VANCOUVER, May 30, 2018 /CNW/ - Northern Vertex Mining Corp. (TSX.V:NEE) (the "Company") announces that the Company's interim consolidated financial results for the third fiscal quarter 2018 ended March 31, 2018 have been filed on SEDAR. The full version of the Condensed Interim Consolidated Financial Statements and Management's Discussion & Analysis can be viewed on the Company's website at www.northernvertex.com or under the Company's profile on SEDAR at www.sedar.com.
Financial Highlights for the Quarter and Nine Months Ended March 31, 2018
- Cash was $16.96 million at March 31, 2018, compared to $24.99 million at June 30, 2017. The decrease was due to cash used for the construction and commissioning of the Moss Mine, offset by the receipt of cash proceeds from various financings.
- Loss for the quarter was $1.12 million ($0.01 per share) compared to a loss of $1.53 million ($0.02 per share) for the same period last year.
- Loss for the nine months ended March 31, 2018 was $4.47 million ($0.03 per share) compared to a loss of $3.34 million ($0.03 per share) for the same period last year.
- The Company drew two US$3 million tranches under its US$6 million non-revolving working capital facility with Greenstone Resources II L.P. Both advances were evidenced by way of convertible debentures.
- The Company arranged a commitment for US$100 million with Sprott Private Resources Lending LP ("Sprott") in which Sprott has agreed, under certain conditions, to provide financing for future acquisitions and development projects.
- The Company announced a non-brokered private placement of up 3,846,153 units (each "Unit") at a purchase price of $0.52 per Unit, for aggregate gross proceeds to the Company of up to $2 million. Each Unit consists of one common share of the Company and one-half transferable share purchase warrant. Each whole warrant will entitle the holder to acquire one common share of the Company at an exercise price of $0.68 for a period of 24 months from the closing date of the private placement. Subsequent to the quarter the Company closed the private placement raising gross proceeds of $2.40 million.
Corporate and Operating Highlights for the Quarter Ended March 31, 2018
- Construction was completed during the quarter including the mechanical and electrical installation of the crushing and Merrill Crowe plants.
- Commissioning of the crushing plant, power station, overland conveyors, Merrill Crowe plant and dore refinery commenced.
- The leach pad received ore upon the commencement of crushing operations and drip lines are continuously being added to the stacked material.
- At the beginning of March the Company achieved a significant commissioning milestone with the first gold pour at the Moss Mine.
The Company also announces that under the terms of the convertible debentures issued under the convertible debenture indenture dated July 14, 2016 (the "Indenture") between the Company and Computershare Trust Company of Canada, it has elected to satisfy its obligation to pay an aggregate of $173,750 in interest accrued on the convertible debentures by issuing to such debenture holders on the interest payment date of May 31, 2018 an aggregate of 369,670 common shares. The Company paid to each such debenture holder 5.3191 common shares per $100 principal amount of debentures held as at the applicable interest payment record date. Under the terms of the Indenture, no fractional common shares were delivered upon payment of the interest obligation and the Company is not required to pay the cash equivalent of any amount less than $5.00. The issuance of common shares in payment of interest remains subject to TSX Venture Exchange approval.
About Northern Vertex:
Northern Vertex Mining Corp. is an exploration and mining company focused on the reactivation of its 100% owned Moss Mine Gold/Silver Project located in NW Arizona, USA. The Company's management comprises an experienced management team with a strong background in all aspects of acquisition, exploration, development, operations and financing of mining projects worldwide. The Company is focused on working effectively and respectfully with our stakeholders in the vicinity of the historical Moss Mine and enhancing the capacity of the local communities in the area.
ON BEHALF OF THE BOARD OF NORTHERN VERTEX
"Kenneth Berry "
President & CEO
Neither 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.
The information in this news release has been prepared as at May 29, 2018. Certain statements in this news release, referred to herein as "forward-looking statements", constitute "forward-looking statements" under the provisions of Canadian provincial securities laws. These statements can be identified by the use of words such as "expected", "may", "will" or similar terms, and include, without restriction, statements regarding the completion of the Private Placement and the proposed use of the proceeds of the financing.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors, known and unknown, could cause actual results to be materially different from those expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as otherwise required by law, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based More particularly, this release contains statements concerning the closing of the second tranche of the Private Placement and the anticipated use of the proceeds of the financing. There can be no assurance that the second tranche of the Private Placement will complete within the anticipated timelines or complete as contemplated or at all, or that the proceeds of the financing will be used as anticipated. US investors should be aware that mining terminology used for Canadian mineral project reporting purposes differs significantly from US terminology.
SOURCE Northern Vertex Mining Corp.
For further information: please visit www.northernvertex.com or contact Investor Relations at: 604-601-3656 or at 1-855-633-8798