VANCOUVER, May 3, 2016 /CNW/ - Red Eagle Mining
Corporation (TSX-V: RD, OTCQX: RDEMF, SSE-V: RDCL) is pleased
to announce financial results for the year ending December 31, 2015 and business highlights to
date, including advancements at Red Eagle Mining's San Ramon Gold
Mine in Antioquia, Colombia.
Highlights include:
- Completed approximately $11,250,000 private placement of common shares
(news release dated April 21,
2016)
- Appointed Mr. Matthew Howorth,
as Vice President and General Counsel (news release dated
March 1, 2016)
- Replaced CB Gold directors and officers with Red Eagle Mining
appointees and highlighted past Vetas Gold Project high grade drill
results, averaging 30 g/t Au over 1.03 meter average width. (news
release dated December 3, 2015)
- Fulfilled all conditions precedents to draw down the credit
facility and drew US $10,000,000
(news release dated November 5,
2015);
- Acquired controlling interest in CB Gold through a share
exchange takeover bid (news release dated, October 5, 2015);
- Completed approximately $19,350,000 private placement of common shares
(news release dated August 21,
2015);
- Awarded the mine construction and operations contract for the
San Ramon Gold Mine to STRACON GyM (news release dated July 17, 2015);
- Appointed Mr. Chui Wong,
Chartered Accountant, as Chief Financial Officer (news release
dated May 25, 2015);
- Red Eagle Mining's common shares were dual-listed on the
Santiago Stock Exchange Venture, allowing improved access to Latin
American capital pools, while strengthening its visibility in the
region (news release dated April 27,
2015);
- Completed US $65,000,000
construction financing with Orion Mine Finance, including a secured
US $60,000,000 credit facility and a
US $5,000,000 private placement of
common shares (news release dated April 2,
2015);
- Awarded the engineering, procurement, and construction
management contract ("EPCM") for the San Ramon Gold Mine to
Lycopodium Minerals Canada Ltd. (news release dated March 17, 2015);
- Corantioquia (Department of Antioquia Environmental Agency)
granted an Environmental License in full, without conditions, in
Resolution 160TH-1503-11577 dated March 9,
2015. This was the final permit required for construction
and mining of the San Ramon Gold Mine for the life of the mine
(news release dated March 10, 2015);
and
- Recognized by the TSX Venture Exchange as one of the TSX
Venture 50, a ranking of the top performing companies listed on the
TSXV during 2014 (news release dated February 12, 2015).
Development and Construction of the San Ramon Gold Mine and
Mill
In March 2015, Red Eagle
Mining was formally granted the environmental licence in full,
which was the final permit required for the construction and mining
of the San Ramon Gold Mine and Mill, located in the Department of
Antioquia, Colombia.
In August 2015, the Red Eagle
Mining commenced construction at its San Ramon Gold Mine and Mill.
The construction of the San Ramon underground mine, processing
facility and infrastructure is currently progressing on schedule,
with staff, contractors and equipment on site. Production is
expected to commence during the second half of 2016.
As at March 31, 2016, the project
is approximately 60% complete (based on physical completion) and
approximately 55% complete (based on expenditures incurred), with
all engineering design completed, approximately 90% of equipment
delivered to the project site, and is currently proceeding on
budget and schedule.
Significant project highlights include:
EPCM
Detailed engineering, drawings, and all 3D models
for all structures are complete. The quantities and scope for unit
rate construction contracts have been defined and awarded. The
quantities, scope and prices achieved to date are all well within
budget. The EPCM contract has now shifted in focus to "CM" –
construction management.
Earthworks
Bulk earthworks were largely completed by
the end of 2015, allowing critical concrete foundations to be
poured prior to the close of the year. All cut slopes have been
hydro-seeded with natural grasses to mitigate environmental impact.
As at March 31, 2016, all earthworks
and grass hydro-seeding was complete, apart from the dry tailings
and mine waste rock management facility; the construction of which
is still proceeding.
Concrete
All critical concrete foundations were
completed before the end of 2015. As at March 31, 2016, all major concrete foundations
have been completed, and concrete works are approximately 90%
complete.
Procurement and Logistics
By November 2015, the Red Eagle Mining had placed
all process and infrastructure equipment orders necessary to
complete construction of the San Ramon Gold Mine and Mill.
Deliveries of equipment commenced in January
2016 and as at March 31, 2016,
deliveries for the majority of all major equipment to site are
complete.
Structural Steel and Field Erected Tanks
Structural
steel fabrication is well advanced and field erected tanks are
fabricated and delivered to site and erection is in progress. As at
March 31, 2016, welding and erection
of major tanks is approximately 95% complete.
Mechanical Piping, Platework, and Electrical
Instrumentation
Mechanical platework fabrication is in
progress. Major bins and chutes have been delivered to site.
Mechanical installation is in progress with the main focus on the
SAG mill and Filter presses installation. Electrical bulk
procurement is progressing well. The vast majority of all
instruments have been fabricated and are being shipped to site. As
at March 31, 2016, the SAG mill is
approximately 85% complete, and the filter presses are
approximately 60% complete, with all components on site.
Underground Mine Development
The underground decline
has been collared and tunneling activities are ongoing. Initial
ground conditions are as predicted – weak weathered granodiorite
(saprolite), requiring conventional steel support and shotcrete. As
at March 31, 2016, the decline
development was in line with preparation of the processing facility
and infrastructure schedules to achieve production during the
second half of 2016. Additionally, detailed ore production stope
delineation drilling had commenced, in preparation for this
schedule.
Community Relations and Corporate Social Responsibility
("CSR")
Red Eagle Mining continues to maintain positive
relationships with and be involved with the local communities,
keeping them informed of the advances during the construction of
the mine, as well as its environmental and CSR related activities.
To date, Red Eagle Mining has consistently received positive
reception and support from local communities and stakeholders on
the project.
Environmental Progress
Red Eagle Mining has strictly
adhered to the terms of its Environmental License, and the
associated Environmental Management Plan has been followed
diligently – inspections and reports are all in good order.
Red Eagle Mining expects to achieve the upcoming major
development and construction milestones:
- SAG mill and filter presses installation completed in Q2
2016;
- All mechanical platework installation completed in Q2
2016;
- Pre-commissioning to commence in Q3 2016;
- Expected mine and mill construction completion in Q3 2016;
- First gold pour to occur in the second half of 2016; and
- Commercial production by the end of 2016
Project Financing
Based upon Red Eagle Mining's
projections and estimated construction progress made as at
March 31, 2016, the construction of
the 100% owned San Ramon Gold Mine and Mill is forecast to be
funded through to full production. As at March 31, 2016, Red Eagle Mining had
approximately US $22 million in cash,
and US $15 million available
under the credit facility with approximately US $33 million of project cost left to incur.
In addition, an $11 million private
placement was closed on April 21,
2016.
Selected financial data
The following selected
financial data is derived from our audited consolidated financial
statements for the twelve months ended December 31, 2015, as prepared in accordance with
International Financial Reporting Standards (all amounts in
CA$).
|
|
|
For the year
ended
|
December 31,
2015
|
December 31,
2014
|
Net Loss
|
$ 6,706,606
|
$ 8,943,130
|
Comprehensive
Loss
|
7,437,067
|
9,176,726
|
Basic and Diluted
Loss per Share
|
0.05
|
0.13
|
Cash and cash
equivalents
|
10,347,916
|
427,290
|
Total
Assets
|
62,582,686
|
1,484,794
|
Total
Liabilities
|
33,573,430
|
2,253,096
|
Shareholders'
equity
|
29,009,256
|
(768,302)
|
For the year ended December 31,
2015, Red Eagle Mining reported a net loss of $6.7 million (2014: $8.9
million). The net loss was reduced compared to the
2014 period as Red Eagle Mining commenced capitalization of direct
costs associated with the development of the San Ramon Gold Mine,
which also results in the increased values of Total Assets and
Shareholders' Equity. The latter two were also augmented by Red
Eagle Mining's acquisition of a controlling interest in CB Gold.
The decrease in loss per share in 2015 is primarily due to a lower
net loss and the weighted average outstanding shares in 2015 being
significantly greater than in 2014. The increase in Total
Liabilities primarily relates to amounts outstanding on the
construction credit facility and the recognition of a reclamation
provision for the San Ramon Gold Mine and Vetas Gold Project.
This press release should be read in conjunction with the
condensed consolidated financial statements and Management's
Discussion and Analysis for the year ended December 31, 2015. These documents can be
found on Red Eagle Mining's website or profile at
www.sedar.com.
The technical information contained in this news release has
been reviewed and approved by Red Eagle Mining's Vice President of
Exploration, Jeff Toohey P.Eng., who
is a Qualified Person as defined under NI 43-101.
About Red Eagle Mining
Red Eagle Mining is a well-financed gold exploration and
development corporation with an experienced mine development
team. Management is focused on building shareholder value
through discovering and developing gold projects with low costs and
low technical risks in Colombia, a
jurisdiction with prolific historic production but until recently
limited modern exploration. Red Eagle Mining owns 71% of the
Vetas Gold Project and 100% of the Santa Rosa Gold Project, where
construction is underway at the fully permitted and fully financed
San Ramon Gold Mine with production expected to commence in the
second half of 2016.
Neither the 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. This news release includes
forward-looking statements that are subject to risks and
uncertainties. All statements within, other than statements
of historical fact, are to be considered forward looking.
Although Red Eagle Mining believes the expectations expressed
in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future
performance and actual results or developments may differ
materially from those in forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include market prices, exploitation and
exploration successes, continued availability of capital and
financing, and general economic, market or business conditions.
There can be no assurances that such statements will prove
accurate and, therefore, readers are advised to rely on their own
evaluation of such uncertainties. We do not assume any
obligation to update any forward-looking statements. This news
release does not constitute an offer to sell or a solicitation of
an offer to sell any securities in the United States. The
securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be
offered or sold within the United
States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
SOURCE Red Eagle Mining Corporation