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| February 27, 2014 --- Vol. 08, No. 09 | February 2014
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Northwest Territories
FINANCE – North American Tungsten Corporation Ltd. Feb. 25 reported a loss of C$4.5 million (C2 cents per share) for the three months ended Dec. 31, 2013, compared with a loss of C$4.0 million (C2 cents per share) for the comparable quarter in 2012. N.A. Tungsten’s Dec. 31, 2013 Interim Consolidated Financial Statements and Management’s Discussion & Analysis thereon may be accessed under the company’s profile on SEDAR (www.sedar.com) and at the company’s website: www.natungsten.com. Revenue of C$20.5 million for the quarter reflects tungsten production below planned levels, with 62,000 mtus produced, primarily due to lower feed grade in the stopes that were available for production during most of the quarter. Despite strong demand for the product and favorable pricing, the company experienced a loss of C$4.5 million for the quarter and a moderate net cash outflow of $500,000. During the latter part of December and subsequent to quarter end, the feed grade improved significantly and daily production has increased accordingly. N.A. Tungsten is on track to complete by mid-year improvements to the mill with potential to enhance production by up to 20 percent and implementation of a permanent wastewater treatment plant to improve its long-term tailings management. “While the results for the quarter were disappointing, it is understood that grade issues occasionally will occur and the company responded by controlling spending to essentials and limiting capital outlays for the period while continuing to move key projects forward,” said N.A. Tungsten Chairman and CEO Kurt Heikkila. Since Sept. 30 the company has entered into new supply agreements with its current customers that expire in no less than three years. In connection with those agreements, as previously reported, the customers advanced an additional C$5 million to help fund the capital expenditures related to operational improvements. Heikkila continued, “The new agreements further enhance our relationships with our customers. We appreciate their continued support.”
At the annual and special meeting of the shareholders of the company held Feb. 21, N.A. Tungsten also elected Brian Abraham, Ronald Erickson, Allan Krasnick, Dennis Lindahl, Bryce Porter and Heikkila to the board of directors until the next annual meeting; approved a stock option plan fully described in the information circular dated Jan. 20, 2014 (available for viewing on SEDAR); and approved the share conversion feature of convertible debentures issued by the company, which resulted in the creation of new “Control Persons” of the company, as defined in the policies of the TSX Venture Exchange and more fully described in the information circular. Subsequent to the meeting, the board of directors re-appointed Heikkila as the company’s chairman of the board and appointed Porter, Abraham, Krasnick, and Lindahl as members of the audit committee.
EDITOR'S NOTE: The original news nugget emailed to subscribers on Feb. 27 incorrectly stated that North American Tungsten Corporation Ltd.reported a loss of C$4.5 million per share.
STOCK OPTIONS – Kennady Diamonds Inc. Feb. 20 said it granted incentive stock options under it stock option plan to its officers and employees, entitling them to purchase up to a total of 250,000 common shares of the company at a price of C$4.10 per share until Feb. 13, 2024. Kennady Diamonds controls 100 percent of the Kennady North project which comprises 13 leases and claims located immediately to the north and west of the four leases controlled by the Gahcho Kué Joint Venture between De Beers Canada (51 percent) and Mountain Province (49 percent) located in Canada’s Northwest Territories. Kennady Diamonds aims to identify a resource along the Kelvin - Faraday kimberlite corridor of between 5-8 million metric tons and also to identify new kimberlites outside of the corridor. This tonnage estimate is based on the drilling completed to date. The potential quantity is conceptual in nature as there has been insufficient drilling to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. A 5,000-meter drill program conducted during the winter of 2013 returned an exceptional sample grade of 8.44 carats per metric ton. The largest three diamonds recovered were a 2.48 carat off-white transparent octahedral, a 0.90 carat off-white transparent irregular, and a 0.75 carat off-white transparent octahedral. The recovery of diamonds of this size and quality from a 1.1-metric-ton sample is very encouraging.
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