Stroud Resources Reports Fiscal 2019 Results and Extends Expiry Date of Certain Warrants; Mexican Government to Fully Restart Mining Activities Effective June 1, 2020
TORONTO, May 22, 2020 (GLOBE NEWSWIRE) -- Stroud Resources Ltd. (TSXV: SDR) (“Stroud” or the “Company”) announces that the Mexican government has laid out a path to return to the “New Normal” which includes fully restarting mining activities effective June 1, 2020.
Scott Jobin-Bevans, CEO of Stroud, commented, “We look forward to finally being able to move ahead with our exploration plans and drilling program at the Santo Domingo Silver Project in Jalisco, Mexico.”
(CNN Spanish) The Secretary of Economy of Mexico, Graciela Márquez Colín, reported on May 13 a gradual plan to restart the economy in three stages.
The first stage of the plan began May 18 in the La Esperanza municipalities which have not registered COVID-19 infections. The second stage will extend from May 18 to 31 and will see workers, companies, and families prepare for this restart. The third stage will start from June 1 with a regional traffic light system dictating how quickly each area opens up.
The Secretary indicated work activities in the construction, mining and transportation sectors will be fully “green lit” effective June 1, 2020.
Fiscal 2019 Results
Stroud reports an improvement of $2.5M in its net working capital position as at December 31, 2019. Net working capital was positive $1.01M compared to a net working capital deficiency of $1.53M at December 31, 2018. A private placement during the 2019 fiscal year raised gross proceeds of $2M. A gain on conversion of debt of $192,881 and a write-off of contingency settlement of $837,855 contributed to both positive working capital and to a positive net income. The Company earned a net income of $161,972 during fiscal 2019 compared to a net loss of $394,133 in fiscal 2018. The Company improved the economics of the Santo Domingo Silver Project by reducing several royalties on the property.
The Company is awaiting permits to implement a focused drill program on the property.
Extension of Expiry Date of Warrants
Due to the Mexican government shutdown caused by COVID-19, the Company is delayed in securing drilling permits and implementing its exploration programs. Subject to the approval of the TSX Venture Exchange, the Company seeks to extend the expiry date of certain warrants by six months. The extension of the expiry date to January 30, 2021 of certain warrants will allow the holder to purchase 1,303,313 common shares at a price of $0.15 per share. The extension of the expiry date to April 28, 2021 of certain warrants will allow the holder to purchase 3,141,131 common shares at a price of $0.15 per share. The Board of Directors of the Company has determined this extension is reasonable given that no work could be completed on the Company’s properties during the pandemic and therefore no further information or drilling results could be obtained which would attract an investor to exercise their warrants.
About Stroud Resources Ltd.
Stroud Resources Ltd. is a mineral exploration company focused on developing its silver-gold epithermal property in Jalisco, Mexico. The company owns a 100% interest in the Santo Domingo Silver Project which is located about 90 kilometres northwest of Guadalajara. The Santo Domingo property is part of the Hostotipaquillo mining region which has a rich mining history and includes the Cinco Minas and San Pedro de Analco mines.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.
For more information please visit www.stroudsilver.com
Mirsad Jakubovic
CFO and Director
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