19:43:48 EDT Thu 28 Mar 2024
Enter Symbol
or Name
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CA



Lupaka Gold Corp
Symbol LPK
Shares Issued 111,953,251
Close 2016-04-29 C$ 0.13
Market Cap C$ 14,553,923
Recent Sedar Documents

Lupaka terminates employment of CEO Edwards in 2015

2016-04-29 21:21 ET - News Release

Mr. Gordon Ellis reports

LUPAKA GOLD REPORTS FINANCIAL HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2015 AND EXTENSION OF PANDION FINANCING MANDATE

Lupaka Gold Corp. has released financial results for the year ended Dec. 31, 2015.

The following is taken from the company's audited annual consolidated financial statements and management's discussion and analysis for the year ended Dec. 31, 2015, both of which are filed at SEDAR under the company's profile.

Notable events -- the company's events of note for the three months ended Dec. 31, 2015, and to date are as follows:

  • On Feb. 22, 2016, the company announced that it had completed a non-brokered private placement of common shares for total gross proceeds of $419,500 and completed its second run-of-mine bulk test of 532 tonnes, achieving total recoveries of 87.52 per cent for gold, 91.18 per cent for silver and 91.52 per cent for copper.
  • On Jan. 21, 2016, the company announced the signing of a non-binding letter of intent with Pandion Mining Finance for $10.6-million (U.S.) to finance Invicta mine development and production.
  • On Dec. 31, 2015, the company announced that it had completed a non-brokered private placement of common shares for total gross proceeds of $110,000.
  • On Oct. 27, 2015, the company announced that it had completed its first run-of-mine bulk test of 342 tonnes of mineralized rock from Invicta, achieving total recoveries of 83.6 per cent for gold and 95.5 per cent for copper.
  • The company announced a change in management on Oct. 19, 2015, terminating the employment of Eric Edwards as president and chief executive officer.
  • On Sept. 28, 2015, the company announced that it had completed the second of two tranches of a non-brokered private placement of common shares for total gross proceeds of $602,510.

                    SUMMARIZED FINANCIAL HIGHLIGHTS 
    (all amounts are in thousands of dollars unless otherwise stated)

                                                         Year ended Dec. 31,
                                                        2015           2014    
Operating expenses                                                          
Exploration                                           $2,189         $3,216 
General and administration                             1,563          1,541 
                                                ------------   ------------
Operating loss                                         3,752          4,757 
(Gain) impairment loss on available-for-sale                                
financial asset                                            -            (90)
Finance income -- interest                                (5)           (28)
Foreign exchange loss (gain)                              53            (30)
                                                ------------   ------------
Loss for the period                                    3,800          4,609 
                                                ------------   ------------
Loss per share -- basic and diluted                    $0.04          $0.05 
                                                ------------   ------------

Exploration expenses

All such expenses relate to the Peruvian operations of the company and totalled $2,189,000 for 2015, compared with $3,216,000 for 2014, a net decrease of $1,027,000, due to the following: camp, community relations and related costs totalled $1,320,000 for 2015 compared with $2,089,000 for 2014, with the decrease of $769,000 being a result of an aggregate decrease in Crucero exploration activities totalling $680,000, and $184,000 in decreased Josnitoro community relations costs, offset by an increase of $95,000 in Invicta preconstruction activities; project administration expenses, which totalled $866,000 for 2015 compared with $1,064,000 for 2014, with the decrease of $198,000 being the result of net decreases of $499,000 in Crucero gold project exploration and employee severance costs, offset by an increase of $301,000 for Invicta preproduction expenditures incurred; and technical reports, assays and related costs totalling $3,000 for 2015 compared with $63,000 for 2014, a decrease of $60,000, as very little of such costs were incurred.

General and administration expenses

All such expenses relate to the Canadian operations of Lupaka Gold and totalled $1,563,000 for 2015 compared with $1,541,000 for 2014, with the net increase of $22,000 being mainly the result of: salaries and benefits totalled $1,081,000 for 2015 compared with $601,000, an increase of $480,000, which reflects accrued severance of $644,000 to the company's former president and chief executive officer, offset by reduced share-based compensation (SBC) expenses of $55,000 for 2015, and lower salary expense (excluding the accrued severance payment above) of $109,000; shareholder and investor relations (IR) expenses totalled $177,000 for 2015 compared with $425,000 for 2014, a decrease of $248,000, reflecting an IR cost reduction of $146,000 relative to 2014, when there was an investor relations program focused on the establishment of a European investor presence in the company's shareholder base, a decrease in IR staffing costs of $93,000, reduced SBC expenses of $5,000 for 2015 and reduced travel costs of $4,000; professional and regulatory fees totalled $165,000 for 2015 compared with $260,000 for 2014, a decrease of $95,000, reflecting a reduction of $18,000 in corporate legal and Peruvian listing-related sponsorship fees, and lower audit and legal cost decreases of $53,000, a decrease in advisory costs of $22,000, and lower transfer agent costs by $2,000; and lower office and general and travel costs of $91,000 due mainly to reductions in office lease costs of $67,000 and $20,000 in corporate travel costs.

The principal changes in the company's cash during the year ended Dec. 31, 2015, were as follows:

Cash used in operating activities in the year ended Dec. 31, 2015, was $2,786,000 ($4,376,000 -- year ended Dec. 31, 2014), principally to finance the company's loss for the period of $3.8-million ($4,609,000 -- year ended Dec. 31, 2014), which was offset by non-cash charges, including depreciation of $118,000 ($140,000 -- year ended Dec. 31, 2014), and share-based compensation of $118,000 ($224,000 -- year ended Dec. 31, 2014), offset by a discounting of the reclamation provisions for the company's Invicta and Crucero properties, as well as a net decrease of $871,000 in non-cash working capital (decrease of $36,000 -- year ended Dec. 31, 2014). In the year ended Dec. 31, 2015, the company accrued $644,000 (nil -- year ended Dec. 31, 2014) as a severance payment accrual for the termination of Mr. Edwards (as president and CEO) in October, 2015, and in the year ended Dec. 31, 2014, the company had a gain on sale of the investment in Southern Legacy of $90,000 (nil -- year ended Dec. 31, 2015).

Net cash used in investing activities in the year ended Dec. 31, 2015, totalled $62,000, compared with net cash from investing activities of $1,201,000 in the year ended Dec. 31, 2014, with $995,000 of that from the sale of the company's previously held investment in Southern Legacy, in an open-market transaction conducted through the TSX Venture Exchange. The company's purchases of equipment totalled $62,000 in the year ended Dec. 31, 2015 ($78,000 -- year ended Dec. 31, 2014). In 2014, the company sold equipment for net proceeds of $284,000 (nil -- year ended Dec. 31, 2015).

Total current liabilities as at Dec. 31, 2015, totalled $1,937,000 ($1,159,000 -- Dec. 31, 2014), composed of accounts payable and accrued liabilities, mostly for community and Invicta project-related obligations, as well as an accrued liability of $644,000 for severance due to the company's former president and CEO. Long-term liabilities consisted of provisions for reclamation of $278,000 ($380,000 -- Dec. 31, 2014), the difference being attributable to discounting of the long-term provisions and a change in foreign exchange rates in 2015.

Extension of Pandion Mine Finance mandate

The company has extended the Jan. 21, 2016, Pandion Mine Finance letter of intent to May 31, 2016.

"The due diligence process has been more extensive and time-consuming than originally anticipated but is moving ahead efficiently," commented Gordon Ellis, president and CEO of Lupaka Gold.

Mr. Ellis added: "Although the process has taken longer, there are positive consequences. As an example, one outcome of the due diligence process is the decision to upgrade the access road beyond that needed for 150 tonnes per day. This accelerated upgrade should produce a minimum 50-per-cent increase in mineralized rock payload volume, resulting in significant transportation costs saving over time."

We seek Safe Harbor.

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