Aquila Resources announced today the filing of its financial results for the first quarter ended March 31, 2018.
Aquila Resources (TSX:AQA) announced today the filing of its financial results for the first quarter ended March 31, 2018.
The company also included post-quarter highlights detailing further progress on it’s Back Forty zinc-gold project.
As highlighted in the press release:
On December 8, 2017, the company announced that the Michigan Department of Environmental Quality (MDEQ) deemed Aquila’s wetland/stream/floodplain permit application for the Back Forty Project administratively complete allowing the regulatory technical review process to move to the next stage. The wetlands permit is the fourth and final permit required to build and operate the Back Forty Project. The company continues to work with the MDEQ to provide further clarifications as part of its ongoing technical review of the Wetlands Permit application.
On March 8, 2018, the United States Environmental Protection Agency provided comments to the MDEQ regarding the Wetlands Permit. The EPA had 90 days from December 8, 2017, when the MDEQ deemed the Company’s Wetlands Permit application administratively complete, to provide comments. The EPA’s opportunity to comment on the application is subject to strict statutory processes, regardless of the significance of the comments. The MDEQ has 90 days from March 8, 2018, to work with Aquila to resolve the comments made by the EPA and to provide the information requested by it. The EPA provided supplementary comments to the MDEQ in a letter dated May 3, 2018.
In January 2018, the Menominee Indian Tribe of Wisconsin filed a federal lawsuit in the Eastern District of Wisconsin against the Environmental Protection Agency and the US Army Corps of Engineers, claiming that the federal government should exercise jurisdiction over the wetlands permitting process currently being administered by the State of Michigan and require Aquila to obtain a federal wetlands permit. Both federal agencies rejected this argument when it was presented to them last year, and Aquila anticipates that their position that the State of Michigan is properly exercising its delegated authority to issue a Wetlands Permit will be vindicated by the federal court. To that end, the U.S. Department of Justice has filed a motion for dismissal of the lawsuit, which Aquila has joined.
On March 16, 2018, Hudbay Minerals exercised 865,385 warrants with an exercise price of US$0.19 for proceeds to the Company of UA$164,423.
As at March 31, 2018, Aquila had cash of US$14.9 million and working capital of US$13.5 million. This compared to cash of $17.2 million and working capital of $15.5 million at December 31, 2017. The decrease in working capital is primarily due to the funding of the Company’s permitting activities and development of the Feasibility Study.