazar Optimization Study and
filed the related technical report in May 2014, which updated the
original May 2013 Feasibility Study. The Company is currently
advancing the Yenipazar Project on key aspects including land
acquisition, project financing, and engineering.
Caution Regarding Forward-Looking InformationThis news
release includes certain forward-looking statements within the
meaning of Canadian securities laws, including, but are not limited
to the ability to accomplish remaining milestones, complete the
Yenipazar land acquisition in 2016, extending the maturity date or
refinancing the Company’s existing Loan facility, securing project
financing, advancing the Yenipazar Project to production in 2019,
economic performance, future plans and objectives of the
Company.
Forward-looking statements involve risks, uncertainties and
other factors that could cause actual results, performance,
prospects and opportunities to differ materially from those
expressed in such forward-looking statements. Such risks,
uncertainties and factors including meeting conditions for advances
under the Loan and the other factors discussed under the heading
“Risk Factors” in the Company’s Management’s Discussion and
Analysis and Annual Information Form for the year ended December
31, 2014 and in other continuous disclosure filings made by the
Company with Canadian securities regulatory authorities and
available at www.sedar.com. Any number of important factors could
cause actual results to differ materially from these
forward-looking statements as well as future results.
Forward-looking information is based on a number of factors and
assumptions which have been used to develop such information but
which may prove to be incorrect, including, but not limited to,
assumptions in connection with the continuance of Aldridge and its
subsidiaries as a going concern, general economic and market
conditions, mineral prices, the accuracy of mineral resource
estimates. Although Aldridge believes that the assumptions and
factors used in making the forward-looking statements are
reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed time frames or at all. Aldridge disclaims any intention
or obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise
unless required by law.
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 news release.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151113005046/en/
Aldridge MineralsHan Ilhan, 416-477-6988President &
CEOorDavid Carew, 416-477-6984Director of IR & Corporate
Secretary
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