TSX:YMI
VANCOUVER, Nov. 13, 2013 /CNW/ - Yellowhead Mining Inc. ("Yellowhead" or the "Company") (TSX: YMI) is pleased to report its results of operations for the three and nine
months ended September 30, 2013.
For the full condensed consolidated interim Financial Statements and
Management Discussion & Analysis, please visit SEDAR at www.sedar.com or the Company's web site, www.yellowheadmining.com.
Highlights
Key highlights for the nine months ended September 30, 2013 and
subsequent weeks include:
-
Detailed NI 43-101 compliant amended feasibility study was completed and
filed on March 29, 2012 and restated and amended as of January 25,
2013.
-
In April 2013, the Company submitted the application for an
Environmental Assessment ("EA") Certificate for the Harper Creek
Project to the Environmental Assessment Office ("EAO"). In May 2013,
the EAO identified a number of deficiencies with, and provided comments
on the Company's EA Application. The Company is currently working to
address the deficiencies raised and comments received in order to
resubmit the application to the EAO.
-
Engaged Evercore Group L.L.C. to provide financing advisory services and
to assist in the evaluation of strategic partnership and financing
alternatives for Harper Creek.
-
Completed all the drilling for the in-fill drilling program announced in
November 2012, with an additional 35 holes drilled for a total of
11,969m.
-
Executed a memorandum of understanding with a local First Nation for
involvement in the EA process and Benefits Agreement ("BA")
negotiations.
-
Appointed Frank Wheatley as CEO and a member of the Board of Directors
effective July 1, 2013.
-
As at September 30, 2013, the Company's had cash and cash equivalents of
$3.04M.
Outlook
The Company's plans for 2013 and beyond are to:
-
Explore financing options in order to finance the development of Harper
Creek, including but not limited to: strategic investors and/or
partnerships, project and equipment financing stock offerings and
off-take agreements.
-
Explore short-term financing options to increase the Company's working
capital which will be required for the Company to continue as a going
concern.
-
Continue through the process of environmental permitting with
resubmission of the Company's EA Application.
-
Prepare and submit the Company's applications for a British Columbia
Mines Act Permit for Harper Creek.
-
Continue ongoing consultation with the First Nations and local
communities to address any potential environmental and socio-economic
impacts of Harper Creek and the Company's mitigation strategies.
-
Continue negotiations with the local First Nations on a Benefits
Agreement.
-
Continue exploration activities to better define the resource/reserve at
Harper Creek including the preparation of an updated resource report
incorporating all new drilling.
-
Issue an updated NI 43-101 compliant feasibility study for Harper Creek.
The extent of the work to be undertaken on the aforementioned activities
is subject to and contingent on the Company's ability to raise
additional financing.
Summary of Key Financial Highlights
Yellowhead has no revenue from operations. Results can fluctuate
significantly from period to period due to the level of engineering and
environmental study effort and resource drilling.
The Company's expenditures on the Harper Creek project for the nine
months ended September 30, 2013 and cumulative to date were as follows:
| Capitalized Mineral interests |
| Evaluation and exploration expenses |
| Total expenditures on Harper Creek |
|
|
|
|
|
|
Balance, December 31, 2012
|
$ 885,235
|
|
$ 29,297,640
|
|
$ 30,182,875
|
Net Additions
|
-
|
|
2,670,968
|
|
2,670,968
|
Balance, September 30, 2013
|
$ 885,235
|
|
$ 31,968,608
|
|
$ 32,853,843
|
The Company's net loss for the three months ended September 30, 2013 and
the eight prior quarterly periods are as follows:
(Amounts are expressed in thousands of Canadian dollars, except
per-share amounts)
|
|
|
|
|
|
|
|
|
| 2013 |
| 2012 | 2011 (1) |
| 2011 |
Quarter Ended | 30-Sep | 30-Jun | 31-Mar |
| 31-Dec | 30-Sep | 30-Jun | 31-Mar | 31-Dec |
| 31-Oct |
Administrative expenses
|
$ 985
|
$ 789
|
$ 984
|
|
$ 1,881
|
$ 908
|
$ 1,139
|
$ 994
|
$ 691
|
|
$ 878
|
Evaluation and exploration expenses
|
268
|
447
|
1,956
|
|
2,845
|
2,093
|
913
|
1,520
|
2,222
|
|
3,091
|
Other expenses/(income)
|
(8)
|
3
|
(129)
|
|
(11)
|
(14)
|
6
|
(13)
|
(25)
|
|
(62)
|
Net loss and comprehensive loss for the period
|
1,245
|
1,239
|
2,811
|
|
4,715
|
2,987
|
2,058
|
2,501
|
2,888
|
|
3,907
|
Basic and diluted loss per share for the period
|
$ 0.02
|
$ 0.02
|
$ 0.04
|
|
$ 0.08
|
$ 0.06
|
$ 0.04
|
$ 0.05
|
$ 0.05
|
|
$ 0.07
|
(1)
| Due to the Company's change in fiscal year end from October 31, 2012 to
December 31, 2012, the period ended December 31, 2011 is two months
long and all other disclosed periods are three months long. |
The Company's administrative expenses for the three months ended
September 30, 2013 ("Q3") were approximately $196K higher than for the
three months ended June 30, 2013 ("Q2"). This increase was primarily
due to the following items: (1) Consulting fees were $120K higher in
Q3 compared to Q2 due to a one-time $174K refund from BC Hydro the
Company received in Q2 related to some funds it had advanced in 2011
and 2012 for various studies, offset by $60K in additional consulting
fees the Company incurred in Q2 which were not incurred in Q3; (2)
Professional fees were $35K higher in Q3 compared to Q2 due to $98K in
recruiting fees paid in Q3 which were not incurred in Q2, offset by
$33K less in legal fees in Q3 as compared to Q2 and $20K less in
professional fees in Q3 as compared to Q2 for various strategic
initiatives; (3) Share-based compensation was $90K higher in Q3
compared to Q2 due to options that were granted in Q3, this is a
non-cash charge; (4) Wages and Benefits were $40K higher in Q3 compared
to Q2 as the Company incurred additional costs with the appointment of
the Company's new CEO announced in June 2013; (5) Investor relations
costs were $82K lower in Q3 compared to Q2 due to $20K less in travel
costs, $16K less in advertising costs and $44K less in general investor
relations costs in Q3 compared to Q2.
Exploration costs were $179K lower in Q3 as compared to Q2. This
decrease is related primarily to the conclusion of the infill drilling
program announced by the Company in November 2012 and completed in Q2.
Other expenses were not materially different for Q3 compared to Q2.
Cash and Cash Equivalents
The Company had cash and cash equivalents of $3.04M as at September 30,
2013, as compared to cash and cash equivalents of $4.09M as at June 30,
2013. As at September 30, 2013, the Company had working capital of
$2.83M, as compared to working capital of $3.80M as at June 30, 2013.
The Company's focus going forward, is expediting the development of the
Harper Creek project. Major activities include completing the
Environmental Assessment process, advancing the Mine Permitting process
and pursuing funding activities to increase its working capital and
develop the Harper Creek project. The Company believes its current
working capital is sufficient for the next twelve months of general and
administrative activities, however, additional funding will be required
by the Company to complete its strategic objectives and to continue as
a going concern.
About Yellowhead Mining Inc.
Yellowhead Mining Inc. is a development stage company with a 100%
interest in the Harper Creek copper-gold-silver project located in the
North Thompson region of British Columbia, Canada. The proposed Harper
Creek mine will be a large scale, long life, low cost open pit copper
mine, has a NI 43-101 compliant feasibility study, and is currently in
the environmental permitting phase of development.
For more information on Yellowhead and the Harper Creek Project, please
visit Yellowhead's website at www.yellowheadmining.com
Forward Looking Statements
Except for statements of historical fact, this news release contains
certain "forward-looking information" within the meaning of applicable
securities laws. Forward-looking information is frequently
characterized by words such as "plan", "expect", "project", "intend",
"believe", "anticipate", "estimate" and other similar words, or
statements that certain events or conditions "may" or "will" occur.
Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made, and are subject to a
variety of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those anticipated in
the forward-looking statements, including, among others, the accuracy
of mineral grades and related assumptions, inherent operating risks,
planned expenditures, proposed exploration and development at the
Harper Creek Project, operating and economic aspects of the Harper
Creek Project, as well as those risk factors identified in the
Company's Annual Information Form filed under the Company's SEDAR
profile. Yellowhead undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions
should change except as required by law. The reader is cautioned not to
place undue reliance on forward-looking statements. More detailed
information about potential factors that could affect projected results
is included in the documents filed from time to time with the Canadian
securities regulatory authorities by Yellowhead.
SOURCE Yellowhead Mining Inc.
<p> <b>Ronald Handford, Executive Vice President, Corporate Development</b> <br/> 604.681.1709 Ext. 204<br/> <b>Email</b>: <a href="mailto:rhandford@yellowheadmining.com">rhandford@yellowheadmining.com</a><br/> <b>Website</b>: <a href="http://www.yellowheadmining.com">www.yellowheadmining.com</a><br/> <b>Twitter</b>: <a href="http://twitter.com/YMI_Mining">http://twitter.com/#!/YMI_Mining</a> </p>