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Aquila Resources Inc
Symbol AQA
Shares Issued 220,914,874
Close 2015-08-13 C$ 0.14
Market Cap C$ 30,928,082
Recent Sedar Documents

Aquila talks drilling, omits P&L from NR

2015-08-14 08:40 ET - News Release

Mr. Barry Hildred reports

AQUILA RESOURCES FILES Q2 2015 FINANCIAL RESULTS AND PROVIDES CORPORATE UPDATE

Aquila Resources Inc. has filed its second quarter financial results for the period ended June 30, 2015. All amounts, unless indicated, are reported in U.S. dollars.

Q2 corporate highlights

  • Filed a letter of intent with the Michigan Department of Environmental Equality (MDEQ) to submit a permit application for its flagship Back Forty project before year-end 2015;
  • Retained the services of Foth Infrastructure & Environment LLC, an engineering firm based in Green Bay, Wis., to assist with the preparation of permit applications;
  • Retained SGS, an inspection, verification, testing and certification company, to complete comprehensive metallurgical test work at Back Forty. The test work will include ore variability assessment from ball milling. Results from the test work will be used for mine plan optimization in the Back Forty feasibility study;
  • Strengthened the management team by appointing Stephanie Malec as chief financial officer and Andrew Boushy as vice-president of project development. Ms. Malec brings more than 15 years of experience, combining accounting, financial reporting, public markets and mining sector work. Mr. Boushy has more than 25 years in the mining industry with extensive experience in capital project management as well as asset optimization;
  • Repaid $736,552 worth of debentures that had reached maturity;
  • Shareholders elected Mark Burridge, Peter Bradshaw, Andrew Dunn, Kevin Drover, Stephen Fabian, Barry Hildred and Edward Munden as directors at the company's annual general meeting held in Toronto on June 24, 2015;
  • Elected Edward Munden as lead director;
  • Improved cash of $2.4-million and working capital of $558,152 as at June 30, 2015. These compare with a cash balance of $461,175 and negative working capital of $1.4-million at Dec. 31, 2014. The balance sheet improvement is due to a multilevel transaction completed with Orion at the end of first quarter 2015 with a total value of $20.75-million. The transaction included a private placement and a silver purchase agreement. Concurrent with the transaction, the company repurchased royalties associated with Back Forty from Hudbay Minerals and Vale Exploration USA for a total cash consideration of $5-million (U.S.).

Highlights subsequent to quarter-end

  • Received a second tranche from its transaction with Orion totalling $1.35-million.

Outlook

"Backed by a strengthened balance sheet, our primary focus in the second half of 2015 will be to work collaboratively with local stakeholders and government officials to prepare and a submit a mine permit application that is fully compliant with Michigan's environmental regulations," said Barry Hildred, chief executive officer of Aquila Resources. "In parallel with our development activities at Back Forty, we will continue to identify near-mine exploration targets with potential for resource expansion. We are currently conducting fieldwork on an adjacent land package to support a targeted drill program in Q3."

The targeted exploration program, which will begin September, 2015, will consist of up to a maximum 1,000 metres of diamond drilling close to the known mineralization.

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.

Aquila's management discussion and analysis, and financial statements for Q2 are available on the company's website and on SEDAR.

Qualified professional

Thomas O. Quigley, vice-president of exploration, is the qualified person for Aquila Resources as described in National Instrument 43-101.

We seek Safe Harbor.

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