Aquila Resources Releases Q4 and Year-End 2018 Financial Results

Aquila Resources (TSX:AQA,OTCQB:AQARF) has released its financial results for 2018’s fourth quarter and year-end.

Highlights from the press release are as follows:

• On October 5, 2018, the Company received a payment of US$7.4 million from an affiliate of Osisko Gold Royalties Ltd under the gold streaming agreement entered into on November 8, 2017. This payment represents the second deposit of the total advance payment of US$55 million to be made by Osisko under the Streaming Agreement. The payment, which was made net of a US$100,000 capital commitment fee, followed the receipt by Aquila of all material permits required for the development and operation of its Back Forty Project in Michigan and the completion of the Back Forty Project Feasibility Study.

• On November 2, 2018, the Company submitted amendments to its Mining Permit to the MDEQ to align the permit with the current project design outlined in the Feasibility Study as well as in the Wetlands Permit.

• On November 12, 2018, Aquila announced the appointment of Mr. Jacques Perron to its Board of Directors. Mr. Perron, a proven mine builder and operator, has worked in the mining industry for more than 30 years and has extensive technical and operations experience.

• On December 19, 2018, the U.S. District Court for the Eastern District of Wisconsin dismissed the federal lawsuit brought by the Menominee Indian Tribe of Wisconsin challenging the Environmental Protection Agency and the U.S. Army Corps of Engineers’ failure to exercise jurisdiction over Aquila’s Wetlands Permit for its Back Forty Project. The Court held that the Tribe could not challenge the federal government’s refusal to exercise jurisdiction over the Wetlands Permit under the Administrative Procedures Act or the Clean Water Act.

• As at December 31, 2018, Aquila had cash of $14.4 million and working capital of $12.1 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 finalization of the Feasibility Study.

Barry Hildred, Aquila President and CEO, commented:

“2018 was a year of considerable progress and achievement for Aquila as we continued to advance the Back Forty Project towards construction. In June, following a comprehensive environmental permitting process in Michigan, the company received its Wetlands Permit, the final permit required for the construction and commencement of operations at the Back Forty Project. In August, we published the Back Forty Feasibility Study which demonstrated robust economics based solely on an open pit operation. In 2019, we are moving ahead on a number of key initiatives including progressing pre-construction activities at  Back Forty, enhancing our leadership team, continuing to develop an exploration strategy for our earlier stage assets in Wisconsin, and considering the strategic and financial options available to the company.”

Click here to read the full press release from Aquila Resources.