Ascot Resources Announces 2020 First Quarter Financial Results

VANCOUVER, British Columbia, May 12, 2020 (GLOBE NEWSWIRE) -- Ascot Resources Ltd. (TSX: AOT; OTCQX: AOTVF) (“Ascot” or the “Company”) announces the Company’s unaudited financial results for the three months ended March 31, 2020 (“Q1 2020”). For details of the unaudited condensed interim consolidated financial statements and Management's Discussion and Analysis for the three months ended March 31, 2020, please see the Company’s filings on SEDAR (www.sedar.com).

All amounts herein are reported in $000s of Canadian dollars (“C$”) unless otherwise specified.

Q1 2020 AND RECENT HIGHLIGHTS

• 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, representing a 60% increase in the Indicated Category (see News Release dated January 15, 2020);
• 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;
• On April 15, 2020, the Company reported robust feasibility study results with after-tax internal rate of return (“IRR”) of 51%. The feasibility study was prepared in accordance with an NI 43-101 technical report for Ascot’s 100% owned Premier and Red Mountain gold projects. The feasibility study outlines a low capital restart plan to feed the Premier mill at 2500 tonnes per day to produce approximately 1.1 million ounces of gold and 3.0 million ounces of silver over eight years.

Ascot’s President and CEO, Derek White commented, “Ascot continues to work towards re-starting the Premier mine. In the first quarter of 2020, we were very pleased to announce results from an independent feasibility study, highlighting a low capex and significant IRR of 51%. Financial support from our shareholders via a private placement in February provided Ascot with the necessary funds for key activities in 2020.”

FINANCIAL RESULTS – THREE MONTHS ENDED MARCH 31, 2020

The Company reported a net loss of $3,484 for Q1 2020 compared to $1,336 for the same quarter in 2019. Higher net loss for Q1 2020 was mainly due to $842 higher stock-based compensation charge and $1,081 foreign exchange loss. Higher stock-based compensation for Q1 2020 was a result of the grant of stock options, deferred share units (“DSU”) and restricted share units (“RSU”). There were no stock options, DSUs and RSUs issued in Q1 2019. Foreign exchange loss for Q1 2020 was due to the effect of strengthened U.S. Dollar on the U.S. Dollar denominated convertible note with Sprott Private Resource Lending (Collector), LP and Resource Income Partners Limited Partnership.