Ascot Resources (TSX: AOT) has again delayed the restart of its Premier Gold Project in British Columbia. The delay follows a review conducted by the newly appointed CEO of the company, Jim Currie.
The delay, which is being blamed on the “limited availability of trained labor,” is a result of underground development beginning later than expected, while advancement of that development has been at a slower pace than planned. As a result, restart of the mill operations have been delayed to July 2025.
Milling operations at Premier were originally halted back in early September, when Ascot indicated that mine development at Big Missouri was behind schedule by up to two months, while the Premier Northern Lights mine was delayed by approximately six months due to a late development start in 2023. At the time of announcement, it was estimated that three to six months of development would be required to restart milling operations.
The company also indicated that they had a funding gap as a result of the halt of operations, leading to the company raising US$7.5 million in debt in November from Sprott Private Resource Streaming and Royalty, while also raising $42 million in the markets through a financing at $0.16 per share. Those funds however are evidently not enough.
“Following my initial review, the mill and deposit are both expected to perform in line with prior guidance. However, the delay in development will result in a working capital shortfall. As such, we are actively engaged in discussions with our major shareholders, debt providers, and bankers to address the funding gap. We sincerely appreciate the continued patience and support of our stakeholders as we navigate through this challenging time,” commented CEO Jim Currie.
Ascot Resources last traded at $0.185 on the TSX.
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