Aldridge Minerals Inc. (TSX-V: AGM) (“Aldridge” or the
“Company”) announced today the filing of its unaudited consolidated
financial statements as at and for the three months ending March
31, 2016 (the “Q1 2016 Financials”), and the Management’s
Discussion & Analysis related thereto (the “Q1 2016 MD&A”),
which are available on SEDAR and at www.aldridgeminerals.ca.
Han Ilhan, President & CEO, commented, “Our focus during the
first quarter of 2016 was the advancement of the land acquisition
within the fully permitted Yenipazar Project fence line. We remain
committed to our strategy of maintaining an ongoing dialogue with
the landowners and acquiring as much land as possible on a
voluntary basis. In parallel, the State’s compulsory land
acquisition process that started in June 2015 continued to
progress. As at April 30, 2016, Aldridge had purchased private land
representing approximately 35.1% of the total project area at a
cost of approximately US$8,800,000. Aldridge also receives the
legal right to access the State’s Treasury land (including meadow
land upon reclassification to Treasury land), which represents 13%
of the required land within the project area. As a result, I am
pleased to report that the Company presently has access to
approximately 48% of the required land.”
In closing, Mr. Ilhan added, “As we advance towards completion
of the land acquisition, we will continue project financing
discussions that have been initiated with multiple financial
institutions that have expressed interest in the Yenipazar Project.
Aldridge is also analyzing all the alternatives for a refinancing
of the bridge loan facility with Orion Mine Finance prior to its
maturity date of August 29, 2016.”
Strategy and Outlook
The Company’s most important objectives of 2016 include
advancing the land acquisition, refinancing the bridge loan (the
“Loan”), and positioning the Company to obtain project financing.
The Company’s engineering and exploration initiatives will also
continue in 2016.
Upon completion of project financing the Company expects a
project development period of approximately 24 months involving
construction, commissioning and leading to commercial production.
As a result, the Company’s focus in 2016 is on advancing the
following initiatives already underway:
- Loan Refinancing – The Company
ended the first quarter with US$6,047,309 in cash and negative
working capital of US$12,990,670. As at March 31, 2016 the Company
had drawn down US$17,500,000 of its US$35,000,000 Loan, which
matures August 29, 2016. Aldridge is analyzing alternatives and is
in advanced staged discussions for refinancing the Loan prior to
its maturity date. There can be no assurance that these discussions
will lead to a successful refinancing of the Loan prior to its
maturity date.
- Land Acquisition – The land
acquisition process includes two components that are continuing in
parallel, namely the Company’s voluntary purchase process and the
State-led Compulsory Land Acquisition Process (“LAP”). As of April
30, 2016, more than 120 court cases had been opened by the State to
establish the price to be paid for the land and funded by Aldridge.
There is a risk that the price to be determined by the court could
exceed the Company’s offer price, thereby increasing total land
costs. Depending on the outcome of the initial court cases
currently in progress, the Company may consider alternative offers
to facilitate a more timely acquisition period and maintain
goodwill in the community. Aldridge is working towards completing
the LAP by the end of 2016.
As at April 30, 2016, the status of the LAP for
the Yenipazar Project is summarized as follows:
Approximate Area –
Square Metres
%
Purchased to Date 3,330,000
35.1% Court Cases Initiated 4,907,000
51.7%
Private Land Required
8,237,000 86.7%
Treasury & Pasture Land 1,259,000
13.3%
Yenipazar Project Area
9,496,000 100.0%
- Engineering – The Company
expects to complete negotiations in the next few months for certain
basic engineering packages and letters of intent related to the
supply of long lead-time process equipment and other services. As a
result, basic engineering may begin in the second half of 2016,
with continuation in 2017. Aldridge 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. Basic engineering,
detailed engineering, equipment procurement, construction and
commissioning will be executed in compliance with project financing
requirements.
- Exploration – The Company is
developing plans for a small infill-drilling program that would
support the mine plan in the first three years of operations, along
with investigating the licence area immediately adjacent to the
existing ore body. Drilling activity may be scheduled in Q4 2016,
subject to the status of the LAP and access to the target land
area. Other early-stage, low cost exploration activities will be
used to develop alternative exploration plans for other sections
within the 100 square kilometre Yenipazar licence area, where
encouraging ground survey results, geophysical and geochemical
anomalies, and outcrops indicate potential for further upside.
- Project Financing – The Company
will actively consider various project financing alternatives,
which may include senior and subordinated debt, equity, metal
streams, off-take agreements and strategic investments. The timing
of progress towards completion of the land acquisition is
anticipated to affect the timing of further project evaluation by
prospective financing organizations. Consequently, the Company
plans to increase its project financing efforts in the second half
of 2016 as the land acquisition process continues. The Company’s
ability to close the project financing following completion of the
LAP will be affected by general market conditions at the time.
Selected Financial Information
The following table provides selected consolidated financial
information that should be read in conjunction with the Q1 2016
Financials.
United States Dollars
THREE MONTHSENDED AND AS
ATMARCH 31,2016
THREE MONTHSENDED AND AS
ATMARCH 31,2015
YEARENDED AND AS
ATDECEMBER 31, 2014
Loss before income tax
$(736,705) $(1,504,981) $(3,191,177)
Net loss
(736,705) (1,504,981) (3,191,177) Net loss per
share
(0.007) (0.01) (0.04) Cash and cash equivalents
6,047,309 10,561,573 14,331,409 Working capital (i)
12,990,670 10,371,509 14,103,639 Total assets
30,711,621 24,827,014 25,829,329 Total non-current financial
liabilities
120,767 9,056,661
8,445,579 (i) Working capital equals current assets less
current liabilities, and is a non-GAAP measure used by management.
About Aldridge
Aldridge is a development stage mining company focused on its
wholly owned Yenipazar polymetallic Massive Sulfide Project (Gold,
Silver, Copper, Lead, Zinc) 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 Information
This 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,
completing the Yenipazar land acquisition, refinancing the
Company’s existing Loan, securing project financing, advancing the
Yenipazar Project to production, 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 for the year ended December 31, 2015 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/20160513005148/en/
Aldridge Minerals Inc.Han Ilhan, 416-477-6988President
& CEOorDavid Carew, 416-477-6984Director of Corporate
Development
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