Rogue Resources (RRS.V) is a resource company with high purity Silica properties in Quebec (Silicon Ridge) and Ontario (Snow White) amongst others.
Coverage for was initiated June 2017, with additional notes August 2017, October 2017, May 2018, and October 2018. Below is an update:
Oct. 10 - Announces LOI to Acquire Golden Arrow Gold Mine, and Provides Update on Quartz Projects - Gold Arrow has an open pit permit for 0.86M tonnes of gold bearing mineralized material. Term of payment are a mix of cash, equity with a mix of royalties.
Snow White: plans to generate quartz sales by supplying into the lower volume specialized end-use market. Rogue expects to make final logistics arrangements, including road and rail transportation, in Q4 2018. Production decision on Snow White contingent on off-takes.
Silicon Ridge: No update from the Ministère des Forêts, de la Faune et des Parcs (the “MFFP”), since the MFFP delayed the Silicon Ridge Project last year (August 10, 2017) and again this year (March 5, 2018) and advised that “additional analysis” would be completed by “Autumn 2018."
Oct. 16 - Announces 2014 and 2015 Drill Results at Golden Arrow Gold Mine, and Announces Non-Brokered Private Placement. Gold mineralization was observed in 19 of 22 drill holes with intercepts ranging from 0.81 to 13.66 gpt.
RRS.V plans to raise up to $0.4M through a non-brokered Private Placement. $0.18 per Unit for aggregate gross proceeds of $0.2M - Warrant at $0.30 cents. In addition to Flow Through Unit for aggregate gross proceeds of $0.20M - Warrant at $0.35 cents
Dec. 17 - Issues Shares for Debt. Will be issuing 0.2M common shares at $0.125 per share in settlement of a third party debt of $25,000.
Dec. 20 - Withdrawing the LOI to Acquire the Golden Arrow Gold Mine, general 2018 Recap and January Call for 2019 Plan.
RRS.V withdraws from the LOI because it could not secure an adequate toll mill agreement. RRS.V also did not secure 2018 orders from Snow White and shifted its focus to the 2019 season. A Corporate Update conference call with investors scheduled for Thursday, January 10, 2019.
Mar. 27 - No Response from Québec on Silicon Ridge, Quartz Marketing continued through Calendar Q1 for Snow White. No formal response from the Ministère des Forêts, de la Faune et des Parcs (“MFFP”) about the permit for Silicon Ridge.
Efforts on the Snow White Project (Ontario) continue with Commodity and Specialized Quartz buyers. Advancement decision remains subject to securing potential quartz buyers. Analysis continues with 3rd parties for potential Secondary Processing of Specialized Quartz
As explained in December, RRS.V is in Cash Preservation Mode, having stopped payment of staff and minimized all cash expenses since October.
The last period has been a difficult for RRS.V and its investors. In early October the LOI towards the acquisition of Golden Arrow gave RRS.V some much needed momentum. However, the macro economics trend in late 2018 along with the decision to cancel the Golden Arrow acquisition did not help.
In addition, continued uncertainty on Silicon Ridge permitting from the Quebec Government (MFFP) is now entering its 18 months. The original response received (August 2017), was delayed in March 2018. An update was expected in "Autumn 2018". Unfortunately, RRS.V is still awaiting a response. This is very peculiar for a modest open pit mining operation of a seasonal in nature which would provide some regional economic benefit. As a reminder, RRS.V already has off-take agreement with PCC BakkiSilicon hf ("PCC") and Thorsil ehf ("Thorsil") for Silicon Ridge's resources.
Meanwhile, there has been no off-take agreement obtained on Snow White. However, in a recent conference call, RRS.V announced that it is exploring investment opportunities for specialized processing for the resources. This does represent some progress as it may indicate potential opportunities.
Most worrisome is the fact that RRS.V has been in cash conservation mode since October 2018. This involves no payment of staff salaries. No doubt commendable but how much longer is the effort sustainable? This is becoming an unnecessary risk factor that can be easily mitigated. As it consider advancement decisions on Snow White and Silicon Ridge, RRS.V will eventually need to explore financing unless its working on other options.
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