Yellowhead Mining, Inc. YHMGF

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Yellowhead submits $1-million rights offering to TSX-V

2018-05-25 12:31 ET - News Release

Mr. Darryl Coates reports

2018 Q1 REPORT

Yellowhead Mining Inc. has released its operational results for the three months ended March 31, 2018.

Results of operations for the three months ended March 31, 2018

For the full unaudited interim consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2018, please see the company's profile on SEDAR.

Highlights and outlook for 2018 include the following:

 

• The company has submitted a rights offering to the TSX Venture Exchange, which is expected to raise approximately $1-million to pay existing payables and to provide working capital for the next 12 months. Further additional financing will be required by the company to complete its strategic objective of developing the Harper Creek project.
• With regard to the ability of the company to complete the environmental permitting for the project, the company had to:
  • Provide additional information for the environmental assessment application to the B.C. Environmental Assessment Officer (B.C. EAO), including a best available technologies/best available practices study of the tailings management facility, to consider options to reduce excess water storage, to update mitigation strategies, to update the effects assessment and to provide a summary report by a qualified professional on how the recommendations of the Mount Polley tailings storage breach report were considered for the company's environmental assessment application (March 19, 2018);
  • Complete its 180-day statutory review of the project for the B.C. EAO (June 30, 2018);
• The company has requested an extension to April 15, 2019, from the B.C. government for both the March 19, 2018, and June 30, 2018, dates, and is waiting for a response. At the present time, the board of directors of the company intends to investigate the potential of raising additional equity funds to complete the environmental assessment application for the project.
• If environmental permitting for the project is not completed by April 15, 2019, the entire environmental assessment application process will have to be completely redone under the new federal government regulations. The minimum time frame required for a new environmental assessment application process, including the collection and incorporation of fresh baseline environmental data into a new environmental assessment application and first nation consultation, would be three to four years.