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Vancouver, B.C. –December 8, 2014 – Highbank Resources Ltd. (the “Company”), TSX Venture: HBK.
Victor N. Bryant, CEO/President comments, “I have received communication from North Coast Concrete that they are shutting down their concrete/cement plant early for the holiday break and have postponed receipt of the first barge loads of aggregate which Highbank was preparing to ship from Swamp Point North (“SPN”) to their plant in the Port of Prince Rupert before mid month. North Coast Concrete expect to resume operations on/or before February 2015.”
“Although the Company is disappointed at the loss of the opportunity to commission the complete operating cycle, it affords us the chance to concentrate on expanding the site development for full production early next year.”
Vic Bryant comments that despite many difficulties the SPN project has encountered during construction and commissioning, crews have been diligent in making ready the SPN Quarry for production. I am a very pleased to announce that our vital commercial link – the Barge loading facility has now been commissioned. (Video Link: http://ow.ly/FvhcQ.) Stan Speltzer, V.P. of Aggregate Operations, and Gordon Erickson-of Foresight Innovations Ltd., and their crews are presently making ready the wash plant, jaw crusher and utilizing on site equipment to upgrade the roads in preparation for full production. I must commend Highbank’s crew and sub-contractors for the steadfast determination to commission the SPN project despite extreme weather events that have hammered the North West Coast. Their efforts can best be classified as Canada Strong.
Vic Bryant comments on further LNG Recent Developments:
20.11.14 Exxon Mobil Canada joins B.C. LNG Alliance
In refreshingly understated news EXXON/Imperial Oil /WCC LNG has now acquired lot #444 from the City of Prince Rupert for $18 million and received counsel zoning approval for their LNG project site. Link: http://ow.ly/FvmYF. Mayor Lee Brain indicated the funds would help city finances and infrastructure decay. Further update to 2014-11-25 news release of zoning for “Man Camps” Council decided to pass the motion to amend Prince Rupert’s Official Community Plan to allow for the new zonings of the land, allowing the next phase of exploration to begin.
This news is well received by Highbank, as this LNG site is yet another potential major location for sales of the Company’s construction aggregates.
Aurora LNG in joint venture between Nexen Energy ULC (a CNOOC Limited company), INPEX Corporation and JGC Exploration Canada Ltd. The Province of British Columbia had initiated correspondence with the Canadian Environment Assessment Agency (“ CEAA”) regarding the Aurora proposal, highlighting the request from CNOOC/Nexen to add consideration of a potential substitution LNG terminal location for Digby Island (Port of Prince Rupert) from the previous Grassy Point Site. Maps and proposals available here http://ow.ly/FvweM
Petronas It is apparent that Petronas has chosen to use the delay of their construction decision as a negotiating ploy. An excellent overview of the situation is written by Mr. Brent Jang, in the Dec.04.14 The Globe and Mail, story: http://ow.ly/FvkLq. Excerpt: TD Securities Inc. analyst Scott Treadwell said, “We believe that the deferral is more of a negotiating tool than a reassessment of the viability of the project,”
European Sub-sea Pipe laying corporate meeting:
On a longer term basis Highbank have provided provisional specifications to a European Company who are
bidding on the undersea portion of the pipeline to Prince Rupert. This bid is unrelated to the Petronas LNG.
New business – early warning guidance:
Highbank has been approached and is in negotiations for an ex-provincial multi-million ton aggregate order. Further information will be released as a Letter of Intent or agreement is signed.
Gary Musil, CFO/Director comments, “Since October 1, 2014 Highbank has issued 10,076,500 shares at prices of $0.10 – $0.15 through the exercise of share purchase warrants for gross proceeds of $1,266,260. The Company has also issued two tranches of 1,193,000 shares to settle part of the barge load-out construction debt of $525,000. We would like to thank all the shareholders who have participated in these past financings, convertible debentures, shares for debt, and warrant exercises; as we near completion of the Swamp Point North site development, barge load-out construction, and equipment purchases. Our total Capital Cost from initial acquisition is expected to be under $8 million.” “The Company currently has remaining 5,602,000 warrants with 4,232,000 exercisable at $0.12 before February 27, 2015. With current cash on hand and cash inflow of $550,000+ from outstanding warrants the Company anticipates being able to finance its costs during this production shipping delay.”
The execution of these previous warrants reinforces the confidence that shareholders have in HBK and the potential in the near future of the Company’s advantageous position as an aggregate producer. New York Times recently reported the construction aggregate industry has grown 10% a year since 2008, http://ow.ly/FxVVi
Re-capping the progress Highbank Resources has made over the last year is impressive. The Company has moved from exploration/development to a production facility. Highbank has obtained permits from all Government Departments to construct the Swamp Point North site. The approvals include good relations and on-going cooperation with the affected and involved First Nations. The equipment and plant have all been purchased, the site has been developed, and a significant loading facility constructed and commissioned. Having achieved this, we now anticipate that 2015 will be a year in which our efforts return revenue cash inflows.
“Victor N. Bryant” Victor N. Bryant, CEO/President Contacts:
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