Santa Fe Gold Records $5.17 Million Gross for 2017 and Net Income of $2.38 Million through June 30, 2017
Company Reports Total Gross Income of $5,172,597 for 2016 - 2017 and Net of $2,384,543
With Three Compliant Annual Reports SFEG Will Now Apply for Uplisting to OTCQB Exchange
ALBUQUERQUE, N.M., July 05, 2018 -- Santa Fe Gold Corp. (OTC:SFEG), a U.S. based mining and exploration enterprise with emphasis on Gold, Silver, Copper, Precious, Industrial and Base metals and owner of multiple claims, including eight advanced projects containing numerous additional mine sites with near term production potential is pleased to announce a net profit of $2,384,542 on other income of $5,172,597.
President and CEO Tom Laws Comments
We are pleased to report the above gains for Fiscal year 2016 - 2017 quarters and expect this trend to continue over coming quarters as the company continues to implement measures to improve its balance sheet and create increasing value for shareholders. The company expects to put its first property into production over the coming quarter and looks forward to updating on ongoing progress in the very near future. Management expects to have three properties in production early in 2019.
SANTA FE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
| Years Ended June 30, | ||||||||
| 2017 | 2016 | |||||||
| SALES, Net | $ | - | $ | 6,250 | ||||
| OPERATING COSTS AND EXPENSES: | ||||||||
| Exploration and mine related costs | 255,917 | 473,497 | ||||||
| General and administrative | 1,450,797 | 2,072,116 | ||||||
| Depreciation and amortization | 21,799 | 1,134,112 | ||||||
| Total Operating Costs and Expenses | 1,728,513 | 3,679,725 | ||||||
| LOSS FROM OPERATIONS | (1,728,513 | ) | (3,673,475 | ) | ||||
| OTHER INCOME (EXPENSE): | ||||||||
| Gain on debt extinguishment | 4,416,668 | 821,050 | ||||||
| Gain on trust debt forgiveness | 464,763 | - | ||||||
| Gain on bankruptcy 363 asset sale | - | 15,309 | ||||||
| Foreign currency translation | (71,181 | ) | 91,590 | |||||
| Miscellaneous income | - | 110 | ||||||
| Gain (loss) on derivative instrument liabilities | (26,974 | ) | 1,068,664 | |||||
| Financing charges | - | (74,458 | ) | |||||
| Financing costs - commodity supply agreements | 291,166 | (677,996 | ) | |||||
| Interest expense | (961,386 | ) | (2,405,030 | ) | ||||
| Total Other Income and (Expense) | 4,113,056 | (1,160,761 | ) | |||||
| INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | 2,384,543 | (4,834,236 | ) | |||||
| PROVISION FOR INCOME TAXES | - | - | ||||||
| NET INCOME (LOSS) | $ | 2,384,543 | $ | (4,834,236 | ) | |||
| Basic and Diluted Per Share data | ||||||||
| Net income (loss) - basic | $ | 0.01 | $ | (0.03 | ) | |||
| Net (Loss) - diluted | $ | (0.01 | ) | $ | (0.03 | ) | ||
| Weighted Average Common Shares Outstanding: | ||||||||
| Basic | 263,274,757 | 179,328,825 | ||||||
| Diluted | 317,788,673 | 179,328,825 | ||||||
Santa Fe Gold Corp.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
YEARS ENDED JUNE 30, 2017 and 2016
| Additional | |||||||||||||||
| Common Stock | Paid-in | Accumulated | |||||||||||||
| Shares | Amount | Capital | (Deficit) | Total | |||||||||||
| Balance, June 30, 2015 | 142,396,648 | $ | 284,793 | $ | 79,857,465 | $ | (95,563,613 | ) | $ | (15,421,355 | ) | ||||
| Sale of common stock for cash | 7,500,000 | 15,000 | (7,500 | ) | - | 7,500 | |||||||||
| Exercise of warrants for cash | 7,500,000 | 15,000 | (7,500 | ) | - | 7,500 | |||||||||
| Common stock issued for consulting | 3,739,187 | 7,478 | 61,661 | - | 69,139 | ||||||||||
| Common stock issued for compensation | 14,217,561 | 28,436 | (14,218 | ) | - | 14,218 | |||||||||
| Common stock issued for conversion of note payable interest | 46,446,266 | 92,892 | 53,955 | - | 146,847 | ||||||||||
| Derivative settlement due to conversions | - | - | 90,081 | - | 90,081 | ||||||||||
| Net income (loss) | - | - | - | (4,834,236 | ) | (4,834,236 | ) | ||||||||
| Balance, June 30, 2016 | 221,799,662 | $ | 443,599 | $ | 80,033,944 | $ | (100,397,849 | ) | $ | (19,920,306 | ) | ||||
| Sale of common stock for cash | 40,840,519 | 81,681 | 1,272,403 | - | 1,354,084 | ||||||||||
| Exercise of warrants for cash | 40,840,519 | 81,681 | 1,272,403 | - | 1,354,084 | ||||||||||
| Shares issued for fees | 3,712 | 9 | 279 | - | 288 | ||||||||||
| Common stock issued for consulting | 9,365,360 | 18,731 | 456,276 | - | 475,007 | ||||||||||
| Common stock returned for compensation | (15,956,748 | ) | (31,914 | ) | 31,914 | - | - | ||||||||
| Common stock returned from shareholder | (6,956,750 | ) | (13,914 | ) | 13,914 | - | - | ||||||||
| Derivative settlement due to conversions | - | - | 333,462 | - | 333,462 | ||||||||||
| Net income (loss) | - | - | - | 2,384,543 | 2,384,543 | ||||||||||
| Balance, June 30, 2017 | 289,936,274 | $ | 579,873 | $ | 83,414,595 | $ | (98,013,306 | ) | $ | (14,018,838 | ) | ||||
Santa Fe Gold Corp.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Years Ended June 30, | ||||||||||
| 2017 | 2016 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
| Net income (loss) | $ | 2,384,543 | $ | (4,834,236 | ) | |||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||
| Depreciation and amortization | 21,799 | 1,134,112 | ||||||||
| Stock-based compensation | - | 14,217 | ||||||||
| Stock issued for services | 475,007 | 69,139 | ||||||||
| Amortization of discounts on notes payable | 161,814 | 260,874 | ||||||||
| Loss (gain) on derivative instrument liabilities | 26,974 | (1,068,664 | ) | |||||||
| Gain on 363 asset sale | - | (15,309 | ) | |||||||
| Gain on debt extinguishment | (4,416,668 | ) | (821,050 | ) | ||||||
| Gain on trust debt extinguishment | (464,763 | ) | - | |||||||
| Financing costs – commodity supply agreements | (291,166 | ) | 677,996 | |||||||
| Shares issued for fees | 288 | 74,458 | ||||||||
| Foreign currency translation | 71,181 | (91,590 | ) | |||||||
| Net change in operating assets and liabilities: | ||||||||||
| Other receivable | - | 34,833 | ||||||||
| Prepaid expenses and other current assets | (35,363 | ) | 177,173 | |||||||
| Accounts payable and accrued liabilities | 1,002,960 | 2,068,962 | ||||||||
| Net Cash Used in Operating Activities | (1,063,394 | ) | (2,319,085 | ) | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
| Repayment to related party for equipment purchased on behalf of Company | (267,732 | ) | - | |||||||
| Escrow deposit on mineral property | (500,000 | ) | - | |||||||
| Net Cash Used in Investing Activities | (767,732 | ) | - | |||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
| Repayment to related party for expenses paid on behalf of Company | (153,268 | ) | ||||||||
| Proceeds from common stock purchases | 1,354,084 | 7,500 | ||||||||
| Proceeds from exercise of warrants | 1,354,084 | 7,500 | ||||||||
| Proceeds from DIP funding and bridge loan | - | 2,520,958 | ||||||||
| Repayments of DIP funding | - | (283,363 | ) | |||||||
| Payments on convertible notes payable | (284,783 | ) | - | |||||||
| Net Cash Provided by Financing Activities | 2,270,117 | 2,252,595 | ||||||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 438,991 | (66,490 | ) | |||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 2,815 | 69,305 | ||||||||
| CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 441,806 | $ | 2,815 | ||||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||||
| Cash paid for interest | $ | - | $ | - | ||||||
| Taxes paid | $ | - | $ | - | ||||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||||
| Purchase of equipment by related party | $ | 267,732 | $ | - | ||||||
| Expenses paid by related party | $ | 202,688 | $ | - | ||||||
| Accrued interest reclassified to note principal | $ | 12,521 | $ | - | ||||||
| Liabilities released in the 363 asset sale | $ | - | $ | 16,416,537 | ||||||
| Common stock issued for convertible notes and accrued interest conversion | $ | - | $ | 146,848 | ||||||
| Settlement of derivative liabilities through conversion | $ | 333,462 | $ | 90,081 | ||||||
| Common stock returned and cancelled | $ | 45,828 | $ | - | ||||||
| Discounts on notes payable due to derivatives | $ | - | $ | 98,091 | ||||||
| To Access and Review Complete Annual Report in its entirety - Please Click on the archive fast-edgar link below http://archive.fast-edgar.com//20180705/AFKZP62CZ222NZZ2222C2ZZUAVMKZH2262A2/sfeg-20170630.htm | ||||||||||
About Santa Fe Gold
Santa Fe Gold is a U.S.-based mining and exploration enterprise and owns the following mining assets: The Knight’s Peak region of Grant County, New Mexico comprising the Malone Mines, Patanka, Hillcrest, Barranca and Principal Mines, altogether incorporating some twenty mine sites and all located at Knight’s Peak, together with an expanded area surrounding the Malone Mines in the southern region of Burro Mountains, New Mexico.
The company also owns very significant holdings in the Playas Lake Bed Area of Hidalgo County that includes the presences of Titanium ore and rare earth minerals and deposits. It also owns Bullard's Peak Corporation and Black Hawk Consolidated Mines incorporating the Alhambra Silver mine along with a potential major Porphyry Silver discovery and additional deposits of Cobalt, Lithium, Manganese and Nickel and nearby Sunset Lode and Sunset Placer Gold and Silver Deposits located in the Pinos Altos District of Grant County, New Mexico. Substantial amounts of historical data relating to all of the above properties are being analyzed regarding their high-grade Gold and Silver Mines and surrounding deposits, in particular for their significant occurrences of Cobalt, Lithium, Manganese, Nickel and other Rare Earth Discoveries.
The company also owns the Quartzite Creek Placer Gold property, located northeast of Takia Landing in the Omineca Mining Division of British Columbia, Canada and the Harris Creek Placer Gold located in the Vernon Mining Division of British Columbia, southwest of the town of Lumby.
Santa Fe Gold’s Exploration and Development Team continues active exploration, surveillance, research, acquisition of multiple additional properties as it finalizes analysis of a number of attractive and economically viable new prospects.
The company continues to execute on its aggressive acquisition program that is totally focused on positioning Santa Fe Gold to resume mining and production operations from multiple sources expected in the near to medium term.
For more information, disclosure and to register for updates:
Please visit www.santafegoldcorp.com.
Contact
Frank Mueller, CFO
505-255-4852
info@santafegoldcorp.com
