Petaquilla Minerals Ltd
Symbol§C : PTQ Shares Issued 236,615,875 Close 2014-02-14 C$ 0.31 Recent Sedar Documents
View Original Document Petaquilla in discussions for "major material event"
2014-02-18 08:47 ET - News Release
Mr. Joao Manuel reports
PETAQUILLA MINERALS LTD. NEARS CLOSURE ON MATERIAL TRANSACTION AND INFORMS ALL PARTIES ARE COMMITTED TO CLOSING BY THE END OF FEBRUARY 2014
Petaquilla Minerals Ltd. confirms the company is in the advanced stages of a negotiation process, the conclusion of which will result in a major material event for the company and its shareholders. All parties involved expect the aforementioned negotiations to close by the end of February 2014.
The Company also announces its second quarter operating and financial results for its Molejon gold mine located in Panama. Currency is reported in United States dollars unless otherwise indicated.
Molejon Mine Operating and Financial Highlights for Second Quarter of Fiscal 2014
-- Gold production at 3,028 ounces, a decrease of 67% and 85% compared to prior quarter and same quarter of fiscal 2013, respectively;
-- Gold equivalent production at 3,120 ounces, a decrease of 67% and 85% compared to prior quarter and same quarter of fiscal 2013, respectively;
-- Gold stockpiled at 151,592 ounces, an increase of 1% and 31% compared to prior quarter and same quarter of fiscal 2013, respectively;
-- Revenue at $10.5 million, a decrease of 49% and 67% compared to prior quarter and same quarter of fiscal 2013, respectively;
-- Cash cost per ounce of gold equivalent sold at $1,429, an increase of 90% and 171% compared to prior quarter and same quarter of fiscal 2013, respectively;
-- Operating margin at $(13.0) million, compared to $2.5 million in prior quarter and $14.4 million in same quarter of fiscal 2013;
-- Adjusted EBITDA at $(16.3) million, compared to $(0.9) million in prior quarter and $14.9 million in same quarter of fiscal 2013
During the second quarter of fiscal 2014 the Company announced National Instrument 43-101 compliant In Pit Whittle Constrained measured and indicated resources of 841,000 gold equivalent ounces (27,020 kt averaging 0.59 g/t of gold, 0.87 g/t of silver and 0.24% of copper) and inferred mineral resources of 269,000 gold equivalent ounces (11,060 kt averaging 0.40 g/t of gold, 0.67 g/t of silver and 0.22% of copper) for its Palmilla deposit, located on the Company's wholly-owned Belencillo concession and associated with its Molejon gold operations in the Donoso District, Colon Province, Republic of Panama. The Qualified Person who prepared this mineral resource estimate was Mr. Yann Camus, Eng., of SGS Canada, an independent consultant.
The Company's business performance during the first half of fiscal 2014 focused on continuing to stockpile low grade ore material to increase gold production through a heap leaching operation expected to commence during the first half of calendar 2014, consolidating its aggregates business throughout the execution of the $100 million contract with First Quantum Minerals Ltd. ("FQM") and expanding the potential of the aggregates and infrastructure business with FQM.
The $100 million aggregates contract signed between the Company's infrastructure subsidiary, Panama Desarrollo de Infraestructuras, S.A., and Minera Panama, S.A. ("MPSA") partially compensated for the decrease in gold production during the first half of fiscal 2014, and contributed to keeping cash costs per ounce of gold sold close to the break-even point despite the significant decrease in gold sold. Sales of aggregates represented a material recovery of the Company's mining costs at the Molejon mine, helping also to compensate for the decrease in gold prices that occurred during the first half of fiscal 2014.
We seek Safe Harbor.
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