Bli medlem
Bli medlem

Du är här

2017-03-29

FILO MINING REPORTS 2016 RESULTS

LO MINING REPORTS 2016 RESULTS March 28,
2017: Filo Mining Corporation (TSX-V:FIL)(Nasdaq First North:FIL) ("Filo
Mining" or the "Company") is pleased to announce its results for the three
months and year ended December 31, 2016. HIGHLIGHTS Following completion of
a plan of arrangement on August 16, 2016, whereby NGEx Resources Inc.
(“NGEx”) spun out the Filo del Sol copper-gold-silver mineral exploration
project (“Filo del Sol” or the “Filo del Sol Project”), along with $3.0
million in cash (the “Arrangement”), the Company has achieved several
important milestones, including: --

Closing a private placement of 10,000,000 common shares of the Company on
November 16, 2016, for gross proceeds of $20 million (the “Private
Placement”). Net proceeds from the Private Placement totaled $19.5 million,
and have been directed toward advancing the Filo del Sol project and for
general corporate and administrative costs.

--

Successful completion of the 2016/2017 exploration program in March 2017.
The program included the collection of representative sample material for
metallurgical testing and approximately 8,600 metres of reverse circulation
drilling. The objectives of the drill program included converting Inferred
resources to the Indicated classification, expanding the current resource,
and testing a number of high-quality exploration targets within 2 km of the
Filo del Sol deposit (see News Release dated January 20, 2017).

--

Assay results described more completely in a news release dated February
15, 2017, confirm the presence of higher grade zones within the oxide gold
zone of the current resource. Highlights include intercepts of 84 metres at
1.36 g/t gold and 78 metres at 1.02 g/t gold, which represent the best and
third best gold intersections in the Filo del Sol deposit to date as
measured by gold grade times width. The remainder of assay results are
expected to be received in April, 2017.

--

Completion of initial metallurgical testwork on samples collected from the
Filo del Sol Project, which have yielded encouraging results from bottle
roll and sequential leach tests. The bottle roll tests yielded in 95.1%
copper recovery on material collected from the oxide copper zone, 93.2%
gold recovery in the oxide gold zone, and 92.4%, 88.6%, and 92.7%
recoveries, respectively for copper, gold and silver, from the silver zone
of the Filo del Sol deposit. The sequential leach test which tests the
potential to recover both copper and gold from the mineralized material
provided 94% copper recovery and 87% gold recovery (see News Release dated
October 11, 2016).

Mr. Wojtek Wodzicki, President and CEO commented, "Filo Mining is off to a
strong start. We successfully completed the spin-out of the Filo del Sol
business from NGEx and strengthened the balance sheet with the $20 million
private placement in November, and we have now successfully completed an
ambitious 2016/2017 exploration program on time and on budget. We are
encouraged by the drill and metallurgical test results received to date,
and we think that they support our views on the strength and upside of the
project. We expect a busy second quarter of 2017 during which we plan to
update the Mineral Resource estimate, complete additional metallurgical
testwork, and decide on whether to begin a formal PEA on the project.”
FINANCIAL RESULTS (In thousands of Canadian dollars, except per share
amounts)
--------------------------------------------------------------------- Three
months ended Year ended December 31, December 31, 2016 2015 2016 2015
---------------------------------------------------------------------
Exploration expenses 4,403 441 6,477 9,581 General and administration
(“G&A”) 976 66 2,183 1,411 Net loss 5,297 1,197 8,666 11,817 Basic and
diluted loss per share 0.09 0.02 0.16 0.23
---------------------------------------------------------------------
SELECTED FINANCIAL INFORMATION (In thousands of Canadian dollars)
---------------------------------------------- December 31, December 31,
2016 2015 ---------------------------------------------- Cash 19,465 271
Working capital 17,653 161 Mineral properties 6,091 5,951 Total assets
26,151 6,355 ---------------------------------------------- The net loss
for the year ended December 31, 2016 totaled $8.7 million, compared to a
net loss of $11.8 million in 2015, and is largely driven by levels of
exploration activity undertaken during the respective periods. This
decrease is due to the year ended December 31, 2015 reflecting the
execution of a larger exploration program, which included more than 5,000
metres of drilling, whereas by comparison, during the year ended December
31, 2016, the Company focused on completing the Arrangement, and therefore
exploration programs were kept minimal during the 2015/2016 season. This
was partially offset by higher G&A costs during the year ended December 31,
2016, due to the additional corporate and legal costs associated with
having establishing Filo Mining as a stand-alone public entity. LIQUIDITY
AND CAPITAL RESOURCES As at December 31, 2016, the Company had cash of
$19.5 million and net working capital of $17.7 million, compared to cash of
$0.3 million and net working capital of $0.2 million as at December 31,
2015. The increase in cash and net working capital is primarily the result
of the receipt of $3.0 million in cash from NGEx pursuant to the
Arrangement, as described above, and the receipt of $19.5 million in net
proceeds upon completion of the Private Placement. The Private Placement
closed on November 16, 2016, and a finders’ fee of $0.5 million was paid in
connection with a portion thereof. The Company’s treasury will be used
towards ongoing work programs in Chile and Argentina as well as for general
corporate purposes. Other than for general corporate and administrative
costs, the majority of funds held by Filo Mining are directed towards
exploration in South America. Based on Filo Mining’s financial position at
December 31, 2016, the Company has a strong treasury to support its ongoing
exploration initiatives and general corporate activities, while being able
to exercise a high degree of flexibility in adapting its work programs and
expenditures to changes in market conditions, as necessary. SUMMARY AND
OUTLOOK With an experienced board of directors and management team, and a
treasury of approximately $19.5 million as at December 31, 2016, Filo
Mining is well positioned to advance the Filo del Sol Project while also
remaining flexible and responsive to continuing volatility in the resource
sector. The focus for the Company during the first quarter of 2017 has been
the completion of a comprehensive field program, designed to collect data
required for initial engineering studies. The program included
approximately 8,600 metres of a mix of infill drilling, to update the
current resource, and exploration drilling to test compelling new targets
outside the current resource. The focus of the drilling was on the oxidized
portion of the system and the program was completed in March, 2017. Initial
assay results from the drill program were released on February 15, 2017,
and the remaining assay results are expected to be available in April,
2017. The infill drill holes were intended to establish the internal grade
continuity of the deposit and to begin to convert a portion of the Inferred
resource to the Indicated category, while the objective of the step-out
holes north and south of the current resource was the expansion of the
current resource. The exploration holes at Filo North, Filo South and Cerro
Vicuña will assist in evaluating these prospective targets, and have the
potential to add satellite mineralization to the main Filo del Sol
resource. Upon receipt of complete results from the drill program, the
Company plans to update the mineral resource estimate for the Filo del Sol
Project. In addition to the drilling, the Company is conducting a more
extensive program of metallurgical testwork to follow up on the encouraging
initial results received in October, 2016. The Company plans to complete
column leach tests which will provide information on the optimum fragment
size for leaching and more information on how the mineralized material will
behave on a leach pad. This information, together with an updated resource
estimate, is expected to provide the information needed for a preliminary
internal conceptual study of development options. This work is expected to
allow the Company to decide whether to initiate a formal preliminary
economic assessment of the Filo del Sol Project later this year. CORPORATE
UPDATE In addition to the previously announced appointment of Mr. Pablo Mir
to the Company’s Board of Directors effective November 28, 2016, Filo
Mining also provides the following corporate update on its management team:
--

On November 28, 2016, Mr. Jeff Yip was appointed Chief Financial Officer.
Mr. Yip is a member of the Chartered Professional Accountants of British
Columbia (CPA, CA) and also currently serves as the CFO of Orca Gold Inc.,
an Africa-focused gold exploration company listed on the TSX Venture
Exchange. Mr. Yip replaces Ms. Joyce Ngo, the Company’s former Interim
Chief Financial Officer.

-- On February 1, 2017, Mr. James Beck was appointed Vice President,
Corporate Development and Projects. Mr. Beck is a registered Professional
Engineer in the province of Ontario, holds a Bachelor of Applied Science
from Queen's University and an MBA from the University of British Columbia,
and also serves as the Vice President, Corporate Development and Projects
of NGEx. Mr. Beck previously held the position of Director, Corporate
Development. About Filo Mining Filo Mining is a Canadian mineral
exploration company which holds a 100% interest in the Filo del Sol Project
on the border of Argentina's San Juan Province and Chile's adjacent Region
III. Filo Mining is listed on the TSX-V and Nasdaq First North Exchange
under the trading symbol "FIL". Pareto Securities AB is the Company’s
Certified Adviser on Nasdaq First North. Built on a foundation of
experienced management and focused on advancing exploration projects in
Chile and Argentina, Filo Mining is well positioned to build shareholder
value through discovery and resource development. Additional information
The Company's consolidated financial statements for the year ended December
31, 2016 and related management's discussion and analysis are available on
the Company's website at www.filo-mining.com or under its profile on SEDAR
at www.sedar.com. This information was submitted by Filo Mining Corp. for
publication, through the agency of the contact person set out below, on
March 28, 2017 at 5:15 pm Pacific time. On behalf of the board of directors
of Filo Mining, Wojtek Wodzicki, President and CEO Filo Mining Corp. For
further information, pl...

Författare SSE

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.