Aldridge Minerals Inc. (TSX Venture:AGM) (“Aldridge” or the “Company”)
announced today the filing of its unaudited consolidated financial
statements for the three and six months ending June 30, 2014 (the “Q2
2014 Financials”), and the Management's Discussion & Analysis related
thereto (the “Q2 2014 MD&A”), which are available on SEDAR and at www.aldridgeminerals.ca.
The Q2 2014 MD&A provides an overview of the US$45 million Interim
Financing that was announced on August 29, 2014. The Interim Financing
consists of the following components:
US$10 Million Equity Private Placement
(the “Private Placement”):The Company executed
definitive agreements with Orion Fund JV Limited, an affiliate of
the Orion Mine Finance funds, (“Orion”), in connection with a
US$10 million equity private placement which includes
participation by the Company’s two largest shareholders.
US$35 Million Secured Bridge Loan
Facility (the “Loan”): The Loan significantly
strengthens Aldridge’s balance sheet and provides financial
flexibility to complete the Company’s key corporate growth
objectives. Together with the net proceeds of the Private
Placement, the Loan will be used to fund the Yenipazar land
acquisition, advance basic and detailed engineering and for
general working capital purposes through to project financing.
Lead Concentrate and Gold Offtake
Agreements (the “Offtakes”):Aldridge also
entered into the Offtakes with an Orion affiliate. The Offtakes
underscore Orion’s confidence in the Yenipazar Project and will
assist Aldridge in demonstrating bankable revenue streams to
prospective project lenders.
US$45 Million Interim Financing (the “Interim Financing”)
Cash and cash equivalents at June 30, 2014 totaled $2,673,571
The Company continued to prudently manage its cash by deferring
certain operating and project development activities. Upon closing of
the Interim Financing, expenditures will be managed to ensure
achievement of land acquisition and project development objectives and
to comply with use of proceeds commitments pursuant to the Loan.
Land Acquisition: Subject to the
successful closing of the Interim Financing, the Company will kick-off
the next stage of its land acquisition process (“LAP”) at the
Yenipazar Project. The Company anticipates a fair and orderly LAP that
will comply with the Equator Principles III typically required by
international banks and project finance organizations. The land
acquisition process is expected to take up to twelve months, although
there are inherent risks that could extend the process.
from the priority of advancing the Project through the acquisition of
land, the Company intends to initiate detailed engineering. The scope
of the engineering will be determined in Q3 2014. The owner’s team
will also be expanded in 2014 and 2015 as necessary to advance the
Yenipazar Project through its next stages of development.
Project Financing: Based on the
Company’s 2014 achievements, including the August 2014 announcement of
the Interim Financing, Aldridge is well positioned to advance its
efforts to obtain project financing in 2015. Although the Company
continues to be optimistic regarding funding, the amount and timing of
obtaining new funds will be affected by the capital market conditions
for junior mining companies, fluctuations in commodity prices, and
potential changes to the political environment in Turkey.
Investment Incentive Certificate (“IIC”)
preliminary application filed: In September 2013 the
Company submitted a preliminary application for the IIC in order to
qualify for tax incentives. The IIC application was updated based on
the revised capital expenditure estimates of the Optimization Study.
The incentive program allows for a government capital contribution to
qualifying depreciable capital expenditures of either 40% for
large-scale projects or 30% for regional projects. This contribution
is funded by a corporate income tax rate reduction from 20% to 6%. The
Company expects to receive the IIC based on the large-scale project
incentive within the next two to three months. The impact of these
incentives has been factored into the NI 43-101 compliant technical
report that summarizes the Optimization Study.
Selected Financial Information
The following table provides selected consolidated financial information
that should be read in conjunction with the Q2 2014 Financials of the
(In Canadian Dollars)
|SIX MONTHS ENDED AND AS AT|
||SIX MONTHS ENDED AND AS AT|
||TWELVE MONTHS |
ENDED AND AS AT
DECEMBER 31, 2013
Loss before income tax and discontinued operations
Net loss per share
Cash and cash equivalents
Working capital (i)||2,478,116||
Total non-current financial liabilities
(i) Working capital equals current assets less current liabilities, and
is a non-GAAP measure used by management.
The Company's expenditures on mineral properties are as follows:
|THREE MONTHS ENDED |
||THREE MONTHS |
||SIX MONTHS ENDED|
||SIX MONTHS ENDED |
JUNE 30, 2013
Yenipazar Property, Turkey||$1,433,653||$1,172,528||$ 2,966,720||$3,206,247|
Exploration Licenses, Turkey(i)||
Total Exploration & Evaluation
(i) The Company presently holds 2 exploration licenses.
Aldridge is a development stage mining company focused on its wholly
owned Yenipazar polymetallic VMS Project (Au, Ag, Cu, Pb, Zn) in Turkey,
a country that is committed to developing its natural resources.
Aldridge completed the Yenipazar Optimization Study and filed the
related NI 43-101 compliant technical report in May 2014, which updated
the original May 2013 Feasibility Study. The Company is currently
advancing the Project on key aspects including permitting, design, land
acquisition and project financing.
Caution Regarding Forward-Looking Information
This news release includes certain forward-looking statements within the
meaning of Canadian securities laws, including, but are not limited to,
the ability to close the Private Placement and meeting the conditions
under the Loan to draw down advances, the ability to accomplish
remaining milestones, land acquisitions, securing project financing in
2015, advancing the project to production, economic performance, future
plans and objectives of the Company.
Forward-looking statements involve risks, uncertainties and other
factors that could cause actual results, performance, prospects and
opportunities to differ materially from those expressed in such
forward-looking statements. Such risks, uncertainties and factors
including, the fact that completion of the Private Placement is subject
to a number of customary closing conditions, including approval of the
Exchange, meeting conditions for advances under the Loan and the other
factors discussed under the heading “Risk Factors” in the Company’s
Management’s Discussion and Analysis for the year ended December 31,
2013 and in other continuous disclosure filings made by the Company with
Canadian securities regulatory authorities and available at www.sedar.com.
Any number of important factors could cause actual results to differ
materially from these forward-looking statements as well as future
Forward-looking information is based on a number of factors and
assumptions which have been used to develop such information but which
may prove to be incorrect, including, but not limited to, assumptions in
connection with the continuance of Aldridge and its subsidiaries as a
going concern, general economic and market conditions, mineral prices,
the accuracy of mineral resource estimates, and the ability to satisfy
all conditions to closing of the Interim Financing. Although Aldridge
believes that the assumptions and factors used in making the
forward-looking statements are reasonable, undue reliance should not be
placed on these statements, which only apply as of the date of this news
release, and no assurance can be given that such events will occur in
the disclosed time frames or at all. Aldridge disclaims any intention or
obligation to update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise unless required
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 news release.
Aldridge Minerals Inc.
Han Ilhan, 416-477-6988
David Carew, 416-477-6984
Corporate Development & Corporate Secretary
Source: Aldridge Minerals Inc.