HONG KONG, Aug. 19, 2015 /CNW/ - St. Augustine Gold and Copper Limited (TSX: SAU)
("St. Augustine" or the "Company"), a development-stage company
advancing the King-king Copper-Gold Project ("King-king" or the
"Project") in Mindanao, Philippines, announced that it has filed its
second quarter financial results for the period ended June 30, 2015. All amounts, unless
otherwise indicated, are in U.S. dollars.
Q2 Corporate Highlights
- Continued to work with the Philippine government and related
agencies as well as local stakeholders to secure approval for the
Declaration of Mining Project Feasibility ("DMPF"), a construction
and mining permit. The DMPF and the Environmental Compliance
Certification ("ECC"), which the Company received in February 2015, are the major permits in the
Philippine permitting process. The Company expects approval for its
DMPF before year end 2015.
- Progressed with engineering and corporate social responsibility
programs aimed at supporting the initiation of Project construction
in 2016.
- Shareholders elected CEO Paolo
Villar, Anacordita McGee, Yolanda
Coronel, Marcelino Mendoza
and Patrick Caoile as Directors at
the Company's shareholder meeting.
- At June 30, 2015, St. Augustine
had cash of $6.1 and working capital
of $6.0. These compare to
approximately $10.5 million in cash
and working capital of approximately $9.8
million at December 31, 2014.
Based on management estimates, the Company has sufficient resources
to complete development activities through 2015.
Highlights subsequent to Quarter End
- Nationwide Development Corporation ("NADECOR"), the Company's
joint venture partner, entered into a Memorandum of Agreement
("MOA") with the Mansaka Indigenous Cultural Communities/Indigenous
Peoples ("ICC/IPs" or "Mansaka Tribe"), and the National Commission
on Indigenous Peoples ("NCIP") for the support and development of
King-king.
- The MOA, together with the Free and Prior Informed Consent
("FPIC") report of the NCIP Regional Office, was forwarded to the
NCIP Central Office in Manila. The
NCIP Commissioners will review the MOA and, upon determination that
the documents submitted are complete and in order, the NCIP
Commission will issue the Certificate of Precondition ("CP"), which
is expected before year end 2015.
Outlook
Following receipt of the ECC approving the
Company's Environmental Impact Statement in February 2015, St. Augustine has focused on a
number of initiatives in coordination with NADECOR that will
support the start of Project construction in 2016. Some of the
initiatives and upcoming milestones are:
- Evaluating a strategy that is designed to accelerate the
development of the Project as well as reducing CAPEX requirements
and maximizing revenue generation opportunities;
- Securing financing arrangements with strategic parties and
major financial institutions;
- Renewing the Mineral Production Sharing Agreement ("MPSA");
and
- Advancing engineering and corporate social responsibility
programs aimed at supporting the initiation of Project
construction.
St. Augustine's financial statements and management's discussion
for the quarter ended June 30, 2015
are available on the Company's website, www.sagcmining.com and via
SEDAR.
The King-king Copper-Gold Project
The King-king
Copper-Gold Project is located in Compostela Valley in the Philippines, and is expected to recover
3.16 billion pounds (1.43 million tonnes) of copper and 5.43
million troy ounces (169,000 kilograms) of gold over its 25 year
mine and process life. According to the Preliminary Feasibility
Study that was released on September 18,
2013, and then filed on www.sedar.com on November 1, 2013, the Project has a pre-tax NPV
of $2.0 billion with an IRR of 24.8%.
The estimated mineral reserves amount to 617.9 million tonnes at
0.300% total copper and 0.395 g/t gold.
About St. Augustine
St. Augustine (SAU.T) is a
TSX-listed mining company focused on the development of the
King-king Copper-Gold Project. The Project is one of the largest
undeveloped copper-gold deposits in the world, and is listed as a
top three-priority mining project by the Philippine government.
NATIONAL INSTRUMENT 43-101 COMPLIANCE
Mr. James J.
Moore, P.E., Vice President Technical of St. Augustine and a
qualified person under National Instrument 43-101 ("NI 43-101") has
reviewed and approved the scientific, technical and economic
information contained in this news release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This announcement includes certain "forward-looking
statements" within the meaning of Canadian securities
legislation. All statements, other than statements of
historical fact included herein are forward-looking statements.
Forward-looking statements involve various risks and uncertainties
and are based on certain factors and assumptions. There can be no
assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Important factors that could
cause actual results to differ materially from the Company's
expectations include uncertainties related to fluctuations in gold,
copper and other commodity prices and currency exchange rates;
uncertainties relating to interpretation of drill results and the
geology, continuity and grade of mineral deposits; uncertainties
relating to the completion of a bankable feasibility study;
uncertainty of estimates of capital and operating costs, recovery
rates production estimates and estimated economic return; the need
for cooperation of the Company's joint venture partner and
government agencies in the development of the Company's mineral
projects; the need to obtain further permits and additional
financing to develop the Company's mineral projects; the
possibility of delay in development programs or in construction
projects and uncertainty of meeting anticipated program milestones
for the Company's mineral projects; and other risks and
uncertainties disclosed under the heading "Risk Factors" in the
Annual Information Form dated March 19,
2015, and filed with Canadian securities regulatory
authorities on the SEDAR website at
www.sedar.com.
SOURCE St. Augustine Gold and Copper Limited