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