VANCOUVER, Aug. 8, 2018 /CNW/ - Mason Resources Corp. (TSX:
MNR; OTCQB: MSSNF – "Mason" or the "Company") is pleased to report
its financial results for the second quarter ended June 30, 2018. All figures are in US
dollars unless otherwise noted.
Q2 2018 HIGHLIGHTS
- Net loss for Q2 2018 was $0.4
million, which was comparable to the same period of 2017.
For the 2018 year to date, net loss was $0.7
million which is a reduction of 36% compared to the
comparative period of 2017 ($1.1
million net loss). The reduction in the year to date net
loss was due mainly to one-time costs associated with the spin-out
of Mason from Entrée Resources Ltd. ("Entrée") in 2017.
- The Company's cash balance at June 30,
2018 was $6.9 million with no
debt and the working capital balance was $6.7 million.
OUTLOOK AND STRATEGY
Corporate
The Company's corporate focus is to maximize market value
through assessing and executing on options to move its Ann Mason
Project forward, possibly including introducing one or more
strategic partners. The Ann Mason Project is an advanced,
large-scale, PEA-stage copper-molybdenum porphyry project located
in the prolific Yerington mining
district in Nevada. In addition,
Mason is undertaking a process to prioritize and progress other
growth strategies involving its Lordsburg copper-gold porphyry property in
New Mexico and additional
potential new exploration acquisitions. Fiscal responsibility,
including restricting cash expenditures to value adding activities,
remains a high priority.
The Company expects to spend between $1.2
million and $1.4 million for
the 2018 year, which includes $0.4
million for corporate costs, investor relations and
compliance and the balance related to the Ann Mason Project and
Lordsburg property.
Ann Mason Project
The Company is currently evaluating options for its Ann Mason
Project, which may include optimizing certain aspects of its NI
43-101 technical report titled "2017 Updated Preliminary Economic
Assessment on the Ann Mason Project, Nevada, U.S.A." (the "2017 PEA"), commencing a
Pre-Feasibility study and testing high priority exploration targets
with potential to provide alternative production options.
The Company is targeting expenditures of between $0.7 million and $0.9
million for the 2018 year, including claim fees and
payments, site maintenance and local administration
costs.
Lordsburg Property
The Company is managing the costs associated with the
Lordsburg property while
management evaluates the best path forward to add value to the
project. Expenditures for 2018 are mainly for claim fees and local
administration costs. The Company expects to spend
approximately $0.1 million for the
2018 year.
The Company's second quarter 2018 unaudited condensed
consolidated interim financial statements and Management's
Discussion and Analysis ("MD&A") are available on SEDAR at
www.sedar.com and on the Company's website at
www.MasonResources.com.
SUMMARY OF FINANCIAL RESULTS
The Company's Q2 2018 net loss of $0.4
million included $0.2 million
of exploration costs and $0.3 million
of general and administration costs, which were partially offset by
$0.1 million of foreign exchange
gain.
Exploration expenses for Q2 2018 were mainly related to the Ann
Mason Project and were comparable to the same period of 2017.
Exploration expenses relating to the Lordsburg property during these periods were
minimal.
General and administrative costs in Q2 2018 included costs of
$0.2 million related to
administrative and executive services provided through the
Administrative Services Agreement ("ASA") with Entrée. The
expenses in Q2 2018 are 36% lower than the comparative period in
2017 due mainly to higher costs related to the ASA in 2017 and the
costs associated with the initial roll out of Mason's assets from
Entrée.
QUALIFIED PERSON
Robert Cinits, P.Geo., Mason's Chief
Operating Officer, a Qualified Person as defined by National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("NI 43-101"), has approved the technical information
in this release. The 2017 PEA with an effective date of
March 3, 2017 prepared by AGP Mining
Consultants Inc. and Amec Foster Wheeler Americas Limited is
available on SEDAR at www.sedar.com.
ABOUT MASON RESOURCES CORP.
Mason Resources Corp. is
a well-funded Canadian company focused on copper exploration and
development in the U.S.A. The Company's key asset is its 100%
owned Ann Mason Project – an extensive, prospective land package
located in the Yerington District
of Nevada. The Ann Mason Project
hosts two copper-molybdenum porphyry deposits, Ann Mason and Blue
Hill, as well as numerous earlier-stage or untested priority
targets. The Ann Mason deposit is currently at a Preliminary
Economic Assessment (PEA) level and is among the largest
undeveloped copper porphyry resources in Canada/U.S.A.
The excellent infrastructure, year-round access, strong community
support and clear permitting process are all factors that
contribute to making Yerington,
Nevada one of the best mining jurisdictions in the world.
Mason also holds a 100% interest in the Lordsburg property, an exciting earlier-stage
copper-gold porphyry project, located within an historic mining
district in New Mexico.
Mason's strong financial position and high-quality asset
portfolio provide it with a solid foundation and flexibility for
growth, by advancing development of its Ann Mason Project towards
Pre-Feasibility, introducing one or more strategic development
partners, exploring high priority targets or considering strategic
acquisitions. More information on Mason can be found at
www.MasonResources.com.
This news release contains forward-looking statements within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and forward-looking information within the
meaning of applicable Canadian securities laws.
Forward-looking statements include, but are not limited to,
statements with respect to corporate strategies and plans of Mason;
uses of funds; the ability of Mason to maximize returns to
shareholders; the potential to optimize certain aspects of the 2017
PEA; completion of a Pre-Feasibility study on the Ann Mason
Project; a potential strategic development partner for the Ann
Mason Project; the potential impact of future exploration results
on Ann Mason mine design and economics; the potential development
of Ann Mason; plans for future exploration and development programs
and budgets; anticipated business activities; proposed acquisitions
and dispositions of assets; and future financial
performance.
While the Company has based these forward-looking statements
on its expectations about future events as at the date that such
statements were prepared, the statements are not a guarantee of the
Company's future performance and are based on numerous assumptions
regarding present and future business strategies, local and global
economic conditions and the environment in which Mason will operate
in the future, including the price of copper, gold, silver and
molybdenum. Uncertainties and factors which could cause
actual results to differ materially from future results expressed
or implied by forward-looking statements and information include,
amongst others, unanticipated costs, expenses or liabilities;
discrepancies between actual and anticipated production, mineral
resources and metallurgical recoveries; the size, grade and
continuity of deposits not being interpreted correctly from
exploration results; the results of preliminary test work not being
indicative of the results of future test work; fluctuations in
commodity prices and demand; changing foreign exchange rates;
actions by government authorities; the availability of funding on
reasonable terms; the impact of changes in interpretation to or
changes in enforcement of, laws, regulations and government
practices, including laws, regulations and government practices
with respect to mining, foreign investment, royalties and taxation;
the terms and timing of obtaining necessary environmental and other
government approvals, consents and permits; the availability and
cost of necessary items such as power, water, skilled labour,
transportation and appropriate smelting and refining arrangements;
and misjudgements in the course of preparing forward-looking
statements. In addition, there are also known and unknown risk
factors which may cause the actual results, performances or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements and information. Such factors
include, among others, risks related to international operations,
including legal and political risk; risks associated with changes
in the attitudes of governments to foreign investment; changes in
project parameters as plans continue to be refined; inability to
upgrade Inferred mineral resources to Indicated or Measured mineral
resources; inability to convert mineral resources to mineral
reserves; conclusions of economic evaluations; future prices of
copper, gold, silver and molybdenum; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and
other risks of the mining industry; delays in obtaining government
approvals, permits or licences or financing or in the completion of
development or construction activities; environmental risks; title
disputes; limitations on insurance coverage; as well as those
factors discussed in the Company's most recently filed MD&A and
in the Company's Annual Information Form for the financial year
ended December 31, 2017, dated
March 16, 2018 filed with the
Canadian Securities Administrators and available at www.sedar.com.
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. The Company is under no obligation to
update or alter any forward-looking statements except as required
under applicable securities laws.
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SOURCE Mason Resources