Q4 Financials Posted Skimming through, I found the following pieces of interesting information:
1) At March 23, they still had $8.7M of cash and GICs. The remaining GIC of $5M is set to mature on April 12.
(good) 2) Company completed a LiDAR survey of the "entire property"
(good) 3) Since date of last resource, 14,424 metres (74 holes) of drilling has been done which will be included in the updated resource estimate. This is one drill season in each of 2014 and 2016 and two in 2015.
(good) 4)
"With the completion of the Metallurgical Program, the Company is undertaking a new technical initiative which will include reviewing optimum throughput rates, production profile and facilities layout, with a view to updating the mine plan. The Company has engaged AGP Consultants Inc. and Ausenco Engineering Canada Inc. to work with the Company on an internal review of mine planning and economic modeling for the Wellgreen Project. The Company also anticipates completing an updated resource estimation during the third quarter of 2017. As a result of the extensive work being conducted to advance the development of the Wellgreen Project, the Company is also considering preparation of an updated PEA or pre-feasibility study." (good)
5) "During the fourth quarter of 2016, the Company filed for an assessment with the Haines Junction Designated Office of YESAB for Class 4 Mining Land Use Approval Permit (“Class 4 Permit”) which will replace our existing Class 1 and Class 3 Mining Land Use Permits and provide flexibility in the type of activities required to be undertaken to advance the project. The Class 4 Permit is expected to be valid for 10 years and is anticipated to be received during the third quarter of 2017." (good)
6) "The $0.7 million increase in salaries, wages and severance was primarily due to severance expense of $1.5 million incurred with the departures of the former COO, CFO and other senior management members during 2016," (hopefully this is the end of severance payments...)
7) "The $10.1 million increase in net loss was primarily due to a $8.5 million write-down on the Company’s non-core Ontario properties and a flow-through share premium income figure of $1.6 million recorded in 2015 under other non-operating items." (ok, we can just focus on Wellgreen now!)
8) "The Company is reviewing a potential financial liability for the reclamation of land related to mining conducted on or near the Wellgreen property in the 1970’s, prior to the Company’s acquisition of the property. The Company has entered into a preliminary cooperative working arrangement with the Yukon Government and the third party involved in the prior operation of the property, to assess the reclamation work that will need to be conducted. The financial effect and timing of the reclamation work is indeterminable at this time. Once the assessment is completed and a contractual agreement is entered into, a portion of the financial cost for
reclamation may be incurred by the Company. As such, no provision has been recognized." (something that should be addressed... when? who knows)
9) "As at December 31, 2016, the principal and interest balance of the Loans receivable of $134,274 (December 31, 2015 – $457,790) was due upon demand, and the Company held as security 212,500 shares and 212,500 warrants (December 31, 2015 – 637,500 shares and 637,500 warrants). After year-end, a former employee repaid his loan and interest in full, in the amount of $117,712. Accordingly, the Company discharged and released a total of 162,500 shares and 162,500 warrants to that former employee. The balance of the Loans, held by Robert Bruggeman (former Vice President Corporate Development of the Company) and accrued interest as of the dateof this MD&A is $6,311." (nice to get this behind us, finally)
10) "The Company recognized a provision with respect to reclamation work for the Wellgreen Property. The reclamation work primarily consists of dismantling, disposal and hauling costs of the upper and lower camp sites at the property. The Company has estimated a total provision for the reclamation work to be $457,000 at December 31, 2016 based on a total future liability of $480,000, adjusted for inflation, and a discount rate of 1.1% over a time period of 4.5 years, which is the period to expiry of the existing key exploration permits. The reclamation provision was capitalized to the Wellgreen Property." (this is interesting, anybody want to speculate?)
11) Options outstanding 884,000 (all expiring by August 2017 at prices 1.15-1.25) (good)
12) SARs outstanding 5,210,000 (1.835M expiring by September 2017) (decent)
13) Warrants outstanding ~92.7M (1.06M expiried in January, with another $8.09M expiring in June at $0.60 then $13M in 2020 at $0.40 and another ~$70M in 2021 at $0.27) (short-term it's good but there is still a huge overhang unless Electrum exercises to load up our coffers)
14) "The Company had 6 employees as at the date of this AIF. The Company also utilizes consultants and contractors as needed to carry on many of our activities." (good/cost effective?)
15) "The Wellgreen Project is not permitted for mine construction and will require assessment by the Yukon Environmental and Socio Economic Assessment Board (“YESAB”) in advance of a Water License from the Yukon Water Board and a Quartz Mining License from the Mineral Resources Branch of the Yukon government. Prior to entering the YESAB process, environmental and socioeconomic baseline studies are required along with appropriate consultation and engagement with First Nations. These parallel processes could create delays to advance the Wellgreen Project, as well as potentially create financial burdens; however, an Exploration Cooperation Agreement (“ECA”) is in place with one of the First Nations groups in the area of the Wellgreen Project, the Kluane First Nation. The First Nations and the government of the Yukon Territory have provided excellent support for the Wellgreen Project." (cautiously optimistic)