VANCOUVER, British Columbia, Jan. 10, 2018 (GLOBE NEWSWIRE) -- First Mining Finance Corp. (“First Mining” or the “Company”) is pleased to announce that after accumulating 25 properties over the past two years through eight transactions, the Company is changing its strategy and name going forward, and will focus on advancing its existing properties to maximize shareholder value. In connection with this new strategy, Mr. Jeff Swinoga has been appointed by the Company’s Board of Directors to succeed Dr. Chris Osterman as the Company’s Chief Executive Officer (“CEO”) effective as of January 15, 2018, and Dr. Osterman will assume the role of Chief Operating Officer (“COO”) of the Company to focus on project development. Mr. Patrick Donnelly, the President of the Company, will continue in his current role and will work closely with Mr. Swinoga.
Mr. Swinoga is a highly accomplished mining executive with over 25 years of executive and management experience in the areas of finance, project development and project construction. Most recently, he was Chief Financial Officer (“CFO”) of Torex Gold Resources Inc. (“Torex”) where, during his four-year tenure, he led the US$400 million financing of Torex’s US$800 million El Limon-Guajes gold mine on the Morelos property and led his team during Torex’s transition from an exploration and development company to a mid-tier gold producer. Prior to Torex, Mr. Swinoga spent four years as the CFO of North American Palladium Ltd. (“NAP”), during which time NAP financed and constructed the underground Offset Zone expansion project for the Lac des Iles Mine and acquired and built two gold producing mines in Québec. In addition, he spent three years as CFO of HudBay Minerals Inc., a company which, from its initial public offering in late 2004, grew to a market capitalization of over $2 billion in 2008. Jeff also spent seven years at Barrick Gold Corporation as a senior officer with responsibilities that included project financing of Barrick’s Bulyanhulu and Veladero projects. He is a Chartered Professional Accountant and holds a Master of Business Administration degree from the University of Toronto as well as a Bachelor’s degree (Honours) in Economics from the University of Western Ontario.
Keith Neumeyer, First Mining’s Chairman, stated, “On behalf of our Board of Directors and our employees, I would like to congratulate Jeff and welcome him to the First Mining team. His people-focused leadership style and industry expertise will be key for the next stages of First Mining’s development as we move our flagship assets towards production.” Mr. Neumeyer further stated, “I would like to thank Chris Osterman for his contributions in advancing the Company to this point and for accepting the COO position. With the Company planning to aggressively advance its attractive portfolio of gold properties, Chris can now focus his efforts solely on advancing our projects.”
Dr. Chris Osterman stated, “I am very pleased with the addition of Jeff Swinoga and look forward to working closely with him to realize our shared vision for the Company. His extensive experience both in capital markets and developing projects will be of tremendous benefit to First Mining. I am excited to devote all of my efforts on moving our flagship assets forward to production.”
Plans for 2018
The following are First Mining’s plans for 2018:
- The Company will be re-branding and changing its name to “First Mining Gold Corp.”, a name which better reflects our new corporate identity and strategy. Our new brand will illustrate the ongoing evolution of the Company to maximize shareholder value. Our shares will commence trading on the Toronto Stock Exchange (the “TSX”) under our new name as of market open on January 11, 2018. The Company’s ticker symbol will remain as “FF” and will not be impacted by the name change.
- Focus on advancing the permitting and development of our 100% owned Springpole Gold Project (“Springpole”) located in north-western Ontario following the positive results of the independent Preliminary Economic Assessment (“PEA”) announced in September 2017, including commencing the environmental assessment process.
- A minimum of CAD$5 million has been budgeted for our Canadian mineral properties which includes 7,000 metres of in-fill and exploration drilling at our 100% owned Goldlund Gold Project (“Goldlund”) located near Sioux Lookout in north-western Ontario.
2017 Highlights
The following are the highlights of the Company’s achievements in 2017:
- In September, First Mining released the positive results of an independent PEA for Springpole. The PEA estimates an initial capital expenditure of US$586 million and its base case production scenario utilized long-term metal prices of US$1,300/oz gold (“Au”) and US$20/oz silver (“Ag”), and yielded an after-tax Net Present Value (using a 5% discount rate) of US$792 million, and an after-tax Internal Rate of Return of 26.2%. The (Life-of-Mine) average annual payable production is projected to be approximately 300,000 ounces Au and 1.6 Moz Ag with “all-in” cash costs (in addition to cash costs including initial/sustaining capital and mine closure) estimated at US$806/oz of gold equivalent. The technical report for the Springpole PEA, which was prepared by SRK Consulting Inc. in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), and is titled “Preliminary Economic Assessment Update for the Springpole Gold Project, Ontario, Canada” and dated October 16, 2017, was filed by the Company on SEDAR.
- In January, First Mining released an independent initial mineral resource estimate for Goldlund. The technical report, which was prepared by WSP Canada Inc. in accordance with NI 43-101 and is titled “Technical Report and Resource Estimation Update on the Goldlund Project”, estimated a pit-constrained indicated mineral resource of 9.3 million tonnes (“mt”) at 1.87 grams per tonne (“g/t”) containing 0.56 Moz Au and an inferred mineral resource of 40.9 mt at 1.33 g/t containing 1.75 Moz Au. The report, dated January 27, 2017, was filed by the Company on SEDAR.
- In June, First Mining graduated from the TSX Venture Exchange and our shares began trading on the TSX.
- In May, First Mining completed an initial in-fill diamond drill program at Goldlund. The drill program comprised a total of 100 holes (24,300 metres), of which 87 holes intersected intervals of significant gold mineralization. Drilling continued into the winter with deep holes to test the ore body at depth, and in 2018, the Company will start to drill along strike where gold showings are evident.
Jeff Swinoga stated, "I am very honoured to join Keith, Chris and Patrick at First Mining. During my 25 years as a mining executive I have learned that great companies are built upon quality assets and exceptional talent which is why I was drawn to First Mining. I look forward to building value for our shareholders with First Mining's attractive flagship assets in mining friendly jurisdictions, a highly competent team, and a Board of Directors that is committed to advancing these excellent projects towards production."
Readers are cautioned that the Springpole PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Actual results may vary, perhaps materially. The Company is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issue which may materially affect this estimate of mineral resources. The projections, forecasts and estimates presented in the PEA constitute forward-looking statements and readers are urged not to place undue reliance on such forward-looking statements. Additional cautionary and forward-looking statement information is detailed at the end of this news release.
Qualified Person
Dr. Chris Osterman, P.Geo., of First Mining, is the “qualified person” for the purposes of NI 43-101, and he has reviewed and approved the scientific and technical disclosure contained in this news release.
ABOUT FIRST MINING FINANCE CORP.
First Mining has evolved from a holder of mineral assets to a project developer. The Company currently holds a portfolio of 25 mineral assets in Canada, Mexico and the United States with a focus on gold. The core assets include the Springpole Gold Project, the Goldlund Gold Project, the Cameron Gold Project and the Pickle Crow Gold Project, all located in Ontario, and the Hope Brook Gold Project in Newfoundland.
