NGEX Minerals Reports Q2 2021 Results
NGEx Minerals Ltd.
2000 – 885 West Georgia Street
Vancouver BC Canada V6C 3E8
T +1 604 689 7842
F +1 604 689 4250
NGExminerals.com
NEWS RELEASE
NGEX MINERALS REPORTS Q2 2021 RESULTS
VANCOUVER, August 27, 2021 - NGEx Minerals Ltd. (TSXV: NGEX) (“NGEx Minerals” or the “Company”) is
pleased to announce its results for the three and six months ended June 30, 2021.
Q2 2021 HIGHLIGHTS AND OUTLOOK
Wojtek Wodzicki, President & CEO, commented, “It appears that we are now in the early stages of a strong
market for commodities, and so the timing could not be better to drill test the highly prospective Valle Ancho
Project, in Argentina’s Catamarca Province. Our initial reconnaissance program from the 2019/2020 field
season, as well as historic exploration work from the 1990’s, identified several compelling exploration targets,
which we are excited to drill test for the first time.
Our focus through most of last year and early 2021 was business development , as the COVID-19 pandemic
resulted in significant travel restrictions that largely kept us out of the field. However, with improvements in
the COVID situation globally, including in Argentina, we are optimistic that we can execute an efficient and safe
program starting this fall.”
During the second quarter of 2021, the Company began planning a field and drill program at its Valle Ancho
Project. The Company is party to an option agreement with the Province of Catamarca, whereby it may earn
a 100% interest in Valle Ancho by making US$8.2 million in total project expenditures by the end of 2022.
As of the date of this news release, approximately US$6.5 million remains on the earn-in, which the Company
intends to meet with an exploration campaign commencing in th e third quarter of 2021. The 202 1/2022
program will consist of airborne geophysics as well as diamond drilling to test several targets including
following up on unverified, historical drill intersections from the 1990’s, which returned 62 metres at 1.0 g/t
gold and 108 metres at 1.0 g/t gold.
The Valle Ancho Project consists of a significant land package, covering approximately 1,000 km 2 of
underexplored and highly prospective ground, located on the Argentine side of Chile’s renowned Maricunga
Gold Belt. An initial exploration program was undertaken at Valle Ancho during the 2019/2020 field season,
which consisted of a review of historical data, mapping and surface sampling, and the undertaking of an
airborne geophysical survey over the project area to identify, develop and prioritize targets for further
evaluation. The 2019/2020 field program was successful in outlining a number of targets for further work
including: two large targets with outcropping porphyry copper mineralization, two targets with outcropping
epithermal gold mineralization; and a copper skarn target.
FINANCIAL RESULTS
(In thousands of Canadian dollars, except per share amounts)
Three months ended Six months ended
June 30, June 30,
2021 2020 2021 2020
Exploration and project investigation 356 484 758 2,351
General and administration (“G&A”) 454 345 885 751
Net loss 836 843 1,577 2,913
Basic and diluted loss per share 0.01 0.01 0.01 0.02
The financial information in this table was selected from the Company’s condensed interim consolidated financial statements
for the three and six months ended June 30 , 2021 (the “Financial Statements”), which are available on SEDAR at
www.sedar.com and the Company’s website www.NGExminerals.com.
SELECTED FINANCIAL INFORMATION
(In thousands of Canadian dollars)
June 30, December 31,
2021 2020
Cash 469 899
Working capital (deficit) (879) 550
Mineral properties 4,035 4,106
Total assets 5,287 5,378
The financial information in this table was selected from the Financial Statements, which are available on SEDAR at
www.sedar.com and the Company’s website www.NGExminerals.com.
The Company incurred a net loss of $ 0.8 million during the three months ended June 30, 2021, comprised
primarily of $0.4 million in exploration and project investigation costs and $0.5 million in G&A costs. For the
comparative 2020 quarter, the Company reported a net loss of $0.8 million, consisting mainly of $0.5 million
in exploration and project investigation costs and $0.3 million in G&A costs.
The net loss of the three months end ed June 30, 2021, was generally consistent with the net loss of the
comparative 2020 quarter due to the cessation of field activity and reduced discretionary expenditures since
April 2020 in response to COVID-19.
LIQUIDITY AND CAPITAL RESOURCES
As at June 30 , 2021 , the Company had cash of $ 0.5 million and a working capital deficit of $ 1.1 million,
compared to cash of $ 0.9 million and net working capital of $ 0.5 million as at December 31, 20 20. The
decrease in the Company’s cash and net working capital is due primarily to funds used in operations, including
mineral property and surface access rights payments, and for general corporate purposes , which has been
partially offset by amounts drawn against US$3.0 million credit facility, as described below.
On February 19, 2021, the Company obtained an unsecured US$3.0 million credit facility (the “2021 Facility”)
from Zebra Holdings and Investments S.à.r.l. (“Zebra”) and Lorito Holdings S.à.r.l. (“Lorito”) to provide financial
flexibility to fund ongoing expl oration and for general corporate purposes. Zebra and Lorito are companies
controlled by a trust settled by the late Adolf H. Lundin and report their security holdings in the Company as a
joint actor, as the term is defined by Canadian securities regulations, and are related parties by virtue of their
combined shareholding in the Company in excess of 20%.
The Company plans to use the majority of its cash and the funds available from the 2021 Facility towards
maintenance of Los Helados, commencing a 2021/2022 exploration campaign at Valle Ancho, progressing its
business development efforts, and general corporate activities.
ABOUT NGEX MINERALS
NGEx Minerals is a Lundin Group copper and gold exploration company based in Canada with projects in Chile
and Argentina. NGEx Minerals holds the large-scale Los Helados copper-gold deposit, located in Chile's Region
III, as well as other early -stage projects located in Argentina. NGEx Minerals is the majority partner and
operator for the Los Helados Project, subject to a Joint Exploration Agreement with its joint exploration partner
in Chile, Nippon Caserones Resources Co., Ltd (formerly, Pan Pacific Copper Co., Ltd.). NGEx Minerals is actively
seeking to add to its portfolio of projects as part of its overall growth strategy. The Company is listed on the
TSXV under the trading symbol “NGEX”.
ADDITIONAL INFORMATION
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 news release.
The information contained in this news release was accurate at the time of dissemination but may be
superseded by subsequent news release(s). The Company is under no obligation nor does it intend to update
or revise the forward-looking information, whether as a result of new information, future events or otherwise.
QP AND TECHNICAL INFORMATION
Technical information in this news release has been reviewed and approved by Bob Carmichael, B.Sc., P.Eng.,
who is the Qualified Person as defined by NI 43 -101. Mr . Carmichael is Vice President, Exploration for the
Company.
Valle Ancho drill results are historical in nature and, although NGEx Minerals has no reason to believe that the
analytical data reported here is inaccurate, the Company has not completed its own sampling to independently
verify the assay results. Please refer to the Company’s News Release dated September 8, 2019 for additional
information on the veracity of this data.
On behalf of NGEx Minerals,
Wojtek Wodzicki,
President and CEO
For further information:
Amanda Strong, Investor Relations, Canada: +1 604 689 7842 or [email protected]
Cautionary Note Regarding Forward-Looking Statements
Certain statements made and information contained herein in the news release constitutes “forward-looking
information” and “forward -looking statements” within the meaning of applicable securities legislation
(collectively, “forward-looking information”). The forward-looking information contained in this news release
is based on information available to the Company as of the date of this news release. Except as required under
applicable securities legislation, the Company does not intend, and does not assume, any obligation, to update
this forward-looking information. Generally, this forward-looking information can frequently, but not always,
be identified by use of forward -looking terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate",
or "believes", or variations of such words and phrases or statements that certain actions, events, conditions
or results “will”, "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative
connotations thereof. All statements other than statements of historical fact may be forward -looking
statements.
Forward-looking statements contained in this news release include statements regarding : the Company’s
ability to respond to or navigate, and/or methods by which it responds to or navigates, the COVID -19
pandemic; the expected timing, nature or results of the Company’s recent business development initiatives;
the materialization of opportunities for the Company to make acquisition of strategic assets; the ability of the
Company to secure additional financing and/or the quantum and terms thereof; exploration and development
plans and expenditures, including those pertaining to a 2021/2022 program at Valle Ancho; the ability and/or
willingness of the Company to meet the remaining earn -in expenditure at Valle Ancho to secure a 100%
interest therein; the timing and nature of work undertaken to advance the Los Helados Project or the Valle
Ancho Project; the success of future exploration activities; potential for the discovery of new mineral deposits;
ability to build shareholder value; expectations with regard to adding to Mineral Resources through
exploration; ability to execute the planned work programs; estimation of commodity prices, Mineral
Resources, estimations of costs, and permitting time lines; ability to obtain surface rights and property
interests; currency exchange rate fluctuations; requirements for additional capital; government regulation of
mining activities; environmental risks; unanticipated reclamation expenses; title disputes or claims; limitations
on insurance coverage; and other risks and uncertainties. Although the Company believes that the
expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance
should not be placed on forward -looking statements since the Company can give no assurance that such
expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ materially from those anticipated in such
forward-looking statements, including the risks, uncertainties and other factors identified in the Company’s
periodic filings with Canadian securi ties regulators. In addition, these statements involve assumptions made
including that the current price of and demand for commodities will be sustained or will improve, the supply
of commodities will remain stable, that the general business and economic c onditions will not change in a
material adverse manner, that financing will be available if and when needed on reasonable terms and that
the Company will not experience any material labour dispute, accident, or failure of plant or equipment. These
factors are not, and should not be construed as being, exhaustive.
The forward-looking statements contained in this news release are made as at the date of this news release
and the Company does not undertake any obligations to publicly update and/or revise any of the included
forward-looking statements, whether as a resu lt of additional information, future events and/or otherwise,
except as may be required by applicable securities laws. Forward -looking information is provided for the
purpose of providing information about management's current expectations and plans and allowing investors
and others to get a better understanding of the Company's operating environment. Although the Company
has attempted to identify important factors that would cause actual results to differ materially from those
contained in forward -looking information, there may be other factors that cause results not to be as
anticipated, estimated, or intended. There can be no assurance that such statements will prove to be accurate,
as actual results and future events could differ materially from those an ticipated in such statements. All the
forward-looking information contained in this document is qualified by these cautionary statements. Readers
are cautioned not to place undue reliance on forward -looking information due to the inherent uncertainty
thereof.
Cautionary Note to U.S. Readers
Information concerning the mineral properties of the Company contained in this news release has been
prepared in accordance with the requirements of Canadian securities laws, which differ in material respects
from the requirements of securities laws of the United States applicable to U.S. companies subject to the
reporting and disclosure requirements of the United States Securities and Exchange Commission.