Ascot Resources Reports 2021 First Quarter Financial Results
VANCOUVER, British Columbia, May 13, 2021 (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, 2021 (“Q1 2021”). For details of the unaudited interim
condensed consolidated financial statements and Management's Discussion and Analysis for the three months ended March 31, 2021, please see the Company’s filings on SEDAR (www.sedar.com).
Derek White, President and CEO, commented, "Ascot has had a very productive first quarter of 2021, which included submitting the permit amendment application and completing the basic engineering. Subsequent to the quarter end, the Company raised just over $80 million, which together with our project financing facilities provides the funding to construct the Premier Gold Project (“PGP”). Ascot team is preparing the early work and construction planning and we anticipate mobilising people on site to advance the project in late May. Additionally, we see an opportunity to further advance on our numerous exploration targets and convert inferred resources into the mine plan both from underground and surface.”
All amounts herein are reported in $000s of Canadian dollars (“C$”) unless otherwise specified
Q1 2021 AND RECENT HIGHLIGHTS
- 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.
- On March 18, 2021, the Company provided an update on permitting, engineering and exploration of the PGP. During the Basic Engineering studies, the project team focused on reducing operating risk by upgrading components of the grinding area and associated electrical requirements. In addition, cost inflation related to steel prices and indirect costs also increased our initial capital estimate. This has resulted in a revised estimate for the initial capital which is approximately 20% higher than the initial capital estimate in the feasibility study published in May 2020 or a total of $176,000.
- On January 31, 2021, the Company submitted the Joint Mines Act / Environmental Management Act Permit Application (“Joint MA/EMA Application”) to amend Mines Act Permit M-179 and Environmental Management Act Permit PE-8044 for regulatory screening and then review. Subsequently, the screening phase was completed and the Joint MA/EMA Application moved to technical review phase on March 25, 2021.
FINANCIAL RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2021