Shares Outstanding: 183,201,174
TORONTO , March 31, 2014 /CNW/ - Aquila Resources Inc. (TSX: AQA) (OTCQX: AQARF) (FKT: JM4A) ("Aquila"), a development-stage company advancing the gold and
zinc-rich Back Forty Project in Michigan's Upper Peninsula, reported
its fourth quarter and year-end corporate and financial results for the
periods ended December 31, 2013. A full copy of Aquila's Management
Discussion and Analysis, and Financial Statements for the year ended
December 31, 2013 are available on the Company's website and on SEDAR
at www.sedar.com. Unless otherwise noted, all figures in this news release are reported
in Canadian dollars.
"Our focus in 2013 was to regain control of the Back Forty project while
re-capitalizing the company in order to fund future development. In
2014, we will look to optimize the project's potential, by completing a
revised PEA to better define the significant upside potential of the
deposit, and ramp-up our permitting activities," said Barry Hildred , CEO of Aquila Resources. "Today, armed with a 100% interest in Back Forty, an infusion of
capital and a strengthened leadership team, we are well-positioned to
re-start Back Forty's development," said Mark Burridge , Aquila's Chairman.
2013 Corporate Highlights
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On November 7, 2013 , Aquila announced several proposed transactions,
which were subsequently closed on January 16, 2014. The transactions
consisted of:
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a business combination whereby Aquila acquired all of the outstanding
shares of REBgold Corporation ("REBgold") (RBG.V) in exchange for
the Company's shares on a 1-for-1 basis;
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an agreement with Baker Steel Capital Managers LLP, on behalf of
investment funds managed or controlled by it ("Baker Steel", REBgold's
largest shareholder), whereby Baker Steel invested CAD $4.5 million in
the combined entity as part of a CAD $4.85 million private placement
financing; and,
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a binding agreement with Hudbay that resulted in Aquila acquiring its
51% interest in the Back Forty Project, effectively giving the Company
100% ownership of the Project.
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In February 2013 , an updated NI 43-101 compliant resource estimate for
the Back Forty Project was completed. The updated mineral resource
expanded on and incorporated parameters derived from a 2012 PEA that
utilized the 2010 mineral resource estimate. The updated resource
estimate, which will provide the basis for future economic evaluations
of Back Forty, delineated an:
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open pit M&I resource of 9.65Mt, at 2.07 g/t Au and 2.47% Zn, an
increase of 28% and,
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underground M&I resource of 5.49Mt at 1.97 g/t Au and 4.1% Zn
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underground Inferred resource of 2.18Mt at 2.03 g/t Au and 2.15% Zn.
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On June 26, 2013 , Aquila completed a private placement for net proceeds
of $579,752 by issuing 5,890,000 units consisting of a common share and
a half warrant at a price per unit of CAD $0.10 ;
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In 2013, Aquila suspended funding on non-core projects and focused on
cost containment. The Company retained ownership of three projects in
the Great Lakes Region, including: the now 100% owned flagship Back
Forty Project, a development stage, high-grade, poly-metallic, VMS
deposit located in the state of Michigan and, the Reef Gold Project and
the Bend Copper-Gold Project; and,
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In March 2013 , Aquila strengthened its management team by appointing
Barry Hildred to Chief Executive Officer of the Company, an experienced
capital markets executive able to guide Aquila through the next phase
of development at Back Forty.
Outlook
Aquila's focus in 2014 will be on re-commencing development of the Back
Forty Project. Key milestones for 2014 include:
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Completing a series of trade-off studies and developing a NI 43-101
updated PEA for the Back Forty project with Tetra Tech WEI Inc. The
trade-off studies will look at a number of mine-plan scenarios and will
choose the optimal development path for Back Forty. The Company expects
that the results of this study will be available in Q2 2014;
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Commencing a small exploration program on previously identified
near-mine targets in Q3 2014. A number of geophysical anomalies have
been identified peripheral to the known mineralization at Back Forty,
and detailed ground geophysics and diamond drilling are planned to test
these high priority targets; and,
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Subject to market conditions and available Capital, ramp-up activities
related to its permit application for Back Forty with the Michigan
Department of Environmental Quality in H2 2014.
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To date, the Company has completed a number of the required test
programs and background studies necessary to support its permit
submission. Aquila continues to use the services of Foth
Infrastructure and Environment, LLC based in Green Bay and is targeting
a submission date in the first half of 2015.
About Aquila Resources
Aquila Resources Inc. (AQA.TO) (AQARF) (JM4A.F) is a
mineral exploration Company focused on the development of high-grade
deposits along the Penokean VMS belt in the Great Lakes Region. The
Company is led by an experienced management team that has identified
significant ore deposits over the last 30 years.
About the Back Forty Project
The Back Forty Project is a high-grade, poly-metallic deposit located in
the Penokean Volcanic Belt in the Great Lakes Region. A 2012
preliminary economic assessment, based on a 2010 resource estimate,
provided encouraging project economics, including a $73.6M net present
value @ 8% and an internal rate of return of 18.2%. Results from the
2012 drilling program demonstrate potential for continued resource
expansion at Back Forty. A 2013 updated resource estimate delineated a
Measured and Indicated (M+I) resource of 15.1 million tonnes (Mt) and
an Inferred Resource of 2.3Mt. The updated M+I resource estimate
contains 987,236oz Au, 11.91Moz Ag, 1.02Blbs Zn, 74.3Mlbs Pb and
110.4Mlbs Cu. An additional 155,885oz Au, 1.99Moz Ag, 113.3Mlbs Zn,
17.2Mlbs Pb and 18.6Mlbs Cu are included in the Inferred category.
The Toronto Stock Exchange neither approves nor disapproves the
information contained in this News Release. 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 press release contains certain forward-looking statements. In
certain cases, forward-looking statements can be identified by the use
of words such as "plans", "expects" or "does not anticipate", or
"believes", or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". Forward-looking statements
and information are subject to various known and unknown risks and
uncertainties, many of which are beyond the ability of Aquila and
REBgold to control or predict, that may cause their actual results,
performance or achievements to be materially different from those
expressed or implied thereby, and are developed based on assumptions
about such risks, uncertainties and other factors set out herein.
Neither Aquila nor REBgold undertakes any obligation to update
forward-looking information except as required by applicable law. Such
forward-looking information represents Aquila's and REBgold's best
judgment based on information currently available. No forward-looking
statement can be guaranteed and actual future results may vary
materially. Accordingly, readers are advised not to place undue
reliance on forward-looking statements or information. Furthermore,
mineral resources that are not mineral reserves do not have
demonstrated economic viability.
SOURCE Aquila Resources Inc.