Welcome!

News Feed Item

Lupaka Gold Reports Performance and Financial Highlights for the Three Months Ended March 31, 2014

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/13/14 -- Lupaka Gold Corp. ("Lupaka Gold" or "the Company") (TSX:LPK)(LMA:LPK)(FRANKFURT:LQP) reports performance highlights and financial results for the three months ended March 31, 2014.

The following is taken from the Company's Unaudited Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis, both of which are filed at www.sedar.com.

Overall Performance

The Company's recent activities and events of note for the first quarter of 2014 are as follows:

--  The Company finished the three months ended March 31, 2014 with $2.94
    million in cash. 
--  On March 17, 2014, the Company announced that it was commencing the
    permitting process to put the Invicta Gold Project in production on a
    small-scale basis of approximately 300 tonnes/day, at an estimated cost
    of US$2 million; and 
--  The Company provided an update on January 20, 2014 of its 2014
    development and exploration plans for its gold projects.

Lupaka Gold's common shares trade in Canada on the Toronto Stock Exchange ("TSX") and in Peru on the Bolsa de Valores de Lima ("BVL", otherwise known as the Lima Stock Exchange) under the symbol LPK, and in Germany on the Frankfurt Exchange ("FRA") under the symbol LQP. Lupaka Gold's share purchase warrants trade on the TSX under the symbol LPK.WT.

Outlook

The Company's primary priorities for 2014 are to implement its small-scale production option for the Invicta Gold Project and continue mineral exploration and development activities on the Crucero Gold Project and the Josnitoro Gold Project.

Management is presently evaluating capital financing alternatives which are available to fund the estimated US$2 million of capital expenditures needed to put the Invicta Gold Project into small-scale production by March 2015. Excluding such financing requirements, management believes that cash and cash equivalents on hand as at the date hereof will be sufficient to fund the Company's planned head office and Peru exploration activities for the balance of 2014, by delaying drilling activity and reducing or eliminating discretionary expenses related to administration and exploration.

Financial Highlights

All amounts are in Canadian Dollars unless otherwise stated.

Financial results for the three months ended March 31, 2014 and 2013 are summarized as follows:

                                               Three months ended March 31, 
                                             -------------------------------
                                                       2014            2013 
                                                   ($000's)        ($000's) 
                                             --------------- ---------------
Operating expenses                                                          
Exploration                                             580           1,658 
General and administration                              532             873 
                                             --------------- ---------------
                                                                            
Operating loss                                        1,112           2,531 
Impairment loss on available-for-sale                                       
 financial asset                                        301             985 
Finance income - interest                                (9)            (27)
Foreign exchange loss (gain)                            (42)             (9)
                                             --------------- ---------------
                                                                            
Loss for the period                                   1,362           3,480 
                                             --------------- ---------------
                                             --------------- ---------------
                                                                            
Loss per share - Basic and diluted                    $0.02           $0.04 
                                             --------------- ---------------
                                             --------------- ---------------

Exploration - all such expenses relate to the Peru operations of the Company and totalled $580,000 for 2014 as compared to $1,658,000 for 2013, a net decrease of $1,078,000 for the period which reflects decreases in: Project Administration costs of $583,000 from reduced Peru staff levels and associated expenses for 2014; Camp, Community relations and related costs of $282,000 as a result of a 67% reduction in camp and related personnel, and the elimination of the use of the Crucero Gold Project community relations contractor for 2014; and Technical Reports, Assays, and related costs of $164,000 from there having been no metallurgical and/or technical studies conducted in 2014.

Following is a summary of exploration expenditures, by project, during the three months ended March 31, 2014:

In thousands of dollars          Crucero     Invicta   Josnitoro       Total
                            ------------------------------------------------
                                                                            
Camp, community relations                                                   
 and related costs                   212         147           3         362
Project administration               198          10           0         208
Technical reports, assays                                                   
 and related costs                     4           4           0           8
Transportation, reclamation                                                 
 and professional fees                 2           0           0           2
                            ------------------------------------------------
                                                                            
                                     416         161           3         580
                            ------------------------------------------------
                            ------------------------------------------------

General and administration expenses - all such expenses relate to the Canadian operations of Lupaka Gold and totalled $532,000 for 2014 compared to $873,000 for 2013, for a decrease of $341,000 as a result of a decrease in: Salaries and benefit costs of $263,000 from there having been no management bonuses for 2014, and reduced share-based compensation expenses for 2014; Professional and Regulatory Fee costs of $87,000, due to reduced legal and BVL listing costs; and Office and General expenses of $21,000 due mainly to reduced IT and miscellaneous office costs. These reduced costs were offset by an increase in Shareholder and Investor Relations expenses of $29,000 from investor relations programs focused on the establishment of a European investor presence in the Company's shareholder base.

Impairment loss on available-for-sale financial asset

As at March 31, 2014, the aggregate fair market value of the Company's investment in Southern Legacy Minerals Ltd. ("Southern Legacy") was $603,000 ($904,000 - December 31, 2013), as indicated by the closing price of the shares as quoted by the TSX Venture Exchange (under the symbol, "LCY"), for which the Company recorded impairment losses of $301,000 during the quarter. Southern Legacy's common shares also trade on the BVL. The Company continues to evaluate its strategic options regarding this portfolio investment.

A snapshot of the Company's balance sheet is as follows:

Liquidity and Capital Resources

                                               -------------- --------------
                                                    March 31,   December 31,
                                                         2014           2013
(in thousands)                                       ($000's)       ($000's)
---------------------------------------------- -------------- --------------
Cash and cash equivalents                               2,940          3,906
Working capital (defined as current assets                                  
 less current liabilities)                              1,767          2,502
Total assets                                           32,545         33,106
Current liabilities                                     1,578          1,777
Shareholders' equity                                   30,967         31,329
                                                                            
----------------------------------------------------------------------------

The principal changes in the Company's cash during the three months ended March 31, 2014 were as follows:

--  Cash used in operating activities in the quarter ended March 31, 2014
    was $1,178,000 ($2,221,000 - three months ended March 31, 2013),
    principally to fund the Company's loss for the period of $1,362,000
    ($3,480,000 - three months ended March 31, 2013) which was offset by
    non-cash charges including depreciation of $53,000 ($94,000 - three
    months ended March 31, 2013), the impairment loss on the investment in
    Southern Legacy of $301,000 ($985,000 - three months ended March 31,
    2013) and share-based compensation of $68,000 ($180,000 - three months
    ended March 31, 2013), as well as net changes in non-cash working
    capital of a decrease of $231,000 (increase of $285,000 - three months
    ended March 31, 2013). 
--  Net cash from investing activities in the quarter ended March 31, 2014
    totalled $233,000, from the sale of equipment of $284,000 ($Nil - three
    months ended March 31, 2013) and purchases of equipment for $51,000
    ($94,000 - three months ended March 31, 2013). 
--  The Company had no cash flows from or used in financing activities in
    the three months ended March 31, 2014 and 2013.

Total current liabilities as at March 31, 2014 were $1,578,000 ($1,777,000 - December 31, 2013), comprised of $1,194,000 ($1,406,000 - December 31, 2013) of accounts payable and accrued liabilities, mostly for current community obligations, and $384,000 of provisions for reclamation ($371,000 - December 31, 2013).

Management believes it will be able to raise equity capital as required in the long term, but recognizes there will be risks involved that may be beyond its control.

As at March 31, 2014 and December 31, 2013, the Company's aggregate common share capital was $56,380,000 representing 84,495,110 issued and outstanding common shares without par value. As at March 31, 2014 and December 31, 2013, the Company had 7,279,167 share purchase warrants outstanding and 7,992,350 share options outstanding (8,439,350 - December 31, 2013).

Outstanding Share Data

As at the date hereof, the following securities were issued and outstanding:

--  basic - 84,495,110 common shares 
--  fully-diluted - 99,766,627 common shares, after including: 
--  7,992,350 stock options, with exercise prices ranging from $0.20 to
    $4.08, of which 6,817,350 options are vested; and 
--  7,279,167 share purchase warrants, with a weighted average exercise
    price of $2.22.

Accumulated Deficit

The Company's accumulated deficit was $30,683,000 as at March 31, 2014 ($29,321,000 - December 31, 2013), with the increase in deficit of $1,362,000 reflecting the loss incurred for the three months ended March 31, 2014.

About the Company

Lupaka Gold is a Peru-focused gold explorer with geographic diversification and balance through its interest in resource projects spread across three regions of Peru.

As a result of the Company's 2012 acquisition of Andean American Gold Corp., Lupaka Gold's assets include the 100% owned Invicta Gold Project (north Peru), which the Company plans to bring into small-scale production by March 2015, and a strategic 17% stake in Southern Legacy Minerals Inc., owner of the AntaKori copper-gold deposit located in central Peru.

Lupaka Gold's flagship exploration project is the Crucero Gold Project, its 5,500 hectare gold property located in southern Peru. The Company, based in Vancouver, Canada, is project operator and holds a 100% indirect interest in the Crucero Gold Project. Since commencing active exploration in April 2010, the Company reported annual NI 43-101 compliant gold resource estimate increases for the Crucero Gold Project in the first quarter of 2011 and 2012 (see the Company's most recent technical report on www.sedar.com).

In November 2013, the Company announced that it had entered into a memorandum of understanding with Compania Minera Ares S.A.C. and Minera del Suroeste S.A.C. (indirect subsidiaries of Hochschild Mining plc with regards to the execution of a definitive agreement that will allow the Company to earn-in to a 65% interest in Josnitoro in Southern Peru. Josnitoro is an exploration-stage gold and copper project in the Department of Apurimac with significant surface gold values in oxide veins and veinlets on the perimeter of a central oxide copper skarn.

Forward Looking Information and Regulatory Endnotes

This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities regulations in Canada and the United States (collectively, "forward-looking information"). The forward-looking information contained in this news release is made 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. Forward-looking information includes, but is not limited to, statements with respect to exploration plans and timing for Crucero, the grant of social license and exploration plans for Josnitoro, a potential mining operation at Invicta and estimates of mineral resources. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects, "is expected", "budget", "scheduled", "projects", "estimates", forecasts", "intends", "anticipates", or "believes", or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved.

The forward-looking information contained in this news release is based on certain assumptions that the Company believes are reasonable, including with respect to mineral resource estimates, the key assumptions and parameters on which such estimates are based, that that the current price of and demand for gold will be sustained or will improve, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms, that supplies, equipment, personnel, permits and local community approvals required to conduct the Company's planned exploration and development activities will be available on reasonable terms, that results of exploration activities will be consistent with management's expectations and that the Company will not experience any material accident, labour dispute, or failure of equipment. However, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risk that actual results of exploration activities will be different than anticipated, that cost of labour, equipment or materials will increase more than expected, that the future price of gold will decline, that the Canadian dollar will strengthen against the U.S. dollar, that mineral resources are not as estimated, unexpected variations in mineral resources, grade or recovery rates, risk of accidents, labour disputes and other risks generally associated with mineral exploration and unanticipated delays in obtaining or failure to obtain community, governmental or regulatory approvals or financing. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to not be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking information due to the inherent uncertainty thereof.

This announcement contains certain forward looking statements, including such statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In particular, such forward looking statements may relate to matters such as the business, strategy, investments, production, major projects and their contribution to expected production and other plans of the Company and its current goals, assumptions and expectations relating to its future financial condition, performance and results.

Forward-looking statements include, without limitation, statements typically containing words such as "intends", "expects", "anticipates", "targets", "plans", "estimates" and words of similar import. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results, performance or achievements of the Company may be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Factors that could cause or contribute to differences between the actual results, performance or achievements of the Company and current expectations include, but are not limited to, legislative, fiscal and regulatory developments, competitive conditions, technological developments, exchange rate fluctuations and general economic conditions. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser.

The forward looking statements reflect knowledge and information available at the date of preparation of this announcement. Except as required by the Listing Rules and applicable law, the Company does not undertake any obligation to update or change any forward looking statements to reflect events occurring after the date of this announcement. Nothing in this announcement should be construed as a profit forecast.

Contacts:
Lupaka Gold Corp.
Investor Relations
+1 (604) 681-5900
[email protected]
www.lupakagold.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Many organizations adopt DevOps to reduce cycle times and deliver software faster; some take on DevOps to drive higher quality and better end-user experience; others look to DevOps for a clearer line-of-sight to customers to drive better business impacts. In truth, these three foundations go together. In this power panel at @DevOpsSummit 21st Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, industry experts will discuss how leading organizations build application success from all...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
SYS-CON Events announced today that Daiya Industry will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Daiya Industry specializes in orthotic support systems and assistive devices with pneumatic artificial muscles in order to contribute to an extended healthy life expectancy. For more information, please visit https://www.daiyak...
The last two years has seen discussions about cloud computing evolve from the public / private / hybrid split to the reality that most enterprises will be creating a complex, multi-cloud strategy. Companies are wary of committing all of their resources to a single cloud, and instead are choosing to spread the risk – and the benefits – of cloud computing across multiple providers and internal infrastructures, as they follow their business needs. Will this approach be successful? How large is the ...
Your clients expect transactions to never fail, cloud access to be fast and always on, and their data to be protected - no exceptions. Hear about how Secure Service Container (SSC), an IBM-exclusive open technology, enables secure building and hosting of next-generation applications, both cloud and on-premises. SSC protects the full stack from external and insider threats, allows automatic encryption of data in-flight and at-rest, and is tamper-resistant during installation and runtime – with no...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that B2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. B2Cloud specializes in IoT devices for preventive and predictive maintenance in any kind of equipment retrieving data like Energy consumption, working time, temperature, humidity, pressure, etc.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp em...
SYS-CON Events announced today that Interface Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Interface Corporation is a company developing, manufacturing and marketing high quality and wide variety of industrial computers and interface modules such as PCIs and PCI express. For more information, visit http://www.i...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, will discuss how data centers of the future will be managed, how th...
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...