ASCOT RESOURCES REPORTS 2019 ANNUAL RESULTS
March 16 2020 - 6:30AM
Ascot Resources Ltd. (TSX: AOT; OTCQX:
AOTVF) (“Ascot” or the “Company”) announces the Company's
audited consolidated financial results for the year ended December
31, 2019. For details of the audited consolidated financial
statements, Management's Discussion and Analysis, and Annual
Information Form for the year ended December 31, 2019, please see
the Company's filings on SEDAR www.sedar.com.
Derek White, President and CEO, commented,
"Ascot had another busy year in 2019, beginning with the
acquisition of the neighbouring Red Mountain project to create a
leading high-grade gold development and exploration company in
northwestern British Columbia’s Golden Triangle.
I would like to take this opportunity to thank
the hard-working team of people working together to advance the
Company forward. In particular I thank all of our shareholders who
continue to support us as we continue towards the development of
the Premier Gold Project.”
2019 AND RECENT HIGHLIGHTS
- On January 7, 2019, the Company
entered into a definitive arrangement agreement with IDM Mining
Ltd. (“IDM”) to acquire all of the issued and outstanding common
shares of IDM, which closed on March 28, 2019.
- On January 21, 2019, the Company
entered into a subscription and note agreement related to a
convertible loan for gross proceeds of US$10 million (the “Note”)
split between Sprott Private Resource Lending (Collector), LP and
Resource Income Partners Limited Partnership for US$8.83 million
and US$1.17 million respectively.
- On February 15, 2019, both the BC
Environmental Assessment Office and the Canadian Environmental
Assessment Agency confirmed that the Premier Gold Project is not
reviewable under the regulation. As a result, Ascot intends to
submit a Mines Act Permit Amendment application.
- On April 10, 2019, the Company’s
wholly-owned subsidiary IDM and Nisga’a Nation entered into a
Benefits Agreement for the Red Mountain Project.
- The Company's 15,000 metre Phase I
drill program commenced on April 17, 2019 with step-out drilling at
high-grade expansion targets in the Northern Lights area just east
of the Premier mill facility.
- On May 2, 2019 the Company
announced a concurrent brokered and non-brokered private placement
offering (the “Offering”) of units and common shares which qualify
as “flow-through shares” for aggregate gross proceeds of $10
million. On May 7, 2019, the Company announced an upsize of the
private placement offering to $15.2 million. On May 22, 2019, the
Company closed its concurrent brokered and non-brokered private
placement offering of units and common shares which qualify as
“flow-through shares” for aggregate gross proceeds of $15.9
million.
- Subsequent to the close of the
Offering, the Company expanded its 2019 drill program to
approximately 53,000 metres comprising of infill drilling in Big
Missouri, Silver Coin and Premier, geotechnical drilling at portal
locations and exploration drilling on high priority targets
including Silver Hill and Indian Ridge. The Company also completed
additional ground geophysical survey of 3,000 metres north of
Silver Hill.
- On October 31, 2019, the Company
announced the results of an updated mineral resource estimate for
its Red Mountain project titled “2019 Mineral Resource Update for
the Red Mountain Gold Project, Northwestern BC, Canada” with an
effective date of August 30, 2019, with 782,600 ounces of gold in
the Measured and Indicated Categories at a grade of 7.63g/t Au and
69,300 ounces of gold in the Inferred Category at a grade of
5.32g/t Au, an increase of 198,000 ounces in comparison to the 2017
feasibility study or 78,000 ounces in comparison to the 2018
resource in the measured and indicated resource categories.
- On September 30, 2019, the
Company’s common shares were approved for listing on the Toronto
Stock Exchange (the “TSX”) and commenced trading on the TSX at the
opening of market on October 1, 2019. Ascot's trading symbol
remained "AOT".
- On January 15, 2020, the Company
announced an updated Resource Estimate for the Premier Gold Project
including the Silver Coin, Big Missouri and Premier deposits titled
“Resource Estimate Update for the Premier Gold Project, Stewart,
British Columbia, Canada” with an effective date of December 12,
2019. The update represents a 60% increase in the Indicated
Category compared to the previous Resource Estimate. The contained
precious metals at the Premier Gold Project are 1,066,000 ounces of
gold at a grade of 8.01g/t Au and 4,669,000 ounces of silver at a
grade of 35.1g/t Ag in the Indicated Category and 1,180,000 ounces
of gold at a grade of 7.25g/t Au and 4,673,000 ounces of silver at
a grade of 28.7g/t Ag in the Inferred Category. Ascot’s combined
resources for the Premier and Red Mountain Projects have total
contained precious metals of 1,849,000 ounces of gold at a grade of
7.85g/t Au and 6,824,000 ounces of silver at a grade of 29.0g/t Ag
in the Measured & Indicated Category and 1,250,000 ounces of
gold at a grade of 7.11g/t Au and 4,769,000 ounces of silver at a
grade of 27.1g/t Ag in the Inferred Category.
- On February 25, 2020, the Company
closed its non-brokered private placement (the “Private Placement”)
of 5,126,250 flow-through shares at a price of $0.98 per
Flow-Through Share, and 8,170,588 common shares at a price of $0.64
per common share for aggregate gross proceeds of $10.3 million. The
net proceeds from the Private Placement will be primarily used to
fund exploration activities, permitting, engineering and economic
studies and for general corporate and working capital
purposes.
Financial Results for the Year Ended
December 31, 2019
The Company reported a net loss of $7.8 million
for the twelve months ended December 31, 2019 compared to a net
income of $6.3 million for the nine months ended December 31, 2018.
The income in 2018 was mainly driven by the deferred income tax
recovery of $9.9 million as a result of the recognition of deferred
tax assets arising from Canadian tax losses to the extend of the
deferred tax liabilities following the completion of the Premier
mine acquisition. The Company changed its year end from March 31 to
December 31 on March 26, 2018. The comparative period was nine
months ended December 31, 2018.
Qualified Persons John Kiernan,
P. Eng., Chief Operating Officer of the Company is the Company’s
Qualified Person (QP) as defined by National Instrument 43-101 and
has reviewed and approved the technical contents of this news
release.
ON BEHALF OF THE BOARD OF DIRECTORS OFASCOT RESOURCES
LTD.
“Derek C. White”, President and
CEO
For further information contact:Kristina Howe
VP, Investor Relations 778-725-1060 / khowe@ascotgold.com
About Ascot Resources
Ltd. Ascot is a Canadian-based junior exploration
company focused on re-starting the past producing historic Premier
gold mine, located in British Columbia's Golden Triangle. The
Company continues to define high-grade resources for underground
mining with the near-term goal of converting the underground
resources into reserves, while continuing to explore nearby targets
on its Premier/Dilworth and Silver Coin properties (collectively
referred to as the Premier Gold Project). Ascot's acquisition
of IDM Mining added the high-grade gold and silver Red Mountain
Project to its portfolio and positions the Company as a leading
consolidator of high-quality assets in the Golden Triangle.
For more information about the Company, please
refer to the Company’s profile on SEDAR at www.sedar.com or visit
the Company’s web site at www.ascotgold.com, or for a virtual tour
visit www.vrify.com under Ascot Resources.
The TSX Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this
release.
Cautionary Statement Regarding
Forward-Looking InformationAll statements, trend analysis
and other information contained in this press release about
anticipated future events or results constitute forward-looking
statements. Forward-looking statements are often, but not always,
identified by the use of words such as “seek”, “anticipate”,
“believe”, “plan”, “estimate”, “expect” and “intend” and statements
that an event or result “may”, “will”, “should”, “could” or “might”
occur or be achieved and other similar expressions. All statements,
other than statements of historical fact, included herein are
forward-looking statements, including statements in respect of the
closing of the Private Placement and the use of proceeds. Although
Ascot believes that the expectations reflected in such
forward-looking statements and/or information are reasonable, undue
reliance should not be placed on forward-looking statements since
the Ascot can give no assurance that such expectations will prove
to be correct. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements, including the risks, uncertainties and
other factors identified in the Ascot’s periodic filings with
Canadian securities regulators, and assumptions made with regard
to: the estimated costs associated with construction of the Premier
and Red Mountain Projects; the timing of the anticipated start of
production at the Premier and Red Mountain Projects; the ability to
maintain throughput and production levels at the Premier Mill.
Forward-looking statements are subject to business and economic
risks and uncertainties and other factors that could cause actual
results of operations to differ materially from those contained in
the forward-looking statements. Important factors that could cause
actual results to differ materially from Ascot’s expectations
include risks associated with the business of Ascot; risks related
to exploration and potential development of Ascot’s projects;
business and economic conditions in the mining industry generally;
fluctuations in commodity prices and currency exchange rates;
uncertainties relating to interpretation of drill results and the
geology, continuity and grade of mineral deposits; the need for
cooperation of government agencies and indigenous groups in the
exploration and development of properties and the issuance of
required permits; the need to obtain additional financing to
develop properties and uncertainty as to the availability and terms
of future financing; the possibility of delay in exploration or
development programs and uncertainty of meeting anticipated program
milestones; uncertainty as to timely availability of permits and
other governmental approvals; and other risk factors as detailed
from time to time and additional risks identified in Ascot’s
filings with Canadian securities regulators on SEDAR in Canada
(available at www.sedar.com). Forward-looking statements are based
on estimates and opinions of management at the date the statements
are made. Ascot does not undertake any obligation to update
forward-looking statements.
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