02:26:10 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



GrowMax Resources Corp
Symbol GRO
Shares Issued 215,925,645
Close 2016-08-26 C$ 0.19
Market Cap C$ 41,025,873
Recent Sedar Documents

GrowMax has $38.5-million in cash at end of Q2

2016-08-26 20:54 ET - News Release

Mr. Abby Badwi reports

GROWMAX RESOURCES CORP. ANNOUNCES SECOND QUARTER 2016 RESULTS

GrowMax Resources Corp. (formerly Americas Petrogas Inc.) has filed its condensed interim consolidated financial statements and interim management's discussion and analysis quarterly highlights relating to its second quarter 2016 results. These filings can be accessed on the SEDAR website and on the company's website.

The following summary of selected financial and operational highlights has been derived from the condensed interim consolidated financial statements and interim MD&A quarterly highlights. Readers are strongly encouraged to review the entire condensed interim consolidated financial statements and interim MD&A quarterly results.

Key items and recent activities

Corporate

As at June 30, 2016, the company had $38.5-million of consolidated cash and cash equivalents and had a positive consolidated working capital position of $53.1-million. The decrease in working capital from Dec. 31, 2015 ($62.6-million), to June 30, 2016 ($53.1-million), can be attributed primarily to approximately:

  1. $6.5-million of capital expenditures, which includes $3.3-million ($2.5-million (U.S.)) of expenditures related to the acquisition of an additional 30-per-cent interest in the Bayovar property;
  2. $5.3-million of losses on the company's U.S.-dollar-denominated financial instruments as a result of the weakening of the U.S. dollar relative to the Canadian dollar;
  3. $2.9-million of cash general and administrative expenses;
  4. $1.5-million of expenses and losses relating to Argentina;
  5. $600,000 of other items, partially offset by:
  6. The reclassification of approximately $5.5-million of available-for-sale financial assets from non-current assets to current assets;
  7. Approximately $1.8-million of oil and gas net capital assets being classified as current as a result of Energicon being held for sale.

During the second quarter of 2016, GrowMax Agri Corp., a subsidiary of GrowMax Resources, issued 26,121,589 of its common shares to GrowMax Resources to settle $7.3-million of intercompany debt owed by GrowMax Agri Corp. to GrowMax Resources. This resulted in GrowMax Resources' ownership interest in GrowMax Agri Corp. increasing from 89 per cent to 92 per cent.

Peru:

  • As previously reported, early in 2016, the company's Peruvian subsidiary, Americas Potash Peru SA (APPSA), acquired the remaining 30-per-cent interest in the Bayovar property. Consequently, APPSA now holds a 100-per-cent beneficial interest in the Bayovar property.
  • An updated NI 43-101 mineral resource technical report on the GrowMax Bayovar phosphate project, Piura region, Peru, was filed on April 28, 2016, and a further update was filed on SEDAR on Aug. 11, 2016. This latter mineral resource estimate update was based on substantially all drill holes drilled by the company up to June 30, 2016.
  • On Feb. 16, 2016, the company announced the engagement of WorleyParsons Services Pty. Ltd. and Golder Associates Ltd. to undertake a preliminary economic assessment for the Bayovar 7 concession block. The company anticipates releasing the results of the PEA in September, 2016.
  • Expansion of the pilot evaporation ponds for carnallite/kainite has been completed, and testing of various collected samples is under way.
  • Subsequent to quarter-end, on Aug. 2, 2016, the company engaged WorleyParsons Canada Services Ltd. to assist the company with the provision of certain design and engineering consulting services for the potash project at Bayovar.

Argentina

During the past several months, the company has taken steps to significantly reduce its personnel numbers and general and administrative costs in Argentina and will be continuing with its efforts to sell or voluntarily relinquish the company's remaining oil and gas assets in Argentina.

Outlook

Abby Badwi, executive chairman of GrowMax Resources, stated: "For the remainder of 2016, the company will continue to expand its exploration and economic assessment activities of its phosphate deposits on the Bayovar blocks in Peru while also working towards producing a small amount of carnallite, kainite and/or potash in 2017 from the brine resources in the same area. In Argentina, the company will continue to pursue its various options to maximize the value of its assets in the country and, where applicable, to relinquish certain blocks."

We seek Safe Harbor.

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