Aquila Resources Files Q1 2015 Financial Results and Provides Corporate Update
Shares Outstanding: 220,827,374
TORONTO, May 15, 2015 /CNW/ - Aquila Resources Inc. (TSX: AQA) ("Aquila"), a development-stage company advancing the gold and zinc-rich Back Forty Project in Michigan's Upper Peninsula, announced that it has filed its first quarter financial results for the period ended March 31, 2015. All amounts, unless indicated, are reported in U.S. dollars.
Q1 Corporate Highlights
- The Company closed a multi-level financing transaction with Orion Mine Finance that included a private placement and a silver stream for total funding of $20.75 million.
- As part of the financing transaction with Orion, Aquila issued 26,923,077 units ("Unit Financing") at a price of $0.13 per shares for gross proceeds of $3.5 million, with each unit consisting of one common share and one-half warrant. Each whole warrant allows the holder to purchase one common share at a price of $0.19 per share for a term of three years.
- Also as part of the transaction, Orion acquired 75 per cent of Aquila's life-of-mine silver production from Back Forty for gross proceeds of $17.25-million, subject to a drawdown schedule that is set out in the definitive agreement as follows;
- $6.5 million on March 31, 2015,
- $1.35 million for the final property payment due August 4, 2015,
- $3.0 million upon the submission of an administratively complete mining permit,
- $4.0 million upon a completion of the process design including a definitive flow sheet, with respect to the open pit portion of the Back Forty Project,
- $2.4 million on completion of feasibility study, and
- All of the deposits are expected to be received by the company by the end of 2016.
- Concurrent with the transaction, Aquila repurchased the existing royalties with the Back Forty project from Vale Exploration USA Inc. for cash consideration of US$4.0 million, and from HudBay Minerals Inc. for US$1.0 million in cash plus US$225,000 of the Unit Financing, equivalent to 1,730,769 units, with each unit comprising one share and one-half of one warrant.
- As at March 31, 2015, Aquila had cash of $4.8 million and working capital of $2.2 million. These compare to $461,000 and a deficit of $1.4 million, respectively, for 2014. The balance sheet improvement is due to the multi-level transaction completed with Orion.
The Company is focused on advancing its permitting activities in Michigan. Aquila recently hired a US-based engineering and environmental consulting firm who will assist the Company in completing its planned permit submission for the Back Forty Project scheduled for later this year.
Additionally, Aquila anticipates starting work on a feasibility study for the Back Forty project by the end of the current year with expected completion in the latter half of 2016. The Company has engaged subject matter consultants to provide various services related to the planning of the study.
A small exploration program of up to 1,000 metres of diamond drilling close to the known mineralization is also planned for 2015.
Aquila's Management Discussion and Analysis, and Financial Statements for Q1 are available on the Company's website and on SEDAR at www.sedar.com.
About Aquila Resources
Aquila Resources Inc. (TSX: AQA) is a development-stage company with assets in the Great Lakes Region including its 100%-owned gold- and zinc-rich Back Forty Project in Michigan's Upper Peninsula.
The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains certain forward-looking statements within the meaning of applicable Canadian securities legislation. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" and similar expressions suggesting future outcomes or statements regarding an outlook.
Forward-looking statements relate to any matters that are not historical facts and statements of our beliefs, intentions and expectations about developments, results and events which will or may occur in the future, without limitation, statement with respect to: (i) the economic analysis contained in the PEA; (ii) the development plan of the PEA and results thereof; (iii) capital expenditure programs; (iv) the quality or quantity of the mineral resources subject to estimates by Aquila; and (v) work plans to be conducted by Aquila.
These and other forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Aquila to control or predict, that may cause their actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein. Aquila expressly disclaims any obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents Aquila's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. Furthermore, mineral resources that are not mineral reserves do not have demonstrated economic viability.
SOURCE Aquila Resources Inc.