NGEx Reports 2018 Results
NGEx Reports 2018 Results |
[20-February-2019] |
VANCOUVER, Feb. 20, 2019 /CNW/ - NGEx Resources Inc. (TSX: NGQ) (Nasdaq Stockholm: NGQ) ("NGEx" or the "Company") is pleased to announce its results for the year ended December 31, 2018. View PDF Version.
HIGHLIGHTS
OUTLOOK The Company continues to optimize and de-risk its advanced stage projects by exploring options and alternatives to advance each towards eventual development. Management is pursuing the following opportunities to add value to the Company's projects:
The Company is targeting completion of a feasibility study on the JosemarÃa Project by the second quarter of 2020, with the objective of advancing the project towards permitting and eventual development. The Company plans to review development options for the Los Helados project. In addition to work programs planned for the Company's advanced-stage projects, the Company will continue to advance its early-stage exploration projects in the upcoming season. In particular, the Company will use the information gathered from the initial scout drilling campaign at Nacimientos to plan a more extensive drill program. The Company will also continue to evaluate other exploration projects for potential acquisitions and to lay the groundwork for its next generation of projects. To devote adequate resources towards the completion of a FS and development of the JosemarÃa Project, the Company is considering a restructure of its operations through a transaction that would separate the JosemarÃa Project from the Company's other projects through a Plan of Arrangement under the Canada Business Corporations Act. The completion of any spin-out and any listing of the resulting entity would be subject to completion of a definitive agreement, regulatory approval, including the approval of the TSX, the approval of shareholders of the Company and the Supreme Court of British Columbia. The final terms of the structure, including the spin-out ratio to NGEx shareholders, retained equity level and timing of the record date are expected to be determined in due course, and remain subject to definitive documentation and approval by the board of directors. Notwithstanding the foregoing, the board of directors reserve the right to elect not to proceed with any spin-out. SELECTED FINANCIAL INFORMATION
LIQUIDITY AND CAPITAL RESOURCES The Company began the process of securing additional sources of financing for its exploration program and operations during the fourth quarter of 2018 by securing a US$5 million unsecured credit facility (the "2018 Facility"). The amounts drawn on the 2018 Facility was repaid in full on February 5, 2019 following the completion of the $20 million private placement which closed on February 1, 2019. The Company plans to use the net proceeds of the private placement towards ongoing work programs in Argentina and Chile, including: a feasibility study on the JosemarÃa Project; engineering and exploration studies on the Company's other projects; repayment of the balance drawn on the Company's credit facility, which was completed on February 5, 2019; and for general corporate purposes. On an ongoing basis, management evaluates and adjusts as necessary its planned level of activities, including planned exploration and administrative costs to ensure adequate levels of working capital are maintained. The reduction in cash and working capital from the prior year was attributable to ongoing exploration activities, including mineral property acquisitions and corporate working capital expenditures during 2018. The $3.7 million working capital deficiency as at December 31, 2018 was remediated upon completion of the private placement in February 2019. FINANCIAL RESULTS
The Company's net loss for the year ended December 31, 2018 totaled $15.1 million. Exploration expenditures are the most significant expenditures of the Company and reflect the costs of conducting exploration activities and project investigations on its South American projects. The increase in exploration expenditures for the year ended December 31, 2018, compared to the prior year, is due to the advancement of the JosemarÃa project with the completion of a PFS and carrying out field work in support of a feasibility study during the fourth quarter of 2018. The Company has also completed a three-hole scout drilling program to test and confirm the geological model at Nacimientos, which has resulted in higher exploration costs incurred during the year. General and administration ("G&A") costs for 2018 increased from $2.9 million to $3.4 million, as a result of higher share-based compensation, which is a non-cash cost reflecting the expenses associated with the vesting of outstanding options during the period. Excluding share-based compensation, G&A costs for the year ended December 31, 2018 totaled $2.6 million, which is relatively consistent with the $2.5 million reported for the prior year. The Company incurred higher promotion and public relations costs as management hosted a site visit for investors and analysts, participated in more industry conferences and undertook additional promotional marketing trips during the year. The increase in public relations costs was offset by a reduction in incentive bonuses paid in 2018. Qualified Persons About NGEx Additional Information This information is information that NGEx Resources Inc. is obliged to make public pursuant to the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, on February 20, 2019 at 7:00 p.m. Pacific Time. On behalf of the board Wojtek Wodzicki Cautionary Note Regarding Forward-Looking Statements All statements other than statements of historical fact may be forward-looking statements. Forward-looking information is necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks and uncertainties relating to, among other things, the inherent uncertainties regarding cost estimates, changes in commodity and metal prices, currency fluctuation, financing, unanticipated resource grades and recoveries, infrastructure, results of exploration activities, cost overruns, availability of materials and equipment, timeliness of government approvals, taxation, political risk and related economic risk and unanticipated environmental impact on operations as well as other risks and uncertainties more fully described under "Risks Factors", and elsewhere, in the Company's most recent Annual Information Form available under the Company's profile at www.sedar.com and the Company's website. The Company believes that the expectations reflected in the forward-looking statements and information included in this press release are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements and information should not be unduly relied upon. This statement and information speaks as of the date of the press release. In particular, this press release contains forward-looking statements or information with respect to the timing of a feasibility study of the JosemarÃa Project; the anticipated use of proceeds from the private placement financing; statements regarding a proposed restructuring of its operations and board, shareholder, court and regulatory approval thereof; environmental studies; exploration and development plans and activities; cost estimates and other assumptions used in the JosemarÃa PFS and expectations from the JosemarÃa PFS; the assumptions used in the mineral reserves and resources for the JosemarÃa project; the assumptions used in the mineral resources for the Los Helados project; exploration and development expenditures; the timing and nature of any potential development scenarios; opportunities to improve project economics; potential regional synergies and cooperative development plans with other regional operators; exploration targets; the evaluation and potential acquisition of new copper-gold exploration projects; estimations for copper and other commodity prices, mineral reserves and resources; costs; success of exploration activities; expectations with regard to adding to mineral resources through exploration; permitting time lines; ability to obtain surface and water rights and property interests; currency exchange rate fluctuations; requirements for additional capital; government regulation of mining activities; environmental risks; unanticipated reclamation expenses; title disputes or claims; limitations on insurance coverage; and other risks and uncertainties. Forward-looking information is based on certain assumptions that the Company believes are reasonable, including that the current price of and demand for commodities will be sustained or will improve, the supply of commodities will remain stable, that the general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms and that the Company will not experience any material labour dispute, accident, or failure of plant or equipment. These factors are not, and should not be construed as being, exhaustive. Although the Company has attempted to identify important factors that would cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. All of the forward-looking information contained in this document is qualified by these cautionary statements. Readers are cautioned not to place undue reliance on forward-looking information due to the inherent uncertainty thereof. SOURCE NGEx Resources Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Codes: Toronto:NGQ |
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