Records a Net Gain of $235,000 for the Nine Months Ended September 30, 2013
Working Capital Improves to $945,000
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 27, 2013) - Savant Explorations Ltd. (TSX VENTURE:SVT) ("Savant") is pleased to announce its results for the three and nine months ended September 30, 2013. Savant posted a net gain for the nine months ended September 30, 2013 (the "Current Period") of $235,578. Results were largely influenced by the receipt of a US$500,000 option payment on the Company's Yuby Gabriela property in Chile, and the recognition of a receivable of $303,000 from the Province of Quebec for refundable mining tax credits generated from exploration funded by Savant in 2011. Savant ended the Current Period with working capital of $945,762.
This release should be read in conjunction with Savant's unaudited condensed interim consolidated financial statements and management's discussion and analysis ("MD&A") for the three and nine months ended September 30, 2013, which are available on Savant's website at Overview
| | | Three Months Ended | | Nine Months Ended |
| | | Sept 30, 2013 | | Sept 30, 2012 | | Sept 30, 2013 | | Sept 30, 2012 |
| General Exploration and Admin Expenses | | $ | (96,087) | | $ | (55,835) | | $ | (264,467) | | $ | (237,212) |
| Other Income (Expenses) | | | 296,872 | | | (2,268) | | | 500,045 | | | (1,015,955 |
| Net Gain (Loss) | | $ | 200,785 | | $ | (58,103) | | $ | 235,578 | | $ | (1,253,167) |
| | | | | | | | | | | | | |
| Working Capital | | | | | | | | $ | 945,762 | | $ | 535,940 |
The Company's Net Gain for the Current Period of $235,578 was a significant improvement over the Net Loss in the nine months ended September 30, 2012 (the "Prior Period") of $1,253,167. The improved results in the Current Period were largely influenced by receipt of a US$500,000 option payment on the Company's Yuby Gabriela property in Chile, and the recognition of a receivable of $303,000 from the Province of Quebec for refundable mining tax credits generated from exploration funded by Savant in 2011. The poor results in the Prior Period can be attributed to Management's decision to drop the McWatters property in May 2012 resulting in a $1,019,355 write off of capitalized mineral property costs (Current Period - $nil).
Summary of Recent Events
Early in 2012, Savant's Board recognized that the downturn in the junior resource market that began in 2011 was likely to continue through 2013 and took significant steps to ensure Savant would survive a prolonged market correction. The Quebec optioned properties, which had high carrying costs, were returned to their owners. Overhead was reduced and project expenditures were trimmed to the essential holding costs. As a result of the Board's action, Savant entered 2013 with a good capital structure, healthy working capital, and no debt.
Over the course of 2013, Savant's management reviewed and assessed over 40 projects and properties in North America with the objective of identifying a region with low political risk, low entry cost, low exploration costs and the capability of generating major new discoveries of large-tonnage, high-margin mineral deposits.
The outcome of this extensive search resulted in the launch of a copper exploration and discovery strategy in the Southwest United States, an area that contains some of the premier copper districts in the world. As a first step to the strategy, rolled out by the company subsequent to the end of the Quarter, Savant successfully negotiated three earn-in agreements (collectively referred to as the "Agreements") with Bronco Creek Explorations Inc., a wholly owned subsidiary of Eurasian Minerals Inc., for three high-quality copper porphyry properties, two located in Arizona and one located in Nevada. Under the terms of the Agreements, Savant may earn up to a 100% interest in each of the Jasper Canyon, Buckhorn and Frazier Creek properties, through a two stage earn-in over a maximum 10 year period, subject to certain royalties retained by Bronco Creek. The main terms of the Agreements are summarized in the Company's news release dated October 30, 2013. A summary of the properties and an updated corporate presentation are provided at Savant's website About Savant
Savant is an exploration and development stage company focused on generating and exploring high quality precious and base metal properties in stable jurisdictions. Savant has recently initiated a new exploration and discovery strategy in Southwest United States with the acquisition of the Buckhorn, Jasper Canyon, and Frazier Creek properties. Savant's other properties and assets are 100% owned with combined annual holding costs of approximately $30,000. Savant has a partner funding the Yuby Gabriela copper property in Chile with the next option payment of US$1,000,000 due to Savant at the end of April 2014. Savant also owns two other high-quality properties, Blue Moon and Yava that Savant's management is seeking to monetize for maximum value to Savant and its shareholders.
John McClintock, P. Eng. CEO of Savant is the Qualified Person, as defined by National Instrument 43-101, responsible for the technical data in this news release.
More information on the Company's activities is available at the Company's web site at Neither 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 release.
This news release contains forward-looking statements. These statements are based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of failure to obtain necessary regulatory approvals, the failure to reach agreement on final documentation, exploration results and other risk factors that are beyond Savant's control. There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release.
