Shore Gold announces net income of $43.0 million in June quarter

Shore Gold Inc. announced its key financial and operating results for the quarter ending June 30, 2017. The company noted that its working capital stood at $1.4 million at June 30, 2017, while its net income was worth $43.0 million or $0.14 per share compared to a net loss of $1.9 million or $0.01 per share for the same period in 2016. For the six months ended June 30, 2017, the Company recorded net income of $42.2 million or $0.14 per share compared to a net loss of $3.3 million or $0.01 per share for the same period in 2016.

Net income during the said quarter was due to the partial reversal of previously recorded impairments relating to exploration and evaluation assets ($44.5 million).

The company announced the consolidation of the Fort à la Corne mineral properties (including the Star - Orion South Diamond Project), resulting in Shore holding a 100 percent interest with Newmont Canada FN Holdings ULC (“Newmont”) increasing its interest to a 19.9 percent shareholder of the company; the concurrent Option to Joint Venture Agreement with Rio Tinto Exploration Canada Inc. (RTEC) for the Fort à la Corne mineral properties (including the Star - Orion South Diamond Project); the related closing of a subscription by RTEC for 5.6 million Common Shares and 5.6 million Common Share purchase warrants for aggregate gross proceeds of $1.0 million; working capital of $1.4 million at June 30, 2017. The company’s issued and outstanding shares were of 356,365,557 at June 30, 2017.

Shore Gold Inc. is a Canadian natural resource company focused on exploring and developing Saskatchewan's diamond resources.

The successful completion of the recently announced consolidation of the Company’s Fort à la Corne mineral properties (including the Star - Orion South Project) and the concurrent earn-in arrangement with Rio Tinto Exploration Canada sets the stage for a new phase for the company. The Company is also very pleased to have acquired the remaining portion of the Project from Newmont and having Newmont as a significant shareholder.

As of August 10, 2017, the Company had approximately $2.4 million in cash and cash equivalents and short-term investments (excluding $0.8 million in restricted cash). A portion of the Company’s cash and cash equivalents and short-term investments will be used to complete the 2017 programs as well as advance certain aspects of the Project, including the environmental assessment process and assessment and test work programs required for an updated feasibility study, as well as for general corporate matters.