Apache Authors: Carmen Gonzalez, Liz McMillan, Elizabeth White, Pat Romanski, Christopher Harrold

News Feed Item

Southern Arc First Quarter Financial Results and Projects Update

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 11/27/13 -- Southern Arc Minerals (TSX VENTURE:SA)(OTCQX:SOACF) ("Southern Arc" or "the Company") today announced the results of its first quarter ended September 30, 2013, along with an update on its portfolio of projects. Details of the Company's financial results are described in the unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis ("MD&A"), which will be available on the Company's website at www.southernarcminerals.com and on SEDAR at www.sedar.com. All amounts are in Canadian dollars unless otherwise stated.


                                     September 30, 2013       June 30, 2013 
Total assets                               $ 16,675,188        $ 18,192,286 
Exploration properties                          102,068             102,068 
Working capital                               8,146,387          16,060,362 
Comprehensive loss                           (1,517,749)        (41,945,170)
Basic and diluted loss per share                  (0.01)              (0.38)

At November 26, 2013, Southern Arc had approximately $7.6 million in working capital.


Indonesian Properties

Since releasing a resource estimate for the West Lombok project in July 2013, Southern Arc has maintained low-level activities at West Lombok while continuing to advance discussions with a number of companies for a potential farm-in, partnership or outright sale of the property. While Southern Arc believes the West Lombok project holds great potential, the Company has determined that it can more effectively build shareholder value by identifying a funding partner for West Lombok and redirecting the Company's treasury to high-quality projects in stable jurisdictions. Southern Arc remains confident that it will find a suitable arrangement, and is working diligently to conclude a transaction that will bring value to the Company. With the backdrop of a challenging market and significantly decreased valuations for junior mining companies, Southern Arc's management determined that IFRS rules required the Company to write down the West Lombok project, as disclosed in the Company's year-end financials.

During the quarter, Southern Arc renegotiated the purchase and sale agreement for its Taliwang project whereby an individual will purchase Taliwang in exchange for US$3,500,000, of which US$100,000 has been received as a non-refundable deposit. The Taliwang property has been classified as an Asset Held for Sale pending completion of this transaction, which remains contingent on completion of due diligence and other requirements.

Vale remains committed to its option to earn an interest in the East Elang property. The partners do not plan to commence exploration at East Elang until the Indonesian forestry moratorium is lifted and the property can be reclassified. In the interim, Southern Arc continues low-key community engagement and has applied for a suspension of the mining business licence (back-dated from the commencement of the forestry moratorium in May 2011) until the reclassification process has been completed, ensuring that Southern Arc and Vale have adequate time to evaluate the property once exploration commences.

Eagle Hill Investment

On August 14, 2013, the Company invested $7,324,050 (inclusive of a $865,000 deposit paid in June 2013) to acquire a 26.14% equity interest in Eagle Hill (TSX VENTURE:EAG). As part of its investment, Southern Arc received 48,827,000 warrants entitling Southern Arc to acquire a further common share of Eagle Hill at a price of $0.10 per share for a period of four years. Dundee Corporation (TSX:DC.A) also participated in the private placement by investing $4,675,950 to acquire an additional 62,346,000 shares and 31,173,000 warrants of Eagle Hill, thereby increasing its ownership of Eagle Hill from 18.8% to 26.14%. The $12 million private placement allowed Eagle Hill to consolidate 100% ownership of the Main Zone on the property, which hosts the majority of the gold deposit.

The $12 million private placement also funded an aggressive drill program. Three rigs started drilling on September 12, 2013 with the expectation of drilling 25,000 metres by year-end 2013. The deposit is well defined from surface to a depth of 500 metres, and remains open along strike and at depth. Eagle Hill plans to expand the resource by testing a large, sparsely drilled anomaly to the west of the Main Zone, drilling lateral extension of known gold lenses, and testing the extension of mineralization at depth.

Eagle Hill released first results from the drill program on November 5 (see Eagle Hill press release dated November 5, 2013), announcing the discovery of an extension to mineralization and confirming the potential to extend the known gold resource. The Company drilled three sections, stepping out 150, 300 and 500 metres along strike to the southwest of the Main Zone gold mineralization. Each section intersected gold mineralization, with a number of high-grade gold intervals and some wide mineralized intersections. These results support Eagle Hill's hypothesis, based on geophysics of the area and limited previous drilling, that mineralization continues to the southwest of the Main Zone. The three diamond drill rigs have since been relocated to the Main Zone to focus on expanding the strike length of the major resource lenses (the Zone 27, Caribou, Mink and Mallard zones). In addition, a down-hole induced polarization geophysics program is underway to identify possible depth extensions of gold mineralized lenses below the Main Zone. Following completion of this program in December 2013, Eagle Hill plans to release an updated resource estimate in early 2014.


During the three months ended September 30, 2013, the Company had a net loss of $1,517,749 compared to a loss of $757,053 for the three months ended September 30, 2012. Significant fluctuations occurred in the following categories:

a.  Share-based compensation of $27,369 (2012: $93,491) decreased due to
    lower calculated expense for options vested during the period. Share-
    based compensation expense is accounted for at fair value as determined
    by the Black-Scholes Option Pricing Model using estimates that are
    believed to approximate the volatility of the trading price of the
    Company's stock, the expected lives of awards of share-based
    compensation, the fair value of the Company's stock and the risk-free
    interest rate. 
b.  Foreign exchange loss of $61,476 was lower during the three months ended
    September 30, 2013 (2012: $128,524) primarily due to lower US$ cash
    balances and the net effect fluctuation of the US$/CDN$ exchange rate
    had on the CDN$ equivalent of the Company's holdings in its US$ bank
    balance and its US$ payables balance. 
c.  Management fees increased to $219,300 compared to $216,000 in 2012 and
    are discussed in detail in the Related Parties section. 
d.  Professional fees of $71,035 (2012: $47,977) increased due to higher
    level of corporate activity in the period. 
e.  Travel expenses of $11,538 (2012: $nil) increased as a result of higher
    level of executive travel during the period. 
f.  Interest income of $31,594 (2012: $56,327) decreased during the period
    as a result of lower cash balances. 
g.  The Company wrote-off $555,309 of exploration expenditures incurred on
    the West Lombok and Sumbawa properties during the period.

On behalf of the Board of Southern Arc Minerals Inc.

John Proust, Chairman & CEO, Director

About Southern Arc

Southern Arc Minerals Inc. is a Canadian mineral exploration company focused on gold and copper-gold exploration. The Company's key exploration property is its West Lombok project, with several gold-rich copper porphyry and epithermal gold vein prospects. Southern Arc is listed on the TSX Venture Exchange under the symbol SA and on the OTCQX International under the symbol SOACF. More information is available at www.southernarcminerals.com or by emailing [email protected].

Forward-looking Statements

This news release contains forward-looking statements relating to expected or anticipated future events and operations, timing of projects and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the company's capability to execute and implement future plans. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. There is no representation by the company that actual results achieved during the forecast period will be the same in whole or in part as that forecast.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Qualified Person

The technical information in this document has been reviewed by Southern Arc's Chief Geologist, Andrew Rowe, B. App. Sc. Geology, MAusIMM. Mr. Rowe has over 20 years of international mineral exploration experience throughout Southeast and Central Asia and Australia. During this time he has held such positions as Principal Geologist - Feasibility Studies, Senior Geologist and Consulting Geologist. The technical information in this document has also been reviewed by Southern Arc's President & Chief Operating Officer, Dr. Mike Andrews, PhD, FAusIMM, who has sufficient experience relevant to the style of mineralization under consideration and qualifies as a Qualified Person as defined by National Instrument 43-101.

The drill program and sampling protocol is managed by Southern Arc under the supervision of Andrew Rowe. The diamond drill holes are drilled at PQ, HQ and NQ sizes depending on hole depth and core recovery to date has averaged better than 98.0%. Half core is cut by rock saw and is generally sampled using nominal 1-metre intervals; however, sample intervals are varied according to geological contacts and have ranged between 0.2 to 2.5 metres in length. Three quality control samples (one blank and two standards) are inserted into each batch of 40 samples. The half core samples are securely transported from the project site to the Intertek Testing Services ("ITS") sample preparation laboratory in Sumbawa Besar via private truck hired by Southern Arc. Sample pulps are then sent to the ITS Jakarta laboratory by ITS. Gold is analysed by fire assay with AAS finish and a four-acid digestion with ICP-MS finish is used to analyse a full suite of elements including silver and base metals. ITS is one of the world's largest product and commodity testing, inspection and certification organizations. The Jakarta laboratory is ISO 17025 accredited and employs a Laboratory Information Management System for sample tracking, quality control and reporting.

Southern Arc Minerals Inc.
Rhylin Bailie
Vice President, Communications & Investor Relations
604-676-5241 or North American toll-free: 1-888-676-5241
[email protected]

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.

IoT & Smart Cities Stories
Moroccanoil®, the global leader in oil-infused beauty, is thrilled to announce the NEW Moroccanoil Color Depositing Masks, a collection of dual-benefit hair masks that deposit pure pigments while providing the treatment benefits of a deep conditioning mask. The collection consists of seven curated shades for commitment-free, beautifully-colored hair that looks and feels healthy.
The textured-hair category is inarguably the hottest in the haircare space today. This has been driven by the proliferation of founder brands started by curly and coily consumers and savvy consumers who increasingly want products specifically for their texture type. This trend is underscored by the latest insights from NaturallyCurly's 2018 TextureTrends report, released today. According to the 2018 TextureTrends Report, more than 80 percent of women with curly and coily hair say they purcha...
The textured-hair category is inarguably the hottest in the haircare space today. This has been driven by the proliferation of founder brands started by curly and coily consumers and savvy consumers who increasingly want products specifically for their texture type. This trend is underscored by the latest insights from NaturallyCurly's 2018 TextureTrends report, released today. According to the 2018 TextureTrends Report, more than 80 percent of women with curly and coily hair say they purcha...
We all love the many benefits of natural plant oils, used as a deap treatment before shampooing, at home or at the beach, but is there an all-in-one solution for everyday intensive nutrition and modern styling?I am passionate about the benefits of natural extracts with tried-and-tested results, which I have used to develop my own brand (lemon for its acid ph, wheat germ for its fortifying action…). I wanted a product which combined caring and styling effects, and which could be used after shampo...
The platform combines the strengths of Singtel's extensive, intelligent network capabilities with Microsoft's cloud expertise to create a unique solution that sets new standards for IoT applications," said Mr Diomedes Kastanis, Head of IoT at Singtel. "Our solution provides speed, transparency and flexibility, paving the way for a more pervasive use of IoT to accelerate enterprises' digitalisation efforts. AI-powered intelligent connectivity over Microsoft Azure will be the fastest connected pat...
There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
Codete accelerates their clients growth through technological expertise and experience. Codite team works with organizations to meet the challenges that digitalization presents. Their clients include digital start-ups as well as established enterprises in the IT industry. To stay competitive in a highly innovative IT industry, strong R&D departments and bold spin-off initiatives is a must. Codete Data Science and Software Architects teams help corporate clients to stay up to date with the mod...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Druva is the global leader in Cloud Data Protection and Management, delivering the industry's first data management-as-a-service solution that aggregates data from endpoints, servers and cloud applications and leverages the public cloud to offer a single pane of glass to enable data protection, governance and intelligence-dramatically increasing the availability and visibility of business critical information, while reducing the risk, cost and complexity of managing and protecting it. Druva's...
BMC has unmatched experience in IT management, supporting 92 of the Forbes Global 100, and earning recognition as an ITSM Gartner Magic Quadrant Leader for five years running. Our solutions offer speed, agility, and efficiency to tackle business challenges in the areas of service management, automation, operations, and the mainframe.