Stock Symbol: WGF: TSX-V
SASKATOON,
April 25, 2013 /CNW/ - Wescan
Goldfields Inc. ("Wescan" or the "Company") reports the audited
results of Wescan's operations for the year ended December 31, 2012 have been filed and may be
viewed at www.sedar.com. A summary of key financial and
operating results are as follows:
Highlights
- Completed Phase II drilling at the Jojay gold property
- Announced the results of its VTEM ("Versatile Time Domain
Electromagnetic") and Magnetic Gradiometer airborne geophysical
survey on the Jojay Gold Property
- Announced a prospecting and winter drill program on the Munro
Lake gold property
- Raised $380 thousand in financing
during 2012
- Issued and outstanding shares of 19,573,796 at December 31, 2012
Overview of activities
During the year ended December 31, 2012 Wescan has continued the
exploration of its portfolio of gold properties in the La Ronge
Gold Belt in northern Saskatchewan, with the primary focus being the
Jojay and Munro Lake properties. Following the successful
drill programs on its Jojay and Jasper properties in 2011 (see
Wescan News Releases dated November 18,
2011 and December 8, 2011,
respectively), the Company raised an additional $1.0 million in late December 2011 to continue exploring the Company's
highly prospective properties. During the second quarter of 2012,
the Company announced the results of a 1,903 metre drill program
("Phase II") on its Jojay property which included significant
intercepts of gold in and outside the current Mineral Resource
shell (see Wescan News Release dated May 22,
2012). In the fourth quarter of 2012 the Company announced
the commencement of a 2012 winter drill program on the Munro Lake
gold property (see Wescan News Release dated December 7, 2012).
Results of Operations
For the year ended December 31, 2012 the Company recorded a net loss
of $2,693,620 ($0.21 per share) compared to a net loss of
$1,821,062 ($0.16 per share) for 2011. The loss during
2012 was primarily due to the impairment of certain previously
capitalized exploration and evaluation assets ($1,434,562) as well as ongoing operating costs
and exploration and evaluation expenditures incurred by the Company
exceeding interest and other income. The loss in 2011 primarily
related to ongoing operating costs and exploration and evaluation
expenditures incurred by the Company exceeding interest and other
income.
As a result of not incurring certain qualifying
flow-through expenditures by December 31,
2012, the Company recorded a liability of $210,000, representing the estimated amount
payable to indemnify the subscribers for the reduced renunciations
as well as a liability of $36,029,
representing the estimated amount of related taxes payable. These
amounts were offset by a reduction of $97,986 to the flow-through premium liability
previously recorded.
Selected financial highlights
include:
Consolidated Statement of
Financial Position |
As at
December 31,
2012 |
As at
December 31,
2011 |
Current assets |
$ 433,374 |
$ 1,137,039 |
Property and equipment |
60,180 |
1,513,330 |
Current liabilities |
614,933 |
150,018 |
Other liabilities |
159,520 |
375,380 |
Share capital, warrants and broker
warrants |
19,868,864 |
19,610,688 |
Contributed surplus |
2,139,841 |
2,110,267 |
Deficit |
22,289,604 |
19,595,984 |
|
Consolidated Statements
of Loss and Comprehensive Loss |
Year
Ended
December 31,
2012 |
Year
Ended
December 31,
2011 |
Interest and other income |
$
767 |
$
41,591 |
Operating expenses |
1,313,656 |
1,949,758 |
Loss for the period before other items |
1,312,889 |
1,908,167 |
Impairment of exploration and evaluation
assets |
1,434,562 |
- |
Flow-through share premium |
(201,874) |
(87,105) |
Indemnification of flow-through shares |
148,043 |
- |
Net and comprehensive loss for the
period |
2,693,620 |
1,821,062 |
Loss per share |
0.21 |
0.16 |
|
Consolidated Statements
of Cash Flows |
Year
Ended
December 31,
2012 |
Year
Ended
December 31,
2011 |
Cash used in operations |
$ (1,133,410) |
$ (1,765,272) |
Cash provided by (used) in
investing activities |
88 |
43,535 |
Cash provided by financing
activities |
371,750 |
2,317,546 |
Increase (decrease) in cash
and cash equivalents |
(761,572) |
595,809 |
Cash and cash equivalents -
beginning of year |
1,094,924 |
499,115 |
Cash and cash equivalents -
end of year |
333,352 |
1,094,924 |
Outlook
The Company has focused exploration efforts on
its northern Saskatchewan
properties with known gold mineralization located in the La Ronge
Gold Belt. The Company's success in raising flow-through financing
during 2011 has allowed it to perform further exploration work on
the Company's Jojay gold property, perform further exploration work
on the Munro Lake gold property and complete additional work on the
Jasper Gold property. Management will also continue to evaluate the
potential for the acquisition of other mineral properties that fit
the Company's strategic direction. The Company will be
required to raise additional funds to meet its current commitments
and ongoing working capital requirements. Management anticipates
that financing options will be sufficient to fund its obligations,
exploration plans and general and administrative expenses for
2013.
Technical Information
All technical information in this press release
has been prepared under the supervision of Daniel Leroux of A.C.A. Howe International
Limited, Professional Geoscientist in the Province of Saskatchewan, and is the Company's "Qualified
Person" under the definition of NI 43-101.
Caution Regarding Forward-looking Information
This press release contains forward-looking
statements within the meaning of certain securities laws, including
the "safe harbour" provisions of Canadian Securities legislation
and the United States Private
Securities Litigation Reform Act of 1995. The words "may," "could,"
"should," "would," "suspect," "outlook," "believe," "plan,"
"anticipate," "estimate," "expect," "intend," and words and
expressions of similar import are intended to identify
forward-looking statements, and, in particular, statements
regarding Wescan's future operations, future exploration and
development activities or other development plans contain
forward-looking statements. Forward-looking statements in this
press release include, but are not limited to, the ability to raise
funds to meet commitments and pursue exploration activities, the
use of such funds, future plans for the Jojay, Jasper and Munro
Lake properties and the acquisition and exploration of additional
properties.
These forward-looking statements are based on
Wescan'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 coal
and gold markets, 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 Wescan, the
effects of competition in the markets in which Wescan operates, the
impact of changes in the laws and regulations regulating mining
exploration and development, judicial or regulatory judgments and
legal proceedings and operational risks and the additional risks
described in Wescan's most recently filed annual and interim
MD&A, news releases and technical reports. Wescan'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 Wescan,
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, Wescan does not undertake to update any
forward-looking statement that may be made.
"Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release."
SOURCE Wescan Goldfields Inc.