17:35:05 EDT Thu 17 Jun 2021
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Aris Gold Corp
Symbol ARIS
Shares Issued 137,832,940
Close 2021-05-11 C$ 2.40
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Aris Gold loses $8.4-million (U.S.) in Q1

2021-05-11 19:29 ET - News Release

Ms. Meghan Brown reports


Aris Gold Corp. has released its Q1 2021 financial and operating results, and the voting results of its annual general meeting (AGM) held earlier today. All amounts are in U.S. dollars, unless otherwise indicated.

Highlights of financial and operating results

Aris Gold has continued to advance the lower mine project at the Marmato mine in Colombia, with notable developments, including:

  • The company successfully negotiated a 30-year extension of the mining title at the Marmato mine to October, 2051, which included an agreement with the Agencia Nacional de Mineria (ANM), allowing Aris Gold to proceed with its expansion plans for the lower mine.
  • The escrow release conditions under the Aris Gold-led financing were satisfied and $85-million (Canadian) of cash in escrow was released.
  • Following the completion of a competitive tender process, Aris Gold awarded the engineering, procurement and construction management (EPCM) contract to Wood, a global leader in consulting and engineering with extensive experience delivering mining projects across Latin America.
  • On April 15, 2021, Aris Gold received $34-million of the $110-million precious metals stream financing from Wheaton Precious Metals International Ltd. Under the terms of the precious metals purchase agreement, the remaining $76-million will be received in three instalments as the development of the lower mine progresses.
  • Aris Gold strengthened its operating and construction teams at Marmato with the reorganization of management and the addition of two senior operations executives.
  • Aris Gold continued with the 35,000-metre drill program at Marmato, which commenced in May, 2020, with the principal objective of converting inferred mineral resources to indicated mineral resources while also testing several newly discovered areas. Consistent with previous results under the program, drilling during the first quarter of 2021 continued to show high-grade mineralization over broad widths demonstrating potential to extend the 13-year mine life outlined in the Marmato technical report. As of May, 2021, this drill program is approximately 60 per cent complete.
  • Aris Gold continued to advance its community projects. The company completed construction of a new municipal park in the community of Marmato in March, 2021, and expects to complete construction in May, 2021, of a modern new community centre, which will provide a central location for education and training.

Q1 2021 financial and operating highlights:

  • Revenue totalled $13.6-million in the first quarter of 2021, 29 per cent higher than the first quarter of 2020, primarily due to the 14-per-cent increase in the average realized gold price to $1,802 per ounce and the 13-per-cent increase in gold ounces sold to 7,412 in the first quarter of 2021.
  • Aris Gold incurred a total of $7.1-million of capital expenditures for the three months ended March 31, 2021, comprising the $4.3-million spent on the lower mine, including $2.0-million for the lower mine drilling campaign, and $2.8-million in the Marmato Upper mine, including $1.1-million of non-sustaining and other capital relating to the modernization of the operations, and $1.7-million of sustaining capital primarily related to underground mine development.
  • At March 31, 2021, Aris Gold had cash and cash equivalents of $143.4-million, representing an increase from $32.0-million at the end of 2020, primarily due to the receipt of funds from escrow related to the gold-linked notes and the Aris Gold-led financing, partially offset by cash outflows from operating and investing activities. On April 15, 2021, Aris Gold received $34-million of the $110-million precious metals stream financing.
  • In the first quarter of 2021, Aris Gold reported a net loss of $8.4-million (seven cents per share) (Q1 2020 -- $17.6-million (47 cents per share)). This was primarily driven by the decrease in margin from mining operations and one-off acquisition and restructuring costs of $12.8-million (Q1 2020 -- nil).

Aris Gold's Q1 2021 financial statements and the related management's discussion and analysis (MD&A) are available on SEDAR and in the investors section of Aris Gold's website.

Annual general meeting (AGM) voting results

Shareholders holding 102,742,026 shares or 74.54 per cent of the outstanding shares of the company participated directly or were represented by proxy at the AGM. The meeting voting results are as follows.

Election of directors

The number of directors to be elected was fixed at eight and the directors named in the attached table were elected to the board.

Nominee            Votes for     % for   Votes withheld  % withheld

Ian Telfer       101,577,079   99.999%              665      0.001%    
Neil Woodyer     101,575,179   99.997%            2,565      0.003%    
Daniela Cambone  101,534,334   99.957%           43,410      0.043%    
David Garofalo   101,318,716   99.745%          259,028      0.255%    
Serafino Iacono  101,316,716   99.743%          261,028      0.257%    
Peter Marrone    101,577,179   99.999%              565      0.001%    
Hernan Martinez  101,577,244  100.000%              500      0.000%    
Attie Roux       101,575,079   99.997%            2,665      0.003%    

Appointment of auditor

KPMG LLP was reappointed as the auditor of the company for the ensuing year with its remuneration to be set by the board.

             Votes for    % for  Votes withheld    % withheld

KPMG LLP   102,119,070  99.959%          41,756        0.041%    

About Aris Gold Corp.

Aris Gold is a Canadian mining company listed on the Toronto Stock Exchange under the symbol ARIS. The company is led by an executive team with a demonstrated record of creating value through building globally relevant gold mining companies. Aris Gold operates the Marmato mine in Colombia, where a modernization and expansion program is under way, and the Juby project, an advanced-exploration-stage gold project in the Abitibi greenstone belt of Ontario, Canada. Aris Gold plans to pursue acquisition and other growth opportunities to unlock value creation from scale and diversification.

Additional information on Aris Gold can be found at the company's website and on SEDAR.

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