Vancouver, B.C. August 10, 2021 — Ascot Resources Ltd (TSX: AOT; OTCQX: AOTVF) (“Ascot” or the “Company”) announces the Company’s unaudited financial results for the three and six months ended June 30, 2021 (“Q2 2021”). For details of the unaudited condensed interim consolidated financial statements and Management’s Discussion and Analysis for the three and six months ended June 30, 2021, please see the Company’s filings on SEDAR (www.sedar.com).
Derek White, President and CEO, commented, “Ascot’s pace of advance continued in Q2 with significant progress being made on many fronts. The company closed equity financings totalling C$81M, which de-risked project funding requirements and saw Yamana Gold’s entrance as a new strategic shareholder. Once snow levels subsided, crews mobilized to progress through the Early Works program, which is primarily focused on refurbishing and preparing the mill building for ball and SAG mill deliveries in Q3. Subsequent to quarter end we were pleased to announce the signing of an updated Benefits Agreement with Nisga’a Nation which now encompasses both PGP and RMP and sets the basis for the long-term success of the projects for all stakeholders. We are in the third and final round of technical review comments for the project permit amendment, and continue to expect its issuance in Q3 which will allow full-scale construction at PGP. The exploration program has kicked off by identifying new areas of high-grade mineralization outside of existing resources. We anticipate a higher cadence of exploration results throughout the remainder of 2021 as drilling moves to Woodbine and the Day Zone, and as we add a second surface drill rig in the coming weeks.”
All amounts herein are reported in $000s of Canadian dollars (“C$”) unless otherwise specified
Q2 2021 AND RECENT HIGHLIGHTS
- On August 9, 2021, the Company announced high-grade exploration drill results including 21.13 g/t Au over 7.00m in a step-out hole at PGP.
- On July 19, 2021, the Company announced the signing of an updated Benefits Agreement with Nisga’a Nation, which now encompasses both PGP and RMP. The updated Benefits Agreement replaces the former agreement which only pertained to RMP. The comprehensive Benefits Agreement sets the basis for the long-term success of the Project and how it will benefit Nisga’a Nation, its citizens and businesses as well as the shareholders and stakeholders of Ascot.
- On July 8, 2021, the Company announced the discovery of new high-grade copper, gold, and silver mineralization at the PGP property.
- Throughout Q2 and currently, the Early Works program is making significant progress on site in a few construction areas. The mill building overhead crane was successfully rebuilt, certified, and set up. Crews began extensive cleaning of the mill building. Temporary power has been installed by repairing and energizing the existing power line. Crews have also begun modifying the mill foundations in advance of installing ball and SAG mill components, some of which have already arrived on site.
- On June 7, 2021, the Company closed a non-brokered private placement of 2,651,796 flow-through shares at an average price of $1.42 per flow-through share for gross proceeds of $3,765.
- On June 3, 2021, the Company appointed David Stewart as Vice President Corporate Development & Shareholder Communications. Mr. Stewart has a decade of mining sector experience spanning both domestic and overseas mine development, operations and engineering, and including five years of sell-side precious metals equity research.
- On May 17, 2021, the Company announced its planned 2021 exploration program that involves approximately 25,000 metres of drilling both from surface and underground starting in the last week of May 2021.
- On April 20, 2021, the Company closed a bought deal private placement. A total of 24,000,000 common shares of the Company were sold at a price of $0.86 per common share for gross proceeds of $20,640. The proceeds will be used to fund the construction of PGP as well as for working capital and general corporate purposes.
- On April 9, 2021, the Company closed a bought deal financing. A total of 70,700,000 common shares of the Company were sold at a price of $0.86 per common share for gross proceeds of $60,802. The proceeds will be used to fund the construction of PGP and for general working capital purposes. This bought deal financing met the minimum equity raise requirement in the credit agreement of the Company’s credit facilities.
FINANCIAL RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2021
The Company reported a net loss of $3,751 for Q2 2021 compared to a net loss of $1,189 for Q2 2020. The loss in Q2 2021 is mainly driven by a $1,988 accounting loss on change in fair value of derivatives and a $687 decrease in gain on marketable securities driven by fluctuations in quoted share prices of the securities held by the Company.
LIQUIDITY AND CAPITAL RESOURCES
As at June 30, 2021, the Company had cash & cash equivalents balance of $109,251. Included in cash and cash equivalents is $3,156, which is required to be spent on flow-through expenditures prior to December 31, 2022. During the six months ended June 30, 2021, the company issued 97,351,796 common shares and granted 403,190 stock options, 26,984 DSUs and no RSUs.
MANAGEMENT’S OUTLOOK FOR 2021
Management is planning a number of activities for the remainder of 2021, which include:
- Continuing to progress on 2021 exploration plan at higher elevations to focus on prospective area near the Day Zone and north of Premier deposit. A second surface drill rig is planned to be added in the coming weeks.
- Progressing to the third stage of review comments from the regulators and NLG on Joint MA/EMA Application with a target to completion in Q3, 2021.
- Continuing to advance detailed engineering, Early Works construction program including the installation of the Ball and SAG mill in Q3 2021 and ordering of other long lead time equipment.
- Progressing the early works on the water treatment plant and water distribution system and haul road upgrades and installation of the construction camp.
On behalf of the Board of Directors of Ascot Resources Ltd.
“Derek C. White”
President & CEO
For further information contact:
David Stewart, P.Eng.
VP, Corporate Development & Shareholder Communications
dstewart@ascotgold.com
778-725-1060 ext. 1024
About Ascot Resources Ltd.
Ascot is a Canadian-based junior exploration and development company focused on re-starting the past-producing Premier gold mine, located in British Columbia’s prolific Golden Triangle. Concurrent with progressing the development of Premier, the Company continues to successfully explore its properties for additional high-grade underground resources. Ascot is committed to the safe and responsible development of Premier in partnership with Nisga’a Nation as outlined in the Benefits Agreement.
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.
