Ascot faces working capital shortage as Premier mill restart is delayed
Vancouver-based Ascot Resources has announced a delay in the restart of milling operations at its Premier Gold Project (PGP) in British Columbia, citing slower-than-expected underground development owing to a shortage of trained labour.
Ore processing will only begin in July, the company said in a statement on Wednesday.
Ascot is finalising a revised schedule and budget to reflect the updated timeline.
Newly appointed president and CEO Jim Currie stated that while the mill and deposit were expected to perform in line with prior guidance, the delay would result in a working capital shortfall.
“We are actively engaged in discussions with our major shareholders, debt providers, and bankers to address the funding gap. We sincerely appreciate the continued patience and support of our stakeholders as we navigate through this challenging time,” Currie said.
The delay follows Ascot's August 2024 decision to suspend operations at Premier, citing misalignment between mine development and mill capacity. At the time, development at the Big Missouri mine had fallen up to two months behind schedule, with the ramp-up of the Premier Northern Lights (PNL) project also delayed. The company estimated that an additional three to six months of development work would be required, primarily at PNL, before full production could resume.
PNL development work resumed in December.
Last month, Ascot postponed a previously scheduled investor conference call, with Currie and his team requiring more time to complete their review of the firm’s operations and strategy.
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