www.aldridgeminerals.ca
Twitter: @AldridgeAGM
TSX-V: AGM
TORONTO, Aug. 14, 2013 /CNW/ - Aldridge Minerals Inc. (TSX Venture: AGM)
("Aldridge" or the "Company") has filed its unaudited condensed
consolidated financial statements and management's discussion &
analysis for the three and six months ended June 30, 2013 (the
"Financial Statements" and the "MD&A", respectively). The Financial
Statements and the MD&A are posted on SEDAR at www.sedar.com and on the Company's website at www.aldridgeminerals.ca.
Second Quarter Highlights:
-
Earned 100% Interest in the Yenipazar Property with Completion of the
Feasibility Study
On June 17, 2013, the Company announced the exercise of its option to
earn a 100% working interest in the Yenipazar Property in central
Turkey by delivering the Yenipazar Feasibility Study ("FS") and
exercise notice to Alacer Gold Corp. ("Alacer"). Alacer retains a 6%
net profit interest ("NPI") until $165,000,000 of revenue is generated,
and a 10% NPI thereafter.
-
NI 43-101 Compliant Technical Report for the FS Filed and Robust Results
Announced
On May 17, 2013 the Company filed, on www.sedar.com, its NI 43-101 compliant Technical Report for the Yenipazar FS. As
described in detail in the report, the Yenipazar Project demonstrates
strong economics across multiple scenarios.
-
Progress on Project Financing
The Company continued its evaluation of potential project financing
options including debt, equity, metal streaming and concentrate
off-take-related financing that may be available to Aldridge. The
progress included:-
Engaging an independent engineer to act on behalf of potential lenders;
-
Evaluating the FS and its financial and operational risks;
-
Initiating preliminary project evaluations by prospective banks,
streaming companies and other parties;
-
Identifying strategies to address potential and perceived project risks;
and
-
Developing a plan to advance the project financing.
-
Strong Cash Position - $11,401,972 at June 30, 2013
Corporate Update and Outlook
The Company continues to advance the Yenipazar Project while taking
steps to cut costs across the organization in order to preserve the
Company's strong cash position during a period of volatility in the
mining sector and capital markets. Aldridge remains focused on
progressing key aspects of the Project including the land acquisition
plan, environmental permits and other government approvals that will
ensure the Company is well-positioned to move ahead rapidly with the
development of Yenipazar at the appropriate time.
As noted in the MD&A, the Company's major objectives and activities for
the balance of 2013 and beyond include the following:
-
CEO Search
Aldridge has formed a Special Committee of the Board that is overseeing
a process to identify and hire a new Chief Executive Officer to build
on the Company's successes and lead it through the development and
growth phases, including permitting, project financing, construction
and operation.
-
Land Acquisition
The Company is progressing its land acquisition plan ("LAP") to acquire
approximately 9.4 square kilometres of land required to develop the
Project. The LAP is being prepared in accordance with Equator
Principles III, thereby meeting the standards required by potential
international financing organizations. Following completion of the LAP,
the Company will consider its financial resources and the potential
timing of the required project financing to determine the appropriate
time to initiate land purchase transactions.
-
Environmental Permitting
The Company expects to submit its Environmental Impact Assessment Study
("EIA") to the Turkish government later in the third quarter. Aldridge
is also preparing an Environmental and Social Impact Assessment Study
("ESIA") report in accordance with international standards, which
builds on the Turkish EIA by providing additional social data analysis
and the LAP. The EIA permit is required before proceeding with
applications for certain other permits required to develop and operate
the Yenipazar project.
-
Project Development
The Company plans to evaluate alternative project development options
utilizing activity trade-off studies and by reviewing the timing of
hiring additional senior managers and professional staff to the owners'
project development team. In addition, the Company is taking actions to
trim expenses in Turkey and Canada, including reducing and re-assigning
staff and reducing professional fees and other expenses. Considering
the present mining sector and capital markets environment, prospective
plans will balance short and long term project development plans with a
conservative cash management strategy that could support a potentially
longer financing process.
-
Project Financing
A key objective of 2013 and beyond is to secure the project financing
needed to build the Yenipazar Project. The Special Committee and future
CEO will continue to monitor and evaluate the capital markets and
prospective financing sources. Preliminary meetings held in June with
prospective debt and metal streaming organizations indicated such
funding sources would likely be available when combined with
appropriate levels of new equity. The FS, along with the preliminary
analysis completed by the Company's financial advisors and their
independent engineers, identified a number of typical mining project
risks which the Company expects to resolve or advance in the coming
months to facilitate the future project financing efforts.
-
Investment Incentive Certificate ('IIC') Application
The application to receive incentives, including the corporate income
tax reduction and an exemption from 18% VAT, related to allowable
capital expenditures should be submitted within three months. Receipt
of the EIA permit is required before the IIC can be approved and the
certificate issued.
-
Exploration
The Company expects to minimize new exploration in the near-term in an
effort to reduce spending prior to advancing project financing efforts.
When deemed appropriate, exploration activities may include geophysical
surveys and drilling on the Yenipazar Property, including the area
adjacent to the known resource where three mineralized outcrops were
identified, and on its Orenli license, which is located in western
Turkey in a region with many known porphyry, skarn and epithermal type
occurrences and deposits. The exploration programs will be developed
subject to the availability of funding. Longer-term plans may include
the acquisition and exploration of other properties in Turkey.
Corporate Appointment
Aldridge today announced that David Carew, who joined Aldridge in
February 2011, was appointed as Corporate Secretary and an officer of
the Company in addition to his role as Director of Corporate
Development.
About Aldridge
Aldridge is a development stage mining company focused on its wholly
owned Yenipazar polymetallic VMS Project (Au, Ag, Cu, Pb, Zn) in
Turkey, a country that is committed to developing its natural
resources. Aldridge completed the Yenipazar feasibility study and filed
the related NI 43-101 compliant technical report in May 2013 and is
currently advancing the Project on key aspects including permitting and
project financing.
Caution Regarding Forward-Looking Information
This news release includes certain forward-looking statements within the
meaning of Canadian securities laws. Forward-looking statements involve
risks, uncertainties and other factors that could cause actual results,
performance, prospects and opportunities to differ materially from
those expressed in such forward-looking statements. Forward-looking
statements in this news release, include, but are not limited to,
economic performance and future plans and objectives of Aldridge. Any
number of important factors could cause actual results to differ
materially from these forward-looking statements as well as future
results. Although Aldridge believes that the assumptions and factors
used in making the forward-looking statements are reasonable, undue
reliance should not be placed on these statements, which only apply as
of the date of this news release, and no assurance can be given that
such events will occur in the disclosed timeframes or at all. Aldridge
disclaims any intention or obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this news
release.
SOURCE Aldridge Minerals Inc.
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