VANCOUVER, Nov. 7, 2019 /CNW/ - Filo Mining Corp.
(TSXV: FIL) (Nasdaq First North Growth Market: FIL) ("Filo
Mining" or the "Company") is pleased to announce its results for
the three and nine months ended September
30, 2019. View PDF
Q3 2019 HIGHLIGHTS AND OUTLOOK
Filo Mining Launches Extensive Exploration Program at Filo
del Sol Project
Drilling has commenced at the Filo del Sol Project and two
diamond drills are now turning. The remaining two drill rigs are
mobilizing to site, and will be drilling shortly. Filo Mining's
2019/2020 field program follows on the findings of the 2018/2019
field campaign, which confirmed the Company's longtime view that
the Filo del Sol Project's current Mineral Resource is part of a
much larger mineralization system. Last season's drilling extended
the copper-gold mineralization 530 metres deeper than previously
known, to total depths of over 1,000 metres below surface.
Specifically, the Company's 2019/2020 exploration program plans to
complete more than 10,000 metres of diamond drilling, with drone
magnetometer and 3D induced polarization ("IP") geophysical surveys
conducted in support of drill targeting. The main objectives of the
exploration program will be:
- to better define the large overall gold-copper-silver
mineralization system, which hosts the Filo del Sol deposit, with a
focus on the mineralization beneath the current Mineral
Resource;
- to better understand the structural features controlling the
high-grade gold zones encountered during previous drill campaigns;
and
- to test the Tamberias West prospect, a previously unexplored
and recently permitted area located southwest of the current
Mineral Resource, for additional near surface oxide
mineralization.
The Company's 2019/2020 field campaign will run from
November 2019 to approximately
March 2020, weather permitting, and
include over 10,000 metres of diamond drilling along with
geophysical surveys. The Company anticipates that the first set of
assay results will be available by early 2020.
Commenting on the field season ahead, Adam Lundin, CEO, remarked, "It is very exciting
to report that drills started turning again at the Filo del Sol
Project this past week, as our 2019/2020 field season is now
underway. The Company is undertaking the most extensive field
campaign ever at Filo del Sol with plans to test a number of
exploration targets that could result in a step change in the
overall size and scale of mineralization at Filo. With the
on-going support of our stakeholders, we are looking forward to
another potentially transformational field season at Filo."
The 2019/2020 field program is funded by proceeds raised from a
bought deal offering and a concurrent non-brokered private
placement of common shares (the "Financings"), which generated
gross proceeds $40.0 million and
closed on August 30, 2019. The
Financings resulted in the combined sale of 14,547,727 common
shares of the Company, at a price of $2.75 per common share, and yielded net proceeds
of $38.8 million. While a portion of
the net proceeds from the Financing have been used by the Company
to fully repay amounts owing against credit facilities extended by
Zebra Holdings and Investments S.à.r.l ("Zebra"), the Company
intends to use the bulk of the remaining net proceeds to fund the
extensive 2019/2020 exploration program.
FINANCIAL RESULTS
(In thousands of
Canadian dollars, except per share amounts)
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
|
|
September
30,
|
September
30,
|
|
|
|
2019
|
2018
|
2019
|
2018
|
Exploration and
project investigation
|
|
|
1,895
|
2,208
|
17,248
|
18,935
|
General and
administration ("G&A")
|
|
|
680
|
1,608
|
2,600
|
3,939
|
Net loss
|
|
|
3,105
|
3,865
|
20,532
|
22,699
|
Basic and diluted
loss per share
|
|
|
0.04
|
0.05
|
0.27
|
0.32
|
The financial
information in this table were selected from the Company's
condensed interim consolidated financial statements for the three
and nine
months ended September 30, 2019 (the "Financial Statements"), which
are available on SEDAR at www.sedar.com and the Company's
website www.filo-mining.com
|
SELECTED FINANCIAL INFORMATION
(In thousands of
Canadian dollars)
|
|
September
30,
|
December
31,
|
|
2019
|
2018
|
Cash
|
19,458
|
2,405
|
Working capital
(deficit)
|
19,098
|
(602)
|
Mineral
properties
|
7,393
|
7,118
|
Total
assets
|
28,712
|
11,938
|
The financial
information in this table were selected from the Financial
Statements, which are available on
SEDAR at www.sedar.com and the Company's website
www.filo-mining.com
|
The Company incurred a net loss of $3.1
million during the three months ended September 30, 2019, comprised of $1.9 million and $0.7
million in exploration and project investigation costs and
G&A costs, respectively, compared to a net loss of $3.9 million for the three months ended
September 30, 2018. The variance is
primarily due to higher share-based compensation costs, a non-cash
cost, in the 2018 comparative period, which relate to the grant of
stock options to officers, directors and other eligible persons of
the Company in August 2018, and the
subsequent vesting thereof.
LIQUIDITY AND CAPITAL RESOURCES
As at September 30, 2019, the
Company had cash of $19.5 million and
net working capital of $19.1 million,
compared to cash of $2.4 million and
a net working capital deficit of $0.6
million, as at December 31,
2018. The increase in the Company's cash and net working
capital is due primarily to aggregate net proceeds totaling
$38.8 million received from the
Financings, which closed on August 30,
2019. This cash inflow has been partially offset by
$18.5 million used to fully repay
amounts previously drawn under the credit facilities extended by
Zebra.
About Filo Mining
Filo Mining is a Canadian exploration and development company
focused on advancing its 100% owned Filo del Sol copper-gold-silver
deposit located in Chile's Region
III and adjacent San Juan Province, Argentina. Filo Mining is a member of the
Lundin Group of Companies. Filo Mining is listed on the TSX Venture
Exchange ("TSXV") and Nasdaq First North Growth Market under the
trading symbol "FIL".
Qualified Persons
The scientific and technical disclosure for the Filo del Sol
Project included in this news release have been reviewed and
approved by Bob Carmichael, P.Eng.
and James Beck, B.A.Sc., P. Eng. Mr.
Carmichael is Filo Mining's Vice President of Exploration and a
Qualified Person under National Instrument 43-101 Standards of
Disclosure of Mineral Projects ("NI 43-101"). Mr. Beck is Filo
Mining's President and is also a Qualified Person under NI
43-101.
Additional information
The technical information relating to the pre-feasibility study
is based on a technical report titled "NI 43-101 Technical Report,
Pre-feasibility Study for the Filo del Sol Project" dated
February 22, 2019, with an effective
date of January 13, 2019 (the
"Technical Report"). The Technical Report was prepared for Filo
Mining by Ausenco Engineering Canada Inc. ("Ausenco"). The
Qualified Persons, as defined under NI 43-101, responsible for the
Technical Report are Scott Elfen, P.E., Ausenco; Robin Kalanchey, P.Eng., Ausenco; Bruno Borntraeger, P.Eng., Knight Piesold Ltd.;
Fionnuala Devine, P.Geo., Merlin
Geosciences Inc.; Ian Stillwell, BGC
Engineering Inc.; Neil Winkelmann,
FAusIMM, SRK Consulting (Canada)
Inc.; James N. Gray, P.Geo.,
Advantage Geoservices Limited; and Jay
Melnyk, P.Eng., AGP Mining Consultants, all of whom are
independent of Filo Mining. The Technical Report is available for
review under the Company's profile on SEDAR at www.sedar.com and on
the Company's website at www.filo-mining.com.
The Company's condensed interim consolidated financial
statements for the three and nine months ended September 30, 2019 and related management's
discussion and analysis are available on the Company's website at
www.filo-mining.com or under its profile on SEDAR at
www.sedar.com.
The Company's certified advisor on Nasdaq First North Growth
Market is Pareto Securities AB, +46 8 402 50 00,
certifiedadviser.se@paretosec.com.
The information contained in this news release was accurate at
the time of dissemination, but may be superseded by subsequent news
release(s). The Company is under no obligation nor does it
intend to update or revise the forward-looking information, whether
as a result of new information, future events or otherwise.
This information was submitted by Filo Mining Corp. for
publication, through the agency of the contact person set out
below, on November 7, 2019 at
5:30pm Toronto time.
On behalf of the board of directors of Filo Mining,
Adam Lundin, CEO
Filo Mining Corp.
Cautionary Note Regarding Forward-Looking Statements
Certain statements made and information contained herein in this
press release constitutes "forward-looking information" and
forward-looking statements" within the meaning of applicable
securities legislation (collectively, "forward-looking
information") concerning the business, operations, financial
performance and condition of Filo Mining. The forward-looking
information contained in this press release is based on information
available to the Company as of the date of this press release.
Except as required under applicable securities legislation, the
Company does not intend, and does not assume any obligation, to
update this forward-looking information. Generally, any
statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance, (often, but not
always, identified by words or phrases such as "plans", "expects"
or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "projects" , "estimates",
"budgets", "scheduled", "forecasts", "assumes", "intends",
"strategy", "goals", "objectives", "potential", "possible",
"anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or statements that certain
actions, events, conditions or results "will", "may", "could",
"would", "should", "might" or "will be taken", "will occur" or
"will be achieved" or the negative connotations thereof and similar
expressions) are not statements of historical fact and may be
forward-looking statements.
All statements other than statements of historical fact may be
forward-looking statements. Forward-looking information is
necessarily based on estimates and assumptions that are inherently
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance
or achievements of the Company to be materially different from
those expressed or implied by such forward-looking information,
including but not limited to: risks and uncertainties relating to,
among other things, the inherent uncertainties regarding Mineral
Reserve and Resource estimates, cost estimates, changes in
commodity prices, currency fluctuation, financings, unanticipated
resource grades, infrastructure, results of exploration activities,
cost overruns, availability of materials and equipment, timeliness
of government approvals, taxation, political risk and related
economic risk and unanticipated environmental impact on operations
as well as other risks, and uncertainties and other factors,
including, without limitation, those referred to in the "Risks and
Uncertainties" section of the Company's most recent MD&A and/or
Annual Information Form, under the heading "Risks Factors", and
elsewhere, which may cause the actual results, level of activity,
performance or achievements of the Company to be materially
different from those expressed or implied by such forward-looking
information.
The Company believes that the expectations reflected in the
forward-looking information included in this press release are
reasonable but no assurance can be given that these expectations
will prove to be correct and such forward-looking information
should not be unduly relied upon. Information contained in
this press release is as of the date of this press release.
In particular, this press release contains forward-looking
information pertaining to the assumptions used in the PFS for the
Filo del Sol project, the assumptions used in the Mineral Reserves
and Resources estimates for the Filo del Sol project, including,
but not limited to, geological interpretation, grades, metal price
assumptions, metallurgical and mining recovery rates, geotechnical
and hydrogeological conditions, as applicable; ability to develop
infrastructure; assumptions made in the interpretation of drill
results, geology, grade and continuity of mineral deposits;
expectations regarding access and demand for equipment, skilled
labour and services needed for exploration and development of
mineral properties; and that activities will not be adversely
disrupted or impeded by exploration, development, operating,
regulatory, political, community, economic and/or environmental
risks. In addition, this press release contains
forward-looking information pertaining to: the Company's plans for
the upcoming field season and proposed 2019/2020 drill targets at
its 100% owned Filo del Sol Project, including the expected timing
of results related thereto; potential upside at the Filo del Sol
Project; assumptions and interpretations around surface indications
of mineralization at the Tamberias West area; the Company's ability
to define and understand the structural controls applicable to the
high-grade gold zones within the Filo del Sol deposit; the ability
of the Company to secure additional financing and/or the quantum
and terms thereof; support of the Lundin Family Trusts; exploration
and development plans and expenditures; the timing and nature of
studies and any potential development scenarios; opportunities to
improve project economics; the success of future exploration
activities; potential for resource expansion; potential for the
discovery of new mineral deposits; ability to build shareholder
value; expectations with regard to adding to its Mineral Reserves
or Resources through exploration; expectations with respect to the
conversion of inferred resources to an indicated resources
classification; ability to execute planned work programs;
estimation of commodity prices, Mineral Reserves and Resources,
estimations of costs, and permitting time lines; ability to obtain
surface rights and property interests; currency exchange rate
fluctuations; requirements for additional capital; government
regulation of mining activities; environmental risks; unanticipated
reclamation expenses; title disputes or claims; limitations on
insurance coverage; and other risks and uncertainties.
Forward-looking information is based on certain assumptions that
the Company believes are reasonable, including that the current
price of and demand for commodities will be sustained or will
improve, the supply of commodities will remain stable, that the
general business and economic conditions will not change in a
material adverse manner, that financing will be available if and
when needed on reasonable terms and that the Company will not
experience any material labour dispute, accident, or failure of
plant or equipment. These factors are not, and should not be
construed as being, exhaustive. Although the Company has
attempted to identify important factors that would cause actual
results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated, or intended.
There can be no assurance that such statements will prove to be
accurate, as the Company's actual results and future events could
differ materially from those anticipated in such statements, as a
result of the factors discussed in the "Risk and Uncertainties"
section of the Company's most recent management's discussion and
analysis and elsewhere and in the "Risk Factors" section in the
Company's most recent Annual Information Form, which are available
under the Company's profile on SEDAR at www.sedar.com. All of
the forward-looking information contained in this document is
qualified by these cautionary statements. Readers are
cautioned not to place undue reliance on forward-looking
information due to the inherent uncertainty thereof.
Statements relating to "Mineral Resources" are deemed to be
forward looking information, as they involve the implied
assessment, based on certain estimates and assumptions, that the
Mineral Resources described can be profitably produced in the
future.
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
SOURCE Filo Mining Corp.