Santa Fe Gold Records $5.17 Million Gross for 2017 and Net Income of $2.38 Million through June 30, 2017

Company Reports Total Gross Income of $5,172,597 for 2016 - 2017 and Net of $2,384,543

With Three Compliant Annual Reports SFEG Will Now Apply for Uplisting to OTCQB Exchange

ALBUQUERQUE, N.M., July 05, 2018 (GLOBE NEWSWIRE) -- Santa Fe Gold Corporation (OTC:SFEG), a U.S. based mining and exploration enterprise with emphasis on Gold, Silver, Copper, Precious, Industrial and Base metals and owner of multiple claims, including eight advanced projects containing numerous additional mine sites with near term production potential is pleased to announce a net profit of $2,384,542 on other income of $5,172,597.

President and CEO Tom Laws Comments

We are pleased to report the above gains for Fiscal year 2016 - 2017 quarters and expect this trend to continue over coming quarters as the company continues to implement measures to improve its balance sheet and create increasing value for shareholders. The company expects to put its first property into production over the coming quarter and looks forward to updating on ongoing progress in the very near future. Management expects to have three properties in production early in 2019.

SANTA FE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS

    Years Ended June 30,  
    2017       2016    
             
SALES, Net $ -     $ 6,250    
             
OPERATING COSTS AND EXPENSES:            
Exploration and mine related costs   255,917       473,497    
General and administrative   1,450,797       2,072,116    
Depreciation and amortization   21,799       1,134,112    
Total Operating Costs and Expenses   1,728,513       3,679,725    
             
LOSS FROM OPERATIONS   (1,728,513 )     (3,673,475 )  
             
OTHER INCOME (EXPENSE):            
Gain on debt extinguishment   4,416,668       821,050    
Gain on trust debt forgiveness   464,763       -    
Gain on bankruptcy 363 asset sale   -       15,309    
Foreign currency translation   (71,181 )     91,590    
Miscellaneous income   -       110    
Gain (loss) on derivative instrument liabilities   (26,974 )     1,068,664    
             
Financing charges   -       (74,458 )  
Financing costs - commodity supply agreements   291,166       (677,996 )  
Interest expense   (961,386 )     (2,405,030 )  
Total Other Income and (Expense)   4,113,056       (1,160,761 )  
             
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES   2,384,543       (4,834,236 )  
PROVISION FOR INCOME TAXES   -       -    
             
NET INCOME (LOSS) $ 2,384,543     $ (4,834,236 )  
             
Basic and Diluted Per Share data            
             
Net income (loss) - basic $ 0.01     $ (0.03 )  
Net (Loss) - diluted $ (0.01 )   $ (0.03 )  
             
Weighted Average Common Shares Outstanding:            
Basic   263,274,757       179,328,825    
Diluted   317,788,673       179,328,825    
 
 

SANTA FE GOLD CORPORATION
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
YEARS ENDED JUNE 30, 2017 and 2016

                Additional            
    Common Stock           Paid-in   Accumulated        
    Shares     Amount     Capital   (Deficit)     Total  
Balance, June 30, 2015   142,396,648   $ 284,793   $ 79,857,465 $   (95,563,613 ) $ (15,421,355 )
Sale of common stock for cash   7,500,000     15,000     (7,500 )   -     7,500  
Exercise of warrants for cash   7,500,000     15,000     (7,500 )   -     7,500  
Common stock issued for consulting   3,739,187     7,478     61,661     -     69,139  
Common stock issued for
compensation
  14,217,561     28,436     (14,218 )   -     14,218  
Common stock issued for conversion of note payable
interest
  46,446,266     92,892     53,955     -     146,847  
Derivative settlement due to conversions   -     -     90,081     -     90,081  
Net income (loss)   -     -     -     (4,834,236 )   (4,834,236 )
Balance, June 30, 2016   221,799,662   $ 443,599   $ 80,033,944 $   (100,397,849 ) $ (19,920,306 )
                             
Sale of common stock for cash   40,840,519     81,681     1,272,403     -     1,354,084  
Exercise of warrants for cash   40,840,519     81,681     1,272,403     -     1,354,084  
Shares issued for fees   3,712     9     279     -     288  
Common stock issued for consulting   9,365,360     18,731     456,276     -     475,007  
                             
Common stock returned for
compensation
  (15,956,748 )   (31,914 )   31,914     -     -  
Common stock returned from shareholder   (6,956,750 )   (13,914 )   13,914     -     -  
Derivative settlement due to conversions   -     -     333,462     -     333,462  
Net income (loss)   -     -     -     2,384,543     2,384,543  
Balance, June 30, 2017   289,936,274   $ 579,873   $ 83,414,595   $ (98,013,306 ) $ (14,018,838 )
 
 

SANTA FE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS

  Years Ended June 30,
   
  2017   2016    
CASH FLOWS FROM OPERATING ACTIVITIES:              
Net income (loss) $ 2,384,543   $   (4,834,236 )  
Adjustments to reconcile net loss to net cash used in operating activities:              
Depreciation and amortization   21,799       1,134,112    
Stock-based compensation   -       14,217    
Stock issued for services   475,007       69,139    
Amortization of discounts on notes payable   161,814       260,874    
Loss (gain) on derivative instrument liabilities   26,974       (1,068,664 )  
Gain on 363 asset sale   -       (15,309 )  
Gain on debt extinguishment   (4,416,668 )     (821,050 )  
Gain on trust debt extinguishment   (464,763 )     -    
Financing costs – commodity supply agreements   (291,166 )     677,996    
Shares issued for fees   288       74,458    
Foreign currency translation   71,181       (91,590 )  
Net change in operating assets and liabilities:              
Other receivable   -       34,833    
Prepaid expenses and other current assets   (35,363 )     177,173    
Accounts payable and accrued liabilities   1,002,960       2,068,962    
Net Cash Used in Operating Activities   (1,063,394 )     (2,319,085 )  
               
CASH FLOWS FROM INVESTING ACTIVITIES:              
Repayment to related party for equipment purchased on behalf of Company   (267,732 )     -    
Escrow deposit on mineral property   (500,000 )     -    
Net Cash Used in Investing Activities   (767,732 )     -    
               
CASH FLOWS FROM FINANCING ACTIVITIES:              
Repayment to related party for expenses paid on behalf of Company   (153,268 )        
Proceeds from common stock purchases   1,354,084       7,500    
Proceeds from exercise of warrants   1,354,084       7,500    
Proceeds from DIP funding and bridge loan   -       2,520,958    
Repayments of DIP funding   -       (283,363 )  
Payments on convertible notes payable   (284,783 )     -    
Net Cash Provided by Financing Activities   2,270,117       2,252,595    
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   438,991       (66,490 )  
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR   2,815       69,305    
CASH AND CASH EQUIVALENTS, END OF YEAR $ 441,806     $ 2,815    
             
SUPPLEMENTAL CASH FLOW INFORMATION:            
Cash paid for interest $ -   $   -  
Taxes paid $ -   $   -  
             
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:            
Purchase of equipment by related party $ 267,732   $   -  
Expenses paid by related party $ 202,688   $   -  
Accrued interest reclassified to note principal $ 12,521   $   -  
Liabilities released in the 363 asset sale $ -   $   16,416,537  
Common stock issued for convertible notes and accrued interest conversion $ -   $   146,848  
Settlement of derivative liabilities through conversion $ 333,462   $   90,081  
             
Common stock returned and cancelled $ 45,828   $   -  
Discounts on notes payable due to derivatives $ -   $   98,091  
 

To Access and Review Complete Annual Report in its entirety - Please Click on the archive fast-edgar link below

 

http://archive.fast-edgar.com//20180705/AFKZP62CZ222NZZ2222C2ZZUAVMKZH2262A2/sfeg-20170630.htm

                 

About Santa Fe Gold

Santa Fe Gold is a U.S.-based mining and exploration enterprise and owns the following mining assets: The Knight's Peak region of Grant County, New Mexico comprising the Malone Mines, Patanka, Hillcrest, Barranca and Principal Mines, altogether incorporating some twenty mine sites and all located at Knight's Peak, together with an expanded area surrounding the Malone Mines in the southern region of Burro Mountains, New Mexico.

The company also owns very significant holdings in the Playas Lake Bed Area of Hidalgo County that includes the presences of Titanium ore and rare earth minerals and deposits. It also owns Bullard's Peak Corporation and Black Hawk Consolidated Mines incorporating the Alhambra Silver mine along with a potential major Porphyry Silver discovery and additional deposits of Cobalt, Lithium, Manganese and Nickel and nearby Sunset Lode and Sunset Placer Gold and Silver Deposits located in the Pinos Altos District of Grant County, New Mexico. Substantial amounts of historical data relating to all of the above properties are being analyzed regarding their high-grade Gold and Silver Mines and surrounding deposits, in particular for their significant occurrences of Cobalt, Lithium, Manganese, Nickel and other Rare Earth Discoveries.

The company also owns the Quartzite Creek Placer Gold property, located northeast of Takia Landing in the Omineca Mining Division of British Columbia, Canada and the Harris Creek Placer Gold located in the Vernon Mining Division of British Columbia, southwest of the town of Lumby.

Santa Fe Gold's Exploration and Development Team continues active exploration, surveillance, research, acquisition of multiple additional properties as it finalizes analysis of a number of attractive and economically viable new prospects.

The company continues to execute on its aggressive acquisition program that is totally focused on positioning Santa Fe Gold to resume mining and production operations from multiple sources expected in the near to medium term.

For more information, disclosure and to register for updates:

Please visit www.santafegoldcorp.com.

Contact

Frank Mueller, CFO

505-255-4852

info@santafegoldcorp.com

 

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