An anonymous director reports
TRIMETALS MINING INC. FILES THIRD QUARTER 2018 FINANCIAL STATEMENTS, MD&A AND ARBITRATION UPDATE
Trimetals Mining Inc. has released its condensed interim consolidated financial statements for the three and nine months ended Sept. 30, 2018, and the related management's discussion and analysis of financial position and results of operations. In this press release, all amounts are expressed in United States dollars, unless otherwise indicated.
During the nine months ended Sept. 30, 2018, the company reported net loss of $200,000 (zero cent per share) compared with net loss of $2.63-million (two cents per share) for the nine months ended Sept. 30, 2017.During the three months ended Sept. 30, 2018, the company reported net loss of $2.53-million (one cent per share) compared with net loss of $2.60-million (two cents per share) for the three months ended Sept. 30, 2017. A primary driver in the results for the three and nine months ended Sept. 30, 2018, were the non-cash changes in the fair values of the Class B shares.
The company continued to reduce its level of operations from previous years and manage its costs structure, which resulted in a decrease in cash outflows from operations from $1.17-million to $790,000 during the nine months ended Sept. 30, 2018.
Exploration spending during the nine months ended Sept. 30, 2018, decreased to $1.17-million from $2.39-million incurred in the first nine months in 2017. The 2018 costs included $880,000 incurred at Gold Springs and $290,000 incurred at the Escalones property in Chile.
The company continues to seek a partner to help advance Escalones toward development.
Subsequent to Sept. 30, 2018, the company closed a private placement of 6,428,571 units priced at seven Canadian cents per unit for total gross proceeds of $343,900.Each unit consists of one common share of the company and one-half of one common share purchase warrant of the company.Each whole warrant entitles the holder to purchase one additional common share of the company at an exercise price of 11 Canadian cents per share for a period of 24 months from the closing date of the private placement.
In addition, the convertible note holders converted 100 per cent of the outstanding balance of the notes, plus accrued interest, into an aggregate of 33,398,487 common shares of the company at an amended conversion price of seven Canadian cents per common shares, and the notes and the security interests provided to secure payment of the notes, were thereby extinguished.
Arbitration against the government of Bolivia
On July 12, 2018, the Arbitral Tribunal informed the parties that it had completed the award, that it had been transmitted to the Permanent Court of Arbitration, that the award was being translated and that it expected to issue the award by no later than August, 2018.
On Aug. 2, 2018, one of the arbitrators advised that he had seriously fallen ill and was unable to continue with the arbitration.On Aug. 7, 2018, Trimetals' wholly owned subsidiary, South American Silver Ltd. (SASL), wrote to the PCA and to the Arbitral Tribunal seeking confirmation that this illness would not affect the expected timing for the issuance of the award.On Aug. 12, 2018, Bolivia wrote to the PCA requesting that a replacement arbitrator to be appointed and that the reconstituted tribunal consider the possible repetition of the hearing and subsequent stages of the arbitration.In response, on Aug. 14, 2018, SASL wrote to the PCA and to the Arbitral Tribunal objecting to Bolivia's requests and noting that, if necessary, articles 14(2) and 34(4) of the 2010 UNCITRAL Rules expressly permit the two other arbitrators to sign and issue the award.
On Nov. 8, 2018, the company received correspondence from the Permanent Court of Arbitration advising that the Arbitration Tribunal will issue the arbitration award on a date prior to the end of November, 2018.
Trimetals will provide additional information as it becomes available.
About Trimetals Mining Inc.
Trimetals Mining is a growth-focused mineral exploration company creating value through the exploration and development of the near-surface, oxide, heap-leachable Gold Springs gold project in mining-friendly Utah and Nevada, in the United States, and the Escalones copper-gold skarn/porphyry deposit in Chile. The company combines a record of discovery and advancement of large projects, mining and exploration supportive jurisdictions, low-political-risk areas, key operational and process expertise, and a focus on community relations and sustainable development. Management has extensive experience in the global exploration and mining industry.
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