ALL AMOUNTS ARE STATED IN CANADIAN DOLLARS, UNLESS OTHERWISE NOTED
VANCOUVER, BC, March 10, 2021 /CNW/ – Oceanic Iron Ore Corp. (TSX-V: FEO) ("Oceanic" or the "Company") is pleased to announce the completion of a non-brokered financing in an aggregate amount of $1,557,548 (the "Financing").
The subscribers to the Financing were issued Series C convertible debentures (the "Debentures") which will earn interest at a rate of 8.5% per annum over a 60-month term (the "Term"), payable quarterly.
The principal amount of the Debentures will be convertible to Units ("Unit") during the Term at the election of the subscriber at a price of $0.19 per Unit. Each Unit will consist of 1 common share of the Company and 1 share purchase warrant of the Company, with each whole warrant entitling the holder to purchase one common share of the Company at a price of $0.19 per common share until March 10, 2026.
The Debentures will be secured with a first ranking charge against the assets of the Company, ranking pari-passu with all other secured debenture holders.
The Debentures and any Units acquired on conversion thereof are subject to a hold period expiring on July 10, 2021. No finder's fees were paid in connection with the Financing.
The Company intends to use the proceeds of the Financing for ongoing negotiations with potential strategic partners, general claims maintenance, and corporate and working capital purposes.
Insiders of the Company were issued Debentures with a principal amount in aggregate of $1,355,358, and, accordingly, the private placement is a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuance of Debentures to insiders is exempt from the valuation requirements and the minority approval requirements of MI 61-101 by virtue of the exemptions in sections 5.5(a) and 5.7(a) of MI 61-101, since the fair market value of the consideration for the Debentures issued to insiders did not exceed 25% of the Company's market capitalization.
Early Warning Disclosure – Steven Dean
Pursuant to the Financing, Sirocco Advisory Services Ltd., a corporation owned and controlled by Steven Dean, acquired a Debenture in the principal amount of $375,250. The Debenture is convertible into 1,975,000 Units of the Company of a price of $0.19 per unit until March 10, 2026. Each unit will consist of one common share of the Company and one warrant, each warrant entitling the holder to purchase one common share of the Company at a price of $0.19 per share from the date of issuance until March 10, 2026.
Prior to acquiring the Debenture, the Mr. Dean held, directly and indirectly, or had control or direction over, over an aggregate of 4,265,403 common shares of the Company representing approximately 4.5% of the issued and outstanding common shares of the Company, 2,300,000 warrants of the Company, 3,141,700 stock options of the Company, restricted share units convertible into 133,334 common shares of the Company and a Series A Debenture in the principal amount of $33,000 convertible into 330,000 units of the Company, each unit consisting of one common share and one warrant of the Company.
Mr. Dean would have held, directly and indirectly, or had control or direction over, an aggregate of 10,500,437 common shares of the Company, representing approximately 10.5% of the issued and outstanding shares on a partially diluted basis assuming the exercise of warrants and stock options, conversion of restricted share units, conversion of the Series A Debenture and exercise of the underlying warrants.
Following acquisition of the Debenture, Mr. Dean holds, directly and indirectly, or has control or direction over, an aggregate of 4,265,403 common shares of the Company, representing approximately 4.5% of the issued and outstanding common shares of the Company, 2,300,000 warrants of the Company, 3,141,700 stock options of the Company, restricted share units convertible into 133,334 common shares of the Company, a Series A Debenture in the principal amount of $33,000 convertible into 330,000 units of the Company, each unit consisting of one common share and one warrant of the Company, and the Debenture convertible into 1,975,000 Units of the Company, each unit consisting of one common share of the Company and one warrant, each warrant entitling the holder to purchase one common share of the Company.
Mr. Dean would hold 14,450,437 common shares of the Company, representing approximately 13.9% of the issued and outstanding common shares on a partially diluted basis assuming the exercise of warrants and the stock options, conversion of restricted share units, conversion of the Series A Debenture and exercise of the underlying warrants and conversion of the Debenture and exercise of the underlying warrants.
The Company has been advised that Mr. Dean acquired the securities for investment purposes and may in the future acquire or dispose of additional securities of the Company through the market, privately, or otherwise, as circumstances or market conditions warrant.
Copies of the Early Warning Report filed by Mr. Dean may be obtained from the Company's CFO, Chris Batalha (604-566-9080).
This news release includes certain "Forward-Looking Statements" as that term is used in applicable securities law. All statements included herein, other than statements of historical fact, including, without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of Oceanic Iron Ore Corp. ("Oceanic" or the "Company" are forward-looking statements that involve various risks and uncertainties. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "scheduled", "believes", or variations of such words and phrases or statements that certain actions, events or results "potentially", "may", "could", "would", "might" or "will" be taken, occur or be achieved. There can be no assurance that such statements will prove to be accurate, and actual results could differ materially from those expressed or implied by such statements. Forward-looking statements are based on certain assumptions that management believes are reasonable at the time they are made. In making the forward-looking statements in this presentation, the Company has applied several material assumptions, including, but not limited to, the assumption that: (1) there being no significant disruptions affecting operations, whether due to labour/supply disruptions, damage to equipment or otherwise; (2) permitting, development, expansion and power supply proceeding on a basis consistent with the Company's current expectations; (3) certain price assumptions for iron ore; (4) prices for availability of natural gas, fuel oil, electricity, parts and equipment and other key supplies remaining consistent with current levels; (5) the accuracy of current mineral resource estimates on the Company's property; and (6) labour and material costs increasing on a basis consistent with the Company's current expectations. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risks and Uncertainties " in the Company's MD&A filed November 16, 2020 (a copy of which is publicly available on SEDAR at www.sedar.comunder the Company's profile) and elsewhere in documents filed from time to time, including MD&A, with the TSX Venture Exchange and other regulatory authorities. Such factors include, among others, risks related to the ability of the Company to obtain necessary financing and adequate insurance; the economy generally; fluctuations in the currency markets; fluctuations in the spot and forward price of iron ore or certain other commodities (e.g., diesel fuel and electricity); changes in interest rates; disruption to the credit markets and delays in obtaining financing; the possibility of cost overruns or unanticipated expenses; employee relations. Accordingly, readers are advised not to place undue reliance on Forward-Looking Statements. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward-Looking Statements, whether as a result of new information, future events or otherwise.
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 release.
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Iron Road Limited (ASX:IRD) as an investment opportunity by projecting its future cash flows and then discounting them to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. There's really not all that much to it, even though it might appear quite complex.
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model.
We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:
10-year free cash flow (FCF) forecast
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Levered FCF (A$, Millions)
AU$3.21m
AU$5.24m
AU$7.59m
AU$10.0m
AU$12.3m
AU$14.4m
AU$16.1m
AU$17.6m
AU$18.9m
AU$19.9m
Growth Rate Estimate Source
Est @ 89.4%
Est @ 63.19%
Est @ 44.83%
Est @ 31.99%
Est @ 22.99%
Est @ 16.7%
Est @ 12.29%
Est @ 9.21%
Est @ 7.05%
Est @ 5.54%
Present Value (A$, Millions) Discounted @ 7.7%
AU$3.0
AU$4.5
AU$6.1
AU$7.5
AU$8.5
AU$9.2
AU$9.6
AU$9.8
AU$9.7
AU$9.5
("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = AU$77m
We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.0%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.7%.
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= AU$359m÷ ( 1 + 7.7%)10= AU$172m
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is AU$249m. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of AU$0.3, the company appears about fair value at a 15% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula – garbage in, garbage out.
dcf
Important assumptions
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Iron Road as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.7%, which is based on a levered beta of 1.081. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Looking Ahead:
Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Iron Road, there are three additional items you should further research:
Risks: As an example, we've found 4 warning signs for Iron Road (1 makes us a bit uncomfortable!) that you need to consider before investing here.
Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the ASX every day. If you want to find the calculation for other stocks just search here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
Vancouver, British Columbia–(Newsfile Corp. – March 4, 2021) – On national TV Sat. Mar 6 & Sun. Mar 7, 2021 – Invest Canada North! BTV-Business Television presents resource companies in Canada's north.
Sneak Preview: YouTube BTV Live Premiere 1pm PST today + Meet the Hosts of BTVClick here to set a reminder! Discover Companies to Invest In
Osisko Metals Inc. (TSXV: OM) (OTCQX: OMZNF) – As sustainability and electric transportation rise in popularity the demand for zinc increases and this company is poised to take advantage.
Whitehorse Gold Corp. (TSXV: WHG) – This company sports a new management team stocked with industry veterans ready to revive and expand a past producing mine.
Sabina Gold & Silver Corp. (TSX: SBB) (OTCQX: SGSVF) – BTV visits this company moving towards opening their first gold mine in Nunavut.
NorZinc Ltd. (TSX: NZC) (OTCQB: NORZF) – BTV learns why this company's high-grade zinc-lead and silver mine is on track to be the next development mine in the Northwest Territories.
Victoria Gold Corp. (TSX: VGCX) (US: VITFF) – BTV gets an update on the company's Eagle Gold Mine in central Yukon on target to produce between 180K- 200K ounces of gold in 2021.
White Gold Corp. (TSXV: WGO) (OTC: WHGOF) – This company boasts a district-scale land package in the Yukon and its flagship property has shown significant defined gold resources.
On air for over 20 years, BTV – Business Television, a half-hour investment TV show, features analysts and emerging companies on location. With Hosts, Taylor Thoen and Jessica Katrichak, BTV brings viewers investment opportunities.
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Vancouver, British Columbia–(Newsfile Corp. – March 3, 2021) – Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") is pleased to provide the Retreatment Project operations technical summary for 2019 and 2020. The Retreatment Project is operated by the Company's subsidiary, Barplats Mines (Pty) Ltd. ("Barplats") at its Crocodile River Mine property in South Africa.
The Retreatment Project is a proprietary operation in South Africa producing chrome concentrates. It includes a combined hydro and mechanical re-mining method, magnetic separation applied to produce chrome concentrates, thus obtaining superior yield result compared to traditional gravity technology. The Retreatment Project is the only large-scale magnetic separation application in South Africa. Since 2017 Barplats has grown from 100 employees to over 350 contractors and employees engaged in supporting the Retreatment Project. The current Retreatment Project is expected to continue operating into 2024.
The key highlights of the Retreatment Project are as follows:
Total tons of tailings re-mined to December 31, 2020 = 4,107,257, with annual production levels as follows:
2019 = 1,778,525
2020 = 2,328,732
Total tons of chrome concentrate produced to December 31, 2020 = 1,575,009, with annual production levels as follows:
2019 = 588,006
2020 = 987,003
Recoveries of chrome – Yields (wet)
2019 – 32.63%
2020 – 37.47%
Availability of the Retreatment Project as a 24-hour continuous operation (including chrome recovery plant, deposition and remining on the tailings dam) including planned maintenance has improved significantly from 76.43% in 2019 to 85.71% in 2020.
PGM Update
The two years of successfully operating the Retreatment Project has laid the ground work to acquire the technical knowledge, confirm the upgrade required in the feed as well as establish the financial resources required to restart the PGM operations. Eastplats is currently reconfiguring and optimizing the small-scale PGM circuit (previously the scavenger plant circuit) ("PGM Circuit D") which also includes funding for some of the initial work required to restart the main PGM plant circuit ("PGM Main Circuit") (See press release of February 2, 2021) and the Company estimates the work to be completed before March 12. The extraction of PGMs will generate additional revenue sources and create new employment opportunities.
Barplats has entered into an agreement (See news release July 22, 2020) with Advanced Beneficiation Technologies Proprietary Limited of South Africa to complete an independent feasibility study (the "Feasibility Study") for the development and construction of a new modular plant with a capacity to process the PGMs from the tailings redeposited from the Retreatment Project at a designated area of the Zandfontein Tailings Dam at an expected rate of 50,000 tons per month (the "Circuit H Project"). The Circuit H Project is being pursued to provide the opportunity to remine the tailings already deposited from the beginning of the Retreatment Project and extract additional value from PGMs. The Feasibility Study is in its final stages and the results are expected by the end of March 2021. The process was delayed by COVID-19 related impacts, particularly as it relates to the assay labs.
About Eastern Platinum Limited
Eastplats owns directly and indirectly a number of PGM and chrome assets in the Republic of South Africa. All of the Company's properties are situated on the western and eastern limbs of the Bushveld Complex, the geological environment that hosts approximately 80% of the world's PGM-bearing ore.
Operations at the Crocodile River Mine currently include the re-mining and processing of its tailings resource, with an offtake of the chrome concentrate from the Barplats Zandfontein UG2 tailings facility operating at the Crocodile River Mine (the "Retreatment Project") and the processing and extraction of PGMs.
COVID-19
No changes in South Africa alert regarding COVID-19. The Company continues to follow the health guidelines of the Government of South Africa. The Retreatment Project remains in full operation and continues to produce and transport chrome and PGM end products. The effects of COVID-19 are evolving and changing and the consequences of a further increase in the alert level in South Africa, temporary shutdown of any operations or other related issues cannot be reasonably estimated at this time, but could potentially have material adverse effects on the Company's business, operations, liquidity and cashflows.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "could", "expects", "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's most recent Annual Information Form available under the Company's profile on www.sedar.com.
In particular, this press release contains, without limitation, forward-looking statements pertaining to: estimated operations and production of PGM Circuit D, PGM Main Circuit and Circuit H Project; timing and results of a Feasibility Study regarding the Circuit H Project; potential effects of COVID-19 such as a new lockdown imposed by the Government of South Africa; and any future measures taken by the Government of South Africa and their impact on the Company, and its business, operations, liquidity and cashflows. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that may arise in the Company's production processes, commodity prices, lower than expected grades and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.
All forward-looking statements in this press release are expressly qualified in their entirety by this cautionary statement, the "Cautionary Statement on Forward-Looking Information" section contained in the Company's most recent Management's Discussion and Analysis available under the Company's profile on www.sedar.com. The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
/NOT FOR DISSEMINATION INTO THE UNITED STATES OF AMERICA OR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/
ALL AMOUNTS ARE STATED IN CANADIAN DOLLARS, UNLESS OTHERWISE NOTED
TSX Venture Exchange: FEO
VANCOUVER, BC, Feb. 24, 2021 /CNW/ – Oceanic Iron Ore Corp. (TSXV: FEO) ("Oceanic", or the "Company") is pleased to announce a non-brokered financing in an aggregate amount of up to $1,400,000 (the "Financing").
The subscribers to the Financing will be issued convertible debentures (the "Debentures") which will earn interest at a rate of 8.5% per annum over a 60 month term (the "Term"), payable quarterly.
The principal amount of the Debentures will be convertible to Units ("Unit") during the Term at the election of the subscriber at a price of $0.19 per Unit. Each Unit will consist of 1 common share of the Company and 1 share purchase warrant of the Company, with each whole warrant entitling the holder to purchase one common share of the Company at a price of $0.19 per common share for a period of 5 years after closing.
The Debentures will be secured with a first ranking charge at any time against the assets of the Company, ranking pari-passu with the current secured debenture holders.
The Company intends to use the proceeds of the Financing for ongoing negotiations with potential strategic partners, general claims maintenance, and corporate and working capital purposes.
The Financing is subject to acceptance for filing by the TSX Venture Exchange.
Completion of Previous Settlement of Advance Royalty Payments
The Company has closed on a settlement arrangement, originally announced on December 2, 2020, in respect of certain advance royalty payments with one of its Hopes Advance royalty holders (the "Settlement").
The Company reached agreement with 154619 Canada Inc. ("154619") in respect of its 2018 and 2019 advance royalty payments of $200,000 through the issuance of 1,131,221 common shares at a price of $0.1768 per share, and settlement of the 2020 advance royalty payment has been deferred to a date being on or before November 30, 2021, whereby the Company has the election to settle such payments either by cash payment or by way of issuance of common shares of the Company at a deemed price per share equal to the volume weighted average trading price of the Company's common shares on the TSX Venture Exchange for the 20 trading days ending on November 26, 2021.
The Settlement with 154619 was approved by the TSX Venture Exchange. The common shares issued in connection with the Settlement are subject to the statutory four-month hold period from December 8, 2020.
The Company's royalty holders are each entitled to annual advance royalty payments of $100,000 until the commencement of commercial production on the Company's Hopes Advance Project. Advance royalty payments are deductible from actual royalty payments subsequent to the commencement of commercial production.
This news release includes certain "Forward-Looking Statements" as that term is used in applicable securities law. All statements included herein, other than statements of historical fact, including, without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of Oceanic Iron Ore Corp. ("Oceanic", or the "Company"), are forward-looking statements that involve various risks and uncertainties. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "scheduled", "believes", or variations of such words and phrases or statements that certain actions, events or results "potentially", "may", "could", "would", "might" or "will" be taken, occur or be achieved. There can be no assurance that such statements will prove to be accurate, and actual results could differ materially from those expressed or implied by such statements. Forward-looking statements are based on certain assumptions that management believes are reasonable at the time they are made. In making the forward-looking statements in this presentation, the Company has applied several material assumptions, including, but not limited to, the assumption that: (1) there being no significant disruptions affecting operations, whether due to labour/supply disruptions, damage to equipment or otherwise; (2) permitting, development, expansion and power supply proceeding on a basis consistent with the Company's current expectations; (3) certain price assumptions for iron ore; (4) prices for availability of natural gas, fuel oil, electricity, parts and equipment and other key supplies remaining consistent with current levels; (5) the accuracy of current mineral resource estimates on the Company's property; and (6) labour and material costs increasing on a basis consistent with the Company's current expectations. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risks and Uncertainties " in the Company's MD&A filed August 22, 2018 (a copy of which is publicly available on SEDAR at www.sedar.com under the Company's profile) and elsewhere in documents filed from time to time, including MD&A, with the TSX Venture Exchange and other regulatory authorities. Such factors include, among others, risks related to the ability of the Company to obtain necessary financing and adequate insurance; the economy generally; fluctuations in the currency markets; fluctuations in the spot and forward price of iron ore or certain other commodities (e.g., diesel fuel and electricity); changes in interest rates; disruption to the credit markets and delays in obtaining financing; the possibility of cost overruns or unanticipated expenses; employee relations. Accordingly, readers are advised not to place undue reliance on Forward-Looking Statements. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward-Looking Statements, whether as a result of new information, future events or otherwise.
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 release.
When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, you can make far more than 100% on a really good stock. For instance, the price of Base Resources Limited (ASX:BSE) stock is up an impressive 272% over the last five years. It's even up 8.9% in the last week.
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
During the five years of share price growth, Base Resources moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here. Given that the company made a profit three years ago, but not five years ago, it is worth looking at the share price returns over the last three years, too. Indeed, the Base Resources share price has gained 22% in three years. Meanwhile, EPS is up 16% per year. This EPS growth is higher than the 7% average annual increase in the share price over the same three years. So you might conclude the market is a little more cautious about the stock, these days. This cautious sentiment is reflected in its (fairly low) P/E ratio of 6.99.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
earnings-per-share-growth
This free interactive report on Base Resources' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Base Resources, it has a TSR of 366% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
It's good to see that Base Resources has rewarded shareholders with a total shareholder return of 44% in the last twelve months. And that does include the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 36% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 2 warning signs for Base Resources (1 can't be ignored!) that you should be aware of before investing here.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price. Indeed, Red Hill Iron (ASX:RHI) stock is up 114% in the last year, providing strong gains for shareholders. But while history lauds those rare successes, those that fail are often forgotten; who remembers Pets.com?
So notwithstanding the buoyant share price, we think it's well worth asking whether Red Hill Iron's cash burn is too risky. In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. We'll start by comparing its cash burn with its cash reserves in order to calculate its cash runway.
A company's cash runway is calculated by dividing its cash hoard by its cash burn. In December 2020, Red Hill Iron had AU$408k in cash, and was debt-free. Importantly, its cash burn was AU$450k over the trailing twelve months. That means it had a cash runway of around 11 months as of December 2020. To be frank, this kind of short runway puts us on edge, as it indicates the company must reduce its cash burn significantly, or else raise cash imminently. You can see how its cash balance has changed over time in the image below.
debt-equity-history-analysis
How Is Red Hill Iron's Cash Burn Changing Over Time?
Whilst it's great to see that Red Hill Iron has already begun generating revenue from operations, last year it only produced AU$5.0k, so we don't think it is generating significant revenue, at this point. Therefore, for the purposes of this analysis we'll focus on how the cash burn is tracking. As it happens, the company's cash burn reduced by 20% over the last year, which suggests that management are mindful of the possibility of running out of cash. Red Hill Iron makes us a little nervous due to its lack of substantial operating revenue. So we'd generally prefer stocks from this list of stocks that have analysts forecasting growth.
How Easily Can Red Hill Iron Raise Cash?
Even though it has reduced its cash burn recently, shareholders should still consider how easy it would be for Red Hill Iron to raise more cash in the future. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. Commonly, a business will sell new shares in itself to raise cash and drive growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations.
Red Hill Iron's cash burn of AU$450k is about 1.7% of its AU$27m market capitalisation. So it could almost certainly just borrow a little to fund another year's growth, or else easily raise the cash by issuing a few shares.
How Risky Is Red Hill Iron's Cash Burn Situation?
On this analysis of Red Hill Iron's cash burn, we think its cash burn relative to its market cap was reassuring, while its cash runway has us a bit worried. Cash burning companies are always on the riskier side of things, but after considering all of the factors discussed in this short piece, we're not too worried about its rate of cash burn. Separately, we looked at different risks affecting the company and spotted 4 warning signs for Red Hill Iron (of which 3 are potentially serious!) you should know about.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
We can readily understand why investors are attracted to unprofitable companies. For example, Strike Resources (ASX:SRK) shareholders have done very well over the last year, with the share price soaring by 306%. But the harsh reality is that very many loss making companies burn through all their cash and go bankrupt.
Given its strong share price performance, we think it's worthwhile for Strike Resources shareholders to consider whether its cash burn is concerning. For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. The first step is to compare its cash burn with its cash reserves, to give us its 'cash runway'.
A company's cash runway is calculated by dividing its cash hoard by its cash burn. In June 2020, Strike Resources had AU$3.4m in cash, and was debt-free. Importantly, its cash burn was AU$1.6m over the trailing twelve months. So it had a cash runway of about 2.1 years from June 2020. That's decent, giving the company a couple years to develop its business. You can see how its cash balance has changed over time in the image below.
debt-equity-history-analysis
How Is Strike Resources' Cash Burn Changing Over Time?
Although Strike Resources reported revenue of AU$50k last year, it didn't actually have any revenue from operations. To us, that makes it a pre-revenue company, so we'll look to its cash burn trajectory as an assessment of its cash burn situation. As it happens, the company's cash burn reduced by 6.2% over the last year, which suggests that management are maintaining a fairly steady rate of business development, albeit with a slight decrease in spending. Strike Resources makes us a little nervous due to its lack of substantial operating revenue. We prefer most of the stocks on this list of stocks that analysts expect to grow.
How Easily Can Strike Resources Raise Cash?
Even though it has reduced its cash burn recently, shareholders should still consider how easy it would be for Strike Resources to raise more cash in the future. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations.
Since it has a market capitalisation of AU$48m, Strike Resources' AU$1.6m in cash burn equates to about 3.4% of its market value. That's a low proportion, so we figure the company would be able to raise more cash to fund growth, with a little dilution, or even to simply borrow some money.
Is Strike Resources' Cash Burn A Worry?
It may already be apparent to you that we're relatively comfortable with the way Strike Resources is burning through its cash. For example, we think its cash burn relative to its market cap suggests that the company is on a good path. Its weak point is its cash burn reduction, but even that wasn't too bad! Based on the factors mentioned in this article, we think its cash burn situation warrants some attention from shareholders, but we don't think they should be worried. Taking a deeper dive, we've spotted 5 warning signs for Strike Resources you should be aware of, and 2 of them make us uncomfortable.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
What trends should we look for it we want to identify stocks that can multiply in value over the long term? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. Speaking of which, we noticed some great changes in Mount Gibson Iron's (ASX:MGX) returns on capital, so let's have a look.
Understanding Return On Capital Employed (ROCE)
Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for Mount Gibson Iron:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)
0.14 = AU$104m ÷ (AU$805m – AU$81m) (Based on the trailing twelve months to June 2020).
Thus, Mount Gibson Iron has an ROCE of 14%. In absolute terms, that's a satisfactory return, but compared to the Metals and Mining industry average of 9.4% it's much better.
Above you can see how the current ROCE for Mount Gibson Iron compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Mount Gibson Iron here for free.
The Trend Of ROCE
We're delighted to see that Mount Gibson Iron is reaping rewards from its investments and is now generating some pre-tax profits. Shareholders would no doubt be pleased with this because the business was loss-making five years ago but is is now generating 14% on its capital. And unsurprisingly, like most companies trying to break into the black, Mount Gibson Iron is utilizing 110% more capital than it was five years ago. This can tell us that the company has plenty of reinvestment opportunities that are able to generate higher returns.
What We Can Learn From Mount Gibson Iron's ROCE
Long story short, we're delighted to see that Mount Gibson Iron's reinvestment activities have paid off and the company is now profitable. Since the stock has returned a staggering 487% to shareholders over the last five years, it looks like investors are recognizing these changes. Therefore, we think it would be worth your time to check if these trends are going to continue.
If you'd like to know about the risks facing Mount Gibson Iron, we've discovered 3 warning signs that you should be aware of.
While Mount Gibson Iron may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this freelist here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
Vancouver, British Columbia–(Newsfile Corp. – February 12, 2021) – Sego Resources Inc. (TSXV: SGZ) ("Sego" or "the Company") is pleased to announce that the Company has closed a financing for total gross proceeds of $252,000, as previously announced on January 19, 2021 and February 8, 2021. The financing has been accepted for filing by the TSX Venture Exchange.
CEO J Paul Stevenson stated, "The Company is now funded to drill the new Southern Gold Zone on its Miner Mountain Project, near Princeton, BC. The Southern Gold Zone is an apparent intrusive related gold system."
Pursuant to the private placement, Sego will issue in total 7,200,000 units at $0.035 per unit for gross proceeds of $252,000.
Each unit consists of one common share and one share purchase warrant. Each share purchase warrant entitles the holder to purchase an additional common share at $0.06 for two years from closing of the private placement. The securities issued on closing are subject to the applicable statutory four-month + one-day hold period ending June 12, 2021. The proceeds will be expended on the continued exploration of the Company's Miner Mountain Southern Gold Zone located near Princeton, BC, and for general working capital.
Certain finder's fees are payable on a portion of the private placement and consist of 7% cash and 7% Broker's Warrant. Each Broker's Warrant entitles the holder to subscribe for an additional unit for $0.035 for two years from the closing of the private placement.
PI Financial Corp. received 7% Cash ($2,646), 7% Broker's Warrants (75,600)Leede Jones Gable Inc. received 7% cash ($980), 7% Broker's Warrants (28,000)Sightline Wealth Management received 7% cash ($1,225), 7% Broker's Warrants (35,000)
Any warrants exercised prior to June 12, 2021 will be subject to the hold period.
Insiders of the company subscribed for 4,305,000 units, with J Paul Stevenson, CEO and a director of the company, subscribing for 170,000 units, Strashin Developments Limited, a deemed insider of the company, subscribing for 1,135,000 units, and FruchtExpress Grabber GmbH & Co KG, a deemed insider of the company, subscribing for 3,000,000 units. Aggregate Pro Group Involvement – 1 placee, 100,000 units.
As a result, the private placement is a related-party transaction (as defined under Multilateral Instrument 61-101 [Protection of Minority Security Holders in Special Transactions]). The company relied upon Section 5.5(a) (Fair Market Value Not More Than $2.5 million), Section 5.5(c) (Distribution of Securities for Cash), and exemptions from the formal valuation and minority shareholder approval requirements, respectively, under MI 61-101.
The Company fully expects to spend the funds as stated, however, there may be circumstances, for sound business reasons, where a reallocation of funds may be necessary.
There is no material change about the issuer that has not been generally disclosed.
For further information please contact:
J. Paul Stevenson, CEO (604) 682-2933 or
For investor & shareholder information, please contact:
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 release. No regulatory authority has approved or disapproved the information contained in this news release.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statement of historical facts that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects re forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements.
Company Executives share vision and answer questions live at VirtualInvestorConferences.com
NEW YORK, Feb. 11, 2021 /PRNewswire/ — Virtual Investor Conferences, the leading proprietary investor conference series, today announced the agenda for the upcoming Metals and Mining Virtual lnvestor Conference. Individual investors, institutional investors, advisors, and analysts are invited to listen to the executive management of metals & mining companies discuss their property positions, development schedules, market opportunity, and investment highlights. The program opens at 8:45 AM ET, with the first webcast at 9:00 AM ET on Tuesday, February 16th.
It is recommended that investors pre-register and run the online system check to expedite participation and receive event updates. There is no cost to log-in, attend live presentations or ask questions.
"We are delighted to present our three-day Global Metals and Mining Virtual Investor Conference highlighting the perspectives of today's leading global resource companies," said Jason Paltrowitz, Executive Vice President of Corporate Services at OTC Markets Group. "We appreciate the continued support of our co-sponsor Amvest Capital and welcome the input of our keynote speakers: Terry Heymann, CFO, World Gold Council, Michael DiRienzo, Executive Director, The Silver Institute and Daniel Mamadou of Welsbach Holdings."
"As we co-host our second event with the OTC, we are excited to bring together developers and producers of various mineral commodities," says Gabriel Alonso-Mendoza, Managing Partner at Amvest Capital, "we believe a bull-market in commodities is commencing, and this conference provides investors with ideas to advantageously allocate their capital."
February 16th Agenda:
Eastern Time ET
Presentation
Ticker(s)
9:00 AM
Keynote Presentation: Why Gold Should be Considered an ESG Compliant Asset
To facilitate investor relations scheduling and to view a complete calendar of Virtual Investor Conferences, please visit www.virtualinvestorconferences.com.
About Virtual Investor Conferences® Virtual Investor Conferences (VIC) is the leading proprietary investor conference series that provides an interactive forum for publicly-traded companies to meet and present directly with investors.
A real-time solution for investor engagement, Virtual Investor Conferences is part of OTC Market Group's suite of investor relations services specifically designed for more efficient Investor Access. Replicating the look and feel of on-site investor conferences, Virtual Investor Conferences combine leading-edge conferencing and investor communications capabilities with a comprehensive global investor audience network.
Vancouver, British Columbia–(Newsfile Corp. – February 11, 2021) – Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") is pleased to confirm the Board of Directors of the Company approved the revised 2021 capital budget following the closing of the rights offering (gross proceeds – CDN$11.8 million) (See news release of January 25, 2021). The Company's subsidiary, Barplats Mines (Pty) Ltd. ("Barplats") has now reserved an additional ZAR73 million (CDN$6.3 million) (including the commitments announced February 2, 2021) in capital funding for platinum group metals ("PGM") expansions, resource and environmental assessments, legal compliance and site investment to expand the Company's revenue base and advance projects targeted based on expected value to the Company.
Barplats will use part of the proceeds from the Eastplats rights offering to commence and complete the following:
Reconfigure and optimize the small-scale PGM circuit (previously the scavenger plant circuit) ("PGM Circuit D") which also includes funding for some of the initial work required to restart the main PGM plant circuit ("PGM Main Circuit") (See press release of February 2, 2021);
Upgrades and repairs to the Crocodile River Mine ("CRM") Zandfontein underground shaft and rock winder to ensure they are available for PGM operations;
Completion of the refurbishment of the existing PGM Main Circuit to increase the capacity and recovery opportunity of PGM recovery and sales;
Mareesburg project environmental work to complete the environmental impact assessment ("EIA") regarding the haul road and project;
Prospecting and assessment work in relation to Zandfontein, Crocette and Spitzkop ore bodies;
Feasibility and assessment work regarding a vertical furnace and pelletizer of chrome concentrate;
CRM underground assessment including all chrome recovery activities in relation to the Retreatment Project; and
Capital requirements for care and maintenance, working capital and general and administrative costs.
Diana Hu, the President and CEO of Eastplats, stated that "confirmation of these projects after a challenging 2020 is further evidence of Eastplats' successful development plan, anchored by the Retreatment Project and chrome concentrate production and rapidly expanding into the PGM market. The Company looks forward to the completion of the various projects and the development of all these opportunities in South Africa for its shareholders."
About Eastern Platinum Limited
Eastplats owns directly and indirectly a number of PGM and chrome assets in the Republic of South Africa. All of the Company's properties are situated on the western and eastern limbs of the Bushveld Complex, the geological environment that hosts approximately 80% of the world's PGM-bearing ore.
Operations at the Crocodile River Mine currently include re-mining and processing its tailings resource, with an offtake of the chrome concentrate from the Barplats Zandfontein UG2 tailings facility and the processing and extraction of PGMs ("Retreatment Project").
COVID-19
No changes in South Africa alert regarding COVID-19. The Company continues to follow the health guidelines of the Government of South Africa. The Retreatment Project remains in full operation and continues to produce and transport chrome and PGM end products. The effects of COVID-19 are evolving and changing and the consequences of a further increase in the alert level in South Africa, temporary shutdown of any operations or other related issues cannot be reasonably estimated at this time, but could potentially have material adverse effects on the Company's business, operations, liquidity and cashflows.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "could", "expects", "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's most recent Annual Information Form available under the Company's profile on www.sedar.com.
In particular, this press release contains, without limitation, forward-looking statements pertaining to: estimated operations and production of PGM Circuit D and PGM Main Circuit; estimated timing of the completion of Mareesburg EIA, feasibility and assessment studies for various projects , prospecting work and legal compliance work, potential effects of COVID-19 such as a new lockdown imposed by the Government of South Africa; and any future measures taken by the Government of South Africa and their impact on the Company, and its business, operations, liquidity and cashflows. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that may arise in our production processes, commodity prices, lower than expected grades and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.
All forward-looking statements in this press release are expressly qualified in their entirety by this cautionary statement, the "Cautionary Statement on Forward-Looking Information" section contained in the Company's most recent Management's Discussion and Analysis available under the Company's profile on www.sedar.com. The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
Vancouver, British Columbia–(Newsfile Corp. – February 9, 2021) – Sego Resources Inc. (TSXV: SGZ) ("Sego" or "the Company") is pleased to announce that the Company has granted 350,000 stock options for certain Consultants and Employees at an exercise price of $.08, subject to regulatory approval, including, TSX Venture Exchange approval. The options will be for 5 years, ending February 9, 2026. The options will be issued in conjunction with the stock option plan approved at the last Annual General Meeting, November 5, 2020.
For further information please contact:J. Paul Stevenson, CEO
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 release. No regulatory authority has approved or disapproved the information contained in this news release.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statement of historical facts that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects re forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements.
Vancouver, British Columbia–(Newsfile Corp. – February 8, 2021) – Sego Resources Inc. (TSXV: SGZ) ("Sego" or "the Company") is pleased to announce that the Company has completed a financing for total gross proceeds of $252,000, as previously announced on January 19, 2021. The financing is subject to regulatory approval.
CEO J Paul Stevenson stated, "The Company is now funded to drill the new Southern Gold Zone on its Miner Mountain Project, near Princeton, BC. The Southern Gold Zone is an apparent intrusive related gold system."
Pursuant to the private placement, Sego plans to issue in total 7,200,000 units at $0.035 per unit for gross proceeds of $252,000, on receipt of all regulatory approvals. A Director of the Company purchased 170,000 units.
Each unit consists of one common share and one share purchase warrant. Each share purchase warrant entitles the holder to purchase an additional common share at $0.06 for two years from closing of the private placement. The securities issued on closing are subject to the applicable statutory four-month + one-day hold period from the date of issuance. The closing of this financing is subject to regulatory approval.
The proceeds will be expended on the continued exploration of the Company's Miner Mountain Southern Gold Zone located near Princeton, BC, and for general working capital.
Certain finder's fees are payable on a portion of the private placement and consist of 7% cash and 7% Broker's Warrant (where applicable). Each Broker's Warrant entitles the holder to subscribe for an additional unit for $0.035 for two years from the closing of the private placement.
Insiders of the company subscribed for 1,305,000 units, with J Paul Stevenson, CEO and a director of the company, subscribing for 170,000 units, and Strashin Developments Limited, a deemed insider of the company, subscribing for 1,135,000 units. As a result, the private placement is a related-party transaction (as defined under Multilateral Instrument 61-101 [Protection of Minority Security Holders in Special Transactions]). The company relied upon Section 5.5(a) (Fair Market Value Not More Than $2.5 million), Section 5.5(c) (Distribution of Securities for Cash), and exemptions from the formal valuation and minority shareholder approval requirements, respectively, under MI 61-101.
This offering is subject to the receipt of all necessary regulatory approvals, including the TSX Venture Exchange and other customary conditions. All of the securities sold pursuant to this offering will be subject to a four-month + one-day hold period from the date of closing.
The Company fully expects to spend the funds as stated, however, there may be circumstances, for sound business reasons, where a reallocation of funds may be necessary.
There is no material change about the issuer that has not been generally disclosed.
For further information please contact:
J. Paul Stevenson, CEO (604) 682-2933 or
For investor & shareholder information, please contact:
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 release. No regulatory authority has approved or disapproved the information contained in this news release.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statement of historical facts that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects re forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements.
The big shareholder groups in BCI Minerals Limited (ASX:BCI) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.
BCI Minerals is not a large company by global standards. It has a market capitalization of AU$180m, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about BCI Minerals.
What Does The Institutional Ownership Tell Us About BCI Minerals?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that BCI Minerals does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see BCI Minerals' historic earnings and revenue below, but keep in mind there's always more to the story.
earnings-and-revenue-growth
BCI Minerals is not owned by hedge funds. Australian Capital Equity Pty Ltd. is currently the company's largest shareholder with 40% of shares outstanding. For context, the second largest shareholder holds about 4.2% of the shares outstanding, followed by an ownership of 3.5% by the third-largest shareholder. Additionally, the company's CEO Alwyn Vorster directly holds 0.9% of the total shares outstanding.
To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of BCI Minerals
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
We can see that insiders own shares in BCI Minerals Limited. It has a market capitalization of just AU$180m, and insiders have AU$12m worth of shares, in their own names. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.
General Public Ownership
The general public, with a 41% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Private Company Ownership
Our data indicates that Private Companies hold 41%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
Vancouver, British Columbia–(Newsfile Corp. – February 3, 2021) – Wealth Minerals Ltd. (TSXV: WML) (OTCQB: WMLLF) (SSE: WMLCL) (FSE: EJZN) (the "Company" or "Wealth") announces they have closed the non-brokered private placement previously announced on December 14, 2020 (the "Placement"). On February 1, 2021, a total of 15,668,614 units (each, a "Unit") were issued under the Placement at a price of $0.10 per Unit for gross proceeds of $1,566,861. Each Unit consists of one common share in the capital of the Company (each, a "Share") and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to acquire one additional share of the Company at a price of $0.20 per Share for a period of two years, expiring on February 1, 2023.
All securities issued by the Company pursuant to the Placement will have a four month and one day hold period in Canada ending on June 2, 2021.
In connection with the Placement, Marla Ritchie, the Company's Corporate Secretary participated as to $27,000. This transaction constituted a "related party transaction" as such term is defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on the exemptions from the formal valuation and minority approval requirements under MI 61- 101. The Company is exempt from the formal valuation and minority approval requirements of MI 61-101 in reliance on sections 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the transaction, insofar as it involves interested parties, is not more than the 25% of the Company's market capitalization.
Also in connection with the Placement, the Company paid aggregate finder's fees of $79,590 cash and 795,900 Broker Warrants. Finder's fees were paid to Apex GT Capital Corp., Canaccord Genuity Corp. and PI Financial Corp. All Warrants issued as finder's fees have the same terms and conditions as the Units issued under the Placement, provided that the Warrants forming part of the Units issued as finder's fees are non-transferable.
The net proceeds from the Offering are intended to be used for general working capital.
None of the foregoing securities have been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any applicable state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) or persons in the United States absent registration or an applicable exemption from such registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the foregoing securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Wealth Minerals Ltd.
Wealth is a mineral resource company with interests in Canada, Mexico, Peru and Chile. The Company's main focus is the acquisition and development of lithium projects in South America.
The Company opportunistically advances battery metal projects, namely copper and nickel, where it has a peer advantage in project selection and initial evaluation.
Lithium market dynamics and a rapidly increasing metal price are the result of profound structural issues with the industry meeting anticipated future demand. Wealth is positioning itself to be a major beneficiary of this future mismatch of supply and demand. In parallel with lithium market dynamics, Wealth believes other battery metals will benefit from similar industry trends.
For further details on the Company readers are referred to the Company's website (www.wealthminerals.com) and its Canadian regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors ofWEALTH MINERALS LTD.
"Hendrik van Alphen"Hendrik van AlphenChief Executive Officer
For further information, please contact:Marla Ritchie or Henk van Alphen
Neither 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.
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation, anticipated exploration program results from exploration activities, the Company's expectation that it will be able to enter into agreements to acquire interests in additional mineral properties, the discovery and delineation of mineral deposits/resources/reserves, the closing and amount of the Placement, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "postulate" and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, operating and technical difficulties in connection with mineral exploration and development activities, actual results of exploration activities, the estimation or realization of mineral reserves and mineral resources, the timing and amount of estimated future production, the costs of production, capital expenditures, the costs and timing of the development of new deposits, requirements for additional capital, future prices of lithium, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, lack of investor interest in the Placement, accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, changes in laws, regulations and policies affecting mining operations, title disputes, the inability of the Company to obtain any necessary permits, consents, approvals or authorizations, including acceptance by the TSX-V, required for the Placement, the timing and possible outcome of any pending litigation, environmental issues and liabilities, and risks related to joint venture operations, and other risks and uncertainties disclosed in the Company's latest interim Management Discussion and Analysis and filed with certain securities commissions in Canada. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements in this news release or incorporated by reference herein, except as otherwise required by law.
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES.
Vancouver, British Columbia–(Newsfile Corp. – February 2, 2021) – Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") is pleased to provide an update on the platinum group metals ("PGM") initiatives following the closing of the rights offering (See news release of January 25, 2021). The Company reports that its subsidiary, Barplats Mines (Pty) Ltd. ("Barplats") has committed ZAR9 million (CDN$768,000) to the reconfiguring and optimization of the small-scale PGM circuit (previously the scavenger plant circuit) ("PGM Circuit D") which also includes funding for some of the initial work required to restart the main PGM plant circuit ("PGM Main Circuit").
Barplats has scheduled the work to be completed by the end of February 2021, with recommissioning and operations targeted to begin before mid March 2021. The Company is pursuing the upgrades to obtain higher quality concentrate and to consistently produce a minimum of 200 tons of pressed filter cake PGM concentrate ("PGM Concentrate") per month, which is projected to further increase the revenue of the Company. The PGM Circuit D will be able to utilize the initial work on the PGM Main Circuit and it will allow a quicker restart of production. The next phase of the PGM Main Circuit work is projected to start in May 2021, with commissioning in October 2021. The Company estimates this will add a further 800 tons of PGM Concentrate per month to Barplats production, thereby continuing to grow Eastplats' revenue.
About Eastern Platinum Limited
Eastplats owns directly and indirectly a number of Platinum Group Metals ("PGM") and chrome assets in the Republic of South Africa. All of the Company's properties are situated on the western and eastern limbs of the Bushveld Complex, the geological environment that hosts approximately 80% of the world's PGM-bearing ore.
Operations at the Crocodile River Mine currently include re-mining and processing its tailings resource, with an offtake of the chrome concentrate from the Barplats Zandfontein UG2 tailings facility and the processing and extraction of PGMs ("Retreatment Project").
COVID-19
South Africa remains at alert level 3 regarding COVID-19. The Company continues to follow the health guidelines of the Government of South Africa. The Retreatment Project remains in full operation and continues to produce and transport chrome and PGM end products. The effects of COVID-19 are evolving and changing and the consequences of a further increase in the alert level in South Africa, temporary shutdown of any operations or other related issues cannot be reasonably estimated at this time, but could potentially have material adverse effects on the Company's business, operations, liquidity and cashflows.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "could", "expects", "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's most recent Annual Information Form available under the Company's profile on www.sedar.com.
In particular, this press release contains, without limitation, forward-looking statements pertaining to: estimated operations and production of PGM Circuit D and PGM Main Circuit; estimated ramp up or upgrades to the PGM Circuit D and PGM Main Circuit; potential additional revenue from the PGM Circuit D and PGM Main Circuit; potential effects of COVID-19 such as a new lockdown imposed by the Government of South Africa; and any future measures taken by the Government of South Africa and their impact on the Company, and its business, operations, liquidity and cashflows. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that may arise in our production processes, commodity prices, lower than expected grades and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.
All forward-looking statements in this press release are expressly qualified in their entirety by this cautionary statement, the "Cautionary Statement on Forward-Looking Information" section contained in the Company's most recent Management's Discussion and Analysis available under the Company's profile on www.sedar.com. The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, Jan. 27, 2021 (GLOBE NEWSWIRE) — AURCANA SILVER CORPORATION ("Aurcana" or the "Company") (TSXV: AUN) is pleased to announce the closing of the non-brokered private placement offering (the “Private Placement”) announced on January 6, 2021, subject to receipt of approval from the TSX Venture Exchange. The Private Placement was significantly oversubscribed and Aurcana elected to increase the size of the Private Placement to up to 34,500,000 Units (C$34,500,000) at a price of C$1.00 per Unit (the “Units”). Palisades Goldcorp Ltd. participated with a lead order of C$5.0 million, marking Palisades Goldcorp’s 4th participation as an Aurcana lead order since February 2020. Closing is expected to take place on January 27th or shortly thereafter.
Each Unit will consist of one common share of the Company and one full common share purchase warrant (“Warrant”), with each Warrant entitling the holder thereof to purchase one common share at a price of C$1.25 for a period of 36 months from the date of issuance.
The net proceeds of the Private Placement will provide contingency funding for the restart of the Company’s wholly owned Revenue Virginius (RV) Mine and will also support the examination of value creation opportunities on multiple fronts. Areas of focus will include the growth of the resource base at the RV Mine which may enable the Company to scale up future production volumes, as well as opportunities for strategic consolidation in the RV Mine district. Net proceeds will also be used for working capital and general and administrative expenses, including but not limited to potential opportunities to accelerate its wholly owned Shafter Project.
Finder’s fees of 6% cash and 6% in finder’s warrants will be issued as part of the Private Placement.
The Units will be issued on a private placement basis pursuant to applicable exemptions from prospectus requirements under applicable securities laws. The common shares and Warrants (and any common shares issued pursuant to the Warrants, as applicable) will be subject to a statutory hold period of four months and one day from the date of issuance of the Units.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws and may not be offered or sold in the United States unless registered under the 1933 Act and any applicable securities laws of any state of the United States or an applicable exemption from the registration requirements is available.
ABOUT AURCANA CORPORATION
Aurcana Corporation owns the Revenue-Virginius Mine, in Colorado, and the Shafter-Presidio Silver Project in Texas, US. The primary resource at Shafter and Revenue-Virginius is silver. Both are fully permitted for production.
About Palisades Goldcorp
Palisades Goldcorp is Canada's resource focused merchant bank. Palisades' management team has a demonstrated track record of making money and is backed by many of the industry's most notable financiers. With junior resource equities valued at generational lows, management believes the sector is on the cusp of a major bull market move. Palisades is positioning itself with significant stakes in undervalued companies and assets with the goal of generating superior returns.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION
“Kevin Drover”President & CEO
For further information, visit the website at www.aurcana.com or contact:
Aurcana Corporation850 – 789 West Pender StreetVancouver, BC V6C 1H2Phone: (604) 331-9333
Gary Lindsey, Corporate CommunicationsPhone: (720)-273-6224 Email: gary@strata-star.com
CAUTIONARY NOTES
This press release contains forward looking statements within the meaning of applicable securities laws. The use of any of the words “anticipate”, “plan”, “continue”, “expect”, “estimate”, “objective”, “may”, “will”, “project”, “should”, “predict”, “potential” and similar expressions are intended to identify forward looking statements. In particular, this press release contains forward looking statements concerning, without limitation, statements relating to the Private Placement (including with respect to the timing of closing of the Private Placement). Although the Company believes that the expectations and assumptions on which the forward looking statements are based are reasonable, undue reliance should not be placed on the forward looking statements because the Company cannot give any assurance that they will prove correct. Since forward looking statements address future events and conditions, they involve inherent assumptions, risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of assumptions, factors and risks. These assumptions and risks include, but are not limited to, assumptions and risks associated with the receipt of regulatory or shareholder approvals, and risks related to the state of financial markets or future metals prices.
Management has provided the above summary of risks and assumptions related to forward looking statements in this press release in order to provide readers with a more comprehensive perspective on the Company’s future operations. The Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive from them. These forward looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, the Company disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or results or otherwise.
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 release.
VANCOUVER, British Columbia, Jan. 26, 2021 (GLOBE NEWSWIRE) — Sabina Gold & Silver Corp (SBB.T/SGSVF.OTCQX), (“Sabina” or the “Company”) is pleased to announce it has appointed Anna Tudela to its Board of Directors.
Ms. Tudela has over 30 years of experience working with public companies in the securities and corporate finance areas, in Canada, the United States and South America. Most recently, she was the Vice President of Diversity, Regulatory Affairs and Corporate Secretary of Goldcorp. In 2010 she founded Creating Choices, a program unique in the global mining industry which recognizes the value in nurturing a culture of diversity and inclusion and promoting the advancement of women.
She was an active member of senior management with Wheaton River Minerals, Placer Dome Canada, Glamis Gold Ltd. and others, culminating with the takeover of Goldcorp by Newmont Mining Corporation. Ms. Tudela has served as Corporate Secretary of Goldcorp Inc., Silver Wheaton Corp (Wheaton Precious Metals) and Diamond Fields Resources Inc. Ms. Tudela has been recognized by various organizations for her work on governance, boards and advancing women in leadership in traditionally male dominated industries, receiving the Peter Day Governance Achievement Award; named one of the 100 Global Inspirational Women in Mining; the Association of Women in Finance awarding her the honour of Champion; Dalhousie University awarding her the 2016 Scotiabank Ethical Leadership Award and by Catalyst naming her 2016 Catalyst Canada Honours Champion. Ms. Tudela is a director of the Canadian Centre for Diversity and Inclusion and Regulus Resources Inc., a Certified Canadian Inclusion Professional, an Accredited Director (CGI) and a certified Global Competent Board advisor. Most recently, Ms. Tudela was the recipient of the WIM (BC) Aurora Award which recognizes an exceptional woman in mining who inspires others.
“We are delighted to have Anna join our Board,” said Walter Segsworth, Chair of the Company. “Her exceptional experience will further complement our Board’s abilities as we move Back River towards production. We all extend her a warm welcome.”
Sabina Gold & Silver Corp.
Sabina Gold & Silver Corp. is well-financed and is an emerging precious metals company with district scale, advanced, high grade gold assets in Nunavut, Canada.
Sabina released a Feasibility Study on its 100% owned Back River Gold Project which presents a project that has been designed on a fit-for purpose basis, with the potential to produce ~200,000 ounces a year for ~11 years with a rapid payback of 2.9 years (see “Technical Report for the Initial Project Feasibility Study on the Back River Gold Property, Nunavut, Canada” dated October 28, 2015). An Updated Feasibility Study on an expanded project is due to be issued in Q1, 2021.
The Project received its final major authorization in June 25, 2020 and is now in receipt of all major permits and authorizations for construction and operations.
In addition to Back River, Sabina also owns a significant silver royalty on Glencore’s Hackett River Project. The silver royalty on Hackett River’s silver production is comprised of 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter.
Forward Looking Information This news release contains “forward-looking information” within the meaning of applicable securities laws (the “forward-looking statements”), including, but not limited to, our estimate that the UFS will be completed during the first quarter of 2021, our expectations regarding a conversion of resource estimates into reserves, our anticipation of a significant increase in the mineral reserve estimate for the Goose Project, our statements about a possible extension of mine life and progress towards our target annual gold production, and our statement about the potential for future additional underground mines at Back River. These forward-looking statements are made as of the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. While we have based these forward-looking statements on our expectations about future events as at the date that such statements were prepared, the statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-looking statements. Such factors and assumptions include, among others, the accuracy of current resource estimates and the interpretation of drill, metallurgical testing and other exploration results; the effects of general economic conditions, commodity prices, changing foreign exchange rates and actions by government and regulatory authorities; and misjudgments in the course of preparing forward-looking statements. In addition, there are known and unknown risk factors which could cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include risks associated with exploration and project development; the need for additional financing; the calculation of mineral resources and reserves; operational risks associated with mining and mineral processing; fluctuations in metal prices; title matters; government regulation; obtaining and renewing necessary licenses and permits; environmental liability and insurance; reliance on key personnel; the potential for conflicts of interest among certain of our officers or directors; the absence of dividends; currency fluctuations; labour disputes; competition; dilution; the volatility of the our common share price and volume; future sales of shares by existing shareholders; and other risks and uncertainties, including those relating to the Back River Project and general risks associated with the mineral exploration and development industry described in our Annual Information Form, financial statements and MD&A for the fiscal period ended December 31, 2019 filed with the Canadian Securities Administrators and available at www.sedar.com. Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. We are under no obligation to update or alter any forward-looking statements except as required under applicable securities laws.
This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.
Bruce McLeod, President & CEO Suite 1800 – Two Bentall Centre 555 Burrard Street Vancouver, BC V7X 1M7 Tel 604 998-4175 Fax 604 998-1051 http://www.sabinagoldsilver.com
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VANCOUVER, British Columbia, Jan. 26, 2021 (GLOBE NEWSWIRE) — Sabina Gold & Silver Corp (SBB.T/SGSVF.OTCQX), (“Sabina” or the “Company”) is pleased to announce it has appointed Anna Tudela to its Board of Directors.
Ms. Tudela has over 30 years of experience working with public companies in the securities and corporate finance areas, in Canada, the United States and South America. Most recently, she was the Vice President of Diversity, Regulatory Affairs and Corporate Secretary of Goldcorp. In 2010 she founded Creating Choices, a program unique in the global mining industry which recognizes the value in nurturing a culture of diversity and inclusion and promoting the advancement of women.
She was an active member of senior management with Wheaton River Minerals, Placer Dome Canada, Glamis Gold Ltd. and others, culminating with the takeover of Goldcorp by Newmont Mining Corporation. Ms. Tudela has served as Corporate Secretary of Goldcorp Inc., Silver Wheaton Corp (Wheaton Precious Metals) and Diamond Fields Resources Inc. Ms. Tudela has been recognized by various organizations for her work on governance, boards and advancing women in leadership in traditionally male dominated industries, receiving the Peter Day Governance Achievement Award; named one of the 100 Global Inspirational Women in Mining; the Association of Women in Finance awarding her the honour of Champion; Dalhousie University awarding her the 2016 Scotiabank Ethical Leadership Award and by Catalyst naming her 2016 Catalyst Canada Honours Champion. Ms. Tudela is a director of the Canadian Centre for Diversity and Inclusion and Regulus Resources Inc., a Certified Canadian Inclusion Professional, an Accredited Director (CGI) and a certified Global Competent Board advisor. Most recently, Ms. Tudela was the recipient of the WIM (BC) Aurora Award which recognizes an exceptional woman in mining who inspires others.
“We are delighted to have Anna join our Board,” said Walter Segsworth, Chair of the Company. “Her exceptional experience will further complement our Board’s abilities as we move Back River towards production. We all extend her a warm welcome.”
Sabina Gold & Silver Corp.
Sabina Gold & Silver Corp. is well-financed and is an emerging precious metals company with district scale, advanced, high grade gold assets in Nunavut, Canada.
Sabina released a Feasibility Study on its 100% owned Back River Gold Project which presents a project that has been designed on a fit-for purpose basis, with the potential to produce ~200,000 ounces a year for ~11 years with a rapid payback of 2.9 years (see “Technical Report for the Initial Project Feasibility Study on the Back River Gold Property, Nunavut, Canada” dated October 28, 2015). An Updated Feasibility Study on an expanded project is due to be issued in Q1, 2021.
The Project received its final major authorization in June 25, 2020 and is now in receipt of all major permits and authorizations for construction and operations.
In addition to Back River, Sabina also owns a significant silver royalty on Glencore’s Hackett River Project. The silver royalty on Hackett River’s silver production is comprised of 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter.
Forward Looking InformationThis news release contains “forward-looking information” within the meaning of applicable securities laws (the “forward-looking statements”), including, but not limited to, our estimate that the UFS will be completed during the first quarter of 2021, our expectations regarding a conversion of resource estimates into reserves, our anticipation of a significant increase in the mineral reserve estimate for the Goose Project, our statements about a possible extension of mine life and progress towards our target annual gold production, and our statement about the potential for future additional underground mines at Back River. These forward-looking statements are made as of the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. While we have based these forward-looking statements on our expectations about future events as at the date that such statements were prepared, the statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-looking statements. Such factors and assumptions include, among others, the accuracy of current resource estimates and the interpretation of drill, metallurgical testing and other exploration results; the effects of general economic conditions, commodity prices, changing foreign exchange rates and actions by government and regulatory authorities; and misjudgments in the course of preparing forward-looking statements. In addition, there are known and unknown risk factors which could cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include risks associated with exploration and project development; the need for additional financing; the calculation of mineral resources and reserves; operational risks associated with mining and mineral processing; fluctuations in metal prices; title matters; government regulation; obtaining and renewing necessary licenses and permits; environmental liability and insurance; reliance on key personnel; the potential for conflicts of interest among certain of our officers or directors; the absence of dividends; currency fluctuations; labour disputes; competition; dilution; the volatility of the our common share price and volume; future sales of shares by existing shareholders; and other risks and uncertainties, including those relating to the Back River Project and general risks associated with the mineral exploration and development industry described in our Annual Information Form, financial statements and MD&A for the fiscal period ended December 31, 2019 filed with the Canadian Securities Administrators and available at www.sedar.com. Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. We are under no obligation to update or alter any forward-looking statements except as required under applicable securities laws.
This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.
Bruce McLeod, President & CEOSuite 1800 – Two Bentall Centre555 Burrard StreetVancouver, BC V7X 1M7Tel 604 998-4175 Fax 604 998-1051http://www.sabinagoldsilver.com
Vancouver, British Columbia–(Newsfile Corp. – January 25, 2021) – Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") today announced the completion of the previously announced rights offering to its shareholders (the "Rights Offering") (See news release of December 11, 2020), subject to final approval of the Toronto Stock Exchange (the "TSX") and Johannesburg Stock Exchange (the "JSE").
Eastplats issued 36,841,741 common shares of the Company (each a "Common Share") at a price of CDN$0.32 per Common Share for rights exercised on the TSX and R3.77136 per Common Share for rights exercised on the JSE. The Company is very pleased to have raised total gross proceeds of approximately CDN$11,788,835 (TSX-CDN$11,364,188 and JSE-R5,010,825).
A total of 32,808,630 Common Shares were issued under the basic subscription privilege and an additional 4,033,111 Common Shares were issued under the additional subscription privilege. As of the closing date, 137,480,773 Common Shares of Eastplats are issued and outstanding. No Common Shares were issued under a stand-by commitment and no fees or commissions were paid in connection with the distribution.
To the knowledge of the Company, after reasonable inquiry, no person that was not an insider of Eastplats became an insider as a result of the distribution under the Rights Offering.
Further to the rights offering circular of the Company dated December 11, 2020, the Company confirms that Ka An Development Co. Limited ("Ka An"), an insider by virtue of beneficial ownership of, or control or direction over, directly or indirectly, securities of the Company carrying more than 10% of the voting rights attached to all the Company's outstanding voting securities, has exercised its basic subscription privilege to acquire 22,134,536 Common Shares and its additional subscription privilege to acquire 730,928 Common Shares, for a total of 22,865,464 Common Shares, bringing Ka An's holdings after the Rights Offering to 45,000,000 Common Shares of the Company, representing 32.73% of the total issued and outstanding common shares of the Company.
The Company intends to use the net proceeds from the Rights Offering to commence and/or complete various projects as described in the rights offering circular to expand and grow Eastplats' revenue potential. Eastplats will provide a more detailed and definitive update in regards to the specific projects and priorities early in February 2021.
General
The Common Shares issuable upon exercise of the Rights have not been nor will be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold, as applicable, in the United States absent registration (which the Company has not sought) or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities of the Company. There shall be no offer or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification of such securities under the laws of any such jurisdiction.
COVID-19
South Africa remains at alert level 3 regarding COVID-19 cases. The Company continues to follow the health guidelines of the Government of South Africa. The Retreatment Project remains in full operation and continues to produce and transport chrome and PGM end products. The effects of COVID-19 are evolving and changing and the consequences of a further increase in the alert level in South Africa, temporary shutdown of any operations or other related issues cannot be reasonably estimated at this time, but could potentially have material adverse effects on the Company's business, operations, liquidity and cashflows.
About Eastern Platinum Limited
Eastplats owns directly and indirectly a number of Platinum Group Metals ("PGM") and chrome assets in the Republic of South Africa. All of the Company's properties are situated on the western and eastern limbs of the Bushveld Complex, the geological environment that hosts approximately 80% of the world's PGM-bearing ore.
Operations at the Crocodile River Mine currently include re-mining and processing its tailings resource, with an offtake of the chrome concentrate from the Barplats Zandfontein UG2 tailings facility ("Retreatment Project") and the processing and extraction of PGMs.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "could", "expects", "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's most recent Annual Information Form available under the Company's profile on www.sedar.com.
In particular, this press release contains forward-looking statements pertaining to: the use of the Rights Offering proceeds, potential revenue growth, potential effects of COVID-19 such as a new lockdown imposed by the Government of South Africa; and any future measures taken by the Government of South Africa and their impact on the Company, and its business, operations, liquidity and cashflows. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that may arise in the Company's production processes, commodity prices, lower than expected grades and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.
All forward-looking statements in this press release are expressly qualified in their entirety by this cautionary statement, the "Cautionary Statement on Forward-Looking Information" section contained in the Company's most recent Management's Discussion and Analysis available under the Company's profile on www.sedar.com. The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
We can readily understand why investors are attracted to unprofitable companies. For example, Legacy Iron Ore (ASX:LCY) shareholders have done very well over the last year, with the share price soaring by 1,650%. But the harsh reality is that very many loss making companies burn through all their cash and go bankrupt.
Given its strong share price performance, we think it's worthwhile for Legacy Iron Ore shareholders to consider whether its cash burn is concerning. In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. First, we'll determine its cash runway by comparing its cash burn with its cash reserves.
A company's cash runway is calculated by dividing its cash hoard by its cash burn. When Legacy Iron Ore last reported its balance sheet in September 2020, it had zero debt and cash worth AU$7.7m. Importantly, its cash burn was AU$2.4m over the trailing twelve months. Therefore, from September 2020 it had 3.2 years of cash runway. There's no doubt that this is a reassuringly long runway. You can see how its cash balance has changed over time in the image below.
debt-equity-history-analysis
How Is Legacy Iron Ore's Cash Burn Changing Over Time?
In the last year, Legacy Iron Ore did book revenue of AU$161k, but its revenue from operations was less, at just AU$86k. Given how low that operating leverage is, we think it's too early to put much weight on the revenue growth, so we'll focus on how the cash burn is changing, instead. Over the last year its cash burn actually increased by 29%, which suggests that management are increasing investment in future growth, but not too quickly. That's not necessarily a bad thing, but investors should be mindful of the fact that will shorten the cash runway. Admittedly, we're a bit cautious of Legacy Iron Ore due to its lack of significant operating revenues. So we'd generally prefer stocks from this list of stocks that have analysts forecasting growth.
How Easily Can Legacy Iron Ore Raise Cash?
Given its cash burn trajectory, Legacy Iron Ore shareholders may wish to consider how easily it could raise more cash, despite its solid cash runway. Companies can raise capital through either debt or equity. Commonly, a business will sell new shares in itself to raise cash and drive growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).
Legacy Iron Ore has a market capitalisation of AU$225m and burnt through AU$2.4m last year, which is 1.1% of the company's market value. That means it could easily issue a few shares to fund more growth, and might well be in a position to borrow cheaply.
How Risky Is Legacy Iron Ore's Cash Burn Situation?
It may already be apparent to you that we're relatively comfortable with the way Legacy Iron Ore is burning through its cash. For example, we think its cash runway suggests that the company is on a good path. While its increasing cash burn wasn't great, the other factors mentioned in this article more than make up for weakness on that measure. After taking into account the various metrics mentioned in this report, we're pretty comfortable with how the company is spending its cash, as it seems on track to meet its needs over the medium term. Taking a deeper dive, we've spotted 3 warning signs for Legacy Iron Ore you should be aware of, and 1 of them is significant.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
Vancouver, British Columbia–(Newsfile Corp. – January 19, 2021) – Sego Resources Inc. (TSXV: SGZ) ("Sego" or "the Company") proposes a new financing totaling up to $252,000.
Sego Resources Inc. is proposing to raise up to $252,000 by way of a non-brokered private placement of units at $0.035 per unit. The offering is open to all existing Sego shareholders and non-shareholders subject to certain limitations discussed below.
The offering will consist of up to up to 7,200,000 Units at $0.035 per unit for gross proceeds of $252,000. The total of the financing is expected to be $252,000.
Each Unit will consist of one common share and one warrant. Each warrant will entitle the holder to purchase an additional common share at $0.06 for two years from the closing of the private placement.
This placement may close in several tranches and Insiders may participate in the placement. The proceeds will be expended on diamond drilling of the Company's Southern Gold Zone at the Miner Mountain Copper-Gold Alkalic Porphyry project, near Princeton, BC and working capital.
Finder's fees may be payable on all or a portion of the offering, and will consist of a cash fee of 7% and a Broker's Warrant where applicable, which will entitle the holder to subscribe for one common share for two years from the closing date of the offering at $0.06.
This offering will be subject to the completion of formal documentation, receipt of all necessary regulatory approvals, including the TSX Venture Exchange and other customary conditions. All of the securities sold pursuant to the offering will be subject to a four-month hold period from the date of closing.
The offering is open to all existing shareholders of the Company and all interested investors, provided that a prospectus exemption is available for the Company to issue units to such investors. For existing shareholders who as of the close of business on January 19, 2021 held common shares of the Company and continue to hold common shares at the time of closing, an additional prospectus exemption is available pursuant to British Columbia Instrument 45-534 (and in similar instruments in other Provinces of Canada). Unless such shareholder is a person that has obtained advice regarding the suitability of the investment and, if such shareholder is resident in a jurisdiction of Canada, that advice has been obtained from a person that is registered as an investment dealer in such jurisdiction, the aggregate subscription cost to such shareholder for the units subscribed under the Existing Shareholder Exemption cannot exceed $15,000 or 300,000 units.
The Company also plans to utilize British Columbia Instrument 45-536 which opens private placements to non-accredited investors provided the purchaser has obtained advice regarding the suitability of the investment and that advice has been obtained from a person that is registered as an investment dealer in the jurisdiction. Completion of the private placement is subject to the TSX Venture Exchange approval.
There is no minimum offering size for the private placement and the maximum number of units proposed to be issued is 7,200,000 units for gross proceeds of $252,000. The Company fully expects to spend the funds as stated; there may be circumstances, for sound business reasons, where a reallocation of funds may be necessary.
There is no material change about the issuer that has not been generally disclosed.
This News Release was reviewed and approved by Selina Tribe, Ph.D., P.Geo., a Qualified Person under NI 43 -101.
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 release. No regulatory authority has approved or disapproved the information contained in this news release.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statement of historical facts that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects re forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements.
Vancouver, British Columbia–(Newsfile Corp. – January 15, 2021) – Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") is pleased to report that its subsidiary, Barplats Mines (Pty) Ltd. ("Barplats"), has confirmed the provisional payment terms of the first delivered shipment (See news release of January 6, 2021) of pressed filter cake platinum group metals ("PGM") concentrate under the existing offtake agreement between Barplats and Impala Refining Services Limited, now Impala Platinum Limited (the "PGM Offtake Agreement"). These terms confirm the restart of PGM revenue by the Company.
RIGHTS OFFERING
The shareholders of the Company were issued rights to acquire common shares as of December 18, 2020. The rights are currently trading on the TSX under the symbol "ELR.RT" and the JSE under the symbol "EPSN".
The Company is beginning to obtain confirmations of rights exercise and the Company confirms the rights offering will close on January 22, 2021.
As a result of some initial confirmations of rights exercise, the Company has begun the detailed planning regarding the intended reconfiguring and procurement initiatives on both the small-scale PGM circuit (previously the scavenger plant circuit) ("PGM Circuit D") and the existing main PGM facility ("PGM Circuit 1"). This work will allow quicker procurement upon the closing of the rights offering. The optimization of the PGM Circuit D and the refurbishment of the PGM Circuit 1 are intended to stabilize existing production and increase the capacity of the PGM recovery and sales.
Diana Hu, the President and CEO of Eastplats, stated that, "the initial confirmation of exercises of the rights offering has allowed the Company to allocate time and begin the planning work on the PGM Circuit D and PGM Circuit 1. These projects expand Eastplats PGM processing capacity and potential revenue sources. The Company looks forward to the completion and closing of the rights offering and to then continue the development of opportunities in South Africa for its shareholders."
2020 OPERATIONS
The Company is pleased to confirm that Barplats produced 987,003 tons of chrome concentrate during 2020 and was able to deliver 960,776 tons under the offtake agreement with Union Goal Offshore Solutions Inc. The Company is very pleased to have successfully operated the Chrome Retreatment Project for 309 days in 2020. Non-operating days include planned shutdowns, adverse weather, and South African lockdowns and closures related to COVID-19.
COVID-19
South Africa remains at alert level 3 regarding COVID-19 cases. The Company continues to follow the health guidelines of the Government of South Africa. The Retreatment Project remains in full operation and continues to produce and transport chrome and PGM end products. The effects of COVID-19 are evolving and changing and the consequences of a further increase in the alert level in South Africa, temporary shutdown of any operations or other related issues cannot be reasonably estimated at this time, but could potentially have material adverse effects on the Company's business, operations, liquidity and cashflows.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "will", "could", "expects", "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's most recent Annual Information Form available under the Company's profile on www.sedar.com.
In particular, this press release contains, without limitation, forward-looking statements pertaining to: estimated operations and production of PGM Circuit D and the PGM Circuit 1 ; estimated ramp up or upgrades to the PGM Circuit D and the PGM Circuit 1; potential additional revenue from the PGM Circuit D and the PGM Circuit 1; potential proceeds from the rights offering and the use of such proceeds, if any; potential opportunities in South Africa or the Company's ability to develop them; potential effects of COVID-19 such as a new lockdown imposed by the Government of South Africa; and any future measures taken by the Government of South Africa and their impact on the Company, and its business, operations, liquidity and cashflows. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that may arise in our production processes, commodity prices, lower than expected grades and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.
All forward-looking statements in this press release are expressly qualified in their entirety by this cautionary statement, the "Cautionary Statement on Forward-Looking Information" section contained in the Company's most recent Management's Discussion and Analysis available under the Company's profile on www.sedar.com. The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
Point Roberts, Washington and Delta, British Columbia–(Newsfile Corp. – January 11, 2021) – Investorideas.com, a global investor news source covering mining and metals stocks releases today's edition of Exploring Mining Podcast, featuring stock news from TSX, TSXV ,CSE, ASX, NASDAQ, NYSE companies plus interviews with CEO's and leading experts.
Investor Ideas talks to Mr. Kevin Cameron Drover, President, CEO & Chairman of Aurcana Silver Corporation (TSXV: AUN) (OTC: AUNFF).
Drover discusses the Company's two properties in the United States; Revenue Mine, in Colorado and the Shafter-Presidio Silver Project in Texas s well as the future of silver.
Drover told Investor Ideas, "The project that we've got the Revenue Mine; it's a stand-alone project. It speaks for itself. It's going to generate a lot of cash."
Continued: "We've been able to raise some money during 2020 and late 2019 that put us on the road to construction. More recently, we've been able to close a $28 million debt facility. That fully funds us through construction. So 2020, although it was a pretty bad year from the pandemic perspective and the effects that it had on business in general, it was a good year for us. We were able to raise capital and had the wind in our sails with the silver price. So right now we've got that $28 million facility in place. We were sitting with about $32 million in the bank at the moment. We purchased most of our long lead time items. We have about 80 people working at the site. So, we're in a very good position all-in-all."
Continued: "So right now, we are forecasting September positive cash flow. We are a very high grade mine at 37 ounces per ton average silver equivalent So looking forward, given the current silver prices, where it sits right now, we're looking at a very positive next few years of operations. We feel we're in a really good place. But, you know, we have to take one task at a time. First thing is that we have to get our construction finished and then get ourselves into production."
Looking at some of the analysts bullish predictions for silver for 2021, he said, "Well, you know, we all hope for $30 plus silver. I really can't predict the future but we built all of our economics for this project based on $18.50 silver."
Aurcana Silver Corporation owns the Revenue Mine, in Colorado, and the Shafter-Presidio Silver Project in Texas, US. The primary mineral resource at both the Shafter-Presidio Project and the Revenue Mine is silver. Both are fully permitted for production.
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Vancouver, British Columbia–(Newsfile Corp. – January 6, 2021) – Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") is pleased to report that during December 2020 its subsidiary, Barplats Mines (Pty) Ltd. ("Barplats"), delivered its first shipment of pressed filter cake platinum group metals ("PGM") concentrate under the existing offtake agreement between Barplats and Impala Refining Services Limited, now Impala Platinum Limited (the "Offtake Agreement").
During 2020, the Company completed the refurbishment of the small-scale PGM circuit (previously the scavenger plant circuit) ("PGM Circuit D"). The Company only restarted and began operating the PGM Circuit D during Q3 2020 (following the mandatory general lockdown imposed by the Government of South Africa in connection with the COVID-19 pandemic). The Company has generated approximately 134 tons of pressed filter cake PGM concentrate and delivered approximately 32.18 tons during 2020 under the Offtake Agreement. The Company forecasts continued ramping up of the PGM Circuit D production and additional revenue from it during 2021.
Barplats' tailings retreatment project located at its Crocodile River Mine (the "Retreatment Project") has been recovering chrome since December 2018. With the refurbishment and operation of the PGM Circuit D, and utilizing the Retreatment Project source material, the Company is now able to generate PGM revenue.
Diana Hu, the President and CEO of Eastplats, stated that "Operating the PGM Circuit D allows the Company to diversify its revenue sources and is a direct benefit of the Retreatment Project. To build on this success, Eastplats intends to use part of the expected proceeds from the currently ongoing rights offering (See News Release of December 11, 2020) to further upgrade the PGM Circuit D and refurbish the existing main PGM facility thereby expanding its PGM processing capacity and potential revenue sources. The Company is pleased to continue the development of opportunities in South Africa for its shareholders."
RIGHTS OFFERING
The shareholders of the Company were issued rights to acquire common shares as of December 18, 2020. The rights are currently trading on the TSX under the symbol "ELR.RT" and the JSE under the Symbol "EPSN".
The rights offering will close on January 22, 2021.
COVID-19
Effective December 29, 2020 South Africa has raised its alert level to level 3, in response to an increase in COVID-19 cases. The Company continues to follow the health guidelines of the Government of South Africa. The Retreatment Project remains in full operation and continues to produce and transport chrome and PGM end product. The effects of COVID-19 are evolving and changing and the consequences of a further increase in the alert level in South Africa, temporary shutdown of any operations or other related issues cannot be reasonably estimated at this time, but could potentially have material adverse effects on the Company's business, operations, liquidity and cashflows.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "will", "could", "expects", "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's most recent Annual Information Form available under the Company's profile on www.sedar.com.
In particular, this press release contains, without limitation, forward-looking statements pertaining to: estimated operations and production of PGM Circuit D; estimated ramp up or upgrades to the PGM Circuit D; potential additional revenue from the PGM Circuit D; potential proceeds from the rights offering and the use of such proceeds, if any; potential opportunities in South Africa or the Company's ability to develop them; potential effects of COVID-19 such as a new lockdown imposed by the Government of South Africa; and any future measures taken by the Government of South Africa and their impact on the Company, and its business, operations, liquidity and cashflows. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that may arise in our production processes, commodity prices, lower than expected grades and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.
All forward-looking statements in this press release are expressly qualified in their entirety by this cautionary statement, the "Cautionary Statement on Forward-Looking Information" section contained in the Company's most recent Management's Discussion and Analysis available under the Company's profile on www.sedar.com. The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
Vancouver, British Columbia–(Newsfile Corp. – December 31, 2020) – Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") announces that it has received a petition filed with the Supreme Court of British Columbia, by Xiaoling Ren, a shareholder of the Company, seeking leave from the court to commence a derivative action on behalf of the Company against certain of its current and former directors. Ms. Ren is represented by the same law firm who filed a similar petition in November 2018 (See News Release of November 9, 2018) that was dismissed by the Supreme Court of British Columbia (see News Release of August 29, 2019) in a decision affirmed by the Court of Appeal for British Columbia (see News Release of November 17, 2020).
The Company will seek advice and make a recommendation on the appropriate action.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "will", "could", "expects", "anticipates" and similar expressions.
In particular, this press release contains forward-looking statements pertaining to: the timing and actions of the Company. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, commodity prices, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.
The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. We can see that Base Resources Limited (ASX:BSE) does use debt in its business. But should shareholders be worried about its use of debt?
Why Does Debt Bring Risk?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. When we examine debt levels, we first consider both cash and debt levels, together.
The image below, which you can click on for greater detail, shows that at June 2020 Base Resources had debt of US$73.8m, up from US$18.9m in one year. But it also has US$162.6m in cash to offset that, meaning it has US$88.7m net cash.
debt-equity-history-analysis
A Look At Base Resources's Liabilities
Zooming in on the latest balance sheet data, we can see that Base Resources had liabilities of US$88.3m due within 12 months and liabilities of US$83.4m due beyond that. Offsetting these obligations, it had cash of US$162.6m as well as receivables valued at US$46.6m due within 12 months. So it actually has US$37.5m more liquid assets than total liabilities.
This surplus suggests that Base Resources is using debt in a way that is appears to be both safe and conservative. Due to its strong net asset position, it is not likely to face issues with its lenders. Succinctly put, Base Resources boasts net cash, so it's fair to say it does not have a heavy debt load!
But the bad news is that Base Resources has seen its EBIT plunge 14% in the last twelve months. If that rate of decline in earnings continues, the company could find itself in a tight spot. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine Base Resources's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this freereport showing analyst profit forecasts.
Finally, a company can only pay off debt with cold hard cash, not accounting profits. Base Resources may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. Over the most recent three years, Base Resources recorded free cash flow worth 80% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This cold hard cash means it can reduce its debt when it wants to.
Summing up
While it is always sensible to investigate a company's debt, in this case Base Resources has US$88.7m in net cash and a decent-looking balance sheet. And it impressed us with free cash flow of US$72m, being 80% of its EBIT. So we don't think Base Resources's use of debt is risky. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. Be aware that Base Resources is showing 2 warning signs in our investment analysis, and 1 of those can't be ignored…
At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. Importantly, Flinders Mines Limited (ASX:FMS) does carry debt. But is this debt a concern to shareholders?
What Risk Does Debt Bring?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
The chart below, which you can click on for greater detail, shows that Flinders Mines had AU$3.12m in debt in June 2020; about the same as the year before. However, its balance sheet shows it holds AU$4.10m in cash, so it actually has AU$979.0k net cash.
debt-equity-history-analysis
A Look At Flinders Mines's Liabilities
The latest balance sheet data shows that Flinders Mines had liabilities of AU$587.0k due within a year, and liabilities of AU$3.79m falling due after that. Offsetting these obligations, it had cash of AU$4.10m as well as receivables valued at AU$47.0k due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by AU$226.0k.
This state of affairs indicates that Flinders Mines's balance sheet looks quite solid, as its total liabilities are just about equal to its liquid assets. So while it's hard to imagine that the AU$171.4m company is struggling for cash, we still think it's worth monitoring its balance sheet. Despite its noteworthy liabilities, Flinders Mines boasts net cash, so it's fair to say it does not have a heavy debt load! When analysing debt levels, the balance sheet is the obvious place to start. But it is Flinders Mines's earnings that will influence how the balance sheet holds up in the future. So if you're keen to discover more about its earnings, it might be worth checking out this graph of its long term earnings trend.
Given its lack of meaningful operating revenue, investors are probably hoping that Flinders Mines finds some valuable resources, before it runs out of money.
So How Risky Is Flinders Mines?
We have no doubt that loss making companies are, in general, riskier than profitable ones. And in the last year Flinders Mines had an earnings before interest and tax (EBIT) loss, truth be told. Indeed, in that time it burnt through AU$11m of cash and made a loss of AU$8.1m. Given it only has net cash of AU$979.0k, the company may need to raise more capital if it doesn't reach break-even soon. Overall, we'd say the stock is a bit risky, and we're usually very cautious until we see positive free cash flow. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately, every company can contain risks that exist outside of the balance sheet. Be aware that Flinders Mines is showing 4 warning signs in our investment analysis, and 2 of those make us uncomfortable…
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt100% free, right now.
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Vancouver, British Columbia–(Newsfile Corp. – December 14, 2020) – Wealth Minerals Ltd. (TSXV: WML) (OTCQB: WMLLF) (SSE: WMLCL) (FSE: EJZN) (the "Company" or "Wealth"), announces a non-brokered private placement (the "Placement") of up to 15,000,000 units (the "Units") at a price of $0.10 per Unit (the "Offering") for gross proceeds of up to $1,500,000. Each Unit will consist of one common share of the Company (a "Share") and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to acquire one additional share of the Company for a period of two years from the date of issuance at a price of $0.15 per share.
Finder's fees may be payable to arm's length parties that have introduced the Company to certain subscribers participating in the Offering. All securities issued in the Offering are subject to a four-month hold period, during which time the securities may not be traded. Closing of the Offering is subject to the approval of the TSX Venture Exchange.
The net proceeds from the Offering are intended to be used to fund exploration and development of Wealth's Atacama Project, as well as for general corporate purposes.
This press release does not constitute an offer of sale of any of the foregoing securities in the United States. None of the foregoing securities have been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act") or any applicable state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) or persons in the United States absent registration or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the foregoing securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Shares for Debt Settlement
The Company has arranged to settle an aggregate sum of approximately CAD$870,000 owing to insiders and trade creditors, by the issuance of approximately 8,700,000 common shares at a deemed price of CAD 0.10 per share. These securities will be subject to a hold period of four months from the date of issuance. Completion of the debt settlement will not create any new control persons and is subject to TSXV acceptance.
Company Loan
The Company further reports that Hendrik van Alphen, Director and CEO (the "Lender"), has loaned an additional CAD$50,000.00 to the Company.
The Loan has an 18-month term and bears interest at a rate of 8% per annum compounded annually, payable on the maturity date. The Company has agreed to issue in aggregate 500,000 non-transferable bonus common share purchase warrants (the "Bonus Warrants") to the Lender. Each Bonus Warrant will entitle the holder to purchase one common share in the capital of the Company at an exercise price of $0.10 per share for a period of two years. All securities issued pursuant to the Loan will be subject to a hold period of four months and one day in Canada from the date of issuance. The funds available from the Loan will be used for payments pursuant to Company's Atacama lithium project ("Atacama" or the "Atacama project").
Corporate Update
Wealth remains focused on the lithium market, as favorable global supply-demand characteristics persist, which will benefit companies with quality lithium assets. The Company recently extended its MOU with Uranium One (see press release of October 14, 2020), which envisions an environmentally responsible and efficient development program for the Atacama Project using sorption technology. While management has maintained contact with ENAMI since the expiry of Wealth's MOU with that entity (see press release April 8, 2020), management has not seen any reciprocal movement forward to secure cooperation with the Chilean state or its proxies. Management notes that Chile will have a presidential election in about one year's time, which is expected to change the composition of the government and by extension ENAMI (by law Chilean presidents cannot serve consecutive terms, and the Minister of Mining, who is appointed by the President, serves and Chairman of ENAMI).
As a result of Wealth's Atacama Project being stalled, management has worked towards monetizing non-core assets, such as the Vapor and Harry lithium projects (see press release November 2, 2020). Other transactions that can provide shareholder value for Wealth's assets are being considered. Wealth's management notes that the Company's CEO has extended personal loans to maintain working capital levels for uninterrupted corporate operation (see press release October 23, 2020). Corporate expenditures have been reduced to a minimum. Management further announces that Tim McCutcheon, Wealth's President, is stepping down from that role, although he will continue to assist the Company, in particular with shepherding Uranium One and Wealth towards a transaction on the Atacama Project.
Hendrik Van Alphen, Wealth's CEO, said, "The lithium market is finally getting its due, as the world wakes up to a supply deficit on the horizon, even despite the tempering of demand due to COVID-19. Our Atacama Project is world-class and, has attracted notice across the lithium industry. Unfortunately, internal politics in Chile has made the development timeline uncertain, which has impacted Wealth's position in the capital markets. We have announced this fund raise to top up the treasury to give the Company the flexibility to wait out the political situation and provide breathing room to conduct other transactions to create shareholder value. I also wish to thank Tim McCutcheon for his service to the Company, we all wish him well in his future endeavors and are glad that he will remain available to help Wealth with its corporate development."
About Wealth Minerals Ltd.
Wealth is a mineral resource company with interests in Canada, Mexico and Chile. The Company's main focus is the acquisition and development of lithium projects in South America. To date, the Company has positioned itself to work alongside existing producers in the prolific Atacama salar, where the Company has a substantial licenses package.
Lithium market dynamics and a rapidly increasing metal price are the result of profound structural issues with the industry meeting anticipated future demand. Wealth is positioning itself to be a major beneficiary of this future mismatch of supply and demand. The Company also maintains and continues to evaluate a portfolio of precious and base metal exploration-stage projects.
For further details on the Company readers are referred to the Company's website (www.wealthminerals.com) and its Canadian regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of
WEALTH MINERALS LTD.
"Hendrik van Alphen"Hendrik van AlphenChief Executive Officer
Neither 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.
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation, anticipated exploration program results from exploration activities, the Company's expectation that it will be able to enter into agreements to acquire interests in additional mineral properties, the discovery and delineation of mineral deposits/resources/reserves, the closing and amount of the Placement, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "postulate" and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, operating and technical difficulties in connection with mineral exploration and development activities, actual results of exploration activities, the estimation or realization of mineral reserves and mineral resources, the timing and amount of estimated future production, the costs of production, capital expenditures, the costs and timing of the development of new deposits, requirements for additional capital, future prices of lithium, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, lack of investor interest in the Placement, accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, changes in laws, regulations and policies affecting mining operations, title disputes, the inability of the Company to obtain any necessary permits, consents, approvals or authorizations, including acceptance by the TSX-V, required for the Placement, the timing and possible outcome of any pending litigation, environmental issues and liabilities, and risks related to joint venture operations, and other risks and uncertainties disclosed in the Company's latest interim Management Discussion and Analysis and filed with certain securities commissions in Canada. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements in this news release or incorporated by reference herein, except as otherwise required by law.
**NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES**
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