Ascot Resources Ltd (TSX: AOT) (OTCQX: AOTVF) announces the Company’s unaudited financial results for the three months ended March 31, 2021. For details of the unaudited interim condensed consolidated financial statements and Management’s Discussion and Analysis for the three months ended March 31, 2021, please see the Company’s filings on SEDAR (www.sedar.com).
Derek White, President and CEO, commented, “Ascot has had a very productive first quarter of 2021, which included submitting the permit amendment application and completing the basic engineering. Subsequent to the quarter end, the Company raised just over $80 million, which together with our project financing facilities provides the funding to construct the Premier Gold Project. Ascot team is preparing the early work and construction planning and we anticipate mobilising people on site to advance the project in late May. Additionally, we see an opportunity to further advance on our numerous exploration targets and convert inferred resources into the mine plan both from underground and surface.”
All amounts herein are reported in $000s of Canadian dollars (“C$”) unless otherwise specified
Q1 2021 AND RECENT HIGHLIGHTS
FINANCIAL RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2021
The Company reported a net income of $2,673 for Q1 2021 compared to a net loss of $3,484 for Q1 2020. The net income for Q1 2021 was driven by a $5,038 accounting gain on change in fair value of derivative liabilities and a $489 decrease in stock-based compensation charge due to fewer stock options granted in Q1 2021 compared to Q1 2020.
LIQUIDITY AND CAPITAL RESOURCES
During Q1 2021, 280,000 stock options and 15,558 DSUs were issued. No common shares or RSUs were issued in Q1 2021. As at March 31, 2021, the Company had cash & cash equivalents balance of $36,425. Included in cash and cash equivalents is $248, which is required to be spent on flow-through expenditures prior to December 31, 2022. Subsequent to the quarter end, the Company raised a combined $81,442 through a bought deal financing and private placement to fund the construction of its Premier Gold Project and for general working capital purposes. The Company has sufficient funding to meet its obligations for the next twelve months.
John Kiernan, P. Eng., Chief Operating Officer of the Company is the Company’s Qualified Person (QP) as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this news release.
About Ascot Resources Ltd.
Ascot is a Canadian-based exploration and development company focused on re-starting the past producing historic Premier gold mine, located in British Columbia’s Golden Triangle. The Company continues to define high-grade resources for underground mining with the near-term goal of converting the underground resources into reserves, while continuing to explore nearby targets on its Premier/Dilworth and Silver Coin properties (collectively referred to as the Premier Gold Project). Ascot’s acquisition of IDM Mining added the high-grade gold and silver Red Mountain Project to its portfolio and positions the Company as a leading consolidator of high-quality assets in the Golden Triangle.
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We acknowledge the [financial] support of the Government of Canada.