TSX-V:YMI
VANCOUVER, Nov. 29, 2017 /CNW/ - Yellowhead Mining
Inc. ("Yellowhead" or the "Company") (TSX-V: YMI), reports its
results of operations for the three months ended September 30, 2017.
For the full condensed consolidated interim financial statements
and management discussion & analysis for the third financial
quarter ended September 30, 2017,
please see SEDAR at www.sedar.com or the Company's website at
www.yellowheadmining.com.
Third Quarter 2017
During the third quarter of 2017, the Company continued to
investigate the potential of raising new debt and/or additional
equity funds to continue operations and to complete the
environmental assessment for the Harper Creek Project.
Summary of Third Quarter Results
(Amounts are expressed in thousands of Canadian dollars,
except per-share amounts)
|
|
|
|
2017
|
2016
|
Quarter
Ended
|
30-Sep
|
30-Sep
|
Administrative
expenses
|
$
98
|
$
123
|
Exploration and
maintenance expenses
|
169
|
32
|
Other
income
|
-
|
(1)
|
Net loss and
comprehensive loss for the period
|
267
|
154
|
Basic and diluted
loss per share for the period
|
$0.03
|
$0.01
|
Note that the basic
and diluted loss per share has been adjusted retrospectively for
the 12 to 1 common share consolidation
|
Yellowhead has no revenue from operations. Results can
fluctuate significantly from period to period due to the level of
development activities on the Project.
Review of Quarterly Results
In Q3 2017, under the care and maintenance program at the
Project site, as compared to Q3 2016:
- Administrative expenses decreased $25K, mostly due to the Vancouver office lease expiring in
August 2016, and
- Exploration and evaluation expenses increased $137K, mostly due to $139K of environmental assessment charges
incurred during the quarter in connection with the resumption of
the EA Review.
Cash and Cash Equivalents
Working capital further decreased $267K in Q3 2017 from $186K at June 30,
2017 to a deficit of $81K at
September 30, 2017. Included in
working capital were cash and cash equivalents of $102K (December 31,
2016 - $618K).
Outlook
With regard to the ability of the Company to complete the
environmental permitting for the Project, the Company has until
March 18, 2018 or receive an
extension to provide additional information (Additional
Information) for the Environmental Assessment Application to the BC
Environmental Assessment Office (BC EAO), including a best
available technologies / best available practices study of
the tailings management facility, including 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 for the
Project. If the Company does not provide the Additional
Information by March 18, 2018, or
receive an extension within which to provide the Additional
Information, then the current Environmental Assessment Application
will be deemed to have been withdrawn, and the entire Environmental
Assessment Application will have to be completely re-started and
re-done. The Company intends to apply for an extension to
provide the Additional Information given the difficulties it has
had in achieving the stakeholder consultative requirements.
At this time, the Company expects its cash requirements to
complete the Environmental Assessment Application and to fund
continuing operations to exceed $4.0
million.
At the present time, the Board of Directors of the Company
continues to investigate the potential of raising additional equity
funds to complete the EA Review process for the Project, as well as
to fund operations.
About Yellowhead Mining Inc.
Yellowhead Mining Inc. is a development stage company with a
100% interest in the Harper Creek Project, located in the
North Thompson - Nicola region of
British Columbia, Canada.
Neither 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 release.
Forward Looking Statements
Except for statements of historical fact, this news release
contains certain "forward-looking information" within the meaning
of applicable securities laws. Forward-looking information is
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made, and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking
statements, including, among others, the accuracy of mineral grades
and related assumptions, inherent operating risks, planned
expenditures, proposed exploration and development at the Harper
Creek Project, operating and economic aspects of the Harper Creek
Project, as well as those risk factors identified in the Company's
Annual Information Form filed under the Company's SEDAR profile.
Yellowhead undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions
should change except as required by law. The reader is cautioned
not to place undue reliance on forward-looking statements. More
detailed information about potential factors that could affect
projected results is included in the documents filed from time to
time with the Canadian securities regulatory authorities by
Yellowhead.
SOURCE Yellowhead Mining Inc.