Each one in plain English, with the numbers worked through for a shareholder.
17 June 2015resource reserve update▲ GoodMajor
Corvus released a preliminary economic assessment (PEA) and updated resource estimate for its North Bullfrog project in Nevada, built around the newly discovered Yellowjacket deposit. At $1,200 gold the study shows a post-tax NPV (5%) of US$246 million, 38% IRR, initial capital of US$175 million and a 10-year mine life; the company states the PEA is preliminary and there is no certainty it will be realized. It also reports that 91% of the Yellowjacket mill resource is now Measured & Indicated, up from under 20% in 2014.
Corvus closed a non-brokered private placement of 4,500,000 shares at Cdn$1.00 each, raising Cdn$4,500,000; insiders Tocqueville Asset Management and AngloGold Ashanti (USA) Exploration took part. The company says the money fully funds its proposed 2015 exploration program, with drilling due to start in Q2 2015, and it adds new shares, so existing holders' stakes are diluted by that issue.
What it means for a shareholder
4.5m new shares at C$1.00 to raise about C$4.5m. That's 5.6% dilution: every existing holder's slice gets 5.6% smaller. If you held C$1,000 of shares (1,000 at the issue price), your slice goes from 0.00132% to 0.00125% of the company. To keep it you'd need 60 more shares - about C$60 at the issue price.
Corvus filed with the SEC a technical report on its LMS Gold Project in Alaska's Goodpaster Mining District, dated October 22, 2014 (effective August 1, 2014) and prepared by Ed Hunter and Gary Giroux. The 8-K is a disclosure filing that furnishes the report; the part of the report provided here does not include the resource figures, so no numbers can be stated.
