Lachlan Star Limited
TSX : LSA
ASX : LSA

Lachlan Star Limited

February 02, 2015 07:30 ET

Lachlan Star Files Quarterly Report for the Period Ending 31 December 2014

PERTH, WESTERN AUSTRALIA--(Marketwired - Feb. 2, 2015) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES

Gold miner, Lachlan Star Limited ("Lachlan Star" or the "Company") (TSX:LSA)(ASX:LSA) is pleased to provide the following quarterly report for the period ending 31 December 2014.

HIGHLIGHTS

OPERATIONAL PERFORMANCE

  • Zero LTA during the quarter.
  • Zero environmental incidents.
  • Total cost of tonnes stacked of US$15.14/tonne of ore and a 0.3% reduction over the previous quarter.
  • C1 Cash Cost of US$853 per ounce of gold produced representing a 10% increase on the prior quarter and a 9% increase in C1 cash cost on the prior year corresponding period.
  • Declaration of Environmental Impact (DIA) for the period 2015-2020 approved in early December

CORPORATE

  • On 16 October the Company announced a non-brokered private placement to Hamilton Place Associates LLC for proceeds of US$1.14 million and the appointment of a new Chairman. Mr. Scott Perry resigned from the board and Mr. Peter Babin was appointed as the new Non-Executive Chairman of the Company.
  • HPA also agreed to a prepaid gold loan working capital facility of at least US$4 million to the Company's subsidiary, Compan╠âi╠üa Minera Dayton (CMD), with such working capital advance and associated terms and conditions to be finalized no later than 31 December 2014. On 2 January 2015 the Company announced that it remained in discussion with HPA regarding the availability of a working capital facility. The Company granted HPA, at their request, an extension from the 31 December 2014 funding deadline to 20 January 2015 to finalise a definitive financing agreement for consideration by the Company. This has yet to be received, however the Company is advised that HPA's negotiations with potential financiers are continuing with a number of commercial aspects still to be worked through. HPA remains confident that a financing Letter of Intent will be forthcoming by 3 February and that a definitive financing agreement will be available for the Company's review and execution no later than Friday, 13 February. For further information please see the "Corporate" section of this quarterly report.
  • The US$2 million of the sale proceeds retained in escrow, pending the completion of legal transfers of a group of mining properties to Compañia Minera Teck Carmen de Andacollo, was received by CMD on 28 November 2014.

To view the full announcement please click the link below: http://www.lachlanstar.com.au/images/LSA_Quarterly_Report__4Q14_FINAL.pdf

ABN: 88 000 759 535

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