TSX: DIAM
Highlights
- Announced an update on the bulk sampling program being conducted by
Rio Tinto Exploration Canada ("RTEC") on the Company's 100% held Star and Orion South Kimberlites (the "Star -Orion South Diamond Project ", or the "Project") - Announced that the Company had notified RTEC that its purported exercise in
November 2019 of its four options under the Option to Joint Venture Agreement datedJune 22, 2017 (the "Option Agreement") did not comply with the terms of the Option Agreement, and that the Company had commenced legal proceedings against RTEC in relation to such purported option exercise - Working capital of
$6.7 million atMarch 31, 2020 - Issued and outstanding shares of 429.1 million at
March 31, 2020
Overview
In
Activities relating to the Star -
During 2019, the Company announced that RTEC completed the drilling of ten bulk sample holes (trenches) on the Company's Star Kimberlite using the Trench Cutter Sampling Rig (See News Release dated
The Company recently announced that RTEC had commenced the processing of bulk samples from RTEC's trench cutter program (See News Release dated
Results
For the quarter ended
Selected financial highlights include:
Condensed Consolidated Statements of Financial Position | As at | As at |
Current assets | $ 7.2 M | $ 8.0 M |
Exploration and evaluation, capital and other assets | 67.8 M | 67.7 M |
Current liabilities | 0.4 M | 0.3 M |
Non-current liabilities | 1.6 M | 1.6 M |
Shareholders' equity | 73.0 M | 73.8 M |
Consolidated Statements of Income (Loss) | Quarter Ended | Quarter Ended |
Interest and other income | $ 0.0 M | $ 0.0 M |
Expenses | 1.1 M | 0.9 M |
Investment in Wescan Goldfields Inc. | 0.1 M | 0.0 M |
Net loss for the period | 1.0 M | 0.9 M |
Net loss per share for the period (basic and diluted) | 0.00 | 0.00 |
Condensed Consolidated Statements of Cash Flows | Quarter Ended | Quarter Ended |
Cash flows from operating activities | $ (1.1) M | $ (0.8) M |
Cash flows from investing activities | 0.0 M | 0.0 M |
Cash flows from financing activities | 0.1 M | 0.2 M |
Net decrease in cash | (1.0) M | (0.6) M |
Cash – beginning of period | 8.0 M | 2.8 M |
Cash – end of period | 7.0 M | 2.2 M |
Outlook
The provincial environmental approval of the Star -
The successful completion of the 2017 consolidation of the Company's Fort à
As of
About
Shares of the Company trade on the TSX Exchange under the trading symbol "DIAM". The Fort à
During 2018, the Company announced the positive results of the PEA on the Project. The PEA estimates that 66 million carats of diamonds could be recovered in a surface mine over a 38-year Project life, with a Net Present Value (7%) of
During 2018, the
Caution Regarding Forward-looking Statements
This news release contains forward-looking statements as defined by certain securities laws, including the "safe harbour" provisions of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "intend", "forecast", "target", "project", "guidance", "may", "will", "should", "could", "estimate", "predict" or similar words suggesting future outcomes or language suggesting an outlook. In particular, statements regarding the Company's future operations, future exploration and development activities or other development plans constitute forward-looking statements. By their nature, statements referring to mineral reserves, mineral resources, PEA or TFFE constitute forward-looking statements. Forward-looking statements contained or implied in this news release include, but are not limited to, changes in exploration, development or mining plans due to exploration results and changing budget priorities of RTEC or the Company; risks related to the legal proceedings commenced by the Company against RTEC; the effects of competition in the markets in which the Company operates; the impact of the COVID-19 pandemic; risks related to the operation of the BSP and the processing methods being used by RTEC and the effectiveness thereof; disclosure regarding the economics and project parameters presented in the PEA, including, without limitation, Internal Rate of Return, Net Present Value and other costs and economic information, carats of diamonds to be recovered, after-tax payback period, tonnes of kimberlite to be mined, carats per tonne to be recovered (grade), diamond prices, project life, life of mine, capital costs, and length of pre-production period; statements related to mineral resources and/or reserves; statements related to the approval of the development of the Star -
These forward-looking statements are based on the Company's current beliefs as well as assumptions made by and information currently available to it and involve inherent risks and uncertainties, both general and specific. Risks exist that forward-looking statements will not be achieved due to a number of factors including, but not limited to, developments in world diamond markets, changes in diamond valuations, risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, changes in exploration, development or mining plans due to exploration results and changing budget priorities of RTEC or the Company, the effects of competition in the markets in which the Company operates, risks related to the legal proceedings commenced by the Company against RTEC, the impact of the COVID-19 pandemic, risks related to the operation of the BSP and the processing methods being used by RTEC and the effectiveness thereof, the impact of changes in the laws and regulations regulating mining exploration and development, judicial or regulatory judgments and legal proceedings, operational and infrastructure risks and the additional risks described in the Company's most recently filed Annual Information Form, annual and interim MD&A, news releases and technical reports. The Company's anticipation of and success in managing the foregoing risks could cause actual results to differ materially from what is anticipated in such forward-looking statements.
Although management considers the assumptions contained in forward-looking statements to be reasonable based on information currently available to it, those assumptions may prove to be incorrect. When making decisions with respect to the Company, investors and others should not place undue reliance on these statements and should carefully consider the foregoing factors and other uncertainties and potential events. Unless required by applicable securities law, the Company does not undertake to update any forward-looking statement that is made herein.
SOURCE
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