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TORONTO, March 9, 2021 /CNW/ - Battle North Gold Corporation (TSX: BNAU) (OTCQX: BNAUF) ("Battle North" or the "Company") announces that it has filed its Financial Statements and Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2020 ("FY2020"). Copies of these filings can be obtained at www.battlenorthgold.com or under the Company's profile at www.sedar.com. All references to dollars herein are in Canadian dollars ("$") unless otherwise specified.
Cash position: As of December 31, 2020, the Company had cash and cash equivalents and short-term investments of approximately $46.8 million.
Exploration and evaluation expenditures: In FY2020, the Company spent approximately $12.5 million in expenditures related to drilling, maintenance and technical consulting fees, including work on the Feasibility Study for the Project. Expenditures were higher by $0.2 million compared to the same period in 2019 due to feasibility study expenditures and exploratory drilling.
General and administrative expenses (including salaries and benefits, and consulting and professional fees): The Company spent approximately $5.4 million on expenditures related to general and administrative, salaries and benefits, and consulting and professional fees in 2020, higher by $0.4 million due to higher professional fees and investor relations expenditures than 2019.
As of March 9, 2021, the Company had cash and cash equivalents of approximately $38.6 million. In management's view, the Company has sufficient financial resources to carry out the Company's planned activities in 2021 including, but not limited to:
Construction on critical path items has commenced at the Bateman Gold Project (the "Project") and the Board of Directors has approved the full construction of the Project, with the potential to be pouring first gold by the end of the year. The Company has budgeted spending of approximately $59.1 million towards initial capital development in 2021, including underground development, construction of an ammonia reactor, upgrades to the tailings management facility ("TMF"), camp and mill and the purchase of stationary and mobile equipment. The Company has also budgeted approximately $17.8 million for capitalized operating cost expenditures in 2021, including continued infill drilling and site maintenance. See the Company's release dated February 9, 2021.
The Company currently plans to issue a Mineral Resource estimate for the Pen Zone, where mineralization remains open at depth and drilling continues to potentially expand that anticipated estimate.
In 2021, Battle North has budgeted for up to $7 million on exploration expenditures of its Red Lake Properties (see press release issued on February 16, 2021) and its key String of Pearls targets – the McFinley and Pen Zones. The Company has planned up to 22,000 metres of drilling in 2021.
About Battle North
Battle North is developing the Bateman Gold Project to become the next gold producer in the renowned Red Lake Gold District in Ontario, Canada and controls the second largest exploration ground in the district. Battle North also owns a large gold exploration land package on the Long Canyon gold trend near the Nevada-Utah border in the United States. Battle North's shares are listed on the Toronto Stock Exchange (BNAU) and the OTCQX markets (BNAUF). For more information, please visit our website at www.battlenorthgold.com.
BATTLE NORTH GOLD CORPORATION
George Ogilvie, P.Eng.
President, CEO, and Director
Cautionary Statements regarding Forward-Looking Statements and Other Matters
All statements, other than statements of historical fact, contained or incorporated by reference in this news release constitute "forward-looking statements" and "forward looking information" (collectively, "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "anticipated", "assumption", "budget", "committing", "contingencies", "demonstrate", "developing", "encouraging", "estimate", "expected", "exploration", "factors", "favourable", "feasibility", "focus", "forecast", "forward", "future", "launches", "may", "model", "need", "plan", "potential", "priority", "program", "project", "promising", "prospective", "risk", "sampling", "schedule", "shortly", "shovel-ready", "soon", "strategic", "study", "subject to", "target", "testing", "trend", "uncertainties", "upon", "upside", and "will", or variations of such words, and similar such words, expressions or statements that certain actions, events or results can, may, could, should, will (or not) be achieved, occur, provide or result in the future. In some cases, forward-looking information may be stated in the present tense, such as in respect of current matters that may be continuing, or that may have a future impact or effect. Forward-looking statements include statements regarding the 2021 development plans at the Bateman Gold Project, 2021 exploration plans for the Company's Red Lake Properties (including the various identified targets, and the prospectivity and potential thereof), related work programs (including the activities thereunder, scope (including metres of drilling), timing and potential thereof, and expenditures therefor); the String of Pearls (including the McFinley and Pen Zones) and planned drilling thereat, and the potential thereof (including openness at depth and along/on strike, and potential to expand Mineral Resource estimates); mineralization; Mineral Reserve and Mineral Resource estimates for the F2 Gold Deposit; Mineral Resource estimates for the McFinley Zone, expectations of declaration of a Mineral Resource estimates for the Pen Zone, the potential for any such targets to provide incremental mill feed for the Project; developing the Project; and future updates on any of the foregoing.
Forward-looking statements are based on assumptions, estimates, expectations and opinions, which are considered reasonable and represent best judgment based on available facts, as of the date such statements are made. If such assumptions, estimates, expectations and opinions prove to be incorrect, actual and future results may be materially different than expressed or implied in the forward-looking statements. The assumptions, estimates, expectations and opinions referenced, contained or incorporated by reference in this news release which may prove to be incorrect include those set forth herein, as well as the Project Technical Report, the Company's annual information form dated March 27, 2020 ("2020 AIF") and the Company's Management's Discussion and Analysis for the year ended on December 31, 2020 (the "2020 MD&A") and accompanying financial statements, all available under the Company's profile at www.sedar.com and on its website at www.battlenorthgold.com, as well as: (1) permitting, exploration and development at the Project being consistent with the Company's current expectations including the maintenance of existing permits, licenses and other approvals and the timely receipt of other permits, licenses and other approvals necessary from time–to–time; (2) political and legal developments being consistent with its current expectations; (3) the completion of necessary work, evaluations and studies, and provision of services, on the timelines currently expected (notwithstanding the risks, uncertainties, contingencies and other factors described below including COVID-19) and the results being consistent with the Company's current expectations; (4) development and construction at the Project being consistent with the Company's expectations including budget, forecast cost and expenditures, and schedule thereof; (5) the exchange rate between the Canadian dollar and the U.S. dollar being approximately consistent with current expectations; (6) price assumptions for gold; (7) prices for diesel, natural gas, electricity and other key supplies being approximately consistent with current levels; (8) the accuracy of the Mineral Reserve and Mineral Resource estimates in the Project Technical Report (including ore tonnage and grade estimates) and the Company's internal models; (9) labour and materials costs being consistent with the Company's current expectations; (10) continuing amenable relations with key stakeholders including local communities and First Nations; (11) the closing of the Credit Facility previously announced by news release on December 22, 2020 substantially on the terms of the Commitment Letter described therein, a copy of which is available under the Company's profile at www.sedar.com and on its website at www.battlenorthgold.com(the "Credit Facility News Release"); and (12) the Company's ability to meet future debt obligations and/or complete future financings to raise additional capital as and when needed to fund ongoing operations and construction of the Project.
Forward-looking statements are inherently subject to known and unknown risks, uncertainties, contingencies and other factors which may cause the actual results, performance or achievements of Battle North to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks, uncertainties, contingencies and other factors include, among others: gold price fluctuations; possible variations in mineralization, grade or recovery or throughput rates; variability and other uncertainty of geological settings, trends and structures; uncertainty of Mineral Reserve and Mineral Resource estimates; inability to realize exploration potential, mineral grades and mineral recovery estimates; actual results of exploration activities including their timing and impact; delays in completion of exploration and other drilling, programs or plans, and any modelling, re-interpretations or studies, for any reason including insufficient capital and other risks, uncertainties, contingencies and factors identified herein; labour issues at the Company or third parties, such as government and regulatory agencies, suppliers and service providers, including labour shortages and/or work curtailments or stoppages as may result from COVID-19; conclusions of economic, geological or structural evaluations and models including those reflected in the Project's Feasibility Study and Mineral Reserve and Mineral Resource estimates; changes in Project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; accidents and other risks of the mining industry; delays and other risks related to operations; the ability to obtain and maintain permits and other regulatory approvals (as well as the timing and terms thereof) and to comply with such permits, approvals and other applicable regulatory requirements; the ability of Battle North to comply with its obligations under material agreements including Project development and construction contracts and any current or future financing agreements; the availability of financing for proposed programs and working capital requirements on reasonable terms and in a timely manner; the ability to close the Credit Facility substantially on the terms of the Commitment Letter previously announced; not closing the Credit Facility substantially on the terms of the Commitment Letter as previously disclosed; the sufficiency of the proceeds of the Credit Facility, together with cash currently on the Company's balance sheet, to fund the Project to Commercial Production; the ability to meet, repay, or refinance, or replace, or renegotiate current and future debt obligations on reasonable terms and in a timely manner including the closure and reclamation surety bond; the ability of third-party service providers and other suppliers to deliver on reasonable terms and in a timely manner; risks associated with the ability to retain key executives and key operating personnel; cost of environmental expenditures and potential environmental liabilities; relations with local communities including First Nations; failure of plant, equipment or processes to operate as anticipated; cost of supplies; market conditions and general business, economic, competitive, political and social conditions; our ability to generate sufficient cash flow from operations or obtain adequate financing to fund our capital expenditures and working capital needs and meet our other obligations; the volatility of the Company's share price, and the ability of our common shares to remain listed and traded on the TSX; epidemics, pandemics and other public health crises, including COVID-19 or similar such viruses; the impact of any merger, acquisition or other strategic transaction involving the Company including any acquisition or other change in control of the Company; the "Risk Factors" in the 2020 AIF, the risks, uncertainties, contingencies and other factors identified in the Project Technical Report and the 2020 MD&A (and accompanying financial statements). The foregoing list of risks, uncertainties, contingencies and other factors is not exhaustive; readers should consult the more complete discussion of the Company's business, financial condition and prospects that is provided in the 2020 AIF and the other aforementioned documents.
The forward-looking statements referenced or contained herein are expressly qualified by these Cautionary Statements as well as the Cautionary Statements in the 2020 AIF, the Project Technical Report and the 2020 MD&A (and accompanying financial statements). Forward-looking statements contained herein are made as of the date of this news release (or as otherwise expressly specified) and Battle North disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable laws.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release
SOURCE Battle North Gold Corporation
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