Highlights of Financial and Operating Results
- The Company successfully negotiated a 30-year extension of the mining title at the Marmato mine to
October 2051 , which included an agreement with the Agencia Nacional de Mineria (ANM) allowingAris Gold to proceed with its expansion plans for theLower Mine . - The escrow release conditions under the
Aris Gold -led financing were satisfied andC$85 million of cash in escrow was released. - Following the completion of a competitive tender process,
Aris Gold awarded the engineering, procurement and construction management (EPCM) contract to Wood, a global leader in consulting and engineering with extensive experience delivering mining projects acrossLatin America . - On
April 15, 2021 ,Aris Gold received$34 million of the$110 million precious metals stream financing fromWheaton Precious Metals International Ltd. Under the terms of the precious metals purchase agreement, the remaining$76 million will be received in three installments as the development of theLower Mine progresses. Aris Gold strengthened its operating and construction teams at Marmato with the reorganization of management and the addition of two senior operations executives.Aris Gold continued with the 35,000-metre drill program at Marmato which commenced inMay 2020 , with the principal objective of converting Inferred Mineral Resources to Indicated Mineral Resources while also testing several newly discovered areas. Consistent with previous results under the program, drilling during the first quarter of 2021 continued to show high-grade mineralization over broad widths demonstrating potential to extend the 13-year mine life outlined in the Marmato Technical Report. As ofMay 2021 , this drill program is approximately 60% complete.Aris Gold continued to advance its community projects. The Company completed construction of a new municipal park in the community of Marmato inMarch 2021 , and expects to complete construction inMay 2021 of a modern new community centre which will provide a central location for education and training.
Q1 2021 Financial and Operating Highlights
- Revenue totalled
$13.6 million in the first quarter of 2021, 29% higher than the first quarter of 2020, primarily due to the 14% increase in the average realized gold price to$1,802 per ounce and the 13% increase in gold ounces sold to 7,412 in the first quarter of 2021. Aris Gold incurred a total of$7.1 million of capital expenditures for the three months endedMarch 31, 2021 . This was comprised of the$4.3 million spent on theLower Mine , including$2.0 million for theLower Mine drilling campaign, and$2.8 million in theMarmato Upper Mine , including$1.1 million of non-sustaining and other capital relating to the modernization of the operations and$1.7 million of sustaining capital primarily related to underground mine development.- At
March 31, 2021 ,Aris Gold had cash and cash equivalents of$143.4 million , representing an increase from$32.0 million at the end of 2020, primarily due to the receipt of funds from escrow related to the Gold-linked notes and theAris Gold -led financing, partially offset by cash outflows from operating and investing activities. OnApril 15, 2021 ,Aris Gold received$34 million of the$110 million precious metals stream financing. - In the first quarter of 2021,
Aris Gold reported a net loss of$8.4 million ($0.07 per share) (Q1 2020:$17.6 million ($0.47 per share)). This was primarily driven by the decrease in margin from mining operations and once-off acquisition and restructuring costs of$12.8 million (Q1 2020: nil).
AGM Voting Results
Shareholders holding 102,742,026 shares or 74.54% of the outstanding shares of the Company participated directly or were represented by proxy at the AGM. The meeting voting results are as follows.
Election of Directors
The number of directors to be elected was fixed at eight and the following directors were elected to the Board:
Nominee | Votes for | % for | Votes withheld | % withheld |
101,577,079 | 99.999% | 665 | 0.001% | |
101,575,179 | 99.997% | 2,565 | 0.003% | |
101,534,334 | 99.957% | 43,410 | 0.043% | |
101,318,716 | 99.745% | 259,028 | 0.255% | |
101,316,716 | 99.743% | 261,028 | 0.257% | |
101,577,179 | 99.999% | 565 | 0.001% | |
101,577,244 | 100.000% | 500 | 0.000% | |
101,575,079 | 99.997% | 2,665 | 0.003% |
Appointment of Auditors
Votes for | % for | Votes withheld | % withheld | |
102,119,070 | 99.959% | 41,756 | 0.041% |
About
Additional information on
Forward-looking Information
This news release contains "forward-looking information" or forward-looking statements" within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, including without limitation statements relating to receipt of the remaining funds under the stream financing and advancement of community projects are forward-looking. Generally, the forward-looking information and forward looking statements can be identified by the use of forward looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "will continue" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Statements concerning mineral resource estimates may also be deemed to constitute forward looking information to the extent that they involve estimates of the mineralization that will be encountered. The material factors or assumptions used to develop forward looking information or statements are disclosed throughout this presentation.
Forward looking information and forward looking statements, while based on management's best estimates and assumptions, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of
Although
This announcement does not constitute an offer of securities for sale in
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