Two Hands Corporation Provides Update on Financing
Under the terms of the Note, the amount outstanding thereunder may be prepaid at any time from the date of issuance until the date which is 180 days after the date of issuance, at the option of the Company. If the amount outstanding under the Note is not earlier prepaid, the Note is convertible at any time beginning on the day which is 180 days following the date of issuance, at the option of the holder. The holder may elect to convert the amount outstanding under the Note into shares of common stock of the Company (" Common Shares") at a price equal to the lowest trading price on the OTCQB, OTCQX, Pink Sheets or other applicable trading market, over the 10 trading day period preceding the conversion of the Note, less 25%. Further to the terms of the Note and notwithstanding the foregoing, the conversion price for the Common Shares issued on conversion of the Note will be fixed at the time of conversion, and will not be lower than the closing price on the trading day prior to the date of conversion, subject to a minimum of CAD $0.05, in accordance with the policies of the Canadian Securities Exchange (the " CSE").
About Two Hands Corporation
Two Hands has been active in the Food Retail and Distribution Service Industry (SIC Code 7389) for several years, focusing on the Consumer Non-Cyclical sector. The Company is dedicated to providing quality products and services to meet the needs of its customers.
Neither the CSE nor its Regulation Services accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. Forward looking statements in this news release include statements regarding the future conversion of the Note. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Factors that could materially affect such forward-looking information are described under the heading "Risk Factors" in the Company's final long-form prospectus dated April 21, 2022, that is available on the Company's profile on SEDAR+ at www.sedarplus.ca. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents managements' best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
For further information, please visit www.twohandsgroup.com.
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Operating Highlights During Q2 2025, Eagle River produced 25,612 ounces of gold as compared to 19,272 ounces in Q2 2024 primarily due to a 44% increase in average grade. As planned, during Q2 2025, a major portion of tonnes produced were from two zones: 300 and 720F. In the first half of 2025, Eagle River has produced 54,611 ounces, a 24% increase over 44,171 ounces in the first half of 2024. The increase relative to the prior period reflects a 19% increase in average grade and a 4% increase in mill throughput, supported by reduced dilution, higher grade reconciliation and consistent tonnage yielding increased ounces from the 300 Zone. These results demonstrate continued progress in optimizing stope design, improving execution, and refining grade control. Mill throughput of 48,623 tonnes was 7% lower than the second quarter of 2024, impacted by an 18-day planned shutdown in May and June 2025 for mill maintenance and parts replacement to support growth plans. 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Logging of quartz veining in core at the target depths gives visual confirmation of the continuation of the host structure, with assays pending. Drilling in Falcon 311 Targeting Growth Along Strike and Down-Plunge The year-end 2024 resource model identified growth opportunities at the Falcon 311 Zone, with mineralization open to the east, west, and down-plunge. Drilling during the quarter focused on evaluating the continuity of the mineralization to the east and down-plunge to the southeast in areas closer to existing development. Assays remain pending with further drilling planned to evaluate the continuity to the west and down-plunge to the southwest. Global Model Four underground rigs will be drilling global model targets between now and November, representing nearly 40,000 metres. These global model targets are advanced, a block model mixture of geologic potential with some locally inferred material. The drill program will enable category conversion of the target material. The global model drill results will contribute to the updated technical report, which has a new cut-off date of December 31, 2025. Surface drilling at the Mishi deposit commenced in the second quarter with one rig, with a second rig scheduled to commence in September. The drill program has been designed to twin existing holes as part of a geological and structural review including evaluating continuity between mineralized zones and potential controls on deep mineralization beneath the existing open pit. Drilling at Mishi will contribute to the global model initiative, with the aim of evaluating potential to support the fill-the-mill strategy. Surface Exploration Falcon 720 drill core was prioritized in the second quarter and will remain a key focus, together with core and surface geochemical samples from the Birch Vein during the third quarter. Birch Vein is located approximately two kilometres northeast of the intrusive diorite that hosts the Eagle River Mine. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Surface drilling during the quarter also evaluated potential parallel structure between 6 zone and 2 zone in the Eagle River Mine intrusive diorite. Assays are expected in quarter three, where follow-up drilling may be executed after the Mishi-Magnacon drill programs. Kiena (Québec, Canada) Kiena is a fully permitted integrated mining and milling operation located on a 75 km2 land package in Val-d'Or, Québec. The site features a mill with a permitted capacity of 2,040 tonnes per day. Operational and Financial Results Refer to the section entitled 'Non-IFRS Performance Measures' for the reconciliation of non-IFRS measurements to the financial statements. Refer to the section entitled 'Non-IFRS Performance Measures' for the reconciliation of non-IFRS measurements to the financial statements. Refer to the section entitled 'Non-IFRS Performance Measures' for the reconciliation of non-IFRS measurements to the financial statements. Operating Highlights In Q2 2025, Kiena produced 17,169 ounces, a 31% decrease from 24,763 ounces in Q2 2024. Lower production levels reflect a 13% reduction in throughput and a 20% decline in average grade, due to continued equipment constraints that limited access to planned stopes as well as underperformance in one high-grade stope due to limited delineation. Improved key mobile fleet availability and utilization through enhancements to maintenance resources and practices, together with access to new mining horizons and recent changes to site leadership point to a stronger second half. Production in the first half of 2025, which was entirely sourced from Kiena Deep, totaled 33,862 ounces compared to 33,186 ounces in the first half of 2024. As previously indicated, production is expected to be weighted toward the second half of the year, with Q4 representing about 40% of production for the year. Average grade for the quarter was 10.7 g/t, down from 13.5 g/t in Q2 2024. Access to higher-grade areas was impacted by continued equipment availability constraints that limited access to planned stopes and several high-grade stopes originally scheduled for Q2 were deferred. As a result, similar to the first quarter, several recovered stopes at lower grade were mined. Subsequent to quarter end, a longer than planned hoist maintenance shutdown resulted in reduced mine production for ten days. An independent review of critical infrastructure at Kiena is currently underway as part of a risk assessment. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Production costs per tonne were $494 in Q2 2025, up from $391 in Q2 2024, driven by higher stockpile and inventory adjustments, including additional contractor support and maintenance expenses. Production costs per tonne increased to $492 in the first half of 2025 from $424 in the comparative prior year period, reflecting similar factors as well as lower throughput volumes. Financial Highlights In Q2 2025, Kiena's gold revenue increased by 20% to $85.8 million from $71.8 million in Q2 2024, primarily due to a higher average realized price per ounce of gold sold. In the first half of 2025, Kiena's gold revenue increased by 66% to $157.7 million from $95.1 million in the comparative period in 2024, due to an 18% increase in ounces sold and a higher average realized price per ounce of gold sold. Cost of sales in Q2 2025 was $26.5 million, an increase of 21% over the comparative period in 2024 primarily due to a $2.6 million increase in mine operating costs, which was driven by lower average grade. Cost of sales in the first half of 2025 was $49.6 million, an increase of 17% over the comparative period in 2024 primarily due to a $5.9 million increase in mine operating costs. Cash costs per ounce of gold sold in Q2 2025 were $1,397 (US$1,009), an increase of 44% compared to $967 (US$707) in Q2 2024 primarily due to a decrease in ounces sold and an increase in mine operating costs. Cash costs per ounce of gold sold in the first half of 2025 were $1,354 (US$961), a decrease of 1% compared to $1,374 (US$1,011) in the comparative period in 2024 primarily due to an increase in ounces sold offset by higher mine operating costs. AISC per ounce of gold sold increased by 55% in Q2 2025 to $2,380 (US$1,720) from $1,536 (US$1,123) in Q2 2024 due to a 16% decrease in ounces sold, an increase in aggregate mine operating costs and a 56% increase in sustaining capital expenditures. AISC per ounce of gold sold decreased by $14 in the first half of 2025 to $2,209 (US$1,567) from $2,223 (US$1,636) in the first half of 2024 due to an 18% increase in ounces sold offset by increase in aggregate mine operating costs and increased sustaining capital expenditures. Progress at Presqu'île Zone and Exploration Ramp Ramp access to the Presqu'île orebody is well established. Exploration and delineation drilling programs are underway with early delineation drilling of the first stopes intersecting visible gold in areas of higher-grade block model designs, giving early-stage confidence in the modelling work. Surface drilling to evaluate the down-plunge continuity of the mineralization has commenced. Development remains on track with initial stope production expected in late 2025 or Q1 2026. Processing of stockpiled development ore has commenced under the bulk sample permit received in the second quarter. The mining permit has been submitted with approval expected in early fall. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW The exploration ramp development is on schedule for completion with breakthrough to 33-level anticipated to be achieved by year end. The project cost is trending higher than budget, driven primarily by scope expansion to upgrade ventilation capacity and attain greater mining flexibility. Kiena is looking at options to reduce costs by bringing certain work in-house. Exploration Update Exploration Drift on 109-Level to be Extended Drilling of the VC Zone from the new 109-level exploration drift was suspended during the second quarter due to poor ground conditions between the drilling bay and the VC Zone resulting in difficulty reaching the target. A decision was made to extend the drift a further 200 metres to the northwest, thereby establishing a drill platform in favourable basaltic host rock. Drilling of the VC Zone and the nearby North Zone target will recommence in the fourth quarter after the new development is completed. The VC Zone is a top priority for exploration in 2025 as it historically returned a high-grade intercept at the base of the mineralization wireframe, is open at depth, and demonstrates a mineralization style analogous to Kiena Deep. Kiena Deep Continues to Deliver; Drilling From 134-Level Begins The ongoing exploration of the Kiena Deep A and Kiena Deep Footwall zones from the 127-level ramp and remuck is confirming the continuity of the zone. Drill assays and geological modeling continue to support the initial interpretation that additional lenses may be delineated with further drilling, and some existing lenses can be extended laterally. Drill information is being incorporated into an updated lithostructural model and an updated mineral resource, both of which will form a basis for the 2026 technical report. Drilling from the second drill bay on the 134-level exploration drift is commencing in August. The planned program will target Kiena Deep and Footwall mineralization, with the more optimal drill intersection angle expected to improve true width intercepts and provide stronger geostatistical support for grade continuity and resource modelling. 33-Level Accessible for Drilling, Delineation of Presqu'île Underway Rehabilitation of the 33-level development to the east has allowed the establishment of more optimal drilling platforms for the testing of Dubuisson, Duchesne, and other 33-level targets. Exploration drilling on 33-level in the second quarter targeted lateral extensions and the down-plunge continuation of the No.22 Shawkey Zone and the historic Shawkey Main mine. Drilling has intersected mineralization in positions that could represent the northwest continuation of Shawkey Main mineralization. Further holes are planned before the rig relocates to Dubuisson early in the third quarter, where underground drilling is planned to evaluate the down plunge continuity of mineralization. Surface Exploration The summer barge drilling program at Kiena commenced in June with three rigs currently active. At Dubuisson, one drill rig will initially focus on infill and geotechnical drilling in support of reserve growth, with evaluation of the lateral continuity of the mineralization and resource growth scheduled for later in the quarter. The other two rigs will evaluate the potential of regional targets at Wesdome and the 134 Zone located to the northwest of Dubuisson. A high-resolution drone magnetic survey led by Abitibi Geophysics has commenced, with modelling and interpretive work expected to be completed before end of the third quarter. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW 2025 Outlook During the first half of 2025, Wesdome continued to execute on its strategic plan, increasing gold production by 14% year-over-year while reducing cost of sales and all-in sustaining costs (AISC) per ounce by 7% and 3%, respectively. The Company also delivered record half-year results for net income, net cash from operating activities, and free cash flow, which rose to $100.4 million. As outlined in the initial 2025 outlook, production remains weighted toward the second half of the year, with the fourth quarter expected to be the strongest quarter of the year. At Eagle River, production is trending toward the high end of its initial guidance range, supported by higher grades and improved productivity. As a result, the Company is increasing Eagle River's production guidance to 105,000 to 115,000 ounces from 100,000 to 110,000 previously and narrowing the grade guidance to 14 to 15 grams per tonne from 13 to 15 grams per tonne previously. Production at Eagle River in the second half of the year is expected to represent approximately 55% of its full year 2025 output. Cash costs per ounce sold are expected to remain essentially unchanged, while AISC is expected to improve to US$1,375 to US$1,500 from US$1,400 to US$1,550 previously, benefitting from ongoing cost optimization initiatives. Surface exploration expenses at Eagle River are expected to increase by $5 million, primarily due to the acquisition of Angus. At Kiena, production at mid-year is tracking at or slightly below the low end of the initial annual guidance range of 90,000 to 100,000 ounces, primarily due to equipment availability and utilization constraints that limited access to planned stopes. Following a comprehensive review of near term plans and risk mitigation strategies, the Company is updating Kiena's full-year 2025 production guidance to 80,000 to 90,000 ounces from 90,000 to 100,000 ounces previously. As previously indicated, production is expected to be weighted toward the second half of the year, with Q4 representing about 40% of production for the year. Grade expectations remain unchanged. Due to the lower volume of ounces expected to be sold and a temporary period of increased costs associated with enhanced maintenance and operational optimization, site cash costs per ounce have been revised to $1,200 to $1,375 from $1,025 to $1,150 and AISC per ounce is now expected to be US$1,400 to US$1,575 from US$1,225 to US$1,400 previously. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW While sustaining capital guidance for Kiena remains unchanged, growth capital guidance has been revised to $65 million, up from the previous $40 million, reflecting redesign of the ventilation infrastructure and associated development and services, providing an independent circuit for the Presqu'île orebody, further unlocking the potential. Additional to this, investment is planned in capital development to accelerate the development footprint, providing mining flexibility, as Presqu'île ramps up for higher tonnage in 2026. Both investments are reflecting increased development and infrastructure spending related to the Presqu'île exploration ramp, which remains on track for completion later this year. Corporate and general expenditures for 2025 are expected to be approximately $30 million, reflecting additional costs related to technical reporting and corporate process improvement initiatives. These expenditures are allocated equally across both operations and included in the Company's AISC calculations. The following table outlines Wesdome's updated 2025 guidance compared to its initial guidance set forth in the Company's press release dated January 14, 2025: Consolidated 2025 guidance for corporate and general costs excludes an estimated $7 million in stock-based compensation. Corporate G&A of $30 million is allocated equally to each mine and is included in the Company's AISC calculation. Exploration and evaluation costs primarily include surface drilling activities and regional office expenses. Refer to the section entitled 'Non-IFRS Performance Measures' for the reconciliation of non-IFRS measurements to the financial statements. Total capital expenditures are the sum of sustaining and growth capital expenditures and are reported under investing activities on the statements of cash flows in the Company's financial statements. 2026 Production Guidance The following table outlines Wesdome's fiscal 2026 production guidance: Conference Call and Webcast Management will host a conference call and webcast to discuss the Company's Q2 2025 financial and operating results. A question-and-answer session will follow management's prepared remarks. Details of the webcast are as follows: The financial statements and management's discussion and analysis will be available on the Company's website at and on SEDAR+ during the evening of Wednesday, August 13, 2025. About Wesdome Wesdome is a Canadian-focused gold producer with two high-grade underground assets, the Eagle River mine in Ontario and the Kiena mine in Québec. The Company's primary goal is to responsibly leverage its operating platform and high-quality brownfield and greenfield exploration pipeline to build a growing value-driven gold producer. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW For further information, please contact: Technical Disclosure The technical and geoscientific content of this press release have been reviewed, and approved by Guy Belleau, Chief Operating Officer of the Company, a 'Qualified Person' as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Forward-Looking Statements This press release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation, which is based on expectations, estimates, projections, and interpretations as of the date of this release. Forward-looking information includes, without limitation, statements or information with respect to: the Company's revised 2025 guidance, including revised expected gold production, revised cost and capital expenditure guidance, revised all-in sustaining costs, revised cash costs per ounce cost guidance, and revised capital investment guidance; key initiatives planned for Kiena; the expectation of stronger results in the second half of year across the Company's operations; items for which additional growth capital is earmarked in respect of; gaps in the interpreted mineralization wireframe at the 300-Fold Zone being targeted with infill drilling in Q3 2025; the 6 Central Zone providing the potential opportunity to establish another new high-grade mining front at intermediate depths; further planned drilling at the Falcon 311 Zone; the planned four underground rigs drilling global model targets between now and November 2025; the commencement of a second rig drilling at the Mishi deposit; the drilling at Mishi contributing to the global model initiative; Core from Falcon 720 and Birch Vein being scheduled to be prioritized for Q3 2025; assays from surface drilling evaluating potential parallel structure between 6 Zone and 2 Zone at Eagle River expected in Q3 2025, and the possibility of follow-up drilling; an expected stronger second half at Kiena; the expectation that production at Kiena will be weighted toward the second half of 2025, with Q4 2025 representing about 40% of production for 2025; Presqu'île development remaining on track with initial stope production expected in late 2025 or Q1 2026 and expected timing of the mining permit approval for the project; exploration ramp development at Kiena scheduled for completion with breakthrough to 33-level by end of year 2025 and the project cost trending toward being higher than budget; the planned timing of the recommencement of drilling of the VC Zone and North Zone target; additional lenses may be delineated at Kiena Deep with further drilling, along with some existing lenses being extended laterally; recent drill information from Kiena Deep forming the basis for the 2026 technical report; details, targets and timing of the planned drilling from the second drill bay on the 134-level exploration drift; details of and planned timing of further holes planned for the 33-level; the planned focus and objectives of the three rigs as part of the summer barge drilling program at Kiena; the expected completion time of the high-resolution drone magnetic survey at Kiena; planned investment in capital development to accelerate the Presqu'île development footprint, along with the planned higher tonnage at the project in 2026; expected production weighting for the second half of 2025; and the Company's planned conference call and webcast to discuss its Q2 2025 financial and operation results. These forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors including those risk factors discussed in the sections titled 'Cautionary Note Regarding Forward Looking Information' and 'Risks and Uncertainties' in the Company's most recent Annual Information Form. Readers are urged to carefully review the detailed risk discussion in our most recent Annual Information Form which is available on SEDAR+ and on the Company's website. There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management's estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. Non-IFRS Performance Measures Wesdome uses non-IFRS performance measures throughout this news release as it believes that these generally accepted industry performance measures provide a useful indication of the Company's operational performance. These non-IFRS performance measures do not have standardized meanings defined by IFRS and may not be comparable to information in other gold producers' reports and filings. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The non-IFRS performance measures include: Average realized price per ounce of gold sold Cash costs and cash costs per ounce of gold sold Production costs and production costs per tonne milled Cash margin and cash margin per ounce of gold sold Sustaining capital and growth capital AISC and AISC per ounce of gold sold Free cash flow and free cash flow per share Adjusted net income (loss) and adjusted net income (loss) per share EBITDA Average Realized Price per Ounce of Gold Sold Average realized price per ounce of gold sold is a non-IFRS measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. Average realized price per ounce of gold sold is calculated by dividing gold revenue from the Company's mining operations for the relevant period by the ounces of gold sold. It may not be comparable to information in other gold producers' reports and filings. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Cash Costs and Cash Costs per Ounce of Gold Sold Cash costs per ounce of gold sold is a non-IFRS performance measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS, as well it may not be comparable to information in other gold producers' reports and filings. The Company has included this non-IFRS performance measure throughout this document as it believes that this generally accepted industry performance measure provides a useful indication of the Company's operational performance. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's operating performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The following table provides a reconciliation of total cash costs per ounce of gold sold to cost of sales per the financial statements: Production Costs and Production Costs per Tonne Milled Production costs per tonne milled is a non-IFRS performance measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS, and as well it may not be comparable to information in other gold producers' reports and filings. As illustrated in the table below, this measure is calculated by adjusting cost of sales, as shown in the statements of income for non-cash depletion and depreciation, royalties and inventory level changes and then dividing by tonnes processed through the mill. Management believes that production costs per tonne milled provides additional information regarding the performance of mining and milling operations and allows management to monitor operating costs on a more consistent basis as the per tonne milled measure reduces the cost variability associated with varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne milled, the estimated revenue on a per tonne basis must be in excess of the production costs per tonne milled in order to be economically viable. Management is aware that this per tonne milled measure is impacted by fluctuations in throughput and thus uses this evaluation tool in conjunction with cost of sales prepared in accordance with IFRS. This measure supplements cost of sales information prepared in accordance with IFRS and allows investors to distinguish between changes in cost of sales resulting from changes in production versus changes in operating performance. Cash Margin and Cash Margin per Ounce of Gold Sold Cash margin is a non-IFRS measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS, and as well it may not be comparable to information in other gold producers' reports and filings. It is calculated as the difference between gold revenue from mining operations and cash mine site operating costs (see cash costs per ounce of gold sold section above) per the Company's financial statements. The Company believes cash margin illustrates the performance of the Company's operating mines and enables investors to better understand the Company's performance in comparison to other gold producers who present results on a similar basis. Sustaining Capital and Growth Capital Sustaining capital expenditures are generally defined as expenditures that support the ongoing operation of the asset or business without any associated increase in capacity, life of assets or future earnings. This measure is being used by management to understand the ongoing capital cost required to maintain operations at current levels. Growth capital expenditures are generally defined as capital expenditures that expand existing capacity, increase life of assets and/or increase future earnings. This measure is used by management to understand the costs of developing new operations or major projects at existing operations where these projects will materially increase production from current levels. AISC and AISC per Ounce of Gold Sold AISC includes mine site operating costs incurred at the Company's mining operations, sustaining mine capital and development expenditures, mine site exploration and evaluation expenditures and equipment lease payments related to the mine operations and corporate and general expenses. The Company believes that this measure represents the total cash costs of producing gold from current operations and provides the Company and other stakeholders with additional information that illustrates its operational performance and ability to generate cash flow. This cost measure seeks to reflect the total cost of gold production from current operations on a per ounce of gold sold basis. New project and growth capital are not included. Wesdome is targeting to begin calculating AISC in accordance with the World Gold Council guidelines starting in the 2026 calendar year, ensuring alignment with industry standards and improved comparability for investors. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Free Cash Flow and Free Cash Flow per Share Free cash flow is a non-IFRS measure and is calculated by taking net cash provided by operating activities less cash used in capital expenditures and lease payments as reported in the Company's financial statements. Free cash flow is a useful indicator of the Company's ability to operate without reliance on additional borrowing or usage of existing cash. Free cash flow per share is calculated by dividing free cash flow by the weighted average number of shares outstanding for the period. Adjusted Net Income and Adjusted Net Earnings per Share Adjusted net income and adjusted net earnings per share are non-IFRS performance measures and do not constitute a measure recognized by IFRS and do not have standardized meanings defined by IFRS, and as well both measures may not be comparable to information in other gold producers' reports and filings. Adjusted net income is calculated by removing the one-time gains and losses resulting from the disposition of non-core assets, non-recurring expenses and significant tax adjustments (mining tax recognition and exploration credit refunds) not related to the current period's income, as detailed in the table below. The Company discloses this measure, which is based on its financial statements, to assist in the understanding of the Company's operating results and financial position. EBITDA Earnings before interest, taxes and depreciation and amortization ('EBITDA') is a non-IFRS financial measure which excludes the following items from net income (loss): interest expense, mining and income tax expense (recovery) and depletion and depreciation. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors use EBITDA as an indicator of Wesdome's ability to generate liquidity from net cash from operating activities to fund working capital needs, service debt obligations and fund capital expenditures. EBITDA is intended to provide additional information to investors and analysts and do not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. EBITDA excludes the impact of cash costs of financing activities and taxes, and the effects of changes in operating working capital balances and therefore are not necessarily indicative of operating profit or net cash from operating activities as determined under IFRS. Other producers may calculate EBITDA differently. The following table provides a reconciliation of net income in the Company's financial statements to EBITDA: Endnotes Refer to the section in this press release entitled 'Non-IFRS Performance Measures' for the reconciliation of non-IFRS measurements to the financial statements. Revenue includes $0.2 million for Q2 2025, $0.1 million for Q2 2024, $0.4 million for H1 2025 and $0.3 million for H1 2024, from the sale of by-product silver. Operating cash flow per share is calculated by dividing net cash from operating activities by the weighted average number of shares. Costs of sales per ounce of gold sold is calculated by dividing the cost of sales by the number of ounces sold. Working capital is the sum of current assets less current liabilities on the statements of financial position. PDF available:
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Orla Mining Reaches Major Milestone in Nevada with Notice of Intent for South Railroad Project
Company Working with Cooperating Agencies to Fast-Track Timeline to Construction VANCOUVER, BC, Aug. 13, 2025 /CNW/ - Orla Mining Ltd. (TSX: OLA) (NYSE: ORLA) ("Orla" or the "Company") is pleased to announce that the U.S. Department of the Interior Bureau of Land Management ("BLM") has published the Notice of Intent ("NOI") for the South Railroad Project ("South Railroad" or the "Project") in the Federal Register. South Railroad is located in Nevada, USA and forms part of the Company's larger South Carlin Complex ("South Carlin") land package located on the prolific Carlin Trend. The publication of the NOI represents a major milestone in the federal permitting process, as it formally initiates the process to complete the National Environmental Policy Act ("NEPA") review and preparation of an Environmental Impact Statement by the BLM. Following receipt of all required state and federal permits, anticipated within 12 months, onsite construction can begin. The Company will seek opportunities to accelerate timeline to construction, where possible. "The publication of the Notice of Intent marks a significant milestone for our South Railroad project, continuing the process towards receipt of final permits. South Railroad is the next pillar in Orla's organic growth strategy toward annual gold production of 500,000 ounces. We thank the BLM, the Secretary of the Interior Burgum, and the US Administration for their continued support of American mineral development and production. We will work with our cooperating agencies to fast-track the timeline to onsite construction start, and ultimately first gold production." - Jason Simpson, President and Chief Executive Officer of Orla South Railroad, 100% owned by Orla, is a low-complexity, feasibility-stage heap leach project. Orla plans to provide an update to South Carlin's mineral resource, mineral reserve estimate, and feasibility study for the Project in the fourth quarter 2025. The South Carlin Complex is located on a prospective 25,000-hectare land package, on the Carlin Trend, which provides opportunities for resource growth and new discoveries. The Company has already commenced detailed project engineering and will begin ordering long lead equipment this year to de-risk project development in anticipation of final permits in 2026. The Company has secured sufficient sage grouse credits and has outlined strategies to secure water rights needed for construction, operations, and reclamation. Additional detail from the Bureau of Land Management available here: Qualified Persons Statement The scientific and technical information in this news release was reviewed and approved by Mr. J. Andrew Cormier, P. Eng., Chief Operating Officer of the Company, who is the Qualified Person as defined under NI 43-101 standards. About Orla Mining Ltd. Orla's corporate strategy is to acquire, develop, and operate mineral properties where the Company's expertise can substantially increase stakeholder value. The Company has three material projects, consisting of two operating mines and one development project, all 100% owned by the Company: (1) Camino Rojo, in Zacatecas State, Mexico, an operating gold and silver open-pit and heap leach mine. The property covers over 139,000 hectares which contains a large oxide and sulphide mineral resource, (2) Musselwhite Mine, in Northwestern Ontario, Canada, an underground gold mine that has been in operation for over 25 years and produced over 6 million ounces of gold, with a long history of resource growth and conversion, and (3) South Railroad, in Nevada, United States, a feasibility-stage, open pit, heap leach gold project located on the Carlin trend in Nevada. The technical reports for the Company's material projects are available on Orla's website at and on SEDAR+ and EDGAR under the Company's profile at and respectively. Forward-looking Statements This news release contains certain "forward-looking information" and "forward-looking statements" within the meaning of Canadian securities legislation and within the meaning of Section 27A of the United States Securities Act of 1933, as amended, Section 21E of the United States Exchange Act of 1934, as amended, the United States Private Securities Litigation Reform Act of 1995, or in releases made by the United States Securities and Exchange Commission, all as may be amended from time to time, including, without limitation, statements regarding the development of the South Railroad Project, including receipt and timing of remaining permits, the timing of construction, the Company's ability to accelerate permitting timelines, the timing of the updated resource and reserve estimate and feasibility study and the opportunity for resource growth and new discoveries; the Company's growth strategy of reaching 500,000 ounces of annual production; as well as the Company's other goals and strategies. Forward-looking statements are statements that are not historical facts which address events, results, outcomes or developments that the Company expects to occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Certain material assumptions regarding such forward-looking statements were made, including without limitation, assumptions regarding: the future price of gold and silver; anticipated costs and the Company's ability to fund its programs; the Company's ability to carry on exploration, development, and mining activities; the Company's ability to successfully integrate the Musselwhite Mine; tonnage of ore to be mined and processed; ore grades and recoveries; decommissioning and reclamation estimates; currency exchange rates remaining as estimated; prices for energy inputs, labour, materials, supplies and services remaining as estimated; the Company's ability to secure and to meet obligations under property agreements, including the layback agreement with Fresnillo plc; that all conditions of the Company's credit facility will be met; the timing and results of drilling programs; mineral reserve and mineral resource estimates and the assumptions on which they are based; the discovery of mineral resources and mineral reserves on the Company's mineral properties; that political and legal developments will be consistent with current expectations; the timely receipt of required approvals and permits, including those approvals and permits required for successful project permitting, construction, and operation of projects; the timing of cash flows; the costs of operating and exploration expenditures; the Company's ability to operate in a safe, efficient, and effective manner; the Company's ability to obtain financing as and when required and on reasonable terms; that the Company's activities will be in accordance with the Company's public statements and stated goals; and that there will be no material adverse change or disruptions affecting the Company or its properties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: uncertainty and variations in the estimation of mineral resources and mineral reserves; risks related to the Company's indebtedness and gold prepayment; risks related to exploration, development, and operation activities; foreign country and political risks, including risks relating to foreign operations; tailings risks; reclamation costs; delays in obtaining or failure to obtain governmental permits, or non-compliance with permits; environmental and other regulatory requirements; loss of, delays in, or failure to get access from surface rights owners; uncertainties related to title to mineral properties; water rights; risks related to natural disasters, terrorist acts, health crises, and other disruptions and dislocations; financing risks and access to additional capital; risks related to guidance estimates and uncertainties inherent in the preparation of feasibility studies; uncertainty in estimates of production, capital, and operating costs and potential production and cost overruns; the fluctuating price of gold and silver; risks related to the Cerro Quema Project; unknown labilities in connection with acquisitions; global financial conditions; uninsured risks; climate change risks; competition from other companies and individuals; conflicts of interest; risks related to compliance with anti-corruption laws; volatility in the market price of the Company's securities; assessments by taxation authorities in multiple jurisdictions; foreign currency fluctuations; the Company's limited operating history; litigation risks; the Company's ability to identify, complete, and successfully integrate acquisitions; intervention by non-governmental organizations; outside contractor risks; risks related to historical data; the Company not having paid a dividend; risks related to the Company's foreign subsidiaries; risks related to the Company's accounting policies and internal controls; the Company's ability to satisfy the requirements of Sarbanes–Oxley Act of 2002; enforcement of civil liabilities; the Company's status as a passive foreign investment company (PFIC) for U.S. federal income tax purposes; information and cyber security; the Company's significant shareholders; gold industry concentration; shareholder activism; other risks associated with executing the Company's objectives and strategies; as well as those risk factors discussed in the Company's most recently filed management's discussion and analysis, as well as its annual information form dated March 18, 2025, which are available on and Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. 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