VANCOUVER, British Columbia, March 24, 2025 (GLOBE NEWSWIRE) -- Ascot Resources Ltd. (TSX: AOT; OTCQX: AOTVF) (“Ascot” or the “Company”) announces the Company's audited consolidated financial results for the year ended December 31, 2024. For details of the audited consolidated financial statements, Management's Discussion and Analysis, and Annual Information Form for the year ended December 31, 2024, please see the Company's filings on SEDAR+ at www.sedarplus.ca.
All amounts herein are reported in $000s of Canadian dollars (“C$”) unless otherwise specified.
2024 AND RECENT HIGHLIGHTS
FINANCIAL RESULTS FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2024
The Company reported a net loss of $17,018 for Q4 2024 compared to a net income of $1,705 for Q4 2023. The increase in net loss in Q4 2024 is mainly driven by the accounting loss on decrease in fair value of the embedded derivatives as a result of increase in discount rate and a loss on extinguishment of the convertible facility as a result of the accounting treatment of the modification of the convertible facility.
The Company reported a net loss of $31,508 for the year ended December 31, 2024 compared to $10,430 for year ended December 31, 2023. The higher net loss in 2024 is attributable to a combination of key factors including a $15,987 decrease in the fair value of derivatives mainly driven by the adjustment to the discount rate and decrease in the Company’s share price; an increase in accounting loss on extinguishment of credit facilities of $4,324, an increase in unrealized foreign exchange loss of $3,414, an increase in financing costs of $1,175, partially offset by a $3,390 lower general and administrative expenses and stock-based compensation.
LIQUIDITY AND CAPITAL RESOURCES
As at December 31, 2024, the Company had cash and cash equivalents of $27,973 and a working capital deficiency of $47,551. Excluding the current portion of deferred revenue of $6,936 and $24,290 of convertible facility which is classified as current due to the lender’s right to exercise the conversion option at any time at a variable price, the working capital deficiency was $16,325. The decrease in cash and cash equivalents since December 31, 2023 was mainly due to the increase in expenditures in mine development, plant and equipment of $153,433, share issue costs of $6,758, financing costs $484 and payment of principal and interest on cost overrun facility (“COF”) of $3,096 which is offset by net proceeds from the sale of Sprott royalty of $40,554, net proceeds from the COF of $26,766, proceeds from the bought deal private placement of $109,352 and proceeds from the exercise of stock options of $193.
The negative working capital, the delay in underground development, suspension of operations and the builder’s liens filed on the mineral properties would have resulted in a default on Ascot’s credit facilities and stream arrangement. However, the Company obtained waivers and forbearance conditions from its secured lenders providing for limited suspension of covenant compliance requirements until September 30, 2025. The waivers were in effect as of December 31, 2024 and until September 30, 2025.
Management evaluated the financial position including the negative working capital and commitments that existed at December 31, 2024 as well as the potential funding received subsequent to the year end and the projected cash flows from operations based on the estimated mine and production plan (including estimated mine and mill grades). The financing package together with the projected cash flows from operations with the operations restart in Q3 2025 would provide sufficient funding for the next twelve months of operations. If the projected cash flows from operations do not materialize or operations restart is delayed, the Company may need additional funding.
During the year ended December 31, 2024, the Company issued 426,785,000 common shares, 84,594,528 warrants, and granted 6,067,104 stock options, 386,195 Deferred Share Units (“DSUs”) and 3,267,868 Restricted Share Units (“RSU”). Also, 7,284,210 stock options expired or were forfeited, 305,848 RSUs were forfeited, 13,710,500 warrants expired and 371,369 stock options, 137,533 DSUs and 1,230,088 RSUs were exercised in 2024
MANAGEMENT’S OUTLOOK FOR 2025
After the announcement of temporary suspension of operations in early September 2024, the key activities for the remainder of 2024 included the remobilization of the mining contractor and recommencement of underground development at PNL.
In 2025, the Company intends to transition from the construction of the mine and related infrastructure to the operation of the entire site, achieve commercial production and to become a gold producer. The key priorities include:
Qualified Person
James A (Jim) Currie, P.Eng., Chief Executive Officer and Chief Operating Officer of the Company is the Company’s Qualified Person (QP) as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this news release.
On behalf of the Board of Directors of Ascot Resources Ltd.
“James A (Jim) Currie”
CEO & COO
For further information contact:
KIN COMMUNICATIONS INC.
Email: AOT@kincommunications.com
Phone: 604-684-6730
About Ascot Resources Ltd.
Ascot is a Canadian junior exploration and development company focused on re-starting the past producing Premier Gold Mine, located on Nisga’a Nation Treaty Lands, in British Columbia’s prolific Golden Triangle. Ascot shares trade on the TSX under the ticker AOT. Concurrent with progressing the development of Premier, the Company continues to explore its properties for additional high-grade underground resources. Ascot is committed to the safe and responsible development of Premier in collaboration with Nisga’a Nation as outlined in the Benefits Agreement.
For more information about the Company, please refer to the Company’s profile on SEDAR+ at www.sedarplus.ca or visit the Company’s web site at www.ascotgold.com, or for a virtual tour visit www.vrify.com under Ascot Resources.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
All statements and other information contained in this press release about anticipated future events may constitute forward-looking information under Canadian securities laws (“forward-looking statements”). Forward- looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “targeted”, “outlook”, “on track” and “intend” and statements that an event or result “may”, “will”, “should”, “could”, “would” or “might” occur or be achieved and other similar expressions. All statements, other than statements of historical fact, included herein are forward-looking statements, including statements in respect of the closing of the Second Tranche, the ability of the Company to accomplish its business objectives, the potential outcome of the TSX’s remedial delisting review and any alternative listing on the TSX Venture Exchange, the achievement of development and funding targets, the sources and uses and other intentions described herein and future plans, development and operations of the Company. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including risks related to the need for potential future waivers or forbearance agreements from the Secured Creditors; business and economic conditions in the mining industry generally; fluctuations in commodity prices and currency exchange rates; uncertainty of estimates and projections relating to development, production, costs and expenses, and health, safety and environmental risks; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; the need for cooperation of government agencies and indigenous groups in the exploration and development of Ascot’s properties and the issuance of required permits; the need to obtain additional financing to finance operations and uncertainty as to the availability and terms of future financing; the possibility of delay in future plans and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other regulatory approvals and other risk 3 factors as detailed from time to time in Ascot’s filings with Canadian securities regulators, available on Ascot’s profile on SEDAR+ at www.sedarplus.ca including the Annual Information Form of the Company dated March 25, 2025 in the section entitled “Risk Factors”. Forward-looking statements are based on assumptions made with regard to: the estimated costs and timelines associated with the development plans; the ability to maintain throughput and production levels at the Big Missouri mine and the Premier Northern Lights mine; the tax rate applicable to the Company; future commodity prices; the grade of mineral resources and mineral reserves; the ability of the Company to convert inferred mineral resources to other categories; the ability of the Company to reduce mining dilution; the ability to reduce capital costs; the ability of the Company to raise additional financing; compliance with the covenants in Ascot’s credit agreements; and exploration plans. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. Although Ascot believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since Ascot can give no assurance that such expectations will prove to be correct. Ascot does not undertake any obligation to update forward-looking statements, other than as required by applicable laws. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.