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Aquila Resources Inc
Symbol AQA
Shares Issued 271,539,638
Close 2017-03-03 C$ 0.235
Market Cap C$ 63,811,815
Recent Sedar Documents

Aquila's 2016 working capital falls to $600,000 (U.S.)

2017-03-03 10:03 ET - News Release

Mr. Barry Hildred reports

AQUILA RESOURCES FILES FOURTH QUARTER AND YEAR END 2016 RESULTS

Aquila Resources Inc. has filed its financial results for the fourth quarter and year ended Dec. 31, 2016. All amounts, unless indicated, are reported in U.S. dollars.

2016 fourth quarter highlights:

  • Received the final non-ferrous metallic mineral mining permit and the Michigan air use permit to install by the Michigan Department of Environmental Quality;
  • Announced the final drill results of the company's 2016 exploration program that included the discovery of a new mineralized zone at Back Forty;
  • Received $1,875,000 associated with the silver stream component of its financing agreement signed with Orion Mine Finance in March, 2015; to date, the company has received payments totalling $16.26-million as a result of successfully completing a series of milestones relating to the development of Back Forty;
  • Progressed with the development of the feasibility study for Back Forty, including completion of the open-pit mine design and infrastructure, completion of capital and operating cost expenditure estimates, and commencement of plant optimization and preliminary assessment of an underground mine plan;
  • As at Dec. 31, 2016, Aquila had cash of $1.4-million and working capital of $600,000; this compares with cash of $3.3-million and working capital of $2.3-million at Dec. 31, 2015; the working capital decline was due to financing of the company's permitting activities and development of the feasibility study.

Highlights subsequent to year-end.

  • Closed a non-brokered private placement that resulted in gross proceeds of $7.9-million; the offering was oversubscribed with 36,017,725 units issued, with each unit priced at 22 cents, and consisting of one share and one-half of one common share purchase warrant;
  • Announced the start of a 4,600-metre drill program designed to expand known resources at Back Forty and convert current inferred resources into measured and indicated categories;
  • Named Ian Pritchard, a mining executive with more than 30 years of experience, to the company's board as an independent director; Mr. Pritchard was also named as chair of the company's technical, environmental, health and safety committee;
  • Appointed Bill Matheson, a mining executive with more than 30 years of operations and project management experience, as director of construction; the appointment strengthens the company's management team.

"Two thousand sixteen was a year of considerable progress and achievement for Aquila as we continued to advance permitting activity at Back Forty with the receipt of two of four required permits," said Barry Hildred, chief executive officer of Aquila Resources. "In the coming year, we expect to build on this momentum with the completion of our feasibility study and finalization of the remaining permits for Back Forty. At the same time, we will work with our financial advisers to review strategic opportunities for the company while continuing discussions with prospective partners to secure necessary capital for the project execution phase."

About Aquila Resources Inc.

Aquila Resources is a development-stage company with strategic assets in the Great Lakes region. The company's experienced management team is currently focused on advancing permitting activities for its 100-per-cent-owned gold- and zinc-rich Back Forty project in Michigan.

Aquila's flagship Back Forty project is a volcanogenic massive sulphide deposit located along the mineral-rich Penokean volcanic belt in Michigan's Upper Peninsula. In its updated preliminary economic assessment filed in September, 2014, Back Forty demonstrated strong economics, with a pretax net present value of $282-million ($210.8-million after tax) and a pretax internal rate of return of 38.8 per cent (32 per cent after tax), based on mining 16.1 million tonnes of measured, indicated and inferred resources over the 16-year life of the mine, of which 12.5 million tonnes will be open pit and 3.6 million tonnes will be underground.

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