VANCOUVER, May 31, 2016 /CNW/ - Red Eagle Mining
Corporation (TSX-V: RD, OTCQX: RDEMF, SSE-V: RDCL) is pleased
to announce financial results for the three months ending
March 31, 2016 and business
highlights to date, including advancements at Red Eagle Mining's
San Ramon Gold Mine in Antioquia, Colombia.
Development and Construction of the San Ramon Gold Mine and
Mill
The overall project is approximately 70% complete (based on
physical completion), with earthworks, concrete, platework,
steelwork and mechanical equipment installation on schedule for
100% practical completion in July
2016. Piping, electrical and instrumentation installation
would continue to completion during Q3 2016.
Project highlights include:
EPCM
Detailed engineering, drawings, and all 3D models for all
structures are complete. The quantities and scope for unit
rate construction contracts have been defined and awarded. The
quantities, scope and prices achieved to date are all within
budget. The EPCM contract has now shifted in focus to "CM" –
construction management.
Earthworks
Bulk earthworks were largely completed by the end of 2015,
allowing critical concrete foundations to be poured prior to the
close of the year. All cut slopes have been hydro-seeded with
natural grasses to mitigate environmental impact. All earthworks
and grass hydro-seeding was complete, apart from the dry tailings
and mine waste rock management facility; the construction of which
is still proceeding.
Concrete
All critical concrete foundations were completed before the end
of 2015. All major concrete foundations have been completed, and
concrete works are approximately 90% complete.
Procurement and Logistics
By November 2015, Red Eagle Mining
had placed all process and infrastructure equipment orders
necessary to complete construction of the San Ramon Gold Mine and
Mill. Deliveries of equipment commenced in January 2016 and by March
31, 2016, deliveries for the majority of all major equipment
to site were complete.
Structural Steel and Field Erected Tanks
Structural steel fabrication is well advanced and field erected
tanks are fabricated and delivered to site and erection is in
progress. Welding and erection of major tanks are 100% complete,
short of paintwork.
Mechanical Piping, Platework, and Electrical
Instrumentation
Mechanical platework fabrication is in progress. Major bins and
chutes have been delivered to site. Mechanical installation
is in progress with the main focus on the SAG mill and Filter
presses installation. Electrical bulk procurement is progressing
well. The vast majority of all instruments have been
fabricated and are being shipped to site. The SAG mill is
approximately 90% complete, and the filter presses are
approximately 75% complete, with all components on site.
Underground Mine Development
The underground decline has been collared and tunneling
activities are ongoing. Initial ground conditions are as predicted
– weak weathered granodiorite (saprolite), requiring conventional
steel support and shotcrete. The decline development is in line
with the processing facility and infrastructure schedules to
achieve production during the second half of 2016. Additionally,
detailed ore production stope delineation drilling has commenced,
in preparation for this schedule.
Community Relations and Corporate Social Responsibility
("CSR")
Red Eagle Mining continues to maintain positive relationships
with and be involved with the local communities, keeping them
informed of the advances during the construction of the mine, as
well as its environmental and CSR related activities. To date, Red
Eagle Mining has consistently received positive reception and
support from local communities and stakeholders on the project.
Environmental Progress
Red Eagle Mining has strictly adhered to the terms of its
Environmental License, and the associated Environmental Management
Plan has been followed diligently – inspections and reports to date
have all been positive and in good order.
Red Eagle Mining expects to achieve the upcoming major
development and construction milestones:
- SAG mill and filter presses installation completed in
June 2016;
- All mechanical platework installation completed in June 2016;
- Pre-commissioning to commence in Q3 2016;
- Mine and mill construction completion in Q3 2016;
- First gold pour to occur in the second half of 2016; and
- Commercial production by the end of 2016
Project Financing
Based upon Red Eagle Mining's projections and estimated
construction progress made as at April 30,
2016, the construction of Red Eagle Mining's 100% owned San
Ramon Gold Mine and Mill is forecast to be funded through to full
production. As at April 30, 2016, Red
Eagle Mining had approximately US $25
million in cash, and has up to US $15
million available under the credit facility with
approximately US $29 million of
project costs left to incur.
Selected financial data
The following selected financial data is derived from our
unaudited interim condensed consolidated financial statements for
the three months ended March 31,
2016, as prepared in accordance with International Financial
Reporting Standards (all amounts in CA$).
|
|
|
For the three
months ended
|
March 31,
2016
|
March 31,
2015
|
Net Loss
|
$ 198,822
|
$ 2,805,754
|
Comprehensive
Loss
|
312,283
|
2,795,075
|
Basic and Diluted
Loss per Share
|
0.00
|
0.04
|
|
|
|
As
at
|
March 31,
2016
|
December 31,
2015
|
Cash and cash
equivalents
|
$ 28,617,808
|
$ 10,347,916
|
Total
Assets
|
101,438,067
|
62,582,686
|
Total
Liabilities
|
71,048,959
|
33,573,430
|
Shareholders'
equity
|
30,389,108
|
29,009,256
|
For the three months ended March 31,
2016, Red Eagle Mining reported a net loss of $0.2 million (2015: $2.8
million). The net loss was reduced compared to the
2015 period as Red Eagle Mining commenced capitalization of direct
costs associated with the development of the San Ramon Gold Mine
and also from a higher foreign exchange gain. The increase in Total
Liabilities primarily relates to amounts outstanding on the
construction credit facility.
This press release should be read in conjunction with the
unaudited interim condensed consolidated financial statements and
Management's Discussion and Analysis for the three months ended
March 31, 2016. These documents
can be found on Red Eagle Mining's website or profile at
www.sedar.com.
The technical information contained in this news release has
been reviewed and approved by Red Eagle Mining's Vice President of
Exploration, Jeff Toohey P.Eng., who
is a Qualified Person as defined under NI 43-101.
General Counsel Appointment
Effective June 6, 2016, Mischa
Zajtmann will be appointed as Vice President & General
Counsel of Red Eagle Mining. He began his career as an associate in
the securities and business law group of Blake, Cassels &
Graydon LLP where he gained significant experience with respect to
public companies, capital markets, securities laws and the natural
resources sector. In 2013, Mr. Zajtmann joined Oxygen Capital, as
General Counsel and was responsible for all legal matters affecting
Oxygen and its portfolio entities, which include True Gold, Pilot
Gold, and Pure Gold. Mr. Zajtmann obtained his LLB from the
University of Saskatchewan in 2008 and
is called to the bar in both B.C. and Alberta.
Mr. Zajtmann replaces Matthew
Howorth whom the Board of Directors wishes well in his
future endeavours.
About Red Eagle Mining
Red Eagle Mining is a well-financed gold exploration and
development corporation with an experienced mine development
team. Management is focused on building shareholder value
through discovering and developing gold projects with low costs and
low technical risks in Colombia, a
jurisdiction with prolific historic production but until recently
limited modern exploration. Red Eagle Mining owns 71% of the
Vetas Gold Project and 100% of the Santa Rosa Gold Project, where
construction is underway at the fully permitted and fully financed
San Ramon Gold Mine with production expected to commence in the
second half of 2016.
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. This news release includes
forward-looking statements that are subject to risks and
uncertainties. All statements within, other than statements
of historical fact, are to be considered forward looking.
Although Red Eagle Mining believes the expectations expressed
in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future
performance and actual results or developments may differ
materially from those in 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, and general economic, market or business conditions.
There can be no assurances that such statements will prove
accurate and, therefore, readers are advised to rely on their own
evaluation of such uncertainties. We do not assume any
obligation to update any forward-looking statements. This news
release does not constitute an offer to sell or a solicitation of
an offer to sell any securities in the United States. The
securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be
offered or sold within the United
States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
SOURCE Red Eagle Mining Corporation