NGEx Minerals Reports Q3 2020 Results

VANCOUVER, BC, Nov. 25, 2020 /CNW/ - NGEX Minerals Ltd. (TSXV: NGEX) ("NGEx Minerals" or the "Company") is pleased to announce its results for the three and nine months ended September 30, 2020. View PDF

THIRD QUARTER 2020 HIGHLIGHTS AND OUTLOOK

NGEx Minerals Continues Search for Next Cornerstone Asset

During the third quarter of 2020, expenditures on the Company's projects remained subdued due to COVID-related travel restrictions in Chile and Argentina, and a general cost reduction initiative implemented by the Company since March 2020 in response to general economic uncertainty resulting from the pandemic. The key operational focus of the Company during the period was the continuation of its business development activities, which targets the identification of new projects for potential investment and acquisition.

NGEx Minerals' President and CEO, Wojtek Wodzicki, commented, "The Company has had a busy quarter behind the scenes, as due diligence reviews, ranging from preliminary to advanced, were undertaken on a number of fronts. While we have not yet taken any targets across the finish line, we are very encouraged by the quantity and quality of assets being identified through our internal processes.

With travel still tightly restricted in the Company's current operating jurisdictions, Chile and Argentina, our focus for the foreseeable future will be on continuing our business development initiatives, which we are optimistic will result in the addition of a high caliber asset to complement our portfolio."

FINANCIAL RESULTS

SELECTED FINANCIAL INFORMATION

The Company incurred a net loss of $1.7 million during the three months ended September 30, 2020, comprised primarily of a $0.8 million write down of its Nacimientos properties, $0.4 million in exploration and project investigation costs and $0.3 million in G&A costs. For the comparative three months ended September 30, 2019, the Company reported a net loss of $1.1 million, consisting mainly of $0.6 million in exploration and project investigation costs and $0.5 million in G&A costs.

The increase in net loss in the current period is mainly due to the impairment charge recognized on the Nacimientos properties, which is due to the Company having withdrawn from its option to earn into Nacimientos in August 2020. This was partially offset by the decrease in exploration and project investigation costs as a result of the reduction in field activity and discretionary expenditures in response to COVID-19. By comparison, during the third quarter of 2019, the Company continued environmental baseline studies at the Los Helados Project, and also initiated an exploration program at Valle Ancho.

LIQUIDITY AND CAPITAL RESOURCES

As at September 30, 2020, the Company had cash of $1.8 million and net working capital of $1.6 million, compared to cash of $5.6 million and net working capital of $5.3 million as at December 31, 2019. The decrease in the Company's cash and net working capital is due primarily to funds used in operations.

The Company plans to use the majority of its cash towards maintenance of its key exploration projects in South America, progressing its business development efforts, and general corporate activities.

ABOUT NGEX MINERALS

NGEx Minerals is a Lundin Group copper and gold exploration company based in Canada with projects in Chile and Argentina. NGEx Minerals holds the large-scale Los Helados copper-gold deposit, located in Chile's Region III, as well as other early-stage projects located in Argentina. NGEx Minerals is the majority partner and operator for the Los Helados Project, subject to a Joint Exploration Agreement with its joint exploration partner in Chile, Nippon Caserones Resources Co., Ltd (formerly, Pan Pacific Copper Co., Ltd.) NGEx Minerals is actively seeking to add to its portfolio of projects as part of its overall growth strategy.  The Company is listed on the TSXV under the trading symbol "NGEX".

ADDITIONAL INFORMATION

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

The information contained in this news release was accurate at the time of dissemination but may be superseded by subsequent news release(s). The Company is under no obligation nor does it intend to update or revise the forward-looking information, whether as a result of new information, future events or otherwise.

QP AND TECHNICAL INFORMATION

Technical information in this news release has been reviewed and approved by Bob Carmichael, B.Sc., P.Eng., who is the Qualified Person as defined by NI 43-101.  Mr. Carmichael is Vice President, Exploration for the Company.

On behalf of NGEX Minerals,

Wojtek Wodzicki,
President and CEO

Cautionary Note Regarding Forward-Looking Statements

Certain statements made and information contained herein in the news release constitutes "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation (collectively, "forward-looking information"). The forward-looking information contained in this news release is based on information available to the Company as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Generally, this forward-looking information can frequently, but not always, be identified by use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events, conditions or results "will", "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotations thereof. All statements other than statements of historical fact may be forward-looking statements.

Forward-looking statements contained in this news release include statements regarding: the Company's ability to respond to or navigate, and/or methods by which it responds to or navigates, the COVID-19 pandemic; the expected timing, nature or results of the Company's recent business development initiatives; the expected nature or usefulness of results related to the Company's recently completed field season; potential of identifying prospective targets at the Valle Ancho Project that warrant further evaluation and potential drill testing; the results and impact of future exploration at the Valle Ancho Project; assumptions and interpretations around historical exploration results obtained in regards to the Valle Ancho Project; the exploration potential of the Valle Ancho Property; assumptions and interpretations around the Valle Ancho Project's location relative to the Maricunga Gold Belt and the potential correlation with respect to prospectivity; the timing, amount and duration of reductions to discretionary expenditures and salaries; the materialization of opportunities for the Company to make acquisition of strategic assets; the ability of the Company to secure additional financing and/or the quantum and terms thereof; exploration and development plans and expenditures; the timing and nature of work undertaken to advance the Los Helados Project; the success of future exploration activities; potential for the discovery of new mineral deposits; ability to build shareholder value; expectations with regard to adding to Mineral Resources through exploration; ability to execute the planned work programs; estimation of commodity prices, Mineral Resources, estimations of costs, and permitting time lines; ability to obtain surface rights and property interests; currency exchange rate fluctuations; requirements for additional capital; government regulation of mining activities; environmental risks; unanticipated reclamation expenses; title disputes or claims; limitations on insurance coverage; and other risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since the Company can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the risks, uncertainties and other factors identified in the Company's periodic filings with Canadian securities regulators. In addition, these statements involve assumptions made including that the current price of and demand for commodities will be sustained or will improve, the supply of commodities will remain stable, that the general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms and that the Company will not experience any material labour dispute, accident, or failure of plant or equipment.  These factors are not, and should not be construed as being, exhaustive.

The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws. Forward-looking information is provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of the Company's operating environment. Although the Company has attempted to identify important factors that would cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. All the forward-looking information contained in this document is qualified by these cautionary statements. Readers are cautioned not to place undue reliance on forward-looking information due to the inherent uncertainty thereof.

Cautionary Note to U.S. Readers

Information concerning the mineral properties of the Company contained in this news release has been prepared in accordance with the requirements of Canadian securities laws, which differ in material respects from the requirements of securities laws of the United States applicable to U.S. companies subject to the reporting and disclosure requirements of the United States Securities and Exchange Commission.

SOURCE NGEx Minerals Ltd.