Mr. Matias Herrero
GOLD SPRINGS RESOURCE CORP. REPORTS NEW US OTCQB STOCK SYMBOL GRCAF AND FILES THIRD QUARTER 2019 FINANCIAL STATEMENTS AND MD&A
Gold Springs Resource Corp.'s common shares, starting yesterday, Nov. 12, 2019, are trading on the United States OTCQB under the new trading symbol GRCAF.
The company also reports the release of its condensed interim consolidated financial statements for the three and nine months ended Sept. 30, 2019, and the related management's discussion and analysis of financial position and results of operations. In this press release, all amounts are expressed in U.S. dollars, unless otherwise indicated.
As at Sept. 30, 2019, the company had cash of $16,165,967, of which $11,436,186 was used on Nov. 4, 2019, to redeem and cancel the outstanding Class B shares of the company.
During the nine months ended Sept. 30, 2019, the company reported a net loss of $11,370,712 (five cents per share), compared with a net loss of $202,842 (nil per share) for the nine months ended Sept. 30, 2018. During the three months ended Sept. 30, 2019, the company reported a net loss of $49,628 (nil per share), compared with a net loss of 2,527,533 (one cent per share) for the three months ended Sept. 30, 2018.
The net loss for the nine months ended Sept. 30, 2019, was significantly impacted by the divestiture of the Escalones property and the conclusion of the arbitration proceedings against Bolivia.
On Sept. 26, 2019, the company completed the divestiture of the Escalones property to Wealth Copper Ltd., a private company, subsidiary of TSX Venture Exchange-listed Wealth Minerals Ltd., in exchange for $1-million (Canadian) in cash ($754,638), payable to the company, of which $150,000 (Canadian) ($112,790) has already been received, 25 million common shares of Wealth Copper with an estimated fair value of 10 Canadian cents per share ($1,887,000), which have been issued to the company and represent 42.6 per cent of the issued and outstanding shares of Wealth Copper, and a 2-per-cent net smelter return (NSR) royalty on the Escalones property in favour of the company (see the company's press release dated Sept. 27, 2019, for further details). The transaction resulted in the recognition of a non-cash loss of $13,363,497 during the nine months ended Sept. 30, 2019.
During the same period, the company concluded the arbitration proceedings against Bolivia, which paid the company $25,588,525 on Sept. 5, 2019, being net of $209,475 for the tribunal's cost order included in the arbitration award, as a final settlement amount for the award and for the transfer of the Malku Khota project data to Bolivia. The change in the recorded fair value of arbitration award assets, Class B shares and other arbitration award liabilities during the nine months ended Sept. 30, 2019, resulted in a net fair-value gain to the company of $3,312,037 (2018 -- $629,823).
The company continued to manage its costs structure, which resulted in general and administrative expenses, excluding non-cash share-based payments and arbitration expenses, decreasing from $910,000 to $640,000 during the nine months ended Sept. 30, 2019. Arbitration expenses increased for the same period from $53,053 to $391,221 as the company concluded its arbitration proceedings against the government of Bolivia and settled the award.
Exploration spending during the nine months ended Sept. 30, 2019, decreased to $506,569 from $1.17-million incurred in the first nine months of 2018. The 2019 costs included $419,139 incurred at Gold Springs, of which $296,075 were land payments, and $87,430 incurred at the Escalones property in Chile. During the nine months ended Sept. 30, 2019, the company paid $8,408,603 of arbitration liabilities and, subsequent to Sept. 30, 2019, it redeemed its 116,375,152 Class B shares outstanding for 9.827 cents per Class B share for total redemption proceeds of $11,436,186.
Subsequent to Sept. 30, 2019, the company also recommenced its drill program at its Gold Springs property. Drill results are expected in December and January.
The company's focus for 2019 and beyond is on the exploration and expansion of the mineral resources at its Gold Springs project in Nevada and Utah, United States.
About Gold Springs Resource Corp.
Gold Springs is a growth-focused gold exploration company creating value through the exploration and development of the Gold Springs project in Nevada and Utah, United States. Management has extensive experience in global exploration and the mining industry.
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