Trek Mining Releases Third Quarter Results
November 08 2017 - 7:30AM
Trek Mining Inc. (TSX-V:TREK) (“Trek Mining” or
“the Company”) is pleased to announce that its Financial Statements
for the third quarter ended September 30, 2017 and the accompanying
Management’s Discussion and Analysis are available for download on
the Company’s website at www.trekmining.com and at www.sedar.com.
Quarterly highlights and recent
developments
- Announced the signing of a definitive agreement with NewCastle
Gold Ltd. and Anfield Gold Corp. to combine the three businesses to
form a new multi-asset mining company named Equinox Gold Corp., to
be led by Ross Beaty as Chairman
- Announced that Sprott Private Resource Lending (Collector),
L.P. has received investment committee approval to provide Trek
Mining with a US$85 million senior secured credit facility to be
used for construction of the Aurizona Gold Mine (“Aurizona”) in
Brazil
- Completed a feasibility study for Aurizona, supporting the
viability of constructing an open-pit gold mine with a net present
value of US$197 million and an internal rate of return of 34% based
on a gold price of US$1,250 per ounce, and low initial capital
costs of US$131 million
- Awarded the Aurizona project EPCM work to Ausenco Engineering
Canada Inc.
- Confirmed with exploration drilling that gold mineralization at
Aurizona’s principal ore deposit extends at least 350 metres to the
west along strike and also at depth below the existing reserve pit.
A second phase 12,000-metre exploration drill campaign is
underway
- Continued ramp-up of the Koricancha Mill in Peru with Q3-2017
sales of 3,195 ounces of gold
At September 30, 2017, the Company had C$76.3
million (US$61.0 million) in cash and marketable securities and no
cash debt.
On behalf of the Board of Trek Mining
Inc.
“Christian Milau”
CEO & Director
About Trek Mining Inc.
Trek Mining is a Canadian mining company with a
portfolio of production, near-production and exploration-stage
projects in North and South America. Early works construction is
underway at the Company’s Aurizona project in Brazil, with the
objective of pouring gold by year-end 2018. On October 25, 2017,
Trek Mining announced the signing of a definitive agreement to
combine its business with NewCastle Gold Ltd. (TSX:NCA) and Anfield
Gold Corp. (TSX-V:ANF). The combined entity intends to operate
under the name Equinox Gold Corp. (“Equinox Gold”) and expects to
trade on the TSX Venture Exchange under the ticker symbol “EQX”.
Led by Ross Beaty as Chairman, Equinox Gold will be a
well-financed, multi-asset mining company with a near-term gold
production and strong growth platform of copper and gold assets.
Further information about the proposed business combination and
Trek Mining’s current portfolio of assets is available at
www.trekmining.com or by email at ir@trekmining.com.
Trek Mining Contacts
Christian Milau, Chief Executive OfficerRhylin
Bailie, Vice President Investor RelationsTel: +1 604-558-0560Email:
ir@trekmining.com
Technical Information
All technical information related to Aurizona is
based on the “Feasibility Study on the Aurizona Gold Mine Project”
prepared by Lycopodium Minerals Canada Ltd. with an effective date
of July 10, 2017, which is available for download on SEDAR at
www.sedar.com. Scott Heffernan, M.Sc., P.Geo., the Company’s EVP
Exploration, is a Qualified Person under National Instrument 43-101
and has approved the technical and scientific disclosure throughout
this news release.
Cautionary Notes and Forward-looking
Statements
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as such term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
This document contains certain forward-looking
information and forward-looking statements within the meaning of
applicable securities legislation (collectively “forward-looking
statements”). The use of the words “to form”, “to be”, “to
combine”, “objective”, “underway” and similar expressions are
intended to identify forward-looking statements. Forward-looking
statements contained in this press release include statements
regarding mine development activities at Aurizona, the anticipated
restart of production at Aurizona, exploration activities underway
at Aurizona, the proposed US$85 million credit facility with Sprott
Private Resource Lending (Collector), L.P. (“Sprott”), and the
proposed business combination to create Equinox Gold. Although Trek
Mining believes that the expectations reflected in such
forward-looking statements and/or information are reasonable, undue
reliance should not be placed on forward-looking statements since
Trek Mining can give no assurance that such expectations will prove
to be correct. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements, including the risks, uncertainties and
other factors identified in Trek Mining’s periodic filings with
Canadian securities regulators, and assumptions made with regard
to: the Company’s ability to successfully complete mine development
at Aurizona and restart production; timing of the anticipated
restart of production; the Company’s ability to achieve the
production and operating results estimated in the Aurizona
feasibility study; the results of exploration activities underway
at Aurizona; the Company’s ability to complete the legal and formal
documentation required to finalize the proposed US$85 million
credit facility with Sprott; the Company’s ability to complete the
proposed business combination with NewCastle Gold and Anfield Gold;
and the Company’s ability to achieve the synergies expected as a
result of the business combination. Furthermore, the
forward-looking statements contained in this news release are made
as at the date of this news release and Trek Mining does not
undertake any obligations to publicly update and/or revise any of
the included forward-looking statements, whether as a result of
additional information, future events and/or otherwise, except as
may be required by applicable securities laws.