TORONTO, ONTARIO--(Marketwired - Jan. 18, 2017) - Ascendant Resources Inc. (TSX VENTURE:ASND) ("Ascendant" or the "Company") is pleased to announce that the final receipt has been issued by the Ontario Securities Commission and the securities regulatory authorities in the provinces of British Columbia, Alberta, and New Brunswick for a final short form prospectus (the "Prospectus"), filed by the Company on January 17th, 2017.
The Prospectus qualifies 39,000,000 common shares of the Company issuable upon automatic exercise of 39,000,000 outstanding subscription receipts ("Subscription Receipts") issued by the Company on October 13th, 2016 as part of a brokered private placement by the Company with Dundee Capital Partners acting as sole agent (the "Agent"). The automatic exercise of the Subscription Receipts and Compensation Warrants and issuance of the underlying common shares and Compensation Options is expected to occur on January 20th, 2017. The TSX Venture Exchange has approved for listing the common shares issuable upon automatic exercise of the Subscription Receipts.
On December 20th, 2016, Ascendant announced that it had completed its acquisition of all the outstanding shares of American Pacific Honduras SA de CV ("AMPAC") from affiliates of Nyrstar NV ("Nyrstar") and assumed ownership and control of the producing El Mochito zinc, silver and lead mine in Honduras. The transition of operations to Ascendant has been seamless as protocols for maintaining working capital levels had previously been established, and Nyrstar continues to support the transition under a Transition Services Agreement executed at the time of closing. This agreement provides ample time for assistance with maintaining the operational continuity of networks, information systems and IT infrastructure, existing supply agreements, and other matters as they arise, for a period of four months from the closing of the acquisition.
Subsequent to closing the acquisition, the Ascendant management team commenced a detailed review of operations to support an initial mine plan focused on growing production at the mine. Ascendant has engaged technical consultants to assist in the review and optimization of operations at the El Mochito Mine, and they arrived at site on January 9th, 2017. The consultants are currently working with Ascendant on an assessment of the El Mochito operation in advance of implementing optimization programs. The initial goal of the optimization programs is to focus on immediate opportunities to increase mine production, assess current underground development, review maintenance programs, review equipment status and other areas for operational improvement and reduction of operating costs. To date, Ascendant has identified several immediate optimization activities to be implemented that should have a material impact on cash flows in the near-term. The results of these efforts, along with a detailed review of cost controls and general spending levels are expected to be combined into a formal budget by the end of January at which time the Company anticipates publishing more formal expectations for 2017. The Company has also commenced a detailed review of numerous exploration targets to enhance ore grades and expand overall resources at the mine for the medium term.
President and CEO, Chris Buncic commented "while it is still very early in our tenure as operators of the El Mochito mine, the work performed since the closing of the acquisition and the review by our technical consultants supports our vision of re-establishing El Mochito as a highly profitable operation once our improvement programs are implemented. The near-term focus continues to be increasing throughput and lowering operating costs. Our team remains confident that we will reach our goals this year and look forward to providing further updates in the coming weeks to support our outlook for the El Mochito Mine."
About Ascendant Resources
Ascendant Resources Inc. (formerly known as Morumbi Resources Inc.) is a mining issuer focused on its flagship operating asset, the producing El Mochito zinc, silver and lead mine in west-central Honduras in which the Company has a 100% interest. El Mochito has been in almost continuous production since 1948. More broadly, the Company evaluates producing and advanced development stage mineral resource acquisition opportunities in North, South and Central America, on an ongoing basis. The Company's common shares are listed on the TSX Venture Exchange under the symbol "ASND".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This press release includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation.
Forward-looking information is based on reasonable assumptions that have been made by Ascendant as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Ascendant to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; that the automatic exercise of the Subscription Receipts and Compensation Warrants will take place as expected; that any accretive acquisitions of or pertaining to mineral resource assets in North, South or Central America (or otherwise) will be completed; problems inherent to the marketability of base and precious metals; industry conditions, including fluctuations in the price of base and precious metals, fluctuations in interest rates; government entities interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects Ascendant; stock market volatility; competition; risk factors disclosed in the Prospectus, in Ascendant's most recent Annual Information Form and Management's Discussion and Analysis available electronically on SEDAR; and such other factors described or referred to elsewhere herein, including unanticipated and/or unusual events. Many such factors are beyond Ascendant's ability to control or predict.
Although Ascendant has attempted to identify important factors that could cause actual outcomes to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate as actual outcomes and future events could differ materially from those reliant on forward-looking information.
All of the forward-looking information given in this press release is qualified by these cautionary statements and readers are cautioned not to put undue reliance on forward-looking information due to its inherent uncertainty. Ascendant disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by law. This forward-looking information should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release.