Gold Springs Resource Corp. Files Q3 2021 Financial Statements and MD&A

Rhea-AI Summary

Gold Springs Resource Corp. (OTCQB: GRCAF) announced its financial results for Q3 2021, reporting a net loss of $1.14 million compared to a loss of $0.83 million in Q3 2020. The company held $3.02 million in working capital, including $2.0 million in cash. Exploration expenses increased to $2.44 million from $0.91 million year-over-year. General and administrative costs decreased to $0.53 million from $0.56 million. The company aims to expand resources at its Gold Springs project in Nevada and Utah.

Positive

• Increased exploration spending to $2.44 million, up from $0.91 million year-over-year, indicating commitment to project development.
• Secured non-dilutive funding of CAD$4,364,315 from the sale of World Copper Ltd. securities, enhancing liquidity.

Negative

• Net loss widened to $1.14 million for the nine months ended September 30, 2021, compared to a $0.83 million loss in the same period last year.
• Non-cash losses increased, with a $0.48 million loss during the nine months ended September 30, 2021, compared to a $0.30 million loss in the same period last year.

VANCOUVER, BC / ACCESSWIRE / November 10, 2021 / Gold Springs Resource Corp. (TSX:GRC)(OTCQB:GRCAF) (the "Company"), reports the release of its unaudited consolidated financial statements for the three and nine months ended September 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 September 30, 2021, the Company had a working capital of $3.02 million, including $2.0 million in cash. On October 22, 2021 the Company collected CAD$4,364,315 non-dilutive funding from the previously announced sale of its World Copper Ltd. Securities (see press releases dated August 10, 2021 and October 25, 2021).

Exploration spending during the nine months ended September 30, 2021, increased to $2.44 million from $0.91 million incurred during the same period of last year. Principal activities conducted at the Gold Springs project during the nine months ended September 30, 2021, included drilling, geological mapping, road and drill pad construction, assay and environmental work as part of the 2021 drill program for advancement of the Gold Springs project.

During the nine months ended September 30, 2021, general and administrative expenses, excluding non-cash share-based payments, decreased to $0.53 million compared with $0.56 million during the nine-month period ended September 30, 2020. During the three months ended September 30, 2021, general and administrative expenses, excluding non-cash share-based payments, decreased to $0.14 million compared with $0.15 million during the nine-month period ended September 30, 2020.

During the nine months ended September 30, 2021, the Company reported a net loss of $1.14 million ($0.01 loss per share) compared with a net loss of $0.83 million ($0.00 loss per share) for the nine months ended September 30, 2020. During the three months ended September 30, 2021, the Company reported a net loss of $0.23million ($0.00 loss per share) compared with a net loss of $0.24 million ($0.00 loss per share) for the three months ended September 30, 2020. During the nine and three months ended September 30, 2021, the Company recognized a non-cash loss of $0.48 million and $0.03 million, respectively, compared with a non-cash loss of $0.30 million and $0.10 million, respectively, during the nine and three months ended September 30, 2020, for its equity investment in World Copper Ltd. (WCU:TSXV).

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 and 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 Resource Corp.

View source version on accesswire.com:
https://www.accesswire.com/672286/Gold-Springs-Resource-Corp-Files-Q3-2021-Financial-Statements-and-MDA

FAQ

What are the Q3 2021 results for Gold Springs Resource Corp. (GRCAF)?

Gold Springs reported a net loss of $1.14 million for Q3 2021, with an increase in exploration spending to $2.44 million.

How much working capital does Gold Springs Resource Corp. have as of September 30, 2021?

Gold Springs has a working capital of $3.02 million, which includes $2.0 million in cash.

What were the exploration expenses for Gold Springs Resource Corp. in 2021?

The exploration expenses for the nine months ended September 30, 2021, were $2.44 million, compared to $0.91 million in the same period of 2020.

What funding did Gold Springs Resource Corp. secure recently?

Gold Springs secured CAD$4,364,315 in non-dilutive funding from the sale of its World Copper Ltd. securities.

How did the general and administrative expenses change for Gold Springs Resource Corp. in Q3 2021?

General and administrative expenses decreased to $0.53 million for the nine months ended September 30, 2021, compared to $0.56 million in the same period of 2020.