News Releases

Aldridge Reports Q2 2015 Financial Results and Provides a Corporate Update


TORONTO--(BUSINESS WIRE)-- Aldridge Minerals Inc. (TSX-V: AGM) (“Aldridge” or the “Company”) announced today the filing of unaudited consolidated financial statements as at and for the three and six months ending June 30, 2015 (the “Q2 2015 Financials”), and the Management’s Discussion & Analysis related thereto (the “Q2 2015 MD&A”), which are available on SEDAR and at

Han Ilhan, President & CEO, commented: “Aldridge accomplished several key milestones during the second quarter. Not only did the Company receive approval of the “Public Benefit” letter, which provides certainty that the Company will have access to the land needed for the development of the Yenipazar Project in central Turkey, the Company also received approval of its investment incentive qualification. These milestones clearly demonstrate the strong support Aldridge and the Yenipazar Project enjoy in Turkey. The Company remains well-capitalized and is intensely focused on completing the acquisition of the farmland within our permitted Project fence line and analyzing multiple advanced stage project finance alternatives as well as other strategic alternatives.”

Aldridge’s Highlights and Achievements

The following are a summary of the key achievement areas in Q2. Additional details are provided in the Q2 2015 MD&A:

  • Robust working capital position – The Company ended the second quarter with US$6,394,406 in cash and US$6,624,642 in working capital. As at June 30, 2015 the Company had drawn down US$10 million of its loan facility (due in August 2016) with US$25 million remaining in undrawn facility. The combination of the present working capital position and undrawn facility funds the Company’s planned Yenipazar land acquisition and engineering through to project financing in 2016.
  • Leadership – In January 2015 the Company enhanced its leadership team with the appointment of Mr. Jaymes Dircks as Engineering, Procurement and Construction (“EPC”) Director. Mr. Dircks brings 26 years of experience in varying roles of successful EPC delivery for heavy industry minerals projects in Turkey and worldwide that finished on budget and schedule.
  • Value Engineering - The Company’s Value Engineering Study (“VE Study”) was completed in April 2015. The Study evaluated alternative engineering and construction strategies to ensure constructability and operational effectiveness. The VE Study found no material changes to the Yenipazar Project and the Optimization Study (“OS”) results were confirmed. The Company expects to advance the engineering on long lead time and critical path items in 2015 and the first half of 2016, which will facilitate a timely construction schedule following the closing of project financing.
  • Land Acquisition - The land acquisition process (“LAP”), initiated in 2014, progressed through the second quarter of 2015. As at June 30, 2015 the total cost of land acquired was US$6,347,778 for approximately 25% of the required land. The total cost includes six months interest capitalization of US$603,488 in 2015 on its borrowings. In the second quarter of 2015, the Company received an approved “Public Benefit” letter from the Ministry of Energy and Natural Resources in Turkey. This letter represents the first significant milestone of the well-established State-assisted compulsory land acquisition process in Turkey that should result in completion of the land acquisition process in 2016. Accordingly, the Public Benefit letter provides certainty that the Company will have access to the land needed for the development of the Yenipazar Project in central Turkey.
  • Exploration Program The Company completed its 2015 exploration program on the Yenipazar site, which is primarily focused on the northern extension from the known resource area where two outcrops were previously identified. Eight drill holes with a combined depth of 2,525 metres were drilled. The drilling confirmed the continuity of mineralization to the north of the known ore body. Highlights from assaying included 6.13% lead, 7.78% zinc, 1.06% copper, 1.79 g/t gold and 118 g/t silver over 17 metres.
  • Investment Incentive Certificates (“IICs”) - During the second quarter of 2015, the Company was approved for and received both a Strategic IIC and Regional IIC from the Turkish Ministry of Economy for the development of the Yenipazar Project. As a result, the corporate income tax rate is reduced from 20% to a range of 2% to 4%. Obtaining the Strategic IIC approval increased the incentive contribution rate from 40% to 50% on the majority of qualifying capital expenditures, which will increase the life of mine tax savings benefit to US$76,000,000, or by US$14,000,000 from US$62,000,000 estimated in the Optimization Study.

Strategy and Outlook

The primary objective in 2015 is to position the Company for project construction in 2016 and 2017 and production in 2018. As a result, the Company’s 2015 focus is on advancing the following initiatives already underway:

  • Land Acquisition – The LAP includes a combination of voluntary and government assisted land purchases. With the receipt of the “Public Benefit” letter, the Company expects the LAP to be completed in 2016.
  • Basic Engineering – The Company expects to commence basic engineering on long lead time and critical path items in Q3 2015 through Q2 2016, which will facilitate a timely construction schedule following the closing of project financing.
  • Exploration – Given the promising results of the exploration program completed in May 2015, the Company is in the process of finalizing plans to investigate the additional potential of its 100 square kilometre Yenipazar license area, 90% of which has not been explored in detail.
  • Project Financing – The Company is actively considering various project financing alternatives. The process is expected to be advanced significantly in 2015, with completion anticipated in 2016. The expected timing of substantial completion of the LAP has significant influence on the potential closing dates of the project financing components. The amount and timing of obtaining new funds may be affected by capital market conditions for junior mining companies, fluctuations in commodity prices, potential changes to the political environment in Turkey and the timing of completing the LAP.

Selected Financial Information

The following table provides selected consolidated financial information that should be read in conjunction with the Q2 2015 Financials.

United States Dollars


JUNE 30,



JUNE 30,




DECEMBER 31, 2014

Loss before income tax
Net loss
Net loss per share
Cash and cash equivalents
Working capital (i)
Total assets
Total non-current financial liabilities

(i) Working capital equals current assets less current liabilities, and is a non-GAAP measure used by management

About Aldridge

Aldridge is a development stage mining company focused on its wholly owned Yenipazar polymetallic Massive Sulfide Project (Au, Ag, Cu, Pb, Zn) in Turkey, a country that is committed to developing its natural resources. Aldridge completed the Yenipazar Optimization Study and filed the related technical report in May 2014, which updated the original May 2013 Feasibility Study. The Company is currently advancing the Yenipazar Project on key aspects including engineering, land acquisition and project financing.

Caution Regarding Forward-Looking Information

This news release includes certain forward-looking statements within the meaning of Canadian securities laws, including, but are not limited to the ability to accomplish remaining milestones, land acquisitions, securing project financing and commencing construction in 2016, advancing the Yenipazar Project to production in 2018, economic performance, future plans and objectives of the Company.

Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed in such forward-looking statements. Such risks, uncertainties and factors including meeting conditions for advances under the Loan and the other factors discussed under the heading “Risk Factors” in the Company’s Management’s Discussion and Analysis and Annual Information Form for the year ended December 31, 2014 and in other continuous disclosure filings made by the Company with Canadian securities regulatory authorities and available at Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results.

Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the continuance of Aldridge and its subsidiaries as a going concern, general economic and market conditions, mineral prices, the accuracy of mineral resource estimates. Although Aldridge believes that the assumptions and factors used in making the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aldridge disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise unless required by law.

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 news release.

Source: Aldridge Minerals Inc.