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Scorpio Gold Corporation (TSXV:SGN) reported that it has repaid its outstanding debt of US$3.4 million to Waterton Global Value ahead of schedule. Scorpio’s debt was incurred in connection with the acquisition of its Goldwedge and Pinon properties. The debt has in part been repaid using proceeds from the sale of the Pinon property to a subsidiary of Gold Standard Ventures.
As quoted in the press release:
The sale of the Pinon property to GSV closed in March of 2014. GSV has repaid the CAD$2.5M principal amount note receivable issued as consideration in the sale, and the Company recently sold its 6,750,000 shares in GSV. Subject to the fulfillment of certain conditions involving a sale of GSV or its assets, the Company may receive further cash payments of up to C$3.0 M from GSV as bonus consideration.
Scorpio Gold CEO, Peter J. Hawley, said:
Since 2012, Scorpio Gold has repaid over US$24.5 M in debt to Waterton while continuing to deliver positive financial results from its Mineral Ridge operation. This is a remarkable achievement for a junior gold producer and reflects a strong commitment company-wide to make the Mineral Ridge operation a success. Scorpio Gold is now debt-free and poised for growth. The Company would like to thank the management and shareholders of Gold Standard Ventures who have worked diligently to complete the Pinon sale transaction in a timely and professional manner. We would also like to thank Waterton Global Value for its support over the past several years as the Company’s principal lender.
Scorpio also set it’s production forecast for its Mineral Ridge operations this year at 40,000 to 50,000 ounces of gold at a total cash cost of US$800 to US$850 per ounce of gold sold. As quoted in the press release:
Production in 2015 is scheduled from the Mary and Mary LC pits, and from the Wedge, Bluelite, Solberry and Brodie satellite pits. Scorpio Gold is awaiting approval from the Nevada Bureau of Land Management of its Plan of Operations Amendment and Environmental Assessment for its pit expansion plan. The Company expects to receive these approvals in early Q2 2015, and as such, the Environmental Assessment process is not likely to impact the production schedule.
Key estimated parameters forming the basis for the 2015 forecast are:
- Average throughput: 2,700 short tons (2,450 metric tonnes) per day
- Average grade: 0.061 ounces per short ton (2.09 grams per tonne) gold
- Waste to ore ratio including development: 7.4 to 1
The Company expects these parameters to fluctuate throughout 2015 and as a result, these parameters should be treated as full-year averages and will not necessarily be reflective of quarterly operating results.
The capital expenditure, development and exploration budgets for 2015 will be presented in a forthcoming news release.
Click here to read the Scorpio Gold Corporation (TSXV:SGN) press release
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