WHITE ROCK, B.C.--(BUSINESS WIRE)--
Renaissance Gold Inc. (TSX: REN) (“RenGold” or the “Company”)
reports financial results for the nine months ended March 31, 2014.
Details of the Company’s financial results are described in the
unaudited condensed consolidated interim financial statements (the
“Financial Report”) and corresponding management discussion and analysis
for the same period. These and further details on each of RenGold’s
projects and activities can be found on the Company’s website at www.rengold.com
and on the Company’s profile on www.sedar.com.
All amounts presented are in Canadian dollars unless otherwise stated.
Richard Bedell, President and CEO of RenGold, comments: “We have done a
considerable job cutting our burn rate and focusing the Company on its
core projects in Nevada and Utah. This quarter alone, we completed a
joint venture with Newmont USA Limited, sold the Arabia Project for cash
and a large NSR, and sold our Argentinean subsidiary to our former joint
venture partner for cash, stock and a NSR. In addition, we purchased the
AngloGold Ashanti database which gives us now the largest exploration
database in the Great Basin outside of Barrick and Newmont. Fiscally, we
are in good shape with a good amount of cash, a significant number of
projects funded by our joint venture partners, more projects expected to
be joint ventured in 2014, no debt and a very tight share
structure with only 33,381,574 shares fully diluted. We have a number of
good projects at work for our shareholders and have seen a definite
increase in the number of companies interested in joint venturing our
projects sinceOctober 2013. We are looking forward to a highly
Selected financial data
The following selected financial data is derived from the Financial
Report as prepared in accordance with International Financial Reporting
The consolidated net loss for the nine months ended March 31, 2014 was
$1,544,945 (2013 - $2,899,197).
Working capital at March 31, 2014 was $3,011,703 of which $3,098,586 is
cash. There are no long-term liabilities.
Total assets at March 31, 2014 are $4,166,884 of which $3,286,808 are
current assets and $880,076 are exploration and evaluation assets,
equipment, investments and reclamation bonds.
RenGold is an exploration stage business engaged in the acquisition and
exploration of mineral properties located in Nevada and Utah. RenGold’s
business model is to identify and secure mineral resource properties for
which it seeks suitable joint venture partners. Once partners are found,
an exploration and option to earn-in agreement is entered into on the
property enabling the earn-in partner to obtain an interest by
conducting and funding exploration on that property.
The level of the Company’s exploration expenditures are largely
determined by the strength of the resource capital and commodity markets
and by the status of the Company’s projects in relation to those markets
and its ability to obtain funding partners and investor support for its
projects. The Company anticipates there will be less capital available
for exploration joint ventures in the immediate future. RenGold is
therefore concentrating activities in Nevada and Utah to upgrade current
projects and define significant growth potential such as demonstrated
for the Everson Deposit (RenGold press release October 22, 2013). In
addition, RenGold announced funding by Callinan Royalties Corporation
for exploration in southern Nevada (south of 37 degrees latitude) in
exchange for a royalty (RenGold press release October 24, 2013 and
November 21, 2013). RenGold also announced funding by Newmont USALimited on its Wood Hills South gold project in Nevada (RenGold press
release February 18, 2014) and funding by First Liberty Power Corp. on
its Arabia project in Nevada (RenGold press release April 8, 2014).
On February 26, 2014, RenGold sold its Argentine subsidiary to its
current funding partner, Atala Resources Corporation (“Atala”), for an
initial $20,000 in cash, 500,000 shares of Atala and a NSR royalty. In
addition, RenGold is in the process of winding up its subsidiaries in
Chile and Spain where exploration and evaluation activities have been
RenGold has five properties under exploration earn-in agreements:
First Liberty Power Corp. (OTCQB: FLPC)
||Callinan Royalties Corporation (TSXV:CAA)
|Spruce Mountain||Summit Mining Exploration, Inc., a US subsidiary of Sumitomo
|Trinity Silver||Liberty Silver Corp. (TSX: LSL)
Wood Hills South
Newmont USA Limited, a subsidiary of Newmont Mining Corporation
The highlights of activity by RenGold and its funding partners on its
exploration properties during the nine months ended March 31, 2014
to May 14, 2014
(collectively “Q3”), follow in alphabetical order.
Nevada projects with funding partners:
Arabia On April 8, 2014, the Company announced a new purchase
agreement with First Liberty Power Corp. (“FLPC”) on the Arabia Project
in Pershing County, Nevada. FLPC is interested in near term mining for
antimony and are planning a processing mill 4 miles to the east to make
antimony concentrates and to recover the other metals.
Golden Shears Effective January 13, 2014, the Company entered
into a royalty agreement with Callinan whereby Callinan will fund
$150,000 of exploration activity on the Golden Shears property in
exchange for a 1.5% net smelter return (“NSR”) royalty. This funding is
provided under the 37 Degrees South exploration alliance agreement
Spruce Mountain On August 7, 2013, the Company announced the
approval of a third round drill budget pursuant to the third year of an
exploration earn-in agreement with Summit. The US$525,000 budget
included 6,900 feet (2,104 meters) of reverse circulation (“RC”)
drilling, to follow up critical targets defined by earlier drilling in
2011 and 2012 that include gold, silver and base metal mineralization.
Trinity Silver On November 14, 2013, Liberty Silver announced a
loan facility for US$1.21 million. Metallurgical studies are continuing
in preparation of a preliminary economic assessment on the oxide deposit
and this will be used to generate financing for development of the oxide
Woods Hills South On February 18, 2014, the Company announced
that it has entered into an agreement with Newmont USA Limited
("Newmont") whereby Newmont would fund continuing exploration activities
at RenGold’s Wood Hills South gold project adjacent to the emerging
Pequop gold district in northeast Nevada.
RenGold has demonstrated that the Pequop gold district likely extends
into the southeast edge of the Wood Hills South gold project. As
announced, February 6th, 2012, Hole WHS11-007 intersected an oxidized
10.7 meter (35 feet) interval from 83.8 to 94.5 meters down hole that
averaged 0.40 g/t (0.013 opt) gold within an approximately 60 meters
(197 feet) zone of anomalous Carlin-style pathfinder elements and gold.
Nevada properties being prepared for joint venture
During Q3, RenGold conducted reconnaissance exploration programs to
prepare these projects for joint venture.
Everson On October 22, 2013, the Company announced the results of
recent mapping and rock chip sampling that support new targets with the
potential to significantly expand the Everson Deposit at the Buffalo
Canyon Project, Nye County, Nevada. RenGold acquired the Everson Deposit
when it became open to staking in late 2012. Data from 40 historical RC
drill holes indicate the potential for 350,000 ounces of gold contained
in mineralized material at the Everson Deposit. The gold-bearing zone
estimated from drilling and trench data consists of 25,000,000 to
26,000,000 tons at a grade from 0.012 to 0.013 ounces per ton (0.373 to
0.404 grams per ton) in an area 500 meters by 600 meters (about 1,640 by
1,970 feet). The potential quantity and grade is conceptual in nature,
and as there has been insufficient exploration to define a mineral
resource it is uncertain if future exploration will result in the target
being delineated as a mineral resource.
Sinter On August 14, 2013, the Company announced trench sampling
and drilling results that confirm the presence of a shallow zone of
gold-silver mineralization. The Sinter property lies in the northern
part of the Velvet District near other shallow epithermal gold prospects
at RenGold’s Bunce property and at the historic Velvet Mine, a
gold-silver producer in the early 1900’s. RenGold consolidated the
Sinter property by leasing a mile-square private section from Newmont
USA Limited, a wholly owned subsidiary of Newmont Mining Corporation in
2010. This section adjoins 33 claims controlled by lease and staking,
all of which combined comprise a total area of approximately 1,190 acres
Work has continued on data compilation and target definition at the
Company’s projects being prepared for joint venture. These projects
include the Big Gossan, Bunce, Fireball Ridge, Fourth of July, JPW, King
Solomon, Leonid, Reef, Rose Mine, Whistler, and Wildcat projects.
Generative exploration is the core of RenGold’s business. Property
submittal evaluations and generative programs in Nevada and Utah are
ongoing but the current focus is on upgrading projects with quality
drill intercepts. RenGold’s technical team employs leading edge
exploration techniques and technology for ore deposit vectoring
including: proprietary remote sensing, spatial probability modeling and
multivariate statistical analysis. Data is combined with field geology
and alteration mineralogy for the purpose of target selection, property
acquisition and joint venture development.
37 Degrees South On October 22, 2013, the Company entered into an
exploration alliance agreement with Callinan. The agreement is for an
initial three year term and requires that Callinan fund $150,000 of
generative exploration during the first year of the agreement (received)
with the option to fund up to $100,000 in each of the two subsequent
In return for such funding, RenGold will grant Callinan the option to
receive a 0.5% NSR royalty on any new projects acquired as a result of
the generative exploration work. In addition, Callinan has the option of
funding another $150,000 on any of the new projects in exchange for an
additional 1.0% (1.5% total) NSR royalty. If RenGold proposes that
additional value can be generated after spending $150,000, Callinan may
elect to contribute subsequent funding with RenGold on an equally shared
basis with no change to Callinan's royalty interest.
RenGold may also propose exploration on its existing mineral properties.
Callinan will have the option to solely fund $150,000 in exploration on
those projects in return for a 1.5% NSR royalty (see Golden Shears
Database On February 24, 2014, the Company announced the purchase
of the AngloGold Ashanti database from Redstar Gold Corp. for $60,000
cash. The database includes extensive digital and analogue files.
RenGold purchased a full copy of the digital data and physical access to
the analogue files stored within 1 km of its Reno exploration office.
All technical data, as disclosed in this MD&A, has been verified by the
Company’s qualified persons Ronald L. Parratt, M.Sc. and Certified
Professional Geologist, Richard L. Bedell, M.Sc. and Certified
Professional Geologist and Eric M. Struhsacker, M.Sc. and Certified
Renaissance Gold Inc.
Renaissance Gold Inc. is a gold/silver exploration company that has a
large portfolio of exploration projects in Nevada and Utah. Some of the
projects are in exploration earn-in agreements with industry partners
who provide exploration funding. RenGold applies the extensive
exploration experience and high-end technical skills of its founders and
team members to search for and acquire new precious metal exploration
projects that are then offered for joint venture.
Renaissance Gold Inc.
By: Richard L. Bedell, President and CEO
For further information, contact:
Richard L. Bedell, 775-337-1545 or firstname.lastname@example.org
Eric M. Struhsacker, 775-337-1545 or email@example.com
This news release contains certain statements that may be deemed
“forward-looking” statements. Forward looking statements are statements
that are not historical facts and are generally, but not always,
identified by the words “expects”, “plans”, “anticipates”, “believes”,
“intends”, “estimates”, “projects”, “potential” and similar expressions,
or that events or conditions “will”, “would”, “may”, “could” or “should”
occur.Although Renaissance Gold Inc. believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance
and actual results may differ materially from those in forward looking
statements. Forward looking statements are based on the beliefs,
estimates and opinions of Renaissance Gold Inc’s management on the date
the statements are made. Except as required by law, Renaissance Gold
Inc. undertakes no obligation to update these forward-looking statements
in the event that management’s beliefs, estimates or opinions, or other
factors, should change.
Renaissance Gold Inc.
Richard L. Bedell, 775-337-1545
M. Struhsacker, 775-337-1545
Source: Renaissance Gold Inc.