Q3 2024 Financial Results

Reykjavík, Nov. 14, 2024 (GLOBE NEWSWIRE) -- ("Amaroq” or the "Corporation” or the "Company”)

Q3 2024 Financial Results

TORONTO, ONTARIO - 14 November 2024 - Amaroq Minerals Ltd. (AIM, TSXV, NASDAQ Iceland: AMRQ), an independent mine development company with a substantial land package of gold and strategic mineral assets in Southern Greenland, presents its Q3 2024 financials.All dollar amounts are expressed in Canadian dollars unless otherwise noted.

A conference call for analysts and investors will be held tomorrow, 15 November 2024, at 08:30 GMT, details of which can be found further down in this announcement.

Eldur Olafsson, CEO of Amaroq, commented:

"We are now on the cusp of achieving first gold at Nalunaq, a major milestone which will start initial cash flow ahead of a ramp-up to commercial production.

Over the third quarter we made significant headway at Nalunaq. Many of the major components of the processing plant were installed successfully and the development within the mine in the 'Mountain Block' enabled the first ore to be stockpiled for first gold production due this quarter. Our exploration programme at Nalunaq has furthered our understanding of the high-grade deposit with a drilling campaign on the 'Target Block' expansion and the 75 Vein. Results on this and the first ore drives in Mountain Block are expected soon. We believe these results, also incorporating the last two years' drill results, will provide for an updated Mineral Resource Estimate (MRE4) for Nalunaq early next year.

The exploration season was in full swing in Q3 and I'm very proud of what our exploration team has achieved this year. In addition to our on-going work at Nalunaq, we drilled the first two holes at Nanoq in our Gold portfolio, and across our strategic minerals portfolio we drilled [two] holes in Target North at Sava, undertook a three-drill rig campaign at Stendalen and drilled two scout holes at the historical Josva copper mine. We expect results from all of these campaigns over the next few months. This has laid a solid foundation for further Gold, Copper and Nickel exploration activities next year as we continue to unlock the full value of our portfolio in Greenland.”

Q3 2024 Corporate Highlights

• Amaroq group liquidity of $26.0 million consisting of cash balances, undrawn revolving credit overrun facility less trade payables ($62.2 million as of June 30, 2024).
• Gold business working capital before convertible note liability and loan payable of $37.9 million that includes prepaid contractors on the Nalunaq project of $17.8 million as of September 30, 2024 ($50.5 million that includes prepaid contractors on the Nalunaq project of $19.6 million as of June 30, 2024)
• The Gardaq Joint Venture that comprises the Strategic Minerals business has available liquidity of $8.3 million as of September 30, 2024 ($13.5 million as of June 30, 2024).
• In July 2024, the Company agreed heads of terms, subject to final documentation, with Landsbankinn for US$35 million in three Revolving Credit Facilities, securing a substantial increase and extension to its current debt facilities. Final documentation is currently in progress.
• Post period on 4 October, Amaroq entered into an agreement with the holders of its US$22.4 million convertible notes to convert the notes' outstanding balance into new common shares. That measure serves to simplify Amaroq's capital structure, reduces cash interest costs and increases future financial flexibility.
• Amaroq continues to develop opportunities in Servicing and Hydro to enhance local procurement options and support the transition towards cleaner energy sources.

• Permitting: The Company is working with stakeholders on the Impact Benefit Agreement (IBA), which it aims to have in place by the end of the year.
• Contracting and Procurement: Procurement of all key contract packages is 100% complete and all of the critical path items have been procured and have arrived on site already.
• Engineering: Process plant detail design and engineering is 98% complete with all packages issued to the market and manufactured.
• Construction: Plant pad earthworks and civil construction at Nalunaq is 100% complete. The plant building structural steel is complete and cladding is 98% complete. Mechanical installation of the crushing circuit is 68% complete and installation of the civil foundations for the retaining walls, stockpile reclaimer and stacker conveyor were completed in August 2024. The installation of the grinding and gold room section started in July 2024 and was completed post-period. The trackless mining machines and light vehicle workshop construction is complete and in operation. The grinding circuit structural and mechanical installations are complete and electrical installation is in progress. The reclaim feeder has been cleared for use. The thickener tank structure, mechanical and pipework is complete, and electrical installation is also complete. Cable tray installation is complete, and installation of power and control cabling has commenced and is 92% complete. A new wing was installed at the camp to accommodate up to 120 people on site.
• Mining: Amaroq continues to focus on optimising mine development in the Mountain Block. The ramp has been completed to 742 level and ore development continued on 732 level. Both MineArc refuge stations have been commissioned, and the leaky feeder communication system was installed from 300 to the 720 level. Construction of the underground main heating system is progressing at the 300 level portal, and preparations have been made for heating of the ramp. The exhaust raise fan for Target Block was commissioned in preparation for the development of an exploration drift for diamond drilling and resource expansion, and another portal is planned on 742 level to support further development in Mountain Block. The Company is looking to improve its development rates and increase availability of mining fleet with its contractor Thyssen. Amaroq is also reviewing adding further mining equipment to optimise operations going forward. Finally, the Company has started employing its own mining team personnel.
• Gold and Strategic Minerals Exploration: Post period, Amaroq announced the completion of the 2024 exploration programme, including over 8,600 metres of core drilling across the gold and strategic metals portfolio. Results for the programme are expected over the coming months.

• Activities at Nalunaq remain on track to deliver first gold in Q4 2024.
• Exploration results from gold, copper and nickel exploration expected at various intervals in Q4 2024 and Q1 2025.
• Updated measured resource statement for Nalunaq Gold mine expected to be published in Q1 2025.

Gold projects:

• Nalunaq
  • All additional 75 Vein sampling from historical core housed at Nalunaq has been completed. A total of 2,895 meters of core drilling has been completed across the Target Block Extension zone to the west of the historical mining areas.
  • In parallel to this, a programme of surface samples along the outcropping Main Vein and 75 Vein to the west was completed with mountaineering specialists.
  • A Mineral Resource Estimate update for Nalunaq has been initiated with a Qualified Person's site visit conducted by Mining Plus.
  • The Company is now awaiting the assay results before conducting a detailed review of the Target Block Extension zone and conducting further planning to address its 2025 exploration priorities.

• Nanoq
  • A 130-meter scout drilling programme was completed at Nanoq across previous channel sampling results with core geologically assessed and sampled at Nalunaq. These cores will be geologically logged and sampled results will then be used to guide objectives for the 2025 season.

• Nalunaq Satellite Targets
  • Following the discovery of an outcropping vein above historical high grade float results, a small surface sampling programme was completed at Eagle's Nest with mountaineering specialists. The Company is now awaiting the results of the surface sampling, which will be used to help direct further work programmes.
  • Amaroq continues to assess the viability of other surrounding projects to become potential satellite feeds to Nalunaq.

• Stendalen
  • A new surface geophysical programme was completed ahead of commencing the 2024 drilling programme.
  • A total of 4,733 meters of exploration drilling was completed at Stendalen with the aim of providing greater geological understanding to the mineralisation style and geometry. Demobilisation of equipment from Stendalen is underway to ensure operational readiness for 2025.
  • Assay and downhole geophysical results, once received, will be used in conjunction with the University of Leicester to assess the mineral system present and produce targeting models. Environmental samples will also be analysed to commence the environmental baseline data for the project.

• Copper Belt (Sava/North Sava, Kobberminebugt)
  • The geological field team has completed a programme of mapping and sampling across the copper belt area, assessing both potential porphyry and magmatic Cu-Ni targets.
  • The team has been supplemented by external support from copper subject matter expert.
  • Following this work, a 212-meter scout drilling programme was completed at Josva copper skarn target within the Kobberminebugt licence as well as 501 meters of scout drilling within the epithermal copper/gold target at Target North within the Sava licence.

• Nunarsuit
  • The Company is reviewing the geological maps and results received from prospecting across the Nunarsuit licence.

A conference call for analysts and investors will be held tomorrow, 15 November, at 08:30am GMT BST, including a management presentation and Q&A session.

To join the meeting, please register at the below link:

https://us06web.zoom.us/webinar/register/WN_dhWLE36tQGabAf9MI_zcCA

Amaroq Financial Results

The following selected financial data is extracted from the Financial Statements for the six months ended June 30, 2024.

Financial Results

Amaroq Minerals Ltd. 

Eldur Olafsson, Executive Director and CEO

[email protected] 

Eddie Wyvill, Corporate Development

+44 (0)7713 126727

[email protected]

Panmure Liberum (UK) Limited (Nominated Adviser and Corporate Broker)

Scott Mathieson

Kieron Hodgson

+44 (0) 20 7886 2500

Canaccord Genuity Limited (Corporate Broker)

James Asensio

Harry Rees

Tel: +44 (0) 20 7523 8000

Camarco (Financial PR)

Billy Clegg

Elfie Kent

Fergus Young

+44 (0) 20 3757 4980 

For Company updates:

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Further Information: 

About Amaroq Minerals 

Amaroq Minerals' principal business objectives are the identification, acquisition, exploration, and development of gold and strategic metal properties in South Greenland. The Company's principal asset is a 100% interest in the past producing Nalunaq Gold mine which is due to go into production towards the end of 2024. The Company has a portfolio of gold and strategic metal assets in Southern Greenland covering the two known gold belts in the region as well as advanced exploration projects at Stendalen and the Sava Copper Belt exploring for Strategic metals such as Copper, Nickel, Rare Earths and other minerals. Amaroq Minerals is continued under the Business Corporations Act (Ontario) and wholly owns Nalunaq A/S, incorporated under the Greenland Public Companies Act.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Glossary

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 on Market Abuse ("UK MAR"), as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, and Regulation (EU) No. 596/2014 on Market Abuse ("EU MAR").

Qualified Person Statement

The technical information presented in this press release has been approved by James Gilbertson CGeol, VP Exploration for Amaroq Minerals and a Chartered Geologist with the Geological Society of London, and as such a Qualified Person as defined by NI 43-101.

Amaroq Minerals Ltd.

UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2024

The attached financial statements have been prepared by Management of Amaroq Minerals Ltd. and have not been reviewed by the auditor