Aquila Resources Announces First Quarter 2021 Financial Results
Aquila Resources Inc. (TSX: AQA, OTCQB: AQARF) (“Aquila” or the “Company”) announces the filing of its financial results for the first quarter ended March 31, 2021. All amounts, unless indicated, are reported in US dollars.
Guy Le Bel, President & CEO, commented, “Since joining Aquila as President & CEO in February, my focus has been making an already strong project even better. I am pleased with the progress our team is making on the optimized Back Forty Project Feasibility Study, which will demonstrate reduced surface impact and a longer mine life for the benefit of all stakeholders. I continue to be impressed by Michigan as a jurisdiction, notably highlighted by last week’s Senate resolution in support of responsible mining in the State. We look forward to advancing the Back Forty though its next phase of development, while at the same time evaluating opportunities to realize additional value for shareholders through the monetization of our non-core assets.”
FIRST QUARTER HIGHLIGHTS
- As at March 31, 2021, Aquila had cash of $0.8 million and negative working capital of $1.8 million. This compared to cash of $1.8 million and negative working capital of $0.8 million at December 31, 2020. The decrease in working capital is primarily due to permitting and legal activities at its Back Forty Project. The Company is focused on securing financing in the near-term.
- On February 1, 2021, the Company appointed Guy Le Bel as President & CEO of Aquila. Barry Hildred transitioned to the role of Executive Chair of the Board of Directors and Ted Munden, outgoing Chair of the Board of Directors, was appointed to the position of Lead Director. Mr. Le Bel brings more than 35 years of experience in business and project development, strategic and financial planning, and permitting in the Americas to Aquila.
- In March 2021, Aquila announced that it entered into definitive agreements (the “2021 Stream Agreement Amendments”) with a subsidiary of Osisko Gold Royalties Ltd (“OGR”) to amend certain terms of the Gold Stream and Silver Stream in order to provide additional flexibility. Under the terms of the 2021 Stream Agreement Amendments, OGR agreed to adjust certain milestone dates under the Gold Stream and the Silver Stream to align the streams with the current project development timeline.
- In March 2021, Aquila engaged Osisko Technical Services (“OTS”) to lead an optimized feasibility study (the “Feasibility Study”) for the Back Forty Project. OTS’ technical team has a proven track record of project execution. Aquila will leverage the team’s combined engineering, permitting, construction and operating expertise to unlock value and advance the Back Forty Project through its next phase of development.
- In January 2021, an administrative law judge for the Michigan Office of Administrative Hearings and Rules (the “Administrative Law Judge”) issued a decision denying the prior issuance of the Back Forty Wetlands Permit, which had been previously issued by the Michigan Department of Environment, Great Lakes, and Energy (“EGLE”). Aquila has appealed the Administrative Law Judge’s decision to EGLE’s environmental review panel (the “Panel”).
- In January 2021, the Michigan Public Service Commission issued a decision rejecting Alger Delta Power Cooperative’s objections to Upper Michigan Energy Resources Corporation’s (UMERC) filing of its Notice of Intent to Serve the Back Forty Mine. That decision was reaffirmed by the Commission in its April order addressing Alger Delta’s motion for reconsideration. The Company believes this decision paves the way for Aquila to choose whichever electrical service provider it deems best for the Back Forty Project.
POST QUARTER HIGHLIGHTS