TORONTO (miningweekly.com) – Canadian gold producer Veris Gold, which is currently operating under protection of the Companies' Creditors Arrangement Act (CCAA), late on Friday reported a net loss of $8.1-million, or $0.05 a share, in the three months ended June, despite reporting increased sales and revenue.

The Vancouver-based miner reported net income of $5.9-million, or $0.05 a share, in the same quarter a year earlier.

The company realised gold sales of $52.5-million on selling about 40 795 oz of gold, up 17% year-on-year from $44.9-million, on sales of about 36 590 oz of gold a year earlier.

Veris said the revenue increased owing to an 11% rise in the volume of gold sold at 40 795 oz, which was offset by a 7% decline in the gold price to $1 288/oz.

The company had significantly curtailed nonessential capital expenditure (capex) as a result of the events leading up to, and including, the start of the creditor protection proceedings.

It explained that with limited liquidity available, the company was limiting capex and did not expect to have an active capital programme beyond the required costs for sustaining production.

Despite the operational setbacks and lack of available liquidity, Veris believed it could sustain output levels between about 145 000 oz and 155 000 oz from its four existing underground mines at Jerritt Canyon.

Early in June, the company received notices of ‘early termination date’ from Deutsche Bank (DB) London Branch, requiring the company to pay $89.4-million under the terms of the senior secured gold forward facility it entered into in 2011 and 2012.

Under the notices, DB would have been able to take steps necessary to enforce its rights against the company if Veris failed to make payments by June 9. On that day, the company sought creditor protection under the CCAA in the Supreme Court of British Columbia and the court issued an order granting the company's application.

Veris also filed a Chapter 15 case in the United States Bankruptcy Court for the district of Nevada.

Trading in the Veris’ stock on the TSX was halted on June 9 and its shares were delisted on July 18 owing to the CCAA proceedings. The company noted that it was currently not exploring alternative listings, as its shares would likely continue to be suspended under the new listing until the CCAA proceedings had been finalised.