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Press Release: Avesoro Resources Inc. - Financial -13-

21 Mar 2018 11:00 am

24. Notes to the statement of cash flows
 
                   Borrowings$'000  Finance            Share          Capital             Total$'000 
                                    lease              capital$'000   contribution$'000 
                                    liabilities$'000 
As at January 1, 
 2017                       93,471            12,160        283,506              48,235      437,372 
Cash flows 
 from/(used in) 
 financing 
 activities                  5,999             (877)         18,688               4,523       28,333 
Cash flows used 
 in investing 
 activities                      -             (866)              -                   -        (866) 
Non-cash flows 
 Finance costs               9,689             1,695              -                   -       11,384 
 Acquisition of 
  Youga and 
  Balogo Gold 
  Mines                      8,106                 -         51,459                   -       59,565 
 Non-cash 
  acquisition of 
  assets held 
  under finance 
  leases                         -             2,002              -                   -        2,002 
 Related party 
  loans                     16,772                 -              -               6,472       23,244 
 Unrealised 
  foreign 
  exchange                      54                 -              -                   -           54 
 Gain on lease 
  settlement                     -           (3,988)              -                   -      (3,988) 
 Changes in 
  non-cash 
  working 
  capital                        -           (2,338)              -                   -      (2,338) 
As at December 
 31, 2017                  134,091             7,788        353,653              59,230      554,762 
 
 
                   Borrowings$'000  Finance            Share          Promissory   Total$'000 
                                    lease              capital$'000    note$'000 
                                    liabilities$'000 
As at January 1, 
 2016                      102,809             8,865        177,877            -      289,551 
Cash flows 
 from/(used in) 
 financing 
 activities               (18,357)             (970)         92,695       12,303       85,671 
Cash flows used 
 in investing 
 activities                      -           (1,061)              -            -      (1,061) 
Non-cash flows 
 Finance costs               7,548               948              -            -        8,496 
 Capitalised 
  interest                   1,471                 -              -            -        1,471 
 Conversion of 
  promissory 
  note into 
  shares                         -                 -         12,303     (12,303)            - 
 Shares issued 
  for 
  exploration 
  licences                       -                 -            531            -          531 
 Shares issued 
  in lieu of 
  services                       -                 -            100            -          100 
 Non-cash 
  acquisition of 
  assets held 
  under finance 
  leases                         -             4,378              -            -        4,378 
As at December 
 31, 2016                   93,471            12,160        283,506            -      389,137 
 

25. Subsequent events

On January 16, 2018 a 100:1 share consolidation became effective and the Company's previously issued share capital of 8,156,075,823 common shares of nil par value was reduced to 81,560,260 new common shares of nil par value.

On February 21, 2018 the Company entered into further equipment and finance facility agreements with Mapa to facilitate the purchase of heavy mining equipment totaling approximately $10.3 million. The equipment finance loans are unsecured, with interest charged at 6.5% per annum and have similar terms as those entered into with Mapa during the year ended December 31, 2017 as discussed in Note 18(c). The loan principal of these agreements includes a mark-up of 2.5% over the cost incurred by Mapa in procuring the equipment.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

About Avesoro Resources Inc.

Avesoro Resources is a West Africa focused gold producer and development company that operates three gold mines across West Africa and is listed on the Toronto Stock Exchange ("TSX") and the AIM market operated by the London Stock Exchange ("AIM"). The Company's assets include the New Liberty Gold Mine in Liberia (the "New Liberty Gold Mine" or "New Liberty") and the Youga and Balogo Gold mines in Burkina Faso ("Youga" and "Balogo").

New Liberty has an estimated proven and probable mineral reserve of 7.4Mt with 717,000 ounces of gold grading 3.03g/t and an estimated measured and indicated mineral resource of 9.6Mt with 985,000 ounces of gold grading 3.2g/t and an estimated inferred mineral resource of 6.4Mt with 620,000 ounces of gold grading 3.0g/t. The foregoing Mineral Reserve and Mineral Resource estimates and additional information in connection therewith is set out in an NI 43-101 compliant Technical Report dated November 1, 2017 and entitled "New Liberty Gold Mine, Bea Mountain Mining Licence Southern Block, Liberia, West Africa" and is available on SEDAR at www.sedar.com.

Youga and Balogo have a combined estimated proven and probable mineral reserve of 9.3Mt with 513,000 ounces of gold grading 1.7g/t and a combined estimated indicated mineral resource of 16.05Mt with 801,600 ounces of gold grading 1.55g/t and a combined inferred mineral resource of 13Mt with 655,000 ounces of gold grading 1.57g/t. The foregoing Mineral Reserve and Mineral Resource estimates and additional information in connection therewith is set out in two NI 43-101 compliant Technical Reports, dated June 16, 2017 entitled "Mineral Resource and Mineral Reserve Update for the Balogo Project" and dated June 19, 2017 and entitled "Mineral Resource and Mineral Reserve Update for the Youga and Ouaré Projects" and are available on SEDAR at www.sedar.com.

For more information, please visit www.avesoro.com

Qualified Persons

The Company's Qualified Person is Mark J. Pryor, who holds a BSc (Hons) in Geology & Mineralogy from Aberdeen University, United Kingdom and is a Fellow of the Geological Society of London, a Fellow of the Society of Economic Geologists and a registered Professional Natural Scientist (Pr.Sci.Nat) of the South African Council for Natural Scientific Professions. Mark Pryor is an independent technical consultant with over 25 years of global experience in exploration, mining and mine development and is a "Qualified Person" as defined in National Instrument 43 -101 "Standards of Disclosure for Mineral Projects" of the Canadian Securities Administrators and has reviewed and approved this press release. Mr. Pryor has verified the underlying technical data disclosed in this press release.

Forward Looking Statements

Certain information contained in this press release constitutes forward looking information or forward looking statements with the meaning of applicable securities laws. This information or statements may relate to future events, facts, or circumstances or the Company's future financial or operating performance or other future events or circumstances. All information other than historical fact is forward looking information and involves known and unknown risks, uncertainties and other factors which may cause the actual results or performance to be materially different from any future results, performance, events or circumstances expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "would", "project", "should", "believe", "target", "predict" and "potential". No assurance can be given that this information will prove to be correct and such forward looking information included in this press release should not be unduly relied upon. Forward looking information and statements speaks only as of the date of this press release.

In making the forward looking information or statements contained in this press release, assumptions have been made regarding, among other things: general business, economic and mining industry conditions; interest rates and foreign exchange rates; the continuing accuracy of Mineral Resource and Reserve estimates; geological and metallurgical conditions (including with respect to the size, grade and recoverability of Mineral Resources and Reserves) and cost estimates on which the Mineral Resource and Reserve estimates are based; the supply and demand for commodities and precious and base metals and the level and volatility of the prices of gold; market competition; the ability of the Company to raise sufficient funds from capital markets and/or debt to meet its future obligations and planned activities and that unforeseen events do not impact the ability of the Company to use existing funds to fund future plans and projects as currently contemplated; the stability and predictability of the political environments and legal and regulatory frameworks including with respect to, among other things, the ability of the Company to obtain, maintain, renew and/or extend required permits, licences, authorizations and/or approvals from the appropriate regulatory authorities; that contractual counterparties perform as agreed; and the ability of the Company to continue to obtain qualified staff and equipment in a timely and cost-efficient manner to meet its demand.

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March 21, 2018 07:00 ET (11:00 GMT)
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