TSX / NYSE American
Symbol:
TMQ
VANCOUVER, BC, Oct. 11,
2023 /CNW/ - Trilogy Metals Inc. (TSX: TMQ)
(NYSE American: TMQ) ("Trilogy Metals", "Trilogy" or "the
Company") announces its financial results for the third quarter
ended August 31, 2023. Details
of the Company's financial results are contained in the interim
unaudited consolidated financial statements and Management's
Discussion and Analysis which will be available on the Company's
website at www.trilogymetals.com, on SEDAR+ at www.sedarplus.ca and
on EDGAR at www.sec.gov. All amounts are in United States dollars unless otherwise
stated.
Upper Kobuk Mineral Projects
("UKMP")Activities
In July, Ambler Metals LLC ("Ambler Metals") used the camp to
support a small team of geologists who were continuing work started
in 2022 on the stratigraphy and alteration of the Arctic deposit.
The focus of the work was to relog existing drill core from 13
holes across the deposit and 4 holes from regional prospects. In
addition, sampling was undertaken for chemostratigraphy and
alteration footprint definition. Geological and talc models for the
Arctic deposit were updated and an updated geological and
structural model for the area surrounding Arctic was commenced.
The camp was also utilized by Ambler Metals to conduct sampling
of core from the Bornite deposit to be used in a study initiated by
the Center to Advance the Science of Exploration to Reclamation in
Mining ("CASERM") at the Colorado School of
Mines to investigate the occurrence and distribution of
critical elements, including germanium. Ambler Metals has recently
accepted a proposal from CASERM with leveraged funding from the
United States Geological Survey to contribute samples from Bornite
to further investigate the occurrence, distribution, and
sequestration of critical elements, including germanium.
Ambler Metals has engaged Wood Canada Limited and SRK Consulting
(Canada) Inc. to complete an
initial scoping level study on the Bornite deposit to determine if
the ore at Bornite may extend the mine life at the proposed Arctic
Project. The scope of work covers mining, processing, hydrogeology,
infrastructure, tailings management, and waste rock management.
Ambler Mining District Industrial
Access Project ("Ambler Access Project")
The Alaska Industrial Development and Export Authority ("AIDEA")
started field work in May 2023
utilizing a camp at Coldfoot, which work was completed in
mid-September. In mid-June, AIDEA started utilizing the Ambler
Metals Bornite camp with an average of 40 people daily at camp
throughout the summer with approximately 20 NANA Regional
Corporation, Inc. ("NANA") and Doyon Limited shareholder hires
among them. Ambler Metals recently closed the Bornite camp with no
safety incidents reported. AIDEA successfully completed the planned
field program from Bornite consisting of cultural resource
inventory surveys and testing of sites over approximately 450
acres, hydraulic and hydrology studies at bridge crossings to
assess conditions for area drainage, culvert placement and bridge
design, collecting topographical and bathymetric survey data to
support bridge data and fish passage culverts, engineering
reconnaissance surveys and fish habitat investigations. In
March 2023, the board of Ambler
Metals approved funding of $12.3
million, a 50% share of the total budget of $24.6 million for the Ambler Access Project which
is being funded equally by AIDEA and Ambler Metals. As at
August 31, 2023, $6.5 million has been spent to date on logistics
and cost of the field season.
On November 15, 2022, the United
States Bureau of Land Management ("USBLM") submitted a status
report announcing that it anticipated publishing a draft
Supplemental Environmental Impact Statement ("SEIS") in the second
quarter of calendar 2023 and a final SEIS in the fourth quarter of
calendar 2023. On January 17, 2023
and March 20, 2023, the USBLM
submitted status reports reaffirming the timing of the draft and
final SEIS.
On May 19, 2023, the USBLM
submitted a status report revising the timeline for development of
the SEIS and a subsequent Record of Decision. The USBLM anticipates
publishing a draft SEIS in the third quarter of calendar year 2023,
a final SEIS in the first quarter of calendar year 2024, and a
Record of Decision within the second quarter of calendar year
2024.
On July 18, 2023 and September 18, 2023, the USBLM submitted status
reports reaffirming the timing of the draft SEIS, final SEIS and
the Record of Decision.
Selected Results
The following selected financial information is prepared in
accordance with U.S. GAAP.
in thousands of
dollars
|
Three months
ended
|
Nine months
ended
|
Selected
expenses
|
August
31,
2023
$
|
August 31,
2022
$
|
August 31,
2023
$
|
August 31,
2023
$
|
General and
administrative
|
278
|
279
|
1,014
|
1,014
|
Investor
relations
|
18
|
18
|
71
|
155
|
Professional
fees
|
139
|
131
|
897
|
568
|
Salaries
|
191
|
172
|
621
|
847
|
Share of loss on equity
investment
|
2,910
|
8,925
|
5,998
|
13,295
|
|
|
|
|
|
For the three-month period ended August
31, 2023, we reported a net loss of $4.1 million compared to a net loss of
$9.9 million for the three-month
period ended August 31, 2022. The
decrease in comprehensive loss in the third quarter of 2023
compared to the same quarter in 2022 is due to the decrease in our
share of loss of Ambler Metals, and stock-based compensation and
salaries. The decrease of our share of losses of Ambler Metals is
mainly due to the decrease in mineral property expenses over the
comparative quarter in the prior year from the decrease in
drilling, engineering and project support costs and partially
offset from the increased cost in the Ambler Access Project.
For the nine-month period ended August
31, 2023, we reported a net loss of $11.9 million compared to a net loss of
$19.0 million for the nine-month
period ended August 31, 2022. The
difference for the nine-month period ended August 31, 2023, when compared to the same period
in 2022, is primarily due to a $7.3
million decrease in our equity pick-up of Ambler Metals'
comprehensive loss in the current period as well as decreases in
salaries and investor relations, and partially offset from the
increase in professional fees and stock-based compensation. The
decrease in our share of losses of Ambler Metals is mainly due to
the decrease in mineral property expenses over the comparable
period in the prior year from decreases in drilling, engineering,
and project support costs and partially offset from the increase in
the Ambler Access Project cost.
Liquidity and Capital Resources
We expended $2.6 million on
operating activities during the nine-month period ending
August 31, 2023 with the majority of
cash spent on corporate salaries, professional fees related to our
annual regulatory filings, and annual fees paid to the Toronto
Stock Exchange and the NYSE American Exchange with the United States and Canadian securities
commissions.
As at August 31, 2023, we had cash
and working capital of $3.0 million.
Management continues with cash preservation strategies to reduce
cash expenditures where feasible, including but not limited to
reductions in marketing and investor conferences and office
expenses. In addition, the Company's Board of Directors have agreed
to take all of their fees in deferred share units in an effort to
preserve cash. The Company's senior management team is also taking
a portion of their base salaries in shares of the Company to
preserve cash.
All project-related costs are funded by Ambler Metals. Amber
Metals is well funded to advance the UKMP with $66.9 million in cash and $66.0 million in working capital as at
August 31, 2023. There are sufficient
funds at Ambler Metals to fund this fiscal year's budget for the
UKMP and the Ambler Access Project. Trilogy does not anticipate
having to fund the activities of Ambler Metals until the current
cash balance of $66.9 million is
expended.
Qualified Persons
Richard Gosse, P.Geo., Vice
President Exploration for Trilogy Metals Inc., is a Qualified
Person as defined by National Instrument 43-101. Mr. Gosse has
reviewed the scientific and technical information in this news
release and approves the disclosure contained herein.
About Trilogy Metals
Trilogy Metals Inc. is a metal exploration and development
company which holds a 50 percent interest in Ambler Metals LLC,
which has a 100 percent interest in the Upper Kobuk Mineral
Projects in northwestern Alaska.
On December 19, 2019, South32, a
globally diversified mining and metals company, exercised its
option to form a 50/50 joint venture with Trilogy. The UKMP is
located within the Ambler Mining District which is one of the
richest and most-prospective known copper-dominant districts in the
world. It hosts world-class polymetallic volcanogenic massive
sulphide ("VMS") deposits that contain copper, zinc, lead, gold and
silver, and carbonate replacement deposits which have been found to
host high-grade copper and cobalt mineralization. Exploration
efforts have been focused on two deposits in the Ambler Mining
District – the Arctic VMS deposit and the Bornite carbonate
replacement deposit. Both deposits are located within a land
package that spans approximately 190,929 hectares. Ambler Metals
has an agreement with NANA Regional Corporation, Inc., an Alaska
Native Corporation that provides a framework for the exploration
and potential development of the Ambler Mining District in
cooperation with local communities. Trilogy's vision is to develop
the Ambler Mining District into a premier North American copper
producer while protecting and respecting subsistence
livelihoods.
Cautionary Note Regarding
Forward-Looking Statements
This press release includes certain "forward-looking
information" and "forward-looking statements" (collectively
"forward-looking statements") within the meaning of applicable
Canadian and United States
securities legislation including the United States Private
Securities Litigation Reform Act of 1995. All statements, other
than statements of historical fact, included herein, including,
without limitation, perceived merit of properties; the
CASERM proposal, including its objective, completion
and conclusions; expectations regarding the 2023 field season and
budgets for the UKMP; the anticipated publishing date of the SEIS,
the final SEIS and the Record of Decision; the continued
willingness of the Company's director and executives to receive
their compensation in equity, the Company's plans to look for
opportunities to reduce its cash spend for the year; management's
expectations regarding the effects of cash conservation efforts and
the sufficiency of cash for the next twelve months; the Company's
future funding of Ambler Metals; and the Company's plans to provide
further updates and the timing thereof are
forward-looking statements. Forward-looking statements are
frequently, but not always, identified by words such as "expects",
"anticipates", "believes", "intends", "estimates", "potential",
"possible", and similar expressions, or statements that events,
conditions, or results "will", "may", "could", or "should" occur or
be achieved. Forward-looking statements involve various risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate, and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from the Company's expectations include the
uncertainties involving our ability to conserve cash and to raise
capital at terms favorable to the Company, or at all and other
risks and uncertainties disclosed in the Company's Annual Report on
Form 10-K for the year ended November 30,
2022 filed with Canadian securities regulatory authorities
and with the United States Securities and Exchange Commission and
in other Company reports and documents filed with applicable
securities regulatory authorities from time to time. The Company's
forward-looking statements reflect the beliefs, opinions and
projections on the date the statements are made. The Company
assumes no obligation to update the forward-looking statements or
beliefs, opinions, projections, or other factors, should they
change, except as required by law.
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SOURCE Trilogy Metals Inc.