Veris Gold Corp. company history: the story so far

History

Veris Gold kept raising money and producing gold at Jerritt Canyon through 2013, but entered creditor protection in 2014 and was delisted from the TSX.

2013: Raising money to keep Jerritt Canyon running

Veris Gold Corp. owned the Jerritt Canyon gold operation in Nevada, plus properties in British Columbia and the Yukon, including Ketza River. In 2013 it leaned on the market for cash. On August 8 it announced a public offering of units (a share plus half a warrant, a right to buy another share later) and flow-through units, which pass exploration tax benefits to buyers. The money was meant for a mill upgrade, development of the Saval 4 underground mine, reclamation bonding, working capital and Ketza River exploration.

On September 9 the company reported August output of 16,699 ounces and proposed a private placement of up to 15,000,000 units at $0.52, worth up to $7.8 million. It also put Saval 4 on hold until 2014 and said debt refinancing talks were ongoing. On November 18, under new President and CEO François Marland, who replaced R. Llee Chapman, it announced another offering at $0.475 a unit and $0.525 a flow-through unit, partly to make payments under a forward gold purchase agreement. The filings do not show how much was raised. Each round added shares and warrants at $0.60, diluting existing holders.

2014: Fire, delays and creditor protection

A December 19 electrical fire disrupted operations for an estimated 21 days, and 2013 guidance was cut from 145,000 to 138,000 ounces. On February 27, 2014, Veris estimated it had produced 139,500 ounces, set a 2014 target of 180,000 ounces, and said it hoped to announce positive refinancing news soon.

On March 31 a delayed audit of its 2013 accounts brought a Management Cease Trade Order from the British Columbia Securities Commission, barring insiders from trading. The company said then that no insolvency proceedings existed. By June 19, however, it had started proceedings under the Companies' Creditors Arrangement Act. Trading was suspended on June 9, and the TSX said it would delist the shares and warrants on July 18, 2014.

As of June 19, 2014, Veris said its three Jerritt Canyon mines and plant were operating and generating free cash flow. It was discussing another listing and planned to seek a TSX relisting after leaving creditor protection.

Written from the 6 story beats below (2013 to 19 June 2014), which come from the company's own announcements and filings.

Beat by beat

The events that changed the company's story, in plain English, each written against everything known about the company at the time. The dot shows whether it was good, bad or neutral for shareholders.

2014

19 June
Veris has commenced proceedings under the Companies' Creditors Arrangement Act (CCAA), which contradicts the March statement that no insolvency proceedings existed. As a result the TSX will delist its shares and warrants at close of business July 18, 2014 (trading suspended since June 9). The company is discussing a listing on another exchange, plans to seek TSX relisting after exiting CCAA, and says the three Jerritt Canyon mines and plant are operating and generating free cash flow.
listing compliance notice
31 Mar
Because its audit of the 2013 financial statements was delayed, Veris got a Management Cease Trade Order from the British Columbia Securities Commission; it expects to file the statements on or before April 10, 2014. Public trading in the shares continues, but the CEO, CFO and other designated insiders cannot trade. The company states no insolvency proceedings exist as of this date.
listing compliance notice
27 Feb
Veris estimated it produced 139,500 ounces of gold at Jerritt Canyon in 2013, above its revised guidance of 138,000 ounces (cut from 145,000 after a December 19 electrical fire that affected operations for an estimated 21 days). It targets 180,000 ounces in 2014 and says it hopes to announce positive news on refinancing soon, but gives no refinancing terms.
production update

2013

18 Nov
Veris announced another marketed public offering, this one Canada-only: units at $0.475 and flow-through units at $0.525, each with a quarter warrant exercisable at $0.60 for 36 months, with closing expected by November 27, 2013. Proceeds are to cover payments under the forward gold purchase agreement, the Jerritt Canyon dry mill upgrade, Saval 4 development, Ketza River exploration, reclamation bonding and working capital. The release is signed by François Marland as President and CEO, replacing R. Llee Chapman, who signed the earlier releases. Further share issuance would dilute existing holders.
capital raising announcement
9 Sept
Veris reported August 2013 production of 16,699 ounces of gold from Jerritt Canyon (including 2,138 ounces from toll milling for Newmont) at 85% recovery, and a 145,000-ounce target for the year. It said Saval 4 is on hold until 2014 and that debt refinancing talks are ongoing, with results expected in the fourth quarter. It also proposed a private placement of up to 15,000,000 units at $0.52 (up to $7.8 million), each with one common share and a half warrant exercisable at $0.60 for 36 months; the text is cut off before the remaining agent terms. Saval 4 being on hold conflicts with the earlier August plan to use offering money for its development, and the later 2014 start date in the context shows it was pushed back.
capital raising announcement
8 Aug
Veris announced a marketed public offering of units (a common share plus half a warrant) and flow-through units, sold through agents led by Secutor Capital Management, with closing expected by August 15, 2013. Price and size were not set; the money is meant for the Jerritt Canyon mill upgrade, Saval 4 underground development, reclamation bonding and working capital, with flow-through money for Ketza River exploration. New shares would dilute existing holders.
capital raising announcement