LAKEWOOD, Colo., Nov. 12, 2014 /PRNewswire/ -- Pershing Gold Corporation (OTCQB:PGLC) ("Pershing Gold" or the "Company") today announced financial results for the quarter ended September 30, 2014 and provided a business and operational update.
- Raised a total of $20.8 million in aggregate net proceeds from private placements of common stock and warrants, completed in July ($10.9 million) and October ($9.9 million) 2014.
- At September 30, 2014, the Company's cash and cash equivalents totaled $10.4 million.
- Received final permit approval to start mining at Relief Canyon within the existing open-pit mine.
- Appointed Timothy Janke Chief Operating Officer.
- Expanded new high-grade area of mineralization (the "North Target Area") located directly to the north of the existing pits at the Relief Canyon mine. The North Target Area contains multiple intercepts of a consistently higher-grade than the average grade of the Company's latest resource estimate, including selected core-drilling results below1:
- RC14-225 with 55.0 feet of 0.117 ounces per ton ("opt")/4.020 grams per tonne ("gpt") gold ("Au")
- RC14-203 with 58.1 feet 0.119 opt/4.070 gpt Au
- RC14-177 with 86.1 feet of 0.104 opt/3.562 gpt Au
Relief Canyon Update
Pershing Gold's most recent 43-101 compliant resource estimate for the Relief Canyon Mine in Pershing County, NV incorporates drill holes completed through calendar year 2013. The Company plans to update the resource model in early 2015 to include the 2014 drilling results. Drilling results recently published include intervals with gold grades that are significantly higher than the 0.02 opt Au average grade used to calculate the most recent resource estimate for the deposit. Once the resource estimate has been updated, the Company plans to complete an independent Preliminary Economic Assessment to analyze anticipated production rates, cash costs, all-in-sustaining costs, life-of-mine and other key factors.
The Company has expanded its North Target Area high-grade gold zone at the Relief Canyon Mine including significant intercepts in the ongoing step-out core-drilling program at the project. These results include an intercept containing 55.0 feet of 0.117 opt/4.020 gpt Au (RC14-225) and an intercept with 58.1 feet of 0.119 opt/4.070 gpt Au (RC14-203). Additionally, on September 15, 2014 Pershing Gold announced high-grade gold intercepts in seven holes at Relief Canyon, including the thickest high-grade interval measuring 86.1 feet of 0.104 opt/3.562 gpt Au (RC14-177).
Pershing Gold recently added an additional diamond core drill rig for the remainder of 2014 to the North Target Area of the Relief Canyon project. One drill will focus on targets to the southwestern extension of the deposit while the second drill rig continues step-out drilling in the North Target Area. A third drill rig is deployed at the Company's Buffalo Mountain target area.
Buffalo Mountain Update
The Company recently initiated a diamond drill program at the Buffalo Mountain Project located approximately two miles north of the Relief Canyon Mine. Pershing Gold is in the process of drilling up to 12 holes at Buffalo Mountain, which is an exciting, newly discovered gold and silver target.
Cash and Cash Equivalents
At September 30, 2014, the Company's cash and cash equivalents totaled $10.4 million. Cash and cash equivalents increased during the nine months ended September 30, 2014 by $2.7 million from our cash and cash equivalents balance at December 31, 2013 of $7.7 million. The increase in cash and cash equivalents was primarily the result of cash provided by financing activities of $10.7 million principally from the sale of our common stock and warrants offset by cash used in operations of $7.9 million that was comprised largely of exploration expenditures, primarily at the Relief Canyon mine to establish our estimate of mineralized material, and general and administrative functions, including consultant fees, compensation costs, legal fees and public company expenses.
In July 2014, the Company completed private placements to accredited investors for the purchase of 35,854,259 shares of our common stock and 14,341,676 warrants to purchase shares of common stock for aggregate net proceeds of approximately $10.9 million. In October 2014, the Company completed a private placement to accredited investors for the purchase of 35,714,287 shares of our common stock for aggregate net proceeds of approximately $9.9 million. Combined aggregate net proceeds to the Company from these financings were $20.8 million.
The Company anticipates the following expenditures for the remaining quarter of 2014:
- $2.8 million on general and administrative expenses (including all employee salaries, public company expenses, consultants and land holding costs);
- $0.8 million on exploration drilling to expand the current resource at the Relief Canyon mine property;
- $0.5 million on additional work at the Relief Canyon mine including further metallurgy results, progress towards an internal economic analysis and pre-development.
- $0.4 million on exploration drilling at our Buffalo Mountain project;
- $0.2 million on additional permitting and bonding, including an Environmental Assessment to expand the open-pit mine at the Relief Canyon property.
1. Complete drilling results are posted at www.pershinggold.com.
About Pershing Gold Corporation
Pershing Gold is an emerging Nevada gold producer on a fast-track to re-open the Relief Canyon Mine, which includes three open-pit mines and a state-of-the-art, fully permitted and constructed heap-leach processing facility. Pershing Gold is currently permitted to resume mining at Relief Canyon under the existing Plan of Operations. Mine expansion above the water table is targeted for 2015.
Pershing Gold's landholdings cover over 25,000 acres that include the Relief Canyon Mine asset and lands surrounding the mine in all directions. This land package provides Pershing Gold with the opportunity to expand the Relief Canyon Mine deposit and to explore and make new discoveries on nearby lands.
Cautionary Note to United States Investors Regarding Estimates of Measured, Indicated and Inferred Resources
We use certain terms, or refer to reports that use these terms, in this press release such as "measured", "indicated" and "inferred resources", that are defined in Canadian National Instrument 43-101; however these terms are not recognized under the U.S. SEC Industry Guide 7. U.S. investors are cautioned not to assume that any or all of measured, indicated or inferred resources are economically or legally mineable or that these resources will ever be converted into reserves. "Inferred mineral resources" have a high degree of uncertainty as to their existence and it cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. U.S. investors are urged to consider closely the disclosure in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml.
Legal Notice and Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein including the planned reopening and recommissioning of the Relief Canyon mine and processing facilities, anticipated additional drilling and other exploration on Pershing Gold's Relief Canyon properties, anticipated expansion and upgrade of the Relief Canyon deposit as a result of drilling, planned update of estimates of mineral resources and preparation of a Preliminary Economic Assessment, interpretations of exploration results and other geologic information at Relief Canyon, planned fourth quarter 2014 expenditures and those preceded by or that include the words "believes," "expects," "given," "targets," "intends," "anticipates," "plans," "projects," "forecasts" or similar expressions, are "forward-looking statements." Although the Company's management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties, which could cause the Company's future results to differ materially from those anticipated. Potential risks and uncertainties include, among others, inability to obtain external financing to fund the development of plans for and the reopening and commencement of production at the Relief Canyon Mine, planned exploration, or to maintain property rights; interpretations or reinterpretations of geologic information or unfavorable exploration results that could negatively affect estimates of resources or completion of a Preliminary Economic Assessment; delay or inability to obtain permits required for planned production, including permits to mine the deposit below the water table, for exploration and other activities; general economic conditions and conditions affecting the industries in which the Company operates; the uncertainty of regulatory requirements and approvals; decreases in gold and other mineral and commodity prices; risks of junior exploration and pre-production activities; and maintenance of important business relationships. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in the Company's filings with the SEC including the Annual Report on Form 10-K for the year ended December 31, 2013. The Company assumes no obligation to update any of the information contained or referenced in this press release.
SOURCE Pershing Gold Corporation