Month: August 2016

Net proceeds of the Offering will be used to further the Company’s exploration projects, fund possible new acquisitions and for general working capital. All securities issued pursuant to the Offering are subject to a four month and one day hold period. The Offering is subject to TSX Venture Exchange acceptance of regulatory filings.

The net proceeds from the Offering will be used by Prospero to advance Prospero’s existing project portfolio to drill-ready status, to expand the project portfolio by possible new acquisitions, and for general working capital purposes. Strategic joint ventures will also be sought.

Keith Neumeyer, Chairman of First Mining, states: “We are very pleased with the incredible level of interest we received in this financing which is yet another milestone in the rapid growth of the Company. With this financing, First Mining is now in a very strong financial position, with cash on hand of approximately $37.3 million. We welcome the new shareholders to our Company, including various institutional shareholders. The addition of capital to the Company allows us to generate internal value from our projects while at the same time allows us to pursue additional accretive acquisitions.”

“During the second quarter we continued to realize the benefits of operational efficiencies put into place earlier this year,” stated Brendan Cahill, President and Chief Executive Officer. “We returned to profitability on an adjusted basis and improved cash flow, as well as realizing material improvements to all-in sustaining costs per ounce before the one-time costs associated with the ongoing Platosa optimization plan. We have reported adjusted net income during the period as, with the Company’s strong share performance during Q2, fair value adjustments to financing costs were required under IFRS on our outstanding convertible debentures and associated warrants – a quality problem. We expect our costs and financial performance to further improve as the Platosa optimization program continues moving towards completion. We enter the third quarter with much improved metal prices, a strengthened balance sheet from our recent, oversubscribed bought deal financing and a comprehensive drill program about to commence at Platosa.”

Jorge A. Ganoza, President and CEO, commented, “We have had a strong operational and financial quarter with solid performance for the first half of the year. With San Jose now in commercial operation at 3,000 tpd, and capital requirements at our existing mines reduced significantly, we are poised to capitalize from the recovery in metal prices.” Mr. Ganoza continued, “The Company is now focused on advancing the recently acquired Lindero Gold Project into construction in 2017 with commercial production expected by the second half of 2018.”

The gross proceeds of the Private Placement will be used to advance the Company’s Tenoriba precious metal project in the prolific Sierra Madre region of Chihuahua State, Mexico and payment of property taxes, for which if paid has the potential to significantly reduce property payments.