Aquila Resources files first quarter 2017 results

Shares Outstanding: 271,539,638

TORONTO, May 10, 2017 /CNW/ - Aquila Resources Inc. (TSX: AQA) ("Aquila"), a permitting-stage company advancing the zinc- and gold-rich Back Forty Project in Michigan's Upper Peninsula announced that it has filed its financial results for the first quarter ended March 31, 2017.  All amounts, unless indicated, are reported in U.S. dollars.

FIRST QUARTER HIGHLIGHTS

• Closed a non-brokered private placement that resulted in gross proceeds of CDN$7.9 million. The offering was over-subscribed with 36,017,725 units issued, with each unit priced at CDN$0.22 and consisting of one share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire one Aquila common share for C$ 30 cents for a period of 36 months.
• Aquila's permit to mine has been challenged in an administrative contested case proceeding to be conducted by the Michigan Office of Administrative Hearings. A contested case is a continuation of the permit review process where aggrieved parties can seek a formal evidentiary hearing on issues raised in their petition for a contested case. The process culminates in a proposal for decision to the MDEQ director, who issues a final decision on the case and the permit. Aquila does not anticipate the MDEQ director will come to a different conclusion on issuing the permit then MDEQ staff, and looks forward to participating in the contested case process.
• Announced the start of a 4,600 meter drill program designed to expand known resources at Back Forty and convert current inferred resources into measured and indicated categories.
• Advanced with development of the Feasibility Study for the Back Forty Project. Key progress included the enterprise configuration of the mine production plan.
• Continued with efforts to refine capital and operating costs associated with the Back Forty project, including early contractor involvement in order to optimize execution approach and schedule.
• Named Ian Pritchard, a mining executive with more than 30 years of experience, to the Company's Board as an independent director. Mr. Pritchard was also named as Chair of the Company's Technical, Environmental, Health & Safety Committee.
• Appointed Bill Matheson, a mining executive with more than 30 years of operations and project management experience, as Director, Construction. The appointment strengthens the Company's management team.
• As at March 31, 2017, Aquila had cash of $5.1 million and working capital of $4.3 2 million. This compared to cash of $1.4 million and working capital of $0.6 million at December 31, 2016. The working capital increase was due to the private placement in February 2017, offset by the funding of the Company's permitting activities and development of the Feasibility Study.

POST QUARTER HIGHLIGHT

• Received the final National Pollutant Discharge Elimination Systems Permit ("NPDES") from the Michigan Department of Environmental Quality ("MDEQ").  The NPDES permit marks the third of four permits that Aquila has received from the MDEQ following the completion of the public hearing process.

"With the third of four permits now in hand, our near-term focus will center on completing the Wetlands Protection permit application process and completing assay results from our 4,600 meter winter drill program, with initial results expected in May," said Barry Hildred, CEO of Aquila Resources.  "In the second half of 2017, we expect to complete our Feasibility Study, strengthen our senior leadership team in preparation of the project execution phase and advance discussions and examine all options to secure project financing necessary to build Back Forty."

ABOUT AQUILA RESOURCES
Aquila Resources Inc. (TSX: AQA) is a development-stage company with strategic assets in the Great Lakes Region. The company's experienced management team is currently focused on advancing permitting activities for its 100%-owned gold- and zinc-rich Back Forty Project in Michigan. 

Aquila's flagship Back Forty Project is a volcanogenic massive sulfide (VMS) deposit located along the mineral-rich Penokean Volcanic Belt in Michigan's Upper Peninsula. In its updated Preliminary Economic Assessment filed in September 2014, Back Forty demonstrated strong economics with a pre-tax NPV of $282 million ($210.8 million after-tax) and a pre-tax IRR of 38.8% (32% after-tax) based on mining 16.1M tonnes of measured, indicated, and inferred resources over the 16-year life of mine, of which 12.5M tonne will be open-pit and 3.6M tonnes will be underground.

This press release contains certain forward-looking statements within the meaning of applicable Canadian securities legislation. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" and similar expressions suggesting future outcomes or statements regarding an outlook.

Forward-looking statements relate to any matters that are not historical facts and statements of our beliefs, intentions and expectations about developments, results and events which will or may occur in the future, without limitation, statement with respect to: (i) the economic analysis contained in the PEA; (ii) the development plan of the PEA and results thereof; (iii) capital expenditure programs; (iv) the quality or quantity of the mineral resources subject to estimates by Aquila; and (v) work plans to be conducted by Aquila.

These and other forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Aquila to control or predict, that may cause their actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein. Aquila expressly disclaims any obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents Aquila's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. Furthermore, mineral resources that are not mineral reserves do not have demonstrated economic viability.

SOURCE Aquila Resources Inc.