Gold Springs Resource Corp. files 2019 Financial Statements, MD&A, Provides Update on Gold Springs 2020 Exploration Plan and Avails of Temporary Exemption from Certain Corporate Finance Requirements
Gold Springs Resource Corp. files 2019 Financial Statements,
MD&A, Provides Update on Gold Springs 2020 Exploration Plan
and Avails of Temporary Exemption from Certain Corporate
Finance Requirements
March 27, 2020, Vancouver, British Columbia— Gold Springs Resource Corp. (TSX:
GRC, OTCQB: GRCAF) (the “Company” and formerly TriMetals Mining Inc.), reports the release
of its audited consolidated financial statements for the year ended December 31, 2019, the related
management’s discussion and analysis of financial position and results of operations (“MD&A”)
and an update on the 2020 Exploration Plan for the Gold Springs project. In this press release, all
amounts are expressed in U.S. dollars, unless otherwise indicated.
As at December 31, 2019, the Company had a working capital of $4.09 million including $3.83
million in cash.
On September 5, 2019 the Company’s wholly -owned Bermudian subsidiary, South American
Silver Limited (“SASL”) , received from the Government of Bolivia (“Bolivia”) US$25,588,525,
being net of $209,475 for the Arbitration Tribunal’s cost order , as a final settlement amount for
(i) SASL’s arbitration award against Bolivia and (ii) the transfer of the Malku Khota Project Data
by the Company to Bolivia. During the year ended December 31, 2019, the Company paid
$8,408,603 of arbitration award liabilities and on November 4, 2019 redeemed the Class B shares
for $0.09827 per Class B share for total redemption proceeds of $11,436,186. These transactions
resulted in a fair value income change of $3.31 million for the year ended December 31, 2019. On
November 5, 2019 the Class B shared were delisted from the TSX and the OTCQB.
On September 26, 2019 the Company closed the transaction wi th Wealth Minerals Limited and
Wealth Copper Limited (“Wealth Copper”) for the sale of the Escalones Project ( the “Escalones
Transaction”, refer to New Release of September 27, 2019 ) which resulted in the Company
acquiring a 42.6% ownership stake (equity investment) in Wealth Copper and recognizing a non-
cash loss of $13.47 million due to the write-down of the Escalones property asset. During the year
ended December 31, 2019 the Company recognized a non-cash loss of $0.1 million for its
proportionate share in Wealth Copper’s results of operations from the date of acquisition.
During Q4 2019, the Company completed a drill program at the Homestake target located in the
Nevada side of the Gold Springs project, and continued to manage its costs structure which
resulted in general and administrative expenses , excluding non -cash share -based payments,
remaining consistent year over year at $1.26 million compared to $1.24 million during the year
ended December 31, 2018.
Exploration spending during the year ended December 31, 2019 decreased to $0.79 million from
$1.20 million incurred in the year ended December 31, 2018. The 2019 costs included $ 0.70
million incurred at Gold Springs and $0.09 million incurred at the Escalones property in Chile,
prior to the completion of the Escalones Transaction.
The Company reported a net loss of $11.80 million ($0.05 loss per share) for the year ended
December 31, 2019, compared with net earnings of $2.59 million ($0.01 earnings per share) for
the year ended December 31, 2018.
Exploration Plan for 2020
The Company’s vision is to identify a multimillion-ounce gold resource at its Gold Springs project.
Aligned with that vision, the Company’s plan for 2020 was to continue to add to the existing gold
resources at Gold Springs. GRC had planned approximately 8,700 meters of drilling to start in
early Q2 2020, mainly focused on stepping out and testing the extensions of the existing South
Jumbo and North Jumbo resources, with the goal of increasing these resources which are open in
multiple directions. The plan also included other exploration activities, metallurgical test work
and the publishing of a new resource estimate by the end of 2020, capturing the results of the
2017, 2019 and 2020 drill programs.
As a result of the social and economic disruption that has emerged as a result of the COVID-19
outbreak, and the impact on the industry and capital markets, the Company has decided, for the
present, to defer its 2020 Exploration Plan. The Company will continue to monitor the situation
and reassess this decision in the near future, in light of the market conditions at that time.
Temporary Exemption from Certain Corporate Finance Requirements
Pursuant to BC Instrument 51 -515 - Temporary Exemption from Certain Corporate Finance
Requirements (“BCI 51-515”) of the British Columbia Securities Commission (“Commission”)
and orders by the other Canadian securities regulatory authorities providing similar exemptions
to those provided in BCI 51-515, the Commission granted exemptions from the requirements of
section 85 of the Securities Act (British Columbia) to provide certain periodic disclosure about a
reporting issuer’s business and affairs, and variations of certain Commission rules to extend the
time required to comply with such requirements (the “Exemption”).
The Company announces that it will be relying on the Exemption in respect of the requirement to
file its Annual Information Form for the financial year ended December 31, 2019 -(the “AIF”) on
or before March 30, 2020, and advises that:
1. management and other insiders of the Company are subject to a trading black -out policy
that reflects the principles in section 9 of National Policy 11 -207 - Failure-to-File Cease
Trade Orders and Revocations in Multiple Jurisdictions;
2. the Company expects to file the AIF on or before May 14, 2020;
3. there have been no material business developments in respect of the Company since the
date of the annual financial statements for the year ended December 31, 2019.
Outlook
The Company’s foc us is on the exploration and expansion of the mineral resources at its Gold
Springs project in Nevada and Utah, USA.
About Gold Springs Resource Corp. (Formerly TriMetals Mining Inc.)
Gold Springs Resource Corp. (TSX: GRC and OTCQB: GRCAF) is a growth -focused gold
exploration company creating value through the exploration and development of the Gold Springs
project in Nevada and Utah, U.S.A. Management has extensive experience in global exploration
and the mining industry.
Gold Springs Resource Corp. Contact:
Matias Herrero
Chief Executive Officer
+1 (778) 801-1667
Forward Looking Statements
Certain statements contained herein constitute “forward-looking information” under applicable
Canadian securities laws (“forward -looking statements”). Forward -looking statements look
into the future and provide an opinion as to the effect of certain events and trends on the
business. Forward-looking statements may include words such as “creating”, “view of”,
“intended”, “plan”, “believe”, “vision”, “would”, “continue”, “will”, “estimate”, “promising”, and
similar expressions. These forward -looking statements are based on current expectations and
entail various risks and uncertainties. Actual results may materially differ from expectations if
known and unknown risks or uncertainties affect our business or if our estimates or
assumptions prove inaccurate. Fac tors that could cause results or events to differ materially
from current expectations expressed or implied by the forward-looking statements, include, but
are not limited to, risks of the mineral exploration industry which may affect the advancement
of the Gold Springs project, including possible variations in mineral resources, grade, recovery
rates, metal prices, capital and operating costs, and the application of taxes; availability of
sufficient financing to fund planned or further required work in a timely manner and on
acceptable terms; availability of equipment and qualified personnel, failure of equipment or
processes to operate as anticipated, changes in project parameters, including water
requirements for operations, as plans continue to be refin ed; regulatory, environmental and
other risks of the mining industry more fully described in the Company’s Annual Information
Form and continuous disclosure documents, which are available on SEDAR
at www.sedar.com. The assumptions made in developing the forward-looking statements
include: the accuracy of current resource estimates and the interpretation of drill, metallurgical
testing and other exploration results; the continuing support for mining by local governments
in Nevada and Utah; the availability of equipment and qualified personnel to advance the Gold
Springs project; execution of the Company’s existing plans and further exploration and
development programs for Gold Springs, which may change due to changes in the views of the
Company or if new in formation arises which makes it prudent to change such plans or
programs.
Readers are cautioned not to place undue reliance on the forward-looking statements contained
in this press release. Except as required by law, the Company assumes no obligation to u pdate
or revise any forward-looking statement, whether as a result of new information, future events
or any other reason. Unless otherwise indicated, forward -looking statements in this press
release describe the Company’s expectations as of the date hereof.