Amarillo Gold Corporation (TSXV: AGC, OTCQB: AGCBF) continued to
explore its financing options for the Posse Gold Project during the
second quarter, said the Company today as it announced its
financial results for the six months ended June 30, 2021.
“Our goal is to find the right financing option for
our shareholders,” said Mike Mutchler, Amarillo’s Chief Executive
Officer. “We want to make sure that our ultimate choice minimizes
dilution and maximizes return for our shareholders.”
“We’ve continued to make great progress at Posse,”
added Mutchler, “and launched a successful exploration program at
Lavras do Sul, our second property, where our goal is to open a
second development front.”
As Amarillo reported last quarter, the Company had
an exclusivity arrangement with an established financier that
expired at the end of March. Under that arrangement, Amarillo
completed significant technical due diligence, a process that
raised no red flags. However, the Company chose not to extend the
exclusivity, so that it could explore whether there would be other
financing options available that would be better for Amarillo. Over
the course of the arrangement, Amarillo has significantly de-risked
the project, and as such, believes that it could get better terms
than were originally contemplated.
Amarillo continues to explore all its options. This
process is by nature unpredictable, so it’s difficult to set
timelines around how long it will take, though Amarillo believes
this approach will result in a better outcome for shareholders in
the long term.
In the meantime, the advancements at Posse
include:
- More than 90% of the
land for the project area has been acquired; we’re acquiring the
final parcel and that process should be completed shortly
- 45% of the overall
project detailed engineering, including 91% of the early works
detailed engineering, has been completed; balance of engineering
will be based on major equipment acquisitions that will be
purchased subject to project financing
- Plan is to purchase
vendor drawings for ball mill to advance detailed engineering
- Permits for three of
our waste rock piles have been received
- 92% of the engineering
documentation for the crushing plant is finished; 3D model is
complete
- Equipment engineering
for the grinding circuit is complete
- Equipment engineering
for the filtration circuit is expected to be completed in
September.
Since signing the power line agreement, 86% of the
land needed to build the power line has been acquired. Engineering
is complete and overall project approval is pending from Amarillo’s
partner, Enel Brasil, the state electric power utility. The License
to Install for the power line remains outstanding. Civil works for
equipment supports and fencing are ongoing at the Porangatu
substation, and the technical analysis for the main substation has
been completed.
One of the terms of the License to Install for
Posse is to develop and train local labour. Over 2,000 people have
registered at Amarillo’s training centre in the town of Mara Rosa
since it opened in February, and over 500 people have been trained
through 36 courses between January and July.
During the quarter, an 8,500-metre drill program
was launched targeting four areas close to the Posse Gold Deposit.
The aim is to identify potentially economic gold deposits that
could add to Posse’s existing resources and reserves and enhance
its production profile.
At Lavras do Sul, Amarillo consolidated its land
position. A successful exploration program was begun, with the
Company drilling a significant gold-hosting structural zone during
at Matilde, one of 23 highly prospective gold targets on the
property.
Two holes located 50 metres apart along an
east-west strike direction were drilled at Matilde, confirming the
primary source of gold of an overlying gold-in-soil anomaly. Wide
intervals of gold mineralization were intersected from surface in
both holes.
Amarillo remains very fortunate with respect to
Covid-19. A few of employees in Brazil have tested positive, but
all have fully recovered. Approximately 86% of Amarillo’s personnel
have had their first vaccine, as well 36% of the contractors.
The Company continues to have full access to our
properties and consultants have been able to work without
interruption. In Canada, the Toronto-based management team has been
working from home since mid-March 2020. So far, Covid-19 has not
had a material impact on Amarillo’s financial condition or
performance.
At the corporate level, the Company announced its
succession plan for our country manager after quarter end. Paulo
Serpa, an accomplished mining engineer from Brazil, will succeed
Arão Portugal as Country Manager for Amarillo’s Brazilian
subsidiaries when Mr. Portugal retires at the end of September.
Following Mr. Serpa’s appointment, Mr. Portugal will remain active
with the Company, serving as special adviser to the CEO.
Amarillo’s new website and social media channels
were launched during the quarter, and it attended two virtual
conferences. It will participate in three to four conferences, a
mix of in-person and virtual events, this fall.
Cash on hand at the end of the second quarter was
$40.5 million, most of which is invested in short term savings and
investment accounts awaiting deployment for constructing Posse,
exploration, and general corporate purposes.
The Company issued 500,000 stock options to new
employees during the first half of 2021: 200,000 options at $0.33
and 300,000 options at $0.34. Another 50,000 at $0.30 were issued
after quarter end. All the options have a five-year term.
WEBCAST
Amarillo’s CEO, Mike Mutchler, will give a
corporate update during his presentation from the Precious Metals
Summit Beaver Creek on Saturday, September 11, 2021, at 10:15 a.m.
MDT/12:15 p.m. EDT.
Shareholders and other stakeholders are encouraged
to listen in at this
link: https://wsw.com/webcast/preciousmetals3/agc.v/.
He will also present at the Gold Forum Americas on
Monday, September 13 at 10:00 a.m. MDT/1:00 p.m. EDT:
https://www.denvergold.org/company-live-session/xpl21/443/.
ABOUT AMARILLO
Amarillo is advancing two gold projects located
near excellent infrastructure in mining-friendly states in
Brazil.
The development stage Posse Gold Project is on the
Company’s Mara Rosa Property in Goiás State. It has a positive
definitive feasibility study that shows it can be built into a
profitable operation with low costs and a strong financial return.
Mara Rosa also shows the potential for discovering additional
near-surface deposits that will extend Posse’s mine life beyond its
initial 10 years. The exploration stage Lavras do Sul Project in
Rio Grande do Sul State has more than 23 prospects centered on
historic gold workings.
Amarillo trades on the TSXV under the symbol AGC
and the OTCQB under the symbol AGCBF. Visit www.amarillogold.com to
learn more about the Company’s focus on becoming a mid-tier
Brazilian gold producer.
Follow us on LinkedIn, Twitter, and YouTube.
CONTACT INFORMATION
Mike MutchlerPresident &
CEO416-294-0736mike.mutchler@amarillogold.com |
Annemarie BrissendenInvestor
Relations416-844-6284annemarie.brissenden@amarillogold.com |
NOTES
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
the content of this news release.
Forward-looking statements
This news release contains forward-looking
statements regarding the Company’s current expectations regarding
future events, including its business, operations and condition,
and management’s objectives, strategies, beliefs and
intentions.
Various factors may prevent or delay our plans,
including but not limited to, the trading price of the common
shares of the Company, capital market conditions, impacts from the
coronavirus or other epidemics, counterparty risk, TSXV
approval(s), contractor availability and performance, weather,
access, mineral and gold prices, and success and failure of the
exploration and development carried out at various stages of the
program. Permission from the government and community is also
required to proceed with future mining production. Readers should
review the Company’s ongoing quarterly and annual filings, as well
as any other additional documentation comprising the Company’s
public disclosure record, for additional information on risks and
uncertainties relating to these forward-looking statements.
Readers should also review the risk factors
applicable to junior mining exploration companies generally to
better understand the variety of risks that can affect the Company.
The Company undertakes no obligation to update publicly or
otherwise revise any Forward-looking statements whether as a result
of new information or future events or otherwise, except as may be
required by law.
PDF
available: http://ml.globenewswire.com/Resource/Download/5e29f9ef-519d-4f2b-a3da-6d0d911f2ad9
Amarillo Gold (TSXV:AGC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Amarillo Gold (TSXV:AGC)
Historical Stock Chart
From Apr 2023 to Apr 2024