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Aquila Resources Inc
Symbol AQA
Shares Issued 220,827,374
Close 2015-05-12 C$ 0.165
Market Cap C$ 36,436,517
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Aquila Resources files Q1 results, no details in NR

2015-05-15 11:14 ET - News Release

Mr. Barry Hildred reports

AQUILA RESOURCES FILES Q1 2015 FINANCIAL RESULTS AND PROVIDES CORPORATE UPDATE

Aquila Resources Inc. has filed its first quarter financial results for the period ended March 31, 2015. All amounts, unless indicated, are reported in U.S. dollars.

Q1 corporate highlights:

  • The company closed a multilevel financing transaction with Orion Mine Finance that included a private placement and a silver stream for total financing of $20.75-million.
  • As part of the financing transaction with Orion, Aquila issued 26,923,077 units at a price of 13 cents per share for gross proceeds of $3.5-million, with each unit consisting of one common share and one-half warrant. Each whole warrant allows the holder to purchase one common share at a price of 19 cents per share for a term of three years.
  • Also as part of the transaction, Orion acquired 75 per cent of Aquila's life-of-mine silver production from Back Forty for gross proceeds of $17.25-million, subject to a drawdown schedule that is set out in the definitive agreement as follows:
    • $6.5-million on March 31, 2015;
    • $1.35-million for the final property payment due Aug. 4, 2015;
    • $3.0-million upon the submission of an administratively complete mining permit;
    • $4.0-million upon a completion of the process design including a definitive flow sheet, with respect to the open-pit portion of the Back Forty project;
    • $2.4-million on completion of feasibility study;
    • All of the deposits are expected to be received by the company by the end of 2016.
  • Concurrent with the transaction, Aquila repurchased the existing royalties with the Back Forty project from Vale Exploration USA Inc. for cash consideration of $4.0-million (U.S.) and from HudBay Minerals Inc. for $1.0-million (U.S.) in cash plus $225,000 (U.S.) of the unit financing, equivalent to 1,730,769 units, with each unit comprising one share and one-half of one warrant.
  • As at March 31, 2015, Aquila had cash of $4.8-million and working capital of $2.2-million. These compare with $461,000 and a deficit of $1.4-million, respectively, for 2014. The balance sheet improvement is due to the multilevel transaction completed with Orion.

Outlook

The company is focused on advancing its permitting activities in Michigan. Aquila recently hired a U.S.-based engineering and environmental consulting firm which will assist the company in completing its planned permit submission for the Back Forty project scheduled for later this year.

Additionally, Aquila anticipates starting work on a feasibility study for the Back Forty project by the end of the current year with expected completion in the latter half of 2016. The company has engaged subject matter consultants to provide various services related to the planning of the study.

A small exploration program of up to 1,000 metres of diamond drilling close to the known mineralization is also planned for 2015.

Aquila's management's discussion and analysis and financial statements for the first quarter are available on the company's website and SEDAR.

We seek Safe Harbor.

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