Ascot Reports 2023 Annual Results

VANCOUVER, British Columbia, March 26, 2024 (GLOBE NEWSWIRE) -- Ascot Resources Ltd. (TSX: AOT; OTCQX: AOTVF) (“Ascot” or the “Company”) announces the Company's audited consolidated financial results for the year ended December 31, 2023. For details of the audited consolidated financial statements, Management's Discussion and Analysis, and Annual Information Form for the year ended December 31, 2023, please see the Company's filings on SEDAR+ at www.sedarplus.ca.

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

2023 AND RECENT HIGHLIGHTS

• On February 20, 2024, the Company closed its previously announced financing package for a total of US$50 million from Sprott Resource Streaming and Royalty Corp. and its affiliates (“Sprott Streaming”) and Nebari Credit Fund II, LP (“Nebari Credit Fund II”), as described in the Company’s news release dated January 22, 2024. $13,700 of the above proceeds was used to buy back two existing 5% NSR royalties on various Premier Gold Project (“PGP”) property claims, which was completed on March 15, 2024.
• On February 20, 2024, concurrently with the above-noted financing package, the Company closed its previously announced bought deal private placement financing, under which the Company issued a total of 65,343,000 common shares of the Company (the “Common Shares”) at a price of C$0.44 per Common Share, for gross proceeds of $28,751.
• At the end of Q4 2023, overall construction excluding mine development was 86% complete (approximately 94% as of February 29, 2024), compared with 66% complete at the end of Q3 2023. Numerous pre-commissioning activities in the mill have commenced. The Company anticipates introducing first ore into the mill by the end of March 2024, and pouring first gold in April.
• PGP reached an important safety milestone in Q4 of 2023: one million hours without lost time incidents (“LTI”). By the end of Q4 2023, this figure reached 1,143,029 hours LTI free. The total recordable incident frequency has been reduced yet again from 0.69 at the end of Q3 2023 to 0.52 by the end of Q4 2023.
• At the tailings storage facility (“TSF”), the south dam, north dam, and southeast dam have been completed. The minor remaining work is focused on the smaller east dam and spillway which is expected to be completed by the end of March. The new electrical substation was completed and all 138kV power lines were pulled and linked up with the BC Hydro grid. Site powerup on the 138 kV line was completed in January 2024.
• The new water treatment plant was fully commissioned and began operations in February 2024. The high-density sludge plant has been successfully commissioned and water is being treated and discharged into the environment. The moving bed bio-reactor is mechanically and electrically complete and media is being loaded into the tanks. The plant is anticipated to be brought into service by the end of March 2024.
• In October 2023, the Company obtained a temporary use permit to install a camp facility in the town of Stewart to provide additional accommodations for workers at the Project. The Company mobilized and installed living quarters with an initial capacity of 76 beds in early December 2023. This has alleviated some of the pressure caused by the extended earthworks schedule.
• On September 19, 2023, the Company acquired a full-service laboratory facility (“Assay Lab”) in Stewart, BC from Seacan Labs Corp. The Assay Lab will be used to perform the testing required by Ascot for mineral exploration, mining operation, and environmental monitoring. During Q4 2023, the Assay Lab was re-commissioned for use and is currently ramping up toward full capacity of 250-300 samples per day with a 24-hour turnaround.
• In Q3 2023, the Company’s underground mining contractor Procon Mining & Tunnelling mobilized to site. In Q4 2023, underground development at Big Missouri was re-commenced and is ongoing. As of March 21, 2024, underground development at Big Missouri totaled approximately 2,091 metres. In late 2023, underground decline development commenced on the new Premier Portal close to the mill. Mining development is being advanced down into the Premier deposit for initial mining in the Prew Zone, with ore development anticipated to begin in Q2 2024, and stope production following in Q3 2024. As of March 15, 2024, underground development at Premier totaled approximately 32 metres.
• On June 27, 2023, the Company closed a previously announced US$14 million subordinated convertible credit facility (the “Convertible Facility”) with Nebari Gold Fund 1, LP (“Nebari”). The full proceeds from the Convertible Facility were used to repay principal, accrued interest and fees of Ascot’s existing subordinated convertible credit facility with Beedie Investments Ltd. (“Beedie”).
• On April 20, 2023, the Company closed a previously announced non-brokered private placement for total gross proceeds of $4,050 and consisted of 5,000,000 common shares of the Company, which qualify as "flow-through shares" within the meaning of the Income Tax Act (Canada) (the “FT Shares”), at a price of C$0.81 per FT Share.
• The Company’s 2023 exploration program at PGP commenced in May, which consisted of 88 holes totaling 11,886 metres and included exploration drilling for resource expansion as well as in-fill drilling of initial mining areas at the Big Missouri and Premier deposits. Assay results were announced between August 2023 and January 2024. Multiple high-grade intercepts were drilled, including 98.84 g/t Au over 6.48m from a depth of 51.5m in hole P23-2490, including 691.50 g/t Au over 0.90m. This was the all-time second highest-grade drill intercept at Big Missouri and is the Company’s highest-grade drill intercept property-wide since 2015.
• On January 19, 2023, the Company closed a previously announced financing package. The financing package consisted of US$110 million as a deposit in respect of gold and silver streaming agreements and a strategic equity investment of C$45 million, a portion of which is structured as Canadian Development Expenditures flow through shares, such that the total gross proceeds to the Company was C$50 million.