TIDMALBA
RNS Number : 2142Z
Alba Mineral Resources PLC
20 May 2021
Alba Mineral Resources plc
("Alba" or "the Company")
Announcement of Final Results and Greenland Spin-Out IPO
The Board of Alba Mineral Resources plc is pleased to report the
results for the financial year ended 30 November 2020.
References to the "Company" or "Alba" are to Alba Mineral
Resources plc and references to the "Group" are to Alba
collectively with its Subsidiary Companies.
1. REVIEW OF ACTIVITIES
1.1 INTRODUCTION
The annual Chairman's Statement always provides a good
opportunity both to review the past 12 months of progress and also
to set our course for the next 12 months. This year, however, it is
also an opportunity to make a significant announcement. After
assessing all the alternatives, the Alba Board has determined that
the optimal way to unlock real and sustained value in our asset
portfolio is to effect a divestment of our Greenland assets into a
new Greenland-focused, AIM-quoted company.
In Section 4 below, I set out the rationale for the proposed
restructuring of the Alba Group. First of all, however, I would
like to present my review of the past year.
This time last year I wrote in my Chairman's Statement about the
impact COVID-19 was beginning to have on our 2020 field exploration
plans. I think it is quite illuminating to look at some of those
statements again through the lens of the past 12 months.
I said at the time that "the rapidly developing situation in
relation to the COVID-19 pandemic has placed some considerable
doubt upon our ability to execute [our field] programmes in full
this year".
I also referred to the impact the COVID-19 pandemic had had on
global stock markets, and how Alba's share price had been caught up
in the "cross-winds of [a] sudden slump in investor confidence
across the board". I also expressed the view that while these
market conditions continued to hold, "our ability to raise capital
through the equity markets must now be considered severely
constrained".
As to whether the pandemic put paid to some of our field plans
in 2020, it is undoubtedly the case that they did, in Greenland at
least. We put our plans to drill the Amitsoq Graphite Project on
hold and focused our efforts instead on those sites which we could
more readily access, most notably of course the Clogau-St David's
Gold Mine in Wales.
As to whether our ability to raise capital remained constrained
through 2020 and our share price in the doldrums, I am pleased to
say that neither proved to be the case by the time the year was
out. The second half of 2020 saw us raising money at ever
increasing prices, testament to the great results we were getting
at Clogau. And our share price recovered from a low of 0.05p in
March 2020 to a high for the financial year of 0.54p in September
2020, a rally of more than 10 times. While our share price has
recently come off those highs, it still represents a dramatic
improvement on the position which prevailed this time last
year.
As for COVID-19, things seem to be improving finally, after what
has been a particularly bleak time for us all here in the UK. As
for Greenland, we are hopeful that the travel restrictions there
will start to be lifted sufficiently in the next few months to
enable us to get our drill teams and rigs into the country this
summer so that we can drill both the Amitsoq Graphite and the Thule
Black Sands Ilmenite Projects. Mark Austin, our Senior Geologist
& COO, and his team are busy putting the final touches on those
drill programmes as I write.
1.2 DETAILED REVIEW OF THE 2020-21 FINANCIAL YEAR AND SUBSEQUENT ACTIVITIES
(a) CLOGAU-ST DAVID'S GOLD MINE, WALES
We have made great progress at Clogau-St David's in the past 12
months towards our goal of getting the Mine back into commercial
production. A number of milestones have been reached in that
time:
Underground Drilling
A phase 1 underground drilling programme was successfully
completed, with seven drill holes completed for a total of 560
metres. All seven drillholes intersected quartz veining, the known
geological setting of all historic gold production at the Clogau-St
David's Gold Mine, validating Alba's geological model, with gold
assays returning grades up to 1.79 g/t. Alba believes the drilling
to have intersected a 550-metre westerly extension to the Main
Lode, the source of most historic production at the Clogau-St
David's Gold Mine.
Surface Drilling
A phase 1 surface drilling programme was successfully completed,
targeting a zone below the Llechfraith mine area. While it had
originally been planned to drill only three holes from the first
collar location, the success of the first holes in hitting
significant quartz veins within about a 15-metre zone of one
another has led the Company to the belief that this indicates the
presence of a significant vein system below the deepest previously
worked zone at the Llechfraith mine area. As a result, we ended up
drilling a total of ten holes from this same location, which has
enabled us to more clearly define the significant dimensions of
this lode system.
Alba now projects the newly identified vein system as having a
strike extent of up to 52 metres, as well as extending 122 metres
below the deepest previously worked zone at the Llechfraith mine
area.
In April 2021 we announced the assay results from this phase 1
surface drilling campaign. Gold mineralisation was confirmed across
several individual zones up to one metre thick, with individual
values up to 4.25 g/t. The intersection of values strongly
reinforces our view that the newly modelled zone, which we are
calling the Llechfraith Lode, is a key target for future
development and production at Clogau-St David's. The results add
weight to our objective to dewater the Llechfraith Shaft as soon as
possible to allow direct access to the on-reef development.
Also in April 2021, we announced that we had started the second
phase of the Company's surface drilling programme at Clogau-St
David's. This phase of drilling is targeting what we believe to be
the westerly, 550-metre extension to the Clogau Main Lode, which
was identified during the underground drilling last year (see
above). This programme is currently ongoing.
Bulk Sampling
A phase 1 underground bulk sampling programme was successfully
completed, with seven bulk samples collected for a total of 36
tonnes of material. The processing of a small quantity of that bulk
sample at a third-party processing facility validated the Company's
process flowsheet and confirmed the production of a 20.7 grams per
tonne gold concentrate.
The Company purchased and installed new items of plant at the
mine site, notably an impact crusher and gold concentrator. The
Company's dedicated pilot gold processing plant became fully
operational in January 2021.
Pitting of Waste Rock Dump
In April 2021 we carried out evaluation pitting of the historic
waste rock dump at Clogau-St David's. The waste rock dump contains
material derived from the internal development of the Mine during
past periods of production. The dump is estimated to cover about
30,000 square feet and to contain 20,000 tonnes of rock. Several
pits were dug, with around 15 tonnes of material extracted per pit.
The material was then screened and a sample of the finer material
from each pit sent for gold assaying offsite. Results are
awaited.
Llechfraith Dewatering
After the year end we submitted an application for a bespoke
water discharge permit to allow the lower workings in the
Llechfraith Shaft to be dewatered so that we can then undertake
underground drilling and bulk sampling directly from that key
zone.
Regional Exploration
The completed first phase of surface trenching validated our
regional geological model, by uncovering multiple quartz veins in
the target area identified during Alba's extensive soil sampling
programme, including a 2.1 metre width quartz vein, comparable with
the widths of the worked veins in the Clogau-St David's Gold Mine.
While the assays only returned low-grade anomalism, this is not
unexpected given the irregular distribution of gold through the
Clogau vein system.
Permitting
The Crown Estate agreed to extend the duration of our exclusive
exploration licence over the Clogau-St David's Gold Mine. We had
originally been awarded a six-year exclusive exploration licence,
termed an Option Agreement, with effect from 10 February 2015. The
licence has now been extended for a further four years (until 9
February 2025), being the maximum extension possible under the
terms of the original licence. As and when we are ready to proceed
to commercial production, we will apply to convert the exploration
licence into a formal, long-term lease.
(b) GWYNFYNYDD GOLD MINE, WALES
Towards the end of the year, we were awarded the exclusive
exploration rights to the Gwynfynydd Gold Mine in north Wales for a
period of six years. The Gwynfynydd Gold Mine is the second largest
producer of gold in the UK's history, after the Clogau-St David's
Gold Mine. With this award, Alba now has the exclusive exploration
rights over the entire length of the Dolgellau Gold Belt.
The Gwynfynydd Gold Mine has historically produced around 45,000
ounces of gold at a mining grade of 15 grams/tonne. Commercial
operations at Gwynfynydd ceased in 1999 when the gold price was
only around US$300 per ounce. Gwynfynydd shares many of the same
geological and mineralogical characteristics of Clogau, enabling
Alba to roll out the same modern exploration and development
methods which have been successfully deployed at Clogau-St
David's.
(c) GREENLAND MINING PROJECTS
Work at our mining sites in Greenland was severely constrained
during the year due to travel restrictions imposed by Greenland in
the face of the Coronavirus pandemic.
Thule Black Sands Ilmenite Project (TBS)
TBS benefits from an existing defined JORC-compliant Inferred
Mineral Resource of 19 million tonnes at 43.6% Total Heavy
Minerals, with an in-situ ilmenite grade of 8.9%, one of the
highest in-situ grades of any ilmenite project in the world.
Mineral sands specialists IHC Robbins were appointed to carry
out a comprehensive metallurgical process development and test work
programme on a bulk sample which we collected from TBS during the
last field programme there. The test work programme is designed to
confirm the ilmenite products to be produced from TBS ilmenite and
to provide product samples to enable potential customers and
offtake partners to carry out their own confirmatory analyses.
Amitsoq Graphite Project
In relation to Amitsoq, during the year graphite specialists
ProGraphite of Germany undertook a test work programme in relation
to Amitsoq graphite. This reaffirmed that the graphite content of
Amitsoq ore is very high, indeed amongst the highest found in flake
graphite deposits globally. It also demonstrated that a >96%
graphite concentrate can be produced and that purification test
work confirms the suitability of Amitsoq graphite for Lithium-Ion
Batteries ("LIBs"), with standard alkaline purification, in
particular, achieving a carbon level of above 99.95%, the grade
needed for the production of spherical graphite for LIBs. LIBs are
already the fastest growing market for flake graphite, with massive
growth rates forecast for the next decade.
Alba also commissioned Dr John Arthur CGeol, FGS, to prepare an
Exploration Target for the Amitsoq Project. Dr Arthur has
determined that the volume and grade ranges for:
(a) the Amitsoq Deposit Exploration Target are between 1.7 and
4.5 million tonnes (assuming a density of 2.63t/m3) with a grade
range of between 24-36% Graphitic Carbon; and
(b) the Kalaaq Deposit Exploration Target are between 4.0 and
7.0 million tonnes (assuming a density of 2.63t/m3) with a grade
range of between 23-29% Graphitic Carbon.
This translates into a tonnage estimate of between 408,000 and
1,620,000 tonnes for the Amitsoq deposit and between 920,000 and
2,030,000 tonnes for Kalaaq and gives us great confidence as we
move into the drilling phase at the Project.
Legal & Regulatory
In response to the COVID-19 pandemic, the Government of
Greenland decided to reduce to zero the exploration expenditure
obligations for all mineral exploration licences for both 2020 and
2021 and to extend the duration of all existing licences by two
years to reflect the difficulty of progressing exploration projects
in Greenland since last year. All of Alba's Greenland exploration
licences have therefore benefited from these measures in full.
During the year, we decided to reduce some of our exploration
landholdings in Greenland, reducing our Amitsoq, Inglefield and
Melville Bay licence areas. These reductions did not affect any of
the key areas of interest across our licences. Expenditure
commitments in Greenland are largely a function of the size of
licences held, so this process of regular review and refinement
allows us to keep our expenditure commitments under control. No
changes were made to the licence area for Alba's 100% owned
TBS.
(d) LIMERICK BASE METALS PROJECT
After the year end, the mineral exploration licence for our 100%
owned Limerick Base Metals Project, PL 3824, was renewed until 26
May 2022. A prospectivity review of the licence area has identified
the Coonagh Castle Fault as one of main faults transecting the
Limerick Basin and concluded that being able to determine the trace
of the fault to within tens of metres on surface is crucial to the
success of future drilling.
Subsequent interpretation of Tellus and satellite (Sentinel)
imagery for the Alba licence area has identified three principal
exploration target areas within PL 3824, each exhibiting a number
of the structural and geological features found in Zinc-Lead
deposits in the Irish Zinc Ore Field.
These results support Alba's decision to renew PL 3824 and to
recommence exploration activities at the Project.
(e) HORSE HILL OIL FIELD, ENGLAND
During the year, various interventions were made to the Horse
Hill-2z ("HH-2z") horizontal well by the Operator, Horse Hill
Developments Limited ("HHDL"), under the management of its major
shareholder, UK Oil & Gas Plc ("UKOG"), to stop the ingress of
formation water which was inhibiting oil production. However,
ultimately UKOG was not able to resolve these issues sufficiently
well.
While UKOG initially reported that it was reviewing a number of
options for the future use of HH-2z, after the end of the year it
confirmed that it planned to reconfigure HH-2z into a water
re-injection well as soon as practicable, subject to regulatory
consent. The reasons given for this were that it would remove the
need for costly off-site water disposal and also help maximise oil
recovery from HH-1 by supporting reservoir pressure.
While it is disappointing that HH-2z was not successful as an
oil producer, Alba's technical team had flagged concerns from the
outset as to the significant challenges that lay ahead in UKOG
attempting to drill a horizontal well into this reservoir. While we
would have much preferred not to be proven correct in this
particular instance, it should also be said that in our view the
failure of HH-2z has no bearing on the merits of drilling
successive vertical wells into both the Portland and Kimmeridge oil
pools, and I return to this subject below.
As for the original Horse Hill-1 well ("HH-1"), an intervention
was completed to reperforate the full Portland oil-producing
section, and this was followed by an ongoing series of production
optimisation trials. UKOG reported after the year end that these
trials are expected to continue for several months but that the
early results were encouraging, with stable water influx levels
achieved by the end of 2020.
During the year, the Oil and Gas Authority ("OGA") approved the
Horse Hill Field Development Plan ("FDP") and consented to the
start of long-term production from the field. This key consent
should enable net recoverable reserves to be allocated to the
field, which is important for future potential debt-based funding
for the field.
In January 2021, UKOG reported that the Horse Hill Oil Field had
to date produced and exported over 132,000 barrels of Brent quality
crude from its Kimmeridge and Portland oil pools. It also reported
that it had completed the interpretation of data from the November
2020 pressure build-up ("PBU") test sequence, confirming the HH-1
connected oil in place volumes of 7-11 million barrels previously
reported in October 2018. The PBU data also helped to identify a
potentially significant contribution to Portland fluid flow from a
natural fracture system. UKOG reported that the integration of the
PBU data, HH-2z rock data and a revised seismic interpretation has
provided a far better understanding of the Portland reservoir. As a
result, it reported that several significant infill drilling
opportunities have been identified in the Portland oil pool, all
up-dip of HH-1 (i.e., at a shallower depth within the oil pool) and
significantly above the oil-water contact.
UKOG also reported that further development of the Kimmeridge
oil pool remains a significant objective. It announced plans to
drill an infill well to determine the lateral extent of the
Kimmeridge oil pool, proven by HH-1 to lie within a natural
fracture system of significant vertical extent. It said that the
Kimmeridge HH-4 well, also situated up-dip of both HH-1 and HH-2z,
is likely to be a highly inclined or "slant" well, so as to
maximise the number of open fractures penetrated. UKOG reported
that it expected to drill these Portland (HH-3) and Kimmeridge
(HH-4) infill wells following its completion of an appraisal
drilling campaign on another project (unrelated to Horse Hill).
We are encouraged by UKOG's revised strategy for the
exploitation of the Horse Hill Oil Field. Their confirmation of the
connected oil in place volumes of 7-11 million barrels from the
Portland oil pool alone highlights the untapped production that
remains in the Portland, production that cannot hope to be fully
realised from HH-1 alone. The plans, therefore, to drill another
two vertical wells up-dip of HH-1 are welcome, not least in the
light of the sustained rally in the oil price over the past year or
so.
Also encouraging is the Operator's reaffirmation of the
potential of the Kimmeridge oil pool. HH-1 has already proven the
Kimmeridge's ability to contribute substantial production to the
overall field, so there is certainly merit in testing the
Kimmeridge's producibility from a new vertical well. We look
forward to UKOG delivering on this revised and reaffirmed strategy
for enhancing production and delivering on the inherent value of
the Horse Hill Oil Field.
Following a review carried out by the Company in connection with
the preparation of these accounts, the Directors have determined
that the fair value of the Company's investment in HHDL should be
revised down to a figure of GBP4,000,000 (2019: GBP5,430,000). The
Directors commissioned a third-party market-based valuation of
Alba's investment.
2. CORPORATE AND FINANCIAL
During the year, we announced that we had entered into an
unsecured financing of up to GBP767,000 (which could be increased
by mutual consent to up to GBP1,054,500) with US-based
institutional investment fund, Bergen Global Opportunity Fund, LP
(the "Investor") (the "Financing"). The Financing was structured by
way of the issue by Alba to the Investor of up to five unsecured
convertible securities, the first issued at a discount with the
subsequent four at zero-coupon. The Financing was structured in
such a way as to provide Alba with access to capital at regular
intervals over a period of 18 months, allowing us to fund key
value-enhancing work activities across our mining portfolio.
In March 2020, we announced that we had closed the first tranche
of funding under the Financing, with Alba issuing the first
convertible security referred to above and receiving payment of
GBP192,000 from the Investor. However, in October 2020 we announced
that we had terminated the Financing and would not be issuing any
further convertible securities or receiving any further funding
under it. While the Financing had provided the Company with access
to a significant capital runway and timely access to funding, given
that the onset of the Coronavirus pandemic in early 2020 had
resulted in the capital markets becoming severely constrained for
secondary placings. Once the markets had stabilised, however, we
found ourselves able to raise money more competitively by
undertaking straight share placings through our new brokers, ETX
Capital, rather than via the funding line available under the
Financing.
Through ETX Capital, we raised GBP450,000 in early August 2020
(at a placing price of 0.065p), GBP1.3 million in September 2020
(placing price: 0.275p) and GBP1.2 million in November 2020
(placing price: 0.375p). Each placing included attaching warrants
on the basis of 1 warrant for every two shares issued, with the
warrant exercise price set in each case at a 100 per cent premium
to the placing price. To date, a further GBP742,100 has been raised
through the exercise of share warrants.
During the year, Mark Austin joined us as Alba's Senior
Geologist. Mark has significant management and operational
experience in a career spanning four decades across a range of
commodities, but with a particular focus on gold. Mark's experience
includes being a Non-Executive Director at Central Rand Gold
Limited (2015-2017), Group Geologist for Goldplat plc and CEO of
its subsidiary Kilimapesa Gold (Kenya) (2007-2013), Vice
President-Exploration for Mano River Resources Plc (2006-2007) and
Senior Exploration Geologist for Placer Dome Exploration
(Africa-Eurasia) Ltd (2005-2006). Towards the end of the year, we
announced that Mark had been appointed as Alba's Chief Operating
Officer.
In December 2020, we strengthened our Board through the
appointment of Elizabeth Henson and Lars Brünner as Non-Executive
Directors. Elizabeth was, from 2007-2019, a senior international
tax partner for PricewaterhouseCoopers LLP (PwC), based in London.
As for Lars, from 2014-2020 he was the Arctic Mining and
Environment, Business Development Leader for Golder Associates A/S,
a leading international mining and environmental consultancy firm.
These high-calibre appointments are indicative of Alba management's
determination to keep pushing the Company in the right direction
and striving for excellence on all levels, both in the quality of
our projects, in our technical work and in the depth of our
management team.
At the same time, Manuel Lamboley stepped down from the Alba
Board and took up a consultancy role for the Company, advising Alba
on access to European markets and joint venture partners.
3. EVENTS AFTER THE REPORTING PERIOD
Key announcements after the reporting period are noted in the
Review of Activities above and in Note 4 to this announcement.
4. OUTLOOK
The outlook for Alba is strong. We intend to spend the next six
months or so continuing our push to prove up sufficient new
mineralised zones at Clogau-St David's to make a compelling case
for bringing the Mine back into commercial production.
As I write, we are putting the finishing touches on summer
drilling programmes for both the Thule Black Sands Ilmenite and
Amitsoq Graphite Projects in Greenland. While we are not yet
certain that Greenland's current Coronavirus measures, notably the
restrictions on travel into the country, will allow these
programmes to proceed, and we also recognise that a spike in cases
may lead to additional restrictions being imposed, as things stand
we are confident that these drilling programmes will go ahead. The
drilling at TBS will be aimed at significantly increasing our JORC
Resources there, as well as moving some of our existing Inferred
Resources into the Indicated category, meaning that they can be
stated with a higher level of confidence. With this achieved, we
will be able to start planning in earnest to move the TBS project
into the development phase, including commencing discussions with
potential offtake partners.
At Amitsoq, drilling will be aimed at defining a maiden JORC
Resource for the project. This, together with the excellent results
we obtained in a test work programme which was conducted in
Germany, will position Amitsoq for fast-track development and to
capitalise on the surge in demand for battery-grade graphite
emanating from the electric vehicle sector.
Our focus at Alba has always been about building sustained value
and growth for our shareholders. With that in mind, we have been
exploring how best to unlock value in those of our assets in our
portfolio which we consider to be undervalued. Most pertinently,
this applies to our Greenland mining project portfolio ("Greenland
Projects"). This includes two assets with particularly strong
potential, Amitsoq (graphite) and Thule Black Sands (ilmenite),
plus one other, Melville Bay (iron ore), which deserves renewed
attention given the significant rally in the iron ore price over
the past 12 months.
One way to unlock greater value in our Greenland assets would be
to enter into a joint venture with third parties. This would set a
market price for the Greenland Projects and provide a validation of
their potential by virtue of a third party committing to spend
money on them. There are, however, many uncertainties in going down
this route, prime among them of course being that there is no
guarantee that we would be able to conclude joint ventures on
acceptable terms.
After assessing all the alternatives, the Alba Board has
determined that the best way to unlock real value in our Greenland
assets is to divest the Greenland Projects into a separate vehicle
which, subject to regulatory approval, will be admitted to trading
on AIM ("Greenland Listco"). It is intended that Greenland Listco
will acquire the Greenland Projects (see Table 1 below) for shares
and simultaneously undertake an IPO (Initial Public Offering)
fundraising to secure the necessary working capital to fast-track
the development of the Greenland Projects.
Table 1: The Greenland Projects
Project Exploration Licence Historic cost at 30
November 2020
Amitsoq Graphite Project MEL 2013-06 GBP788,360
-------------------- --------------------
Thule Black Sands Ilmenite MEL 2017-29 GBP587,766
Project
-------------------- --------------------
Inglefield Land Multi-Element MEL 2018-25 GBP199,412
Project
-------------------- --------------------
Melville Bay Iron Project MEL 2017-41 GBP112,061
-------------------- --------------------
The rationale for a stand-alone listing for our Greenland assets
is:
(1) That the Board consider the Greenland Projects to be
materially undervalued within the current Alba asset portfolio.
(2) Moving the Greenland Projects into a new listed vehicle will
allow the market to set a clear value for those assets in isolation
rather than as part of a larger pool of diverse mining, oil and gas
and exploration assets, as is currently the case. The potential for
obtaining a significant stand-alone valuation is evident, when one
has regard to the market capitalisations of other listed mineral
exploration and development companies whose principal mining assets
are in Greenland (see Table 2 below).
Table 2: Greenland-Focused Listed Mining Companies (information
as at 14 May 2021)
Company Market Market Cap GBP Equivalent Main Project Status
Bluejay AIM GBP GBP90m GBP90m Dundas Titanium Development
Mining Plc
-------- ----------- --------------- ----------------------- -------------
Greenland ASX AUD$127m GBP70m Kvanefjeld REE-Uranium Development
Minerals
& Energy
Limited
-------- ----------- --------------- ----------------------- -------------
AEX Gold AIM and GBP GBP51m GBP51m Nanulaq Gold Development
Inc TSX-V
-------- ----------- --------------- ----------------------- -------------
Hudson Resources TSX-V CAD$29m GBP17m White Mountain Exploitation
Inc. Anothorsite
-------- ----------- --------------- ----------------------- -------------
Ironbark ASX AUD$26m GBP15m Citronen Lead-Zinc Exploration
Zinc Limited
-------- ----------- --------------- ----------------------- -------------
North American TSX-V CAD$29m GBP17m Maniitsoq Nickel Exploration
Nickel Inc
-------- ----------- --------------- ----------------------- -------------
As can be seen from Table 2, the only other Greenland-focused
vehicle quoted solely on AIM is Bluejay Mining Plc (market
capitalisation of GBP90m at 14 May 2021), whose ilmenite project,
Dundas, is on the same coastline as the Thule Black Sands ilmenite
deposit. The Board of Alba is of the view that, given the plan to
drill a more sizeable JORC-compliant Resource at Thule Black Sands
this year, there is great potential for Greenland Listco's market
capitalisation to increase significantly following the completion
of the drilling programme.
(3) Alba will retain substantial upside in the Greenland assets
post disposal because, in consideration for the sale of the assets
to Greenland Listco, Alba will receive a significant shareholding
in Greenland Listco. Further, as Greenland Listco's management team
will be focusing all its efforts on growing the value of its
Greenland asset portfolio, we would hope to see Alba's stake in
Greenland Listco also grow ever more valuable.
(4) At the same time as retaining that upside through its stake
in Greenland Listco, Alba would no longer have to meet any of the
funding obligations for the Greenland Projects. These are likely to
be significant in the medium to long-term, as Greenland Listco
seeks the development capital to progress at least one, if not
more, of its projects into the development stage and ultimately
into production.
(5) Not having to fund the Greenland Projects will inevitably
mean less dilution for Alba shareholders, as it would significantly
reduce our need to seek further capital from the public
markets.
(6) With the Greenland Projects divested, Alba will be able to
focus on its UK and Irish portfolio of precious and base metal
projects which, in our view, are what have fired the Company's
growth over the past 12 months.
(7) Greenland Listco will, in turn, be able to focus solely on
the development of its Greenlandic assets, including raising money
from investors and institutions who are specifically interested in
those assets and/or in Greenland and therefore much more likely to
be long-term investors. Greenland is expected to play an
increasingly important strategic and geopolitical role on the world
stage and in the global mining sector in the coming years. With its
pure Greenland focus, Greenland Listco will be able to benefit from
this increased exposure and interest in the country from foreign
investors and sovereign states.
(8) Looking to the future, Alba may choose to sell down some of
its stake in Greenland Listco, once the post-IPO lock-in period has
expired, or it may decide to retain its shares in Greenland Listco
for the long-term or, at least, until its stake in Greenland Listco
has increased significantly in value. The point is that, as a
result of the disposal, Alba's stake in the Greenland Projects
would become a liquid, tradeable asset, which in itself could add
significant value to the Alba Group's balance sheet. This is not
the case at present, with those assets being held within the Alba
Group and being valued purely on a historical cost basis.
For all these reasons, the Alba Board has concluded that the
case for divesting of the Greenland Projects into a
Greenland-dedicated listed vehicle is an overwhelmingly strong one.
We will, therefore, be seeking the admission of a new English
public company to the AIM market, subject to the necessary
regulatory approvals. That company will own 100% of the Amitsoq
Graphite, Thule Black Sands Ilmenite, Melville Bay Iron and
Inglefield Multi-Element Projects. The name chosen for Greenland
Listco will be disclosed in due course.
Further announcements will be made as the transaction progresses
towards completion.
Finally, I would like to take this opportunity to thank our
shareholders for all their support and encouragement over the past
12 months, during which we have all had to face unprecedented
challenges. Rest assured, however, that the Alba Board has emerged
stronger and more determined than ever to make Alba a great success
story.
George Frangeskides
Executive Chairman
19 May 2021
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
Forward Looking Statements
This announcement contains forward-looking statements relating
to expected or anticipated future events and anticipated results
that are forward-looking in nature and, as a result, are subject to
certain risks and uncertainties, such as general economic, market
and business conditions, competition for qualified staff, the
regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political
jurisdiction, uncertainties regarding the results of exploration,
uncertainties regarding the timing and granting of prospecting
rights, uncertainties regarding the timing and granting of
regulatory and other third party consents and approvals,
uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of
unexpected events.
Without prejudice to the generality of the foregoing,
uncertainties also exist in connection with the ongoing Coronavirus
(COVID-19) pandemic which may result in further lockdown measures
and restrictions being imposed by Governments and other competent
regulatory bodies and agencies from time to time in response to the
pandemic, which measures and restrictions may prevent or inhibit
the Company from executing its work activities according to the
timelines set out in this announcement or indeed from executing its
work activities at all. The Coronavirus (COVID-19) pandemic may
also affect the Company's ability to execute its work activities
due to personnel and contractors testing positive for COVID-19 or
otherwise being required to self-isolate from time to time.
Actual results achieved may vary from the information provided
herein as a result of numerous known and unknown risks and
uncertainties and other factors.
For further information, please contact:
Alba Mineral Resources plc
George Frangeskides, Executive Chairman +44 (0)20 3950 0725
Cairn Financial Advisers LLP (Nomad)
James Caithie / Liam Murray +44 (0)20 7213 0880
ETX Capital (Broker)
Thomas Smith +44 (0)20 7392 1494
Vox Markets (Media Enquiries) +44 (0)7881 622 830
Katrina Perez (kperez@voxmarkets.co.uk)
CONSOLIDATED INCOME STATEMENT
For the year ended 30 November 2020
2020 2019
GBP GBP
Revenue - -
Cost of sales - -
------------- -------------
Gross loss - -
Administrative expenses (543,942) (772,849)
Impairment of intangible assets - (539,554)
Operating loss (543,942) (1,312,403)
Revaluation of investment (1,430,000) -
Finance costs (105,595) -
------------- -------------
Loss for the year before tax (2,079,537) (1,312,403)
Taxation - -
Loss for the year (2,079,537) (1,312,403)
============= =============
Attributable to:
Equity holders of the parent (2,078,897) (1,311,172)
Non-controlling interests (640) (1,231)
------------- -------------
(2,079,537) (1,312,403)
============= =============
Loss per ordinary share
Basic and diluted (0.047) pence (0.039) pence
------------- -------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 November 2020
2020 2019
GBP GBP
Loss after tax (2,079,537) (1,312,403)
Items that may subsequently be reclassified
to profit or loss:
* Foreign exchange movements (61,406) 39,040
Total comprehensive loss (2,140,943) (1,273,363)
=========== ===========
Total comprehensive loss attributable
to:
Equity holders of the parent (2,140,303) (1,272,132)
Non-controlling interests (640) (1,231)
(2,140,943) (1,273,363)
=========== ===========
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 November 2020
2020 2019
GBP GBP
Non-current assets
Property, plant and equipment 111,038 85,000
Intangible fixed assets 3,526,317 3,050,430
Investments - Horse Hill Developments
Limited 4,000,000 5,430,000
Investments - other - 11,125
Total non-current assets 7,637,355 8,576,555
----------- -----------
Current assets
Trade and other receivables 1,196,006 81,460
Cash and cash equivalents 1,512,031 211,333
----------- -----------
Total current assets 2,708,037 292,793
----------- -----------
Current liabilities
Trade and other payables (257,047) (356,232)
Financial liabilities (41,134) (137,312)
Total current liabilities (298,181) (493,544)
----------- -----------
Net current assets / (liabilities) 2,409,856 (200,751)
=========== ===========
Net assets 10,047,211 8,375,804
=========== ===========
Capital and reserves
Called up share capital 4,983,956 4,582,983
Share premium account 9,360,248 7,128,257
Warrant reserve 1,286,785 722,998
Reserve for warrants to be issued 416,044 -
Retained losses (6,153,136) (4,273,794)
Foreign currency reserve 168,612 230,018
----------- -----------
Equity attributable to equity holders
of the parent 10,062,509 8,390,462
Non-controlling interests (15,298) (14,658)
Total equity 10,047,211 8,375,804
=========== ===========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 November 2020
Share Share Warrant Warrants Profit and Merger Foreign Attributable Non-controlling Total
to be currency to
capital premium reserve issued loss reserve reserve equity interest
reserve holders
GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
--------- --------- --------- -------- ----------- --------- -------- ------------ --------------- -----------
At 30 November
2018 4,099,233 6,786,382 624,039 - (3,167,943) 200,000 190,978 8,732,689 (266,501) 8,466,188
Loss for the
period - - - - (1,311,172) - - (1,311,172) (1,231) (1,312,403)
Translation
differences - - - - - - 39,040 39,040 - 39,040
--------- --------- --------- -------- ----------- --------- -------- ------------ --------------- -----------
Comprehensive
loss for the
period - - - - (1,311,172) - 39,040 (1,272,132) (1,231) (1,273,363)
--------- --------- --------- -------- ----------- --------- -------- ------------ --------------- -----------
Shares and
warrants
issued 483,750 389,375 21,875 - - - - 895,000 - 895,000
Share issue
costs - (47,500) - - - - - (47,500) - (47,500)
Transfer on
write-down of
investment - - - - 200,000 (200,000) - - - -
Equity settled
share-based
payments - - 82,405 - - - - 82,405 - 82,405
Transfer on
expiry of
warrants - - (5,321) - 5,321 - - - - -
Owner's
contribution - - - - - - - - 253,074 253,074
--------- --------- --------- -------- ----------- --------- -------- ------------ --------------- -----------
At 30 November
2019 4,582,983 7,128,257 722,998 - (4,273,794) - 230,018 8,390,462 (14,658) 8,375,804
--------- --------- --------- -------- ----------- --------- -------- ------------ --------------- -----------
Loss for the
period - - - - (2,078,897) - - (2,078,897) (640) (2,079,537)
Translation
differences - - - - - - (61,406) (61,406) - (61,406)
--------- --------- --------- -------- ----------- --------- -------- ------------ --------------- -----------
Comprehensive
loss for the
period - - - - (2,078,897) - (61,406) (2,140,303) (640) (2,140,943)
--------- --------- --------- -------- ----------- --------- -------- ------------ --------------- -----------
Shares and
warrants
issued 239,681 2,301,273 744,786 416,044 - - - 3,701,784 - 3,701,784
Shares issued
on conversion 161,292 136,708 - - (75,000) - - 223,000 - 223,000
Share issue
costs - (205,990) - - - - - (205,990) - (205,990)
Equity settled
share-based
payments - - 93,556 - - - - 93,556 - 93,556
Transfer on
exercise or
expiry of
warrants - - (274,555) - 274,555 - - - - -
--------- --------- --------- -------- ----------- --------- -------- ------------ --------------- -----------
At 30 November
2020 4,983,956 9,360,248 1,286,785 416,044 (6,153,136) - 168,612 10,062,509 (15,298) 10,047,211
--------- --------- --------- -------- ----------- --------- -------- ------------ --------------- -----------
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30 November 2020
2020 2019
GBP GBP
Cash flows from operating activities
Loss before tax (543,942) (1,312,403)
Consulting fees settled in shares 12,500 -
Share based payment charge 93,556 82,405
Impairments of intangible assets - 539,554
Change in fair value of other investments 11,125 (3,964)
Foreign exchange revaluation adjustment (61,406) 45,614
Increase/(decrease) in creditors (89,394) 44,474
Decrease/(increase) in debtors 13,453 (19,566)
--------- -----------
Net cash used in operating activities (564,108) (623,886)
--------- -----------
Cash flows from investing activities
Payments for deferred exploration expenditure (482,777) (522,179)
Payments for intangible fixed assets - (165,897)
Payments for tangible fixed assets (26,038) -
--------- -----------
Net cash used in investing activities (508,815) (688,076)
--------- -----------
Cash flows from financing activities
Proceeds from the issue of shares and warrants 2,422,899 895,000
Costs of issue (105,000) (47,500)
Proceeds from short term borrowings - 90,000
Proceeds from issue of convertible loan notes 192,000 -
Financing costs (37,200) -
Repayment of short term borrowings plus financing costs (99,078) -
--------- -----------
Net cash generated from financing activities 2,373,621 937,500
--------- -----------
Net increase/(decrease) in cash and cash equivalents 1,300,698 (374,462)
========= ===========
Cash and cash equivalents at beginning of period 211,333 585,795
========= ===========
Cash and cash equivalents at end of year 1,512,031 211,333
========= ===========
Non-cash transactions
The significant non-cash transaction in the period was the
revaluation of the Group's investment in Horse Hill Developments
Limited, impairing the value by GBP1,430,000. This is not included
in operating costs so is not reflected in the cash flow statement
above.
Significant non-cash transactions in the prior period were
impairment charge against intangible assets.
Accruals includes capital items of GBP52,135 (2019:
GBP59,025).
NOTES
1. BASIS OF PREPARATION
Alba Mineral Resources plc is a public limited company
incorporated and domiciled in England & Wales, whose shares are
publicly traded on the AIM market of the London Stock Exchange plc.
The registered office address is 6th Floor 60 Gracechurch Street,
London, United Kingdom, EC3V 0HR.
The financial information set out in this announcement does not
constitute the statutory accounts of the Group for the years ended
30 November 2020 or 30 November 2019. The financial information has
been extracted from the statutory accounts of the Group for the
years ended 30 November 2020 and 30 November 2019.
The auditor, Nexia Smith & Williamson, has reported on the
statutory accounts for the years ended 30 November 2020 and 2019;
the audit reports were unqualified and did not contain statements
under either section 498(2) or 498(3) of the Companies Act 2006.
However, in their report on the statutory accounts for the prior
year ended 30 November 2019 the auditor drew attention to the
material uncertainty which existed with respect to the ability of
the group to continue as a going concern.
The consolidated financial statements have been prepared on the
historical cost basis, save for the revaluation of certain
financial assets.
During the year ended 30 November 2020 the Group adopted IFRS 16
Leases but this did not have a material effect on the results of
the Group. Otherwise there were no changes to the Group's
accounting policies for the year ended 30 November 2020 as compared
to those published in the statutory financial statements for the
year ended 30 November 2019.
This announcement was approved by the Board on 19 May 2021.
2. GOING CONCERN
Based on financial projections prepared by the Directors, the
Group's current cash resources are sufficient to enable the Group
to meet its recurring outgoings and projected exploration
expenditure for the entirety of the next twelve months.
The Directors continue to adopt the going concern basis of
accounting in preparing the financial statements.
3. LOSS PER SHARE
Basic loss per share is calculated by dividing the loss
attributed to ordinary shareholders of GBP2,078,897 (2019:
GBP1,311,172 loss) by the weighted average number of shares of
4,421,614,727 (2019: 3,403,506,056) in issue during the year. The
diluted loss per share calculation is identical to that used for
basic loss per share as warrants are not dilutive due to the losses
incurred.
4. EVENTS AFTER THE REPORTING PERIOD
Corporate
On 8 December 2020 the Group announced changes to the membership
of the Board, with Manuel Lamboley stepping down as a Non-Executive
Director and Elizabeth Henson and Lars Brünner being appointed as
Non-Executive Directors.
During the period since year end the Company has announced
several exercises of share warrants.
As detailed in this announcement, the Directors have approved in
principle the divestment of the Group's Greenland projects to a new
Greenland-focused AIM-listed entity which will own and operate
those assets.
Mining Projects
Clogau Gold Project
On 2 December 2020 and 21 December 2020 the Group gave updates
on the progress of a surface drilling campaign at the Clogau-St
David's Gold Mine.
On 8 January 2021 the Group announced the results of processing
of a small bulk sample and that the pilot processing plant was
expected to be operational within a week.
On 2 February 2021 the Group gave a further update on activities
at the Project.
On 11 February 2021 the Group announced that The Crown Estate
has agreed to extend the duration of the Company's exclusive
exploration licence over the Clogau-St David's Gold Mine in north
Wales for a further four years, being the maximum extension
possible under the terms of the original licence. As such, the
Exploration Licence will now remain in full force and effect until
9 February 2025.
On 2 March 2021 the Group announced that the phase one surface
drilling programme indicates that the newly identified vein system
at the Llechfraith mine area has a strike extent of 58 metres.
On 12 March 2021 the Group updated with further results from the
surface drilling and said that the newly identified vein system at
the Llechfraith mine area has a down dip extent of 122 metres below
the existing workings.
On 12 April 2021 the Group announced the commencement of the
second phase of surface drilling, the Clogau Main Lode
extension.
On 13 April 2021 the Group announced that an evaluation of the
historic waste rock dump was being undertaken.
On 23 April 2021 the Group reported the full results of the
phase 1 surface drilling.
Dolgellau Gold Exploration Project (encompassing licence areas
in the Dolgellau Gold Belt excluding the established mine
sites)
On 17 December 2021 the Group announced the results of the
trenching programme at the Project.
On 24 February 2021 the Group announced the latest phase in its
regional gold exploration activities, a stream sediment sampling
programme.
Limerick Base Metals Project
On 7 January 2021 the Group announced that the mineral
exploration licence for the Limerick Base Metals Project, PL 3824,
has been renewed until 26 May 2022.
On 9 April 2021 the Group announced that a structural review of
the Limerick licence had identified three principal target
exploration zones.
Greenland Projects
On 7 January 2021 the Group announced that the Government of
Greenland had decided to roll over to 2021 the initiatives which
were first applied in 2020 in response to the COVID-19 pandemic, so
that for all mineral exploration licences in Greenland the
exploration expenditure obligations for the year 2021 will be
reduced to zero and the existing licence period will be extended by
one year.
Amitsoq Graphite Project
On 9 February 2021 and on 28 April 2021 the Group announced the
results of metallurgical test work on samples taken from the
Amitsoq Graphite Project.
On 7 May 2021 the Group declared exploration targets for the
Project.
5. REPORTS AND ACCOUNTS
The statutory accounts for the year ended 30 November 2020 were
approved by the Board of Directors on 19 May 2021, will be sent to
shareholders of the Company in due course and will be delivered to
the Registrar of Companies. The report and accounts will also be
made available on the Company's website:
www.albamineralresources.com . The statutory accounts for the year
ended 30 November 2019 have been delivered to the Registrar of
Companies.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR DGGDUIXBDGBC
(END) Dow Jones Newswires
May 20, 2021 02:00 ET (06:00 GMT)
Alba Mineral Resources (LSE:ALBA)
Historical Stock Chart
From Sep 2024 to Oct 2024
Alba Mineral Resources (LSE:ALBA)
Historical Stock Chart
From Oct 2023 to Oct 2024