Yellowhead Mining Announces 2017 Third Quarter Report
VANCOUVER, Nov. 29, 2017 - 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.
Contact
Yellowhead Mining Inc.
Frank Wheatley, Chief Executive Officer
Email: fwheatley@yellowheadmining.com
David McGoey, Chief Financial Officer
Phone: 403-294-6497
Email: DMcgoey@yellowheadmining.com
Website: www.yellowheadmining.com