Northern Vertex Mining Corp. (TSX.V:NEE) (the “Company”) announces that the Company’s interim consolidated financial results for the third fiscal quarter 2018 ended March 31, 2018 have been filed on SEDAR. The full version of the Condensed Interim Consolidated Financial Statements and Management’s Discussion & Analysis can be viewed on the Company’s website at www.northernvertex.com or under the Company’s profile on SEDAR at www.sedar.com.
Financial Highlights for the Quarter and Nine Months Ended March 31, 2018
Cash was $16.96 million at March 31, 2018, compared to $24.99 million at June 30, 2017. The decrease was due to cash used for the construction and commissioning of the Moss Mine, offset by the receipt of cash proceeds from various financings.
Loss for the quarter was $1.12 million ($0.01 per share) compared to a loss of $1.53 million ($0.02 per share) for the same period last year.
Loss for the nine months ended March 31, 2018 was $4.47 million ($0.03 per share) compared to a loss of $3.34 million ($0.03 per share) for the same period last year.
The Company drew two US$3 million tranches under its US$6 million non-revolving working capital facility with Greenstone Resources II L.P. Both advances were evidenced by way of convertible debentures.
The Company arranged a commitment for US$100 million with Sprott Private Resources Lending LP (“Sprott”) in which Sprott has agreed, under certain conditions, to provide financing for future acquisitions and development projects.
The Company announced a non-brokered private placement of up 3,846,153 units (each “Unit”) at a purchase price of $0.52 per Unit, for aggregate gross proceeds to the Company of up to $2 million. Each Unit consists of one common share of the Company and one-half transferable share purchase warrant. Each whole warrant will entitle the holder to acquire one common share of the Company at an exercise price of $0.68 for a period of 24 months from the closing date of the private placement. Subsequent to the quarter the Company closed the private placement raising gross proceeds of $2.40 million.
Corporate and Operating Highlights for the Quarter Ended March 31, 2018
Construction was completed during the quarter including the mechanical and electrical installation of the crushing and Merrill Crowe plants.
Commissioning of the crushing plant, power station, overland conveyors, Merrill Crowe plant and dore refinery commenced.
The leach pad received ore upon the commencement of crushing operations and drip lines are continuously being added to the stacked material.
At the beginning of March the Company achieved a significant commissioning milestone with the first gold pour at the Moss Mine.
The Company also announces that under the terms of the convertible debentures issued under the convertible debenture indenture dated July 14, 2016 (the “Indenture”) between the Company and Computershare Trust Company of Canada, it has elected to satisfy its obligation to pay an aggregate of $173,750 in interest accrued on the convertible debentures by issuing to such debenture holders on the interest payment date of May 31, 2018 an aggregate of 369,670 common shares. The Company paid to each such debenture holder 5.3191 common shares per $100 principal amount of debentures held as at the applicable interest payment record date. Under the terms of the Indenture, no fractional common shares were delivered upon payment of the interest obligation and the Company is not required to pay the cash equivalent of any amount less than $5.00. The issuance of common shares in payment of interest remains subject to TSX Venture Exchange approval.