TORONTO, ON / ACCESSWIRE / May 2, 2024 / Signal Gold Inc. ("Signal Gold" or the "Company") (TSX:SGNL)(OTCQX:SGNLF) is pleased to report its business and financial results for the three months ended March 31, 2024 ("Q1 2024"). The condensed interim consolidated financial statements and management discussion and analysis documents can be found at www.sedarplus.com and the Company's website, www.signalgold.com. All dollar amounts are in Canadian dollars unless otherwise noted.
"Despite ongoing challenging capital markets for junior mining companies, Signal Gold has made strong progress at the Goldboro Project during the first quarter of 2024. We remain focused on value creation through exciting exploration initiatives to generate new discoveries and increased mineral resources in the Goldboro Gold District, especially at the western extension of the Goldboro Deposit where we recently commenced a 5,000-metre drill program. The Company also continues to advance key Project permits, with consultations with respect to the Fisheries Act Authorization and Schedule 2 Amendment having commenced during the quarter. In parallel, we continue to evaluate potential strategic alternatives to advance the Goldboro Project, with BMO Capital Markets acting as financial advisor, as well actively considering options with respect to the credit facility with Nebari. The Company remains committed to advancing the Goldboro Project to become the next fully permitted, construction ready, gold project in Canada. "
~ Kevin Bullock, President and CEO, Signal Gold Inc.
Highlights for the Period Ended March 31, 2024
Invested $1,033,999 in the Goldboro Project relating to the advancement of project permits, growth exploration, and data compilation to support regional exploration.
Progressed permitting through various monitoring plans and addressing regulator feedback on the Fisheries Act Authorization and Industrial Approval application. The Company entered the Duty to Consult phase for the Fisheries Act Authorization and Schedule 2 Amendment of the Metal and Diamond Mining Effluent Regulations.
Announced the final drill results from its largest ever exploration drill program, conclusively demonstrating continuity of gold mineralization along strike between the western end of the Goldboro Deposit and the historic Dolliver Mountain Gold Mine, bringing the total strike length of known gold mineralization to 3.4 kilometres.
Further consolidated the Goldboro Gold District, increasing its exploration licence area to over 27,200 hectares (~272 km2) surrounding the Goldboro Project, and commenced a 1,250-line kilometre airborne magnetic and VLF electromagnetic survey over land immediately north of, and contiguous with, the Goldboro Deposit.
Initiated a 5,000-metre drill program on the western extension of the Goldboro Deposit to follow-up on the 2023 discovery of near-surface, high-grade gold mineralization, as initial geological modelling of drill results indicates the potential to delineate additional open-pit Mineral Resources.
Recorded a net comprehensive loss from continuing operations for the three months ended March 31, 2024 of $2,495,248, or $0.01 per share, compared to a loss of $2,893,048, or $0.01 per share, for the three months ended March 31, 2023, resulting from lower corporate administration expense, a gain on the revaluation of investments, and a higher deferred income tax recovery, partially offset by an increase in finance expense and share-based compensation.
Ended the first quarter of 2024 with a cash balance of $8,059,518 and working capital deficit* of $17,150,515, which reflects the reclassification of the Credit Facility (defined below) to current liabilities.
* Refer to Non-IFRS Measures Section below. Non-IFRS financial measures are not standardized financial measures under the financial reporting framework used to prepare the financial statements and may not be comparable to similar financial measures disclosed by other issuers.
Management Outlook for 2024
Signal Gold remains committed to advancing the Goldboro Project to become the next fully permitted, construction ready, gold project in Canada. The Company's near-term priorities will focus on the creation of value through exploration initiatives to generate new discoveries on our expanded exploration land package in the Goldboro Gold District, by demonstrating the potential for additional mineable resources along strike to the existing Goldboro Deposit, and by working to obtain all remaining key Project permits within the next 12 months.
To support these goals, Signal Gold initiated a process to evaluate potential strategic alternatives to advance the Goldboro Project, with BMO Capital Markets acting as its financial advisor. The Company recognizes that a larger, better capitalized, or cash flow generating company could be better positioned to advance or assist in the advancement of Goldboro over the development timeline. As part of this strategic process, the Company is also actively considering its options with respect to the existing senior secured credit facility with Nebari, which was entered into in February 2023 and under which the Company made an initial draw of US$16,000,000 (the "Credit Facility"). The Credit Facility was amended in November 2023 to extend the interest capitalization period by six months to September 30, 2024.
Consolidated Results Summary**
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