2013 Year End Report
March 31, 2014
Vancouver, BC – Yellowhead Mining Inc. (“Yellowhead” or the “Company”) (TSX: YMI) reports its results of operations for the financial year ended December 31, 2013.
For the full audited consolidated financial statements and management discussion & analysis for the financial year ended December 31, 2013, please see SEDAR at www.sedar.com or the Company’s website at www.yellowheadmining.com.
Highlights
Highlights for the financial year ended December 31, 2013 include:
- In April 2013, the Company submitted an application for an environmental assessment certificate (“EA Application”) for the Harper Creek Project (“Harper Creek”) to the British Columbia Environmental Assessment Office (“EAO”)
- In May 2013, the EAO identified a number of deficiencies with, and provided a number of comments on, the EA Application, and requested the Company to address such deficiencies and comments
- In May 2013, the Company completed a 35 hole, 11,969m in-fill drilling program on Harper Creek
- Frank D. Wheatley was appointed as CEO and a member of the Board of Directors on July 1, 2013
- On November 19, 2013, the Company issued an $8.0 million convertible debenture to Matco Investments Ltd.
- On December 30, 2013, the Company’s shareholders approved the full automatic conversion of the $8.0 million convertible debenture into 35,555,556 common shares of the Company at a conversion price of $0.225 per share, representing approximately 35.91% of the total issued and outstanding common shares of the Company
- Undertook a reduction in general and administrative expenses, including staffing levels, in order to position the Company to execute on its strategy for 2014
Strategy for 2014
The Company’s strategy for 2014 includes:
- Updating the feasibility study for Harper Creek, including updating the resource and reserve estimates, initial capital costs, sustaining capital costs and operating costs, with a target for completion by the end of the second quarter of 2014
- Updating and revising the EA Application for Harper Creek
- Re-submitting the EA Application to the EAO by the end of the third quarter of 2014
- Continuing public consultation with all stakeholders, including local communities and local First Nations, to address any potential environmental and socio-economic impacts of Harper Creek and the Company’s mitigation strategies
- Continuing negotiations with local First Nations with respect to an impact benefits agreement
Summary of Financial Results
(Amounts are expressed in thousands of Canadian dollars, except per-share amounts)
| Q4 2013 | Q4 2012 | FY 2013 | FY 2012 | |
| Administrative expenses | $ 920 | $ 1,881 | $ 3,679 | $5,613 |
| Exploration and evaluation expenses | 194 | 2,845 | 2,865 | 9,593 |
| Other expenses/(income) | 107 | (11) | (28) | (57) |
| Net loss and comprehensive loss for the period | 1,220 | 4,715 | 6,516 | 15,150 |
| Basic and diluted loss per share for the period | $ 0.02 | $ 0.08 | $ 0.10 | $ 0.28 |
Yellowhead has no revenue from operations. Results can fluctuate significantly from period to period due to the level of engineering and environmental study effort and resource drilling.
NT2
