METALLICA RESOURCES INC. REPORTS FIRST QUARTER 1996 RESULTS.TORONTO, Ontario--(BUSINESS WIRE)--June 6, 1996--Metallica marked the first quarter of 1996 with the release of the independent prefeasibility study for the Cerro San Pedro gold-silver project in Mexico, a Cdn $12.5 million Special Warrant Equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. , and entry into Chile at the exploration prospect level. Mexico Cerro San Pedro Gold-Silver Project At Metallica's 100% owned Cerro San Pedro gold-silver project located in San Luis Potosi San Lu·is Po·to·sí A city of central Mexico northeast of León. It was founded in the late 1500s and is a mining, transportation, and industrial center. Population: 659,000. Noun 1. , Mexico, the Company and its independent minerals industry consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a , Pincock, Allen & Holt holt n. Archaic A wood or grove; a copse. [Middle English, from Old English.] holt Noun the lair of an otter [from , completed a positive prefeasibility study during the first quarter. Based on a proven & probable, mineable reserve totalling 61.5 million tonnes grading 0.65 grams per tonne (g/t) gold and 23.6 grams per tonne (g/t) silver (1.28 million ounces gold and 46.5 million ounces of silver contained). The project generates an undiscounted Net Present Value (NPV NPV See: Net present value ) of US$86.0 million with an internal Rate of Return (IRR IRR In currencies, this is the abbreviation for the Iranian Rial. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) of 23%. These results were calculated at constant metal prices of US$400 and US$5.45 for gold and silver, respectively, over an eight-year mine life. Life-of-mine production rates average 108,000 ounces gold and 3,000,000 ounces silver recovered annually (approximately 150,000 ounces gold equivalent per year) at an average cash production cost, including royalties, of US$220 per ounce of gold equivalent. An initial capital cost estimate for a 22,000 tonnes (ore) per day open-pit, heap leach leach v. leached, leach·ing, leach·es v.tr. 1. To remove soluble or other constituents from by the action of a percolating liquid. 2. facility at Cerro San Pedro has been estimated at US$55.1 million. The life-of-mine average strip ratio stands at 1.83 tonnes of overburden o·ver·bur·den tr.v. o·ver·bur·dened, o·ver·bur·den·ing, o·ver·bur·dens 1. To burden with too much weight; overload. 2. To subject to an excessive burden or strain; overtax. n. 1. per tonne of ore; metal recoveries have been estimated at 67% for gold and 51% for silver. Full feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. level work was initiated by Metallica in January and to date over 12,000 metres of drilling in 44 holes have been completed. Additional bulk metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. samples have been collected from various host rock types and locations throughout the deposit. These samples have been shipped to the metallurgical laboratory The Metallurgical Laboratory or "Met Lab" at the University of Chicago was part of the World War II–era Manhattan Project, created by the United States to develop an atomic bomb. for large-scale column leach testing and bottle roll analysis. A preliminary pit slope design geotechnical study has also been completed which recommends that pit slopes in the deposit's overlying overlying suffocation of piglets by the sow. The piglets may be weak from illness or malnutrition, the sow may be clumsy or ill, the pen may be inadequate in size or poorly designed so that piglets cannot escape. limestone rocks can be steepened to +60 degrees from the 45 degree slopes utilized in the prefeasibility study. The impact of the steepened pit slopes on the project and its overall economics is to lower the life-of-mine average strip ratio which in turn lowers the average operating cost per ounce of gold produced. Both the core and reverse circulation drilling program continues at Cerro San Pedro with the emphasis shifting from the closer- spaced, infill in·fill n. 1. The use of vacant land and property within a built-up area for further construction or development, especially as part of a neighborhood preservation or limited growth program. 2. holes within the central reserve area to step-out drilling predominantly along the northern boundary of the currently delineated de·lin·e·ate tr.v. de·lin·e·at·ed, de·lin·e·at·ing, de·lin·e·ates 1. To draw or trace the outline of; sketch out. 2. To represent pictorially; depict. 3. deposit. Chile Metallica announced in early May it had entered into a joint venture with Compania Minera Taura, a private Chilean mining company, to explore the 1,780 hectare hectare (hĕk`târ, –tär), abbr. ha, unit of area in the metric system, equal to 10,000 sq m, or about 2.47 acres. Los Choros copper-gold project located 70 kilometres north of La Serena, Chile La Serena ("the serene one") is the second oldest city in Chile. The city, located 471 km north of Santiago, has a population of 147,815, according to the 2002 census. There are also 12,333 inhabitants of the immediately surrounding countryside. . The Company can earn a 60% interest in Los Choros by completing US$2,000,000 in exploration expenditures over the next three years. The targets Metallica will focus on are a series of large geophysical ge·o·phys·ics n. (used with a sing. verb) The physics of the earth and its environment, including the physics of fields such as meteorology, oceanography, and seismology. anomalies
Anomalies is Cephalic Carnage's 4th full-length album. It was released on Relapse Records. The group expanded their sound even more than their previous album, Lucid Interval, and gained more popularity. interpreted to represent sulphide-bearing, iron-rich replacement bodies developed within a sequence of Cretaceous-age volcanic and varbonate rocks. Previous work at Los Choros returned anomalous a·nom·a·lous adj. 1. Deviating from the normal or common order, form, or rule. 2. Equivocal, as in classification or nature. levels of copper and gold mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. from surface sampling and in two of the three holes drilled on the property. Metallica's initial exploration plan consists of detailed ground magnetic and IP surveys followed by a first pass drilling program. Venezuela In Venezuela, Metallica has restructured its arrangements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the acquisition of two Venezuelan corporations, Corporacion Venezolano Canadiense C.A. ("VC") and Consorcio Mineral Nationale C.A. ("CMN CMN Common CMN Children's Miracle Network (since 1983; Salt Lake City, Utah) CMN Certificate of Medical Necessity CMN Canadian Museum of Nature CMN Community Mapping Network CMN Common Information "). VC has applied for the VC 1, 2 and 3 mineral concessions in the Cicapra district in Bolivar State and CMN has applied for the CMN mineral concessions in the El Callao district Callao is one of the six districts of the Constitutional Province of Callao in the Callao Region, Peru. It is also the downtown district of the city of Callao. The Chillón River marks the district's northern border with Ventanilla. , also in Bolivar State. Under the terms of the original agreements relating to each of VC and CMN, Metallica's wholly-owned subsidiary, Venezuelan Mineral Development Corporation, had conditionally agreed to acquire each company for a total of 500,000 common shares of Metallica (for an aggregate of 1,000,000 shares), such shares to be issued in stages over a three year period. The completion of the acquisition was conditional upon VC and CMN being granted the mineral concessions for which each company had applied. Under the revised terms, Venezuelan Mineral Development Corporation will acquire VC and CMN immediately. If, on or before April 15, 1997, VC or CMN are granted the mineral concessions for which they have applied, Metallica will issue from treasury 55,000 common shares (for a potential maximum of 110,000 shares if both companies are granted the concessions). The effect of the restructuring of the arrangements is to reduce the maximum number of common shares which Metallica may be required to issue in payment for VC and CMN from 1,000,000 shares to 110,000 shares. Financial Metallica Resources
Metallica Resources (TSX: MR and NYSE: MRB) is a Canadian based mineral and gold mining company. Inc. reported a loss for the quarter ended March 31, 1996 of US$244,866 or $0.01 per share. First quarter revenue totalled US$69,806 and was derived solely from interest income. As of March 31, 1996 the Company had US$4,752,109 in cash and cash equivalents on hand. At the beginning of the quarter Metallica reported that all 2,500,000 Series C Common Share Purchase Warrants, issued on June 27, 1994, were exercised prior to expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created at a price of Cdn $2.25. On March 20, 1996 the Company announced, and by April 4 had closed, a Special Warrant equity financing with a Nesbitt Burns Inc.-led underwriting syndicate Underwriting syndicate A group of investment banks that work together to sell new security offerings to investors. The underwriting syndicate is led by the lead underwriter. See also: Lead underwriter. underwriting syndicate See syndicate. . The private placement of 2,500,000 Special Warrants priced at Cdn$5.00 per Special Warrant resulted in gross proceeds of Cdn$12,500,000 to the Company. Each Special Warrant will be exercisable, without payment of additional consideration, for one common share of Metallica. Metallica Resources is a Toronto-based precious metals Precious Metals Valuable metals such as gold, iridium, palladium, platinum, and silver. Notes: Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal. exploration company currently in the feasibility study stage on its principal asset, the multi-million ounce Cerro San Pedro gold-silver deposit in Central Mexico. The Company is well-funded and has 17.2 million shares outstanding. -0-
METALLICA RESOURCES INC.
Consolidated Balance Sheets
U.S. dollars
Unaudited
As at
March 31, 1996 March 31, 1995
$ $
Assets
Current
Cash 501,413 9,638
Short term investments 4,250,696 4,487,224
Sundry receivables and
prepaid expenses 45,979 44,647
Income taxes recoverable - 73,707
-------------------------------
Total 4,798,088 4,615,216
-------------------------------
Mineral properties 9,419,507 1,852,772
Fixed assets 96,623 158,688
-------------------------------
14,314,218 6,699,009
===============================
Liabilities and Shareholders' Equity
Current
Accounts payable 319,475 239,011
Income taxes payable 9,027 -
-------------------------------
328,502 239,011
-------------------------------
Shareholders' equity
Share capital 19,733,493 10,047,587
Deficit (5,747,776) (3,587,589)
-------------------------------
13,985,717 6,459,998
-------------------------------
-------------------------------
14,314,218 6,699,009
===============================
METALLICA RESOURCES
Consolidated Statements of Operations and Deficit
U.S. dollars
Unaudited
For the three months ended
March 31, 1996 March 31, 1995
$ $
Interest income 69,806 72,549
-------------------------------
General and administration costs 314,672 54,732
--------------------------------
Profit (loss) for the period (244,866) 17,817
Deficit, beginning of period (5,502,910) (3,605,406)
-------------------------------
Deficit, end of period (5,747,776) 3,587,589)
===============================
Weighted average number of shares
outstanding 17,024,501 11,951,526
Profit (loss) per share (0.01) 0.00
Statement of Changes in Consolidated Financial Position
U.S. dollars
Unaudited
For the three months ended
March 31, 1996 March 31, 1995
$ $
Operating activities
Net loss for the period (244,866) 17,817
Non cash items:
Depreciation 10,231 1,746
Net changes in non cash
working capital 235,808 31,873
------------------------------
1,172 51,436
------------------------------
Investing activities
Additions to mineral
properties (1,204,515) (928,732)
Fixed assets acquired net
of disposals - (4,835)
---------------------------------
(1,204,515) (933,567)
-------------------------------
Financing activities
Common shares issued for
mineral properties - 223,817
Options exercised 234,773 -
-------------------------------
234,773 223,817
--------------------------------
Increase in cash and short term
investments (968,570) (658,315)
Balance, beginning of the period 5,720,681 5,155,177
-------------------------------
Balance, end of the period 4,752,109 4,496,862
===============================
Represented by:
Cash 501,413 9,638
Short term investments 4,250,696 4,487,224
--------------------------------
4,752,109 4,496,862
===============================
CONTACT: Metallica Resources Craig J. Nelsen, 416/350-2337 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion