Gold Springs Resource files Q3 2020 Financial Statements and MD&A and announces results of Annual Shareholders’ Meeting

Rhea-AI Summary

Gold Springs Resource Corp. (TSX: GRC, OTCQB: GRCAF) released its interim financial results for Q3 2020, reporting a working capital of $2.66 million, including cash of $2.31 million. The company reported a Q3 net loss of $0.24 million, down from a $0.05 million loss in Q3 2019, and a nine-month net loss of $0.83 million compared to $11.37 million in 2019. General and administrative expenses decreased to $0.56 million. Exploration expenditures were $0.91 million, focusing on the Gold Springs project. The annual shareholder meeting resulted in the approval of all resolutions and the election of six directors.

Positive

• Significant reduction in net loss: $0.83 million in 2020 vs. $11.37 million in 2019.
• Lower general and administrative expenses: $0.56 million in 2020 vs. $1.03 million in 2019.
• Continued investment in exploration with $0.91 million spent on the Gold Springs project.

Negative

• Net loss of $0.24 million for Q3 2020, reflecting ongoing financial challenges.
• Exploration spending may not yield immediate results, posing future risks.

VANCOUVER, BC / ACCESSWIRE / November 10, 2020 / Gold Springs Resource Corp. (TSX: GRC)(OTCQB:GRCAF) (the "Company), reports the release of its condensed interim consolidated financial statements for the three and nine months ended September 30, 2020 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, 2020, the Company has a working capital of $2.66 million, including $2.31 million in cash.

During the nine months ended September 30, 2020, the Company reported a net loss of $0.83 million ($0.00 loss per share) compared with a net loss of $11.37 million ($0.05 loss per share) for the nine months ended September 30, 2019. During the three months ended September 30, 2020, the Company reported a net loss of $0.24 million ($0.00 loss per share) compared with a loss of $0.05 million ($0.00 loss per share) for the three months ended September 30, 2019.

The primary drivers for the change in results for each of the three and nine month periods ended September 30, 2020 compared to the same periods of 2019 were the non-cash gain of $2.15 million and $3.31 million, respectively, recorded in the 2019 periods for changes in the fair value of the arbitration award asset, Class B shares and other arbitration award liabilities and the non-cash loss of $1.97 million and $13.36 million, respectively, recorded in the 2019 periods, arising from the loss on sale of the Escalones project.

During the period, the Company continued to manage and maintain its costs structure which resulted in general and administrative expenses (excluding non-cash share-based payments) of $0.56 million for the nine months ended September 30, 2020 compared to $1.03 million for the same period in 2019, and $0.15 million for the three months ended September 30, 2020 compared to $0.16 million for the same period in 2019.

Exploration spending during the nine months ended September 30, 2020 was $0.91 million, comprising expenditures incurred solely for Gold Springs. Principal activities revolved around target development, including rock-chip surface sampling of new and existing drill target areas, structural and geological mapping of those areas as well as updating the PEA and 2020 resource estimate. The Company also made the project ready for the re-start of drilling later this year.

Results of Annual Shareholders' Meeting

The Company is pleased to announce that all of the resolutions that shareholders were asked to consider at its 2020 Annual Shareholders' Meeting held in Vancouver, British Columbia, were approved. Details of the resolutions are contained in in the management information circular of the Company filed under the Company's profile on SEDAR at www.sedar.com.

The number of directors of the Company was set at six and the six directors named in the management information circular of the Company were elected. Voting on the election of directors was conducted by ballot and the results reported by the scrutineer of the meeting are set out below.

	Nominee	Votes For	% For	Votes Withheld	% Withheld
Antonio Canton		95,931,275	90.09%	10,550,037	9.91%
Victor Dario		87,601,038	82.27%	18,880,274	17.73%
Horst Daspersgruber		101,134,075	94.98%	5,347,237	5.02%
Roman Mironchik		87,551,504	82.22%	18,929,808	17.78%
Robert van Doorn		90,352,904	84.85%	16,128,408	15.15%
Tina Woodside-Shaw		106,317,875	99.85%	163,437	0.15%

Outlook

The Company's focus for 2020 is on the exploration and expansion of the mineral resources at its Gold Springs project in Nevada and Utah, USA.

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:

Matias Herrero
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 "creating", "believe", "would", "continue", "will", "promising", "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, 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 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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FAQ

What were Gold Springs Resource's Q3 2020 financial results?

Gold Springs Resource reported a net loss of $0.24 million in Q3 2020, down from a $0.05 million loss in Q3 2019.

What is the working capital of Gold Springs Resource as of September 30, 2020?

As of September 30, 2020, Gold Springs Resource's working capital was $2.66 million, including $2.31 million in cash.

What was the exploration expenditure for Gold Springs Resource in 2020?

The company spent $0.91 million on exploration during the first nine months of 2020, focused on the Gold Springs project.

What were the results of the Gold Springs Resource Annual Shareholders' Meeting?

All resolutions were approved, and six directors were elected during the 2020 Annual Shareholders' Meeting.