Mines Management Inc. (TSX:MGT,NYSEMKT:MGN) announced its financial and operating results for the third quarter of 2015, also commenting on recent milestones in permitting for its Montanore silver-copper project.

Highlights include:

  • The U.S. Forest Service (“USFS”) and the Montana Department of Environmental Quality (“MDEQ”) continued to integrate clarifying comments into the Final Environmental Impact Statement (the “Final EIS”) and Record of Decision (“ROD”) as a result of the public objection process completed during the second quarter of 2015. The Company expects the permitting process to be completed by early 2016.
  • The Company raised $1,665,000 in October 2015 through the sale of certain idle equipment previously utilized for construction of infrastructure at the Montanore Project. The funds received from the sale will be utilized for general working capital and advancement of the permitting for the Montanore Project.
  • The Company’s cash reserves as of September 30, 2015, plus amounts raised in October 2015, are estimated to be sufficient to continue operations into the first quarter of 2016. Accordingly, the Company is seeking financing and may consider a joint venture of the Montanore Project or other strategic alternatives. If the Company were to issue equity at the current stock price, the conversion price of the existing Series B 6% convertible preferred stock (the “preferred stock”), would be adjusted downward to equal the issuance price, resulting in an increase in the number of shares of common stock issuable on conversion of the preferred stock. There can be no assurance that the Company will be successful in obtaining financing or entering into another type of transaction that will permit it to continue its business, or that the terms of any such financing or transaction would not make future financings or transactions more difficult or otherwise limit the Company’s flexibility or opportunities in the future. Although third parties have expressed interest in various transactions regarding the Company or the Montanore Project, and the Company has solicited indications of interest from third parties, to date the Board has not considered the terms of the proposals received to be in the best interests of the Company or its stockholders.
  • On July 1, 2015, the Company received a letter from NYSE MKT LLC (“NYSE MKT” or the “Exchange”) stating that it is not in compliance with the continued listing standards as set forth in Section 1003(a)(i-iv) of the NYSE MKT Company Guide (the “Company Guide”). In order to maintain its listing, the Company submitted a plan on August 3, 2015, in accordance with the Exchange’s requirement, which addresses how it intends to regain compliance with the financial impairment standards set forth in Section 1003(a)(iv) of the Company Guide by December 31, 2015 and the equity standards set forth in Section 1003(a)(i)-(iii) of the Company Guide by December 31, 2016. On October 21, 2015, the NYSE MKT notified the Company that the Company had made a reasonable demonstration of its ability to regain compliance with financial impairment standards by the end of the revised plan period of December 31, 2015.

Click here to read the full Mines Management Inc. (TSX:MGT,NYSEMKT:MGN) press release.

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