{"id":446390,"date":"2021-02-26T18:11:42","date_gmt":"2021-02-26T23:11:42","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=446390"},"modified":"2021-02-26T18:11:42","modified_gmt":"2021-02-26T23:11:42","slug":"a-year-of-progress-as-amarillo-meets-key-milestones-for-posse-gold-project-in-2020","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/a-year-of-progress-as-amarillo-meets-key-milestones-for-posse-gold-project-in-2020\/","title":{"rendered":"A year of progress as Amarillo meets key milestones for Posse Gold Project in 2020"},"content":{"rendered":"
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\n This news release should be read in conjunction with our consolidated financial statements and management\u2019s discussion and analysis for the year ended December 31, 2020. Both are available at www.amarillogold.com, and under our company profile at www.sedar.com.<\/em>
\n \n <\/p>\n

\n All monetary amounts are in Canadian dollars unless stated otherwise.<\/em>\n <\/p>\n

TORONTO, Feb. 26, 2021 (GLOBE NEWSWIRE) — Amarillo Gold Corporation (TSXV: AGC, OTCQB: AGCBF) continued to move toward its goal of becoming a Brazilian gold producer, said the Company today as it announced its financial results for the year and three months ended December 31, 2020. Key achievements included delivering a positive feasibility study, closing a large equity financing, and, crucially, receiving the License to Install for the Posse Gold Project after year end.<\/p>\n

\u201cI would like to thank our dedicated team for their efforts in securing the License to Install and further advancing the project,\u201d said Mike Mutchler, Amarillo\u2019s Chief Executive Officer. \u201cWe\u2019ve met the significant milestones that we needed to meet, and have begun to prepare to break ground on Posse as soon as we finalize the balance of our construction financing.\u201d<\/p>\n

At the Company\u2019s Mara Rosa Property in the State of Goi\u00e1s, the main focus was on advancing the Posse Gold Project. After publishing the feasibility study in August 2020, detailed engineering began on the processing plant, infrastructure, and earthworks areas. Orders have been placed for select long lead time equipment, and negotiations have been advanced to purchase mill and filtration plant equipment. Amarillo also signed an agreement to build a 138 kilovolt transmission line from Porangatu to Mara Rosa.<\/p>\n

The exploration program along the Posse Trend, aimed at finding satellite gold deposits that could increase Posse\u2019s mine life, was also successful. Trenching results showed gold anomalies up to 8 kilometres northeast of Posse, and an induced polarization survey was completed in the fourth quarter.<\/p>\n

Amarillo secured a large equity stake for a portion of its construction financing for Posse after closing $57.2 million in equity offerings in August. The Company is working on securing the balance under the guidance of Auramet International, its financial adviser. Technical due diligence is ongoing with the goal of attaining successful financing.<\/p>\n

At Lavras do Sul, the focus was on starting to unlock the district scale potential of this highly prospective property and open a second development front. The Company has identified 22 targets and are following up on the Butia and Matilde targets.<\/p>\n

At the corporate level, Antenor Silva and David Laing, two mine builders with experience in Brazil, joined the board of directors.<\/p>\n

Mr. Silva co-founded Yamana Gold, where he was Chief Operating Officer, then President and Chief Operating Officer until his retirement in 2009. He was also a co-founder of MBAC Fertilizer Corp, and served as its Chief Executive Officer until July 2016. He has sat on the boards of several public companies, including Yamana Gold, Colossus Minerals, Oceana Gold, and Valdiam Resources.<\/p>\n

David Laing is a mining executive with 40 years of experience in mining operations, mine construction, mining finance, corporate development, and company building. He was most recently the Chief Operating Officer of Equinox Gold, where he led the rebuilding of the Aurizona Project in Brazil, a feasibility study on the restart of the Castle Mountain Mine in California, and the acquisition of the Mesquite Gold mine, also in California. He sits on the boards of Fortuna Silver Mines, Inc., Northern Dynasty Minerals Inc., Aton Resources, and Blackrock Gold Corp.<\/p>\n

While Brazil has been hit hard by Covid-19, the Company has been very fortunate. Neither of its operations have been affected by the pandemic, and the Company has full access to its properties. In Canada, Amarillo\u2019s Toronto-based management team has been working from home since mid March 2020. So far, Covid-19 has not had a material impact on the Company\u2019s financial condition or its performance.<\/p>\n

FINANCIAL RESULTS<\/p>\n

The following table summarizes the Company\u2019s major operating expense categories for the fourth quarter of 2020 (Q4 2020) and 2019 (Q4 2019) and for the years ended December 31, 2020 and 2019.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\nThree months ended<\/td>\nYears ended<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\nDecember 31<\/td>\nDecember 31<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n2020<\/td>\n\u00a0<\/td>\n2019<\/td>\n\u00a0<\/td>\n2020<\/td>\n\u00a0<\/td>\n2019<\/td>\n\u00a0<\/td>\n<\/tr>\n
Category<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0<\/td>\n<\/tr>\n
General and administrative (G&A)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Consulting<\/td>\n\u00a0<\/td>\n160,831<\/td>\n\u00a0<\/td>\n40,153<\/td>\n\u00a0<\/td>\n371,223<\/td>\n\u00a0<\/td>\n323,434<\/td>\n\u00a0<\/td>\n<\/tr>\n
Professional<\/td>\n\u00a0<\/td>\n171,401<\/td>\n\u00a0<\/td>\n224,921<\/td>\n\u00a0<\/td>\n713,288<\/td>\n\u00a0<\/td>\n856,267<\/td>\n\u00a0<\/td>\n<\/tr>\n
Salaries and benefits<\/td>\n\u00a0<\/td>\n142,401<\/td>\n\u00a0<\/td>\n172,478<\/td>\n\u00a0<\/td>\n667,522<\/td>\n\u00a0<\/td>\n698,986<\/td>\n\u00a0<\/td>\n<\/tr>\n
Directors\u2019 fees<\/td>\n\u00a0<\/td>\n50,156<\/td>\n\u00a0<\/td>\n52,500<\/td>\n\u00a0<\/td>\n207,656<\/td>\n\u00a0<\/td>\n172,500<\/td>\n\u00a0<\/td>\n<\/tr>\n
Marketing and promotion<\/td>\n\u00a0<\/td>\n27,522<\/td>\n\u00a0<\/td>\n60,852<\/td>\n\u00a0<\/td>\n107,417<\/td>\n\u00a0<\/td>\n314,507<\/td>\n\u00a0<\/td>\n<\/tr>\n
Filing and transfer agent<\/td>\n\u00a0<\/td>\n66,327<\/td>\n\u00a0<\/td>\n16,953<\/td>\n\u00a0<\/td>\n135,904<\/td>\n\u00a0<\/td>\n78,509<\/td>\n\u00a0<\/td>\n<\/tr>\n
Travel<\/td>\n\u00a0<\/td>\n63<\/td>\n\u00a0<\/td>\n12,964<\/td>\n\u00a0<\/td>\n9,688<\/td>\n\u00a0<\/td>\n41,304<\/td>\n\u00a0<\/td>\n<\/tr>\n
Other G&A<\/td>\n\u00a0<\/td>\n53,606<\/td>\n\u00a0<\/td>\n71,013<\/td>\n\u00a0<\/td>\n194,610<\/td>\n\u00a0<\/td>\n260,285<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total G&A<\/td>\n\u00a0<\/td>\n672,307<\/td>\n\u00a0<\/td>\n651,834<\/td>\n\u00a0<\/td>\n2,407,308<\/td>\n\u00a0<\/td>\n2,745,792<\/td>\n\u00a0<\/td>\n<\/tr>\n
Recovery of legal fees from WPC<\/td>\n\u00a0<\/td>\n\u2013<\/td>\n\u00a0<\/td>\n\u2013<\/td>\n\u00a0<\/td>\n(187,000<\/td>\n)<\/td>\n\u2013<\/td>\n\u00a0<\/td>\n<\/tr>\n
Stock-based compensation<\/td>\n\u00a0<\/td>\n1,342,867<\/td>\n\u00a0<\/td>\n18,168<\/td>\n\u00a0<\/td>\n1,342,867<\/td>\n\u00a0<\/td>\n1,004,270<\/td>\n\u00a0<\/td>\n<\/tr>\n
Financial advisory services<\/td>\n\u00a0<\/td>\n467,676<\/td>\n\u00a0<\/td>\n36,000<\/td>\n\u00a0<\/td>\n540,965<\/td>\n\u00a0<\/td>\n36,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Foreign exchange loss\/(gain)<\/td>\n\u00a0<\/td>\n50,641<\/td>\n\u00a0<\/td>\n107,701<\/td>\n\u00a0<\/td>\n(195,284<\/td>\n)<\/td>\n153,489<\/td>\n\u00a0<\/td>\n<\/tr>\n
Interest income<\/td>\n\u00a0<\/td>\n(50,295<\/td>\n)<\/td>\n\u2013<\/td>\n\u00a0<\/td>\n(50,295<\/td>\n)<\/td>\n\u2013<\/td>\n\u00a0<\/td>\n<\/tr>\n
Interest and finance charges<\/td>\n\u00a0<\/td>\n(18,204<\/td>\n)<\/td>\n111,590<\/td>\n\u00a0<\/td>\n11,273<\/td>\n\u00a0<\/td>\n121,041<\/td>\n\u00a0<\/td>\n<\/tr>\n
Gain on debt settlement<\/td>\n\u00a0<\/td>\n\u2013<\/td>\n\u00a0<\/td>\n(5,417<\/td>\n)<\/td>\n\u2013<\/td>\n\u00a0<\/td>\n(5,417<\/td>\n)<\/td>\n<\/tr>\n
Net loss and comprehensive loss<\/td>\n\u00a0<\/td>\n2,464,992<\/td>\n\u00a0<\/td>\n919,876<\/td>\n\u00a0<\/td>\n3,869,834<\/td>\n\u00a0<\/td>\n4,055,175<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

For the year ended December 31, 2020, Amarillo recorded a loss of $3,869,834 (2019: $4,055,175) mostly as a result of the following.<\/p>\n

Consulting fees of $371,223 in 2020 (2019: $323,434) consisted of:<\/p>\n