Gold Springs Resource Corp. files Q2 2021 Financial Statements and MD&A

Rhea-AI Summary

Gold Springs Resource Corp. (OTCQB:GRCAF) reported its unaudited financial results for the six months ending June 30, 2021. The company holds a working capital of $3.10 million with $3.43 million in cash. Exploration spending surged to $1.17 million from $0.41 million year-over-year. However, net losses increased to $0.91 million compared to $0.59 million in 2020. The company recognized a non-cash loss from its investment in World Copper Ltd. but plans to sell shares for CAD$4,364,315. The focus remains on exploring the Gold Springs project.

Positive

• Working capital at $3.10 million provides financial stability.
• Increased exploration spending of $1.17 million reflects commitment to the Gold Springs project.

Negative

• Net loss rose to $0.91 million from $0.59 million year-over-year.
• Non-cash losses from World Copper investment increased significantly.

VANCOUVER, BC / ACCESSWIRE / August 13, 2021 / Gold Springs Resource Corp. (TSX:GRC)(OTCQB:GRCAF) (the "Company"), reports the release of its unaudited consolidated financial statements for the three and six months ended June 30, 2021 and the related management's discussion and analysis of financial position and results of operations ("MD&A"). In this press release, all amounts are expressed in U.S. dollars, unless otherwise indicated.

As at June 30, 2021, the Company had a working capital of $3.10 million, including $3.43 million in cash.

Exploration spending during the six months ended June 30, 2021, increased to $1.17 million from $0.41 million incurred during the same period of last year. Principal activities conducted at the Gold Springs project during the six months ended June 30, 2021, included drilling, geological and environmental work as part of the 2021 drill program for advancement of the Gold Springs project.

During the six months ended June 30, 2021, general and administrative expenses, excluding non-cash share-based payments, decreased to $0.39 million compared with $0.41 million during the six-month period ended June 30, 2020. During the three months ended June 30, 2021, general and administrative expenses, excluding non-cash share-based payments, decreased to $0.17 million compared with $0.19 million during the six-month period ended June 30, 2020.

During the six months ended June 30, 2021, the Company reported a net loss of $0.91 million ($0.00 loss per share) compared with a net loss of $0.59 million ($0.00 loss per share) for the six months ended June 30, 2020. During the three months ended June 30, 2021, the Company reported a net loss of $0.45 million ($0.00 loss per share) compared with a net loss of $0.23 million ($0.00 loss per share) for the three months ended June 30, 2020. During the six and three months ended June 30, 2021, the Company recognized a non-cash loss of $0.46 million and $0.22 million, respectively, compared with a non-cash loss of $0.20 million and $0.50 million, respectively, during the six and three months ended June 30, 2020, for its equity investment in World Copper Ltd. (WCU:TSXV). On August 10, 2021 the Company announced the unconditional sale for CAD$4,364,315 of all its 13,225,198 common shares of World Copper Ltd. held by its subsidiary Escalones Resource Corp. to Wealth Minerals Ltd. (TSXV: WML), with payment in full on or before October 22, 2021.

Outlook
The Company's focus is on the exploration and expansion of the mineral resources at its Gold Springs project in Nevada and Utah, USA, where the Company is currently drilling.

About Gold Springs Resource Corp.
Gold Springs Resource Corp. (TSX:GRC)(OTCQB:GRCAF) is a growth-focused gold exploration company creating value through the exploration and development of the Gold Springs project in Nevada and Utah, U.S.A. Management has extensive experience in global exploration and the mining industry.

Gold Springs Resource Corp. Contact:
Antonio Canton
Chief Executive Officer
info@goldspringsresource.com
+1 (778) 801-1667

Forward-Looking Statements
Certain statements contained herein constitute "forward-looking information" under applicable Canadian securities laws ("forward-looking statements"). Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "believe", "continue", "will", "should", and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations if known and unknown risks or uncertainties affect our business or if our estimates or assumptions prove inaccurate. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, uncertainties relating to the availability and cost of funds; additional closings of the secured rights offering; uncertainties and risks relating to the expansion of the Gold Springs Project and Resource Expansion Program, the closing of the sale of World Copper shares by October 22, 2021, that Wealth Minerals will have the requisite funds to complete the purchase of the World Copper shares, potential risks and uncertainties relating to the ultimate geographic spread of the novel coronavirus (COVID-19), the severity of the disease, the duration of the COVID-19 outbreak, actions that may be taken by governmental authorities to contain the COVID-19 outbreak or to treat its impact and the potential negative effects of COVID-19 on the global economy and financial markets; risks of the mineral exploration industry which may affect the advancement of the Gold Springs project, including possible variations in mineral resources, grade, recovery rates, metal prices, capital and operating costs, and the application of taxes; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; availability of equipment and qualified personnel, failure of equipment or processes to operate as anticipated, changes in project parameters, including water requirements for operations, as plans continue to be refined; regulatory, environmental and other risks of our business, the secured rights offering and of the mining industry more fully described in the Company's Annual Information Form and continuous disclosure documents, which are available on SEDAR at www.sedar.com. The assumptions made in developing the forward-looking statements include: the accuracy of current resource estimates and the interpretation of drill, metallurgical testing and other exploration results; the continuing support for mining by local governments in Nevada and Utah; the availability of equipment and qualified personnel to advance the Gold Springs project; execution of the Company's existing plans and further exploration and development programs for Gold Springs, which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs.

Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this press release describe the Company's expectations as of the date hereof.

SOURCE: Gold Springs Resources Corporation

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https://www.accesswire.com/659702/Gold-Springs-Resource-Corp-files-Q2-2021-Financial-Statements-and-MDA

FAQ

What are Gold Springs Resource Corp.'s financial results for Q2 2021?

Gold Springs Resource Corp. reported a net loss of $0.45 million for Q2 2021, an increase from $0.23 million in Q2 2020.

What is the current cash position of Gold Springs Resource Corp. as of June 30, 2021?

As of June 30, 2021, Gold Springs Resource Corp. reported a cash position of $3.43 million.

What is the exploration spending for Gold Springs Resource Corp. in 2021?

The exploration spending for the first half of 2021 was $1.17 million, up from $0.41 million in the same period in 2020.

Has Gold Springs Resource Corp. sold its shares in World Copper Ltd.?

Yes, Gold Springs Resource Corp. announced the sale of its shares in World Copper Ltd. for CAD$4,364,315, with payment due by October 22, 2021.

What is the primary focus of Gold Springs Resource Corp. going forward?

The company is focused on the exploration and expansion of mineral resources at its Gold Springs project in Nevada and Utah.