TIDMCON
RNS Number : 8026R
Connemara Mining Company plc
26 September 2017
26(th) September 2017
Connemara Mining Company plc
("Connemara" or "the Company")
Interim Statement for the period ended 30 June 2017
This is a good time to be in zinc exploration and a good time to
have ground in Ireland. This is a good time, we believe, to be
shareholder in Connemara which holds highly prospective licences in
both zinc and gold across one the best rated jurisdictions for
exploration and mining in Europe.
Zinc
Zinc has been the best performing metal on the London Metal
Exchange in the past 18 months almost doubling in price. At over
$3,000 a ton the zinc price makes zinc mining a profitable venture
and it enhances the value of good exploration ground. Historically,
Ireland has been a very good location in which to prospect for
zinc. The geology is positive and title is secure. There is
political stability, good infrastructure and all of the ancillary
services required. The above explains the recent rush of Canadian
and Australian explorers into Ireland mainly prospecting for
zinc.
We believe Connemara has good zinc exploration ground and the
Company holds 19 licences, almost all in the well-established North
East and South West limestone based trend. In the recent past we
have added seven new licences; five in Derrykearn, close to the
closed Lisheen/Galmoy mines; and two are in West Cork surrounding a
closed barite mine and where historical base metal anomalies
(Zn-Pb-Cu) have been sampled.
We have two joint ventures on 11 zinc licences - six with Group
Eleven at Stonepark in Limerick and five with Teck at the Oldcastle
project in Meath/Cavan.
Group Eleven, a private, but soon to be listed, Canadian
company, recently acquired the 76.56% shareholding in TILZ, the
joint venture company drilling the Stonepark project, held by Teck
Ireland Limited ("Teck"). Stonepark, discovered by Connemara/Teck
in 2007, has three high grade pods of zinc adjacent to the large
Glencore discovery in Pallas Green. To date 135 holes have been
drilled but more are needed. Group Eleven have stated that
Stonepark is a priority target.
Our second joint venture is a Teck earn-in in the Oldcastle
area. Teck have had limited resources to spend on drilling. The
targets are deep and costly. The few holes drilled have had limited
success but more are needed. The geology is similar to that in the
large Tara zinc mine, 30 km away. Teck is earning into a 75%
interest by spending EUR1.35 million. They should meet this target
within the near future.
We are working on the Derrykearn block of five licences and the
Rapla licence in the same area. A full and detailed review of all
historical data has been completed and has thrown up interesting
possibilities. We have had initial discussions with potential
partners and will have more.
Gold
We are very active on our gold properties. We hold 11 licences
in Inishowen, Donegal, where a short drilling campaign recently
began. We hold five licences in Wicklow/Wexford which have been in
joint venture for some years. We are in advanced negotiations with
Hendricks Resources, our joint venture partner, on changes to the
joint venture and we expect to make an announcement shortly.
We believe the Inishowen gold project is an exciting prospect.
This round of drilling is expected to build on the success of the
initial discovery in April 2016 where 3.05m grading at 5.8g/t Au
was discovered in hole 3 at 23.05m. In June 2016 a further 643m was
drilled over 4 holes targeting the veins from the north drilling
south. A high-grade zone was intercepted at 8.13m at a steeper
angle of 70 degrees grading 4.82m at 5.48g/t Au. The zone was not
located in the step back drilling further from the north. The
latest drilling is targeting the veins by drilling from the south
in order to establish the geometry of the gold-bearing
features.
In addition, more detailed structural data in the surrounding
area will be collected that may assist expert analysis to direct
further drill programmes. New targets identified from compilation
work will also be investigated over the northern part of the
project area.
Corporate
There has been significant activity on the corporate front. The
board appointed Patrick Cullen, who brings 20 years' experience in
mining and exploration, as Chief Executive Officer (non-board
position) to bring fresh eyes and new vigour to our projects. He
has already made progress.
We raised GBP200,000 in a small private placing with existing
shareholders to fund our ongoing activities.
We have met with Paul Johnson who has acquired in excess of ten
percent of the Company. The meetings were constructive and led to
an increased focus on how to spread the message that Connemara
offers an exciting opportunity to participate in the strong zinc
and gold exploration sector.
Information on Connemara Mining
Connemara is a diversified exploration company with principal
assets in gold and zinc exploration licences across Ireland.
Connemara holds interests in a total of 35 licences, including
joint ventures with: Teck at the Oldcastle Zinc Project; Group
Eleven Resources at the Stonepark Zinc Project; and with Hendrick
Resources at Mine River Gold Project. Of these, 19 are 100% owned
by Connemara while joint venture partners have earned in or are
earning in on the remainder.
This announcement has been reviewed and approved by Gavin
Berkenheger (CGeol) in his capacity as the Qualified Person for the
purposes of the AIM Guidance Note for Mining, Oil and Gas Companies
issued by the London Stock Exchange.
John Teeling
Chairman
25(th) September 2017
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
S
Enquiries:
Connemara Mining Company
Plc
John Teeling, Chairman +353 (0) 1 833 2833
Jim Finn, Director
+353 (0) 87 272
1748
+44 (0) 7552 378
Patrick Cullen, CEO 208
Northland Capital Partners
Limited
+44 (0) 203 861
Matthew Johnson / Gerry Beaney 6625
John Howes / Bonnie Hughes
(Broking)
+44 (0) 207 138
Blytheweigh 3204
+44 (0) 783 185
Nick Elwes 1855
+44 (0) 781 784
Camilla Horsfall 1793
Teneo PSG
Luke Hogg +353 (0) 1 661 4055
Alan Tyrrell +353 (0) 1 661 4055
www.connemaramc.com
Connemara Mining Company plc
Financial Information (Unaudited)
CONDENSED CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
Six Months Year
Ended Ended
30 June 30 June 31 Dec
17 16 16
unaudited unaudited audited
EUR'000 EUR'000 EUR'000
Continuing Operations
Administrative expenses (95) (96) (196)
---------- ---------- --------
OPERATING LOSS (95) (96) (196)
Investment revenue 0 0 0
---------- ---------- --------
LOSS BEFORE TAXATION (95) (96) (196)
Income tax expense 0 0 0
LOSS FOR THE PERIOD AND TOTAL
COMPREHENSIVE INCOME (95) (96) (196)
========== ========== ========
LOSS PER SHARE - basic and
diluted (0.13c) (0.16c) (0.29c)
========== ========== ========
CONDENSED CONSOLIDATED BALANCE
SHEET
30 June 30 June 31 Dec
17 16 16
unaudited unaudited audited
EUR'000 EUR'000 EUR'000
NON-CURRENT ASSETS
Intangible Assets 2,726 2,583 2,698
---------- ---------- --------
CURRENT ASSETS
Other receivables 32 25 14
Cash and cash equivalents 94 495 163
---------- ---------- --------
126 520 177
---------- ---------- --------
TOTAL ASSETS 2,852 3,103 2,875
---------- ---------- --------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables (514) (570) (442)
---------- ---------- --------
NET CURRENT LIABILITIES (388) (50) (265)
NET ASSETS 2,338 2,533 2,433
========== ========== ========
EQUITY
Share Capital 758 758 758
Share Premium 5,064 5,064 5,064
Reserves (3,484) (3,289) (3,389)
TOTAL EQUITY 2,338 2,533 2,433
========== ========== ========
CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
Called-up
Share Share Retained
Capital Premium Deficit Total
EUR'000 EUR'000 EUR'000 EUR'000
As at 1 January 2016 558 4,809 (3,193) 2,174
Issue of shares 200 279 479
Share issue expenses (24) (24)
Loss for the period (96) (96)
As at 30 June 2016 758 5,064 (3,289) 2,533
---------- ---------- ---------- --------
Loss for the period (100) (100)
As at 31 December 2016 758 5,064 (3,389) 2,433
---------- ---------- ---------- --------
Loss for the period (95) (95)
As at 30 June 2017 758 5,064 (3,484) 2,338
========== ========== ========== ========
CONDENSED CONSOLIDATED CASH
FLOW
Six Months Year
Ended Ended
30 June 30 June 31 Dec
17 16 16
unaudited unaudited audited
EUR'000 EUR'000 EUR'000
CASH FLOW FROM OPERATING
ACTIVITIES
Loss for the year (95) (96) (196)
Exchange movements 1 0 12
---------- ---------- --------
(94) (96) (184)
Movements in working capital 54 148 31
---------- ---------- --------
CASH USED BY OPERATIONS (40) 52 (153)
NET CASH USED IN OPERATING
ACTIVITIES (40) 52 (153)
---------- ---------- --------
CASH FLOW FROM INVESTING
ACTIVITIES
Payments for exploration
and evaluation (28) (132) (247)
---------- ---------- --------
NET CASH USED IN INVESTING
ACTIVITIES (28) (132) (247)
---------- ---------- --------
CASH FLOW FROM FINANCING
ACTIVITIES
Issue of shares 0 479 479
Share issue expenses 0 (24) (24)
---------- ---------- --------
NET CASH GENERATED FROM
FINANCING ACTIVITIES 0 455 455
---------- ---------- --------
NET (DECREASE)/INCREASE IN CASH
AND CASH EQUIVALENTS (68) 375 55
Cash and Cash Equivalents
at beginning of the period 163 120 120
Effects of exchange rate changes
on cash held in foreign currencies (1) 0 (12)
CASH AND CASH EQUIVALENTS
AT OF THE PERIOD 94 495 163
========== ========== ========
Notes:
1. INFORMATION
The financial information for the six months ended 30 June 2017
and the comparative amounts for the six months ended 30 June 2016
are unaudited.
The interim financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by
the European Union. The interim financial statements have been
prepared applying the accounting policies and methods of
computation used in the preparation of the published consolidated
financial statements for the year ended 31 December 2016.
The interim financial statements do not include all of the
information required for full annual financial statements and
should be read in conjunction with the audited consolidated
financial statements of the Group for the year ended 31 December
2016, which are available on the Company's website
www.connemaramc.com
The interim financial statements have not been audited or
reviewed by the auditors of the Group pursuant to the Auditing
Practices board guidance on Review of Interim Financial
Information.
2. No dividend is proposed in respect of the period.
3. LOSS PER SHARE
30 June 30 June 31 Dec
17 16 16
EUR EUR EUR
Loss per share - Basic and
Diluted (0.13c) (0.16c) (0.29c)
============= ============= =============
Basic loss per share
The earnings and weighted average number of ordinary
shares used in the calculation of basic loss per
share are as follows:
EUR'000 EUR'000 EUR'000
Loss for the year attributable
to equity holders of the
parent (95) (96) (196)
============= ============= =============
Weighted average number of
ordinary shares for the purpose
of basic earnings per share 75,789,711 61,042,615 68,498,396
============= ============= =============
Basic and diluted loss per share are the same as the effect of
the outstanding share options is anti-dilutive.
4. INTANGIBLE ASSETS
30 June 17 30 June 16 31 Dec 16
Exploration and evaluation assets: EUR'000 EUR'000 EUR'000
Cost at 1 January 2,698 2,451 2,451
Additions 28 132 247
----------- ----------- ----------
Closing Balance 2,726 2,583 2,698
=========== =========== ==========
The above represents expenditure on projects in Ireland.
In 2012 the Group entered into an agreement with Teck Ireland
Limited ("Teck"), a subsidiary of Teck Resources Limited, which
gives Teck the option of earning a 75% interest in licences held by
the Group in Cavan/Meath. Teck have to spend EUR1.35 million on the
licences by 2018 in order to earn the option to acquire the total
75% interest. As per the agreement the licences have been
transferred into a new company, Oldcastle Zinc Limited. As at 31
December 2016 Teck had completed EUR1,064,403 worth of expenditure.
As per the agreement upon Teck completing EUR550,000 of expenditure
343,500 ordinary shares in Oldcastle Zinc Limited were to be issued
to Teck. The shares were issued on 20 February 2015 giving Teck a
51% interest in the company.
In 2007 the Group entered into an agreement with Teck Cominco
which gave Teck Cominco the option to earn a 75% interest in a
number of other licences held by the Group. Teck Cominco had to
spend CAD$3m to earn the interest. During 2012 the relevant
licences were transferred to a new company, TILZ Minerals Limited,
which at 30 June 2017 was owned 23.44% (31 December 2016: 23.44%)
by Limerick Zinc Limited and 76.56% (31 December 2016: 76.56%) by
Teck Ireland Limited. The Group's share of expenditure on the
licences continues to be capitalised as an exploration and
evaluation asset. The Group is subject to cash calls from Teck
Ireland Limited in respect of the financing of the ongoing
exploration and evaluation of these licences. In the event that the
Group decides not to meet these cash calls its interest in TILZ
Minerals Limited may be diluted accordingly.
On 13 September 2017 the Company was informed that Group Eleven
Resources Corp (G11), a private company, had acquired the 76.56%
interest held by Teck Ireland in TILZ Minerals. Further information
is detailed in Note 6 below.
The realisation of the intangible asset is dependent on the
successful development of economic reserves which is subject to a
number of risks as outlined below. Should this prove unsuccessful
the value included in the balance sheet would be written off to the
statement of comprehensive income.
The group's activities are subject to a number of significant
potential risks including;
- Uncertainties over development and operational risks;
- Compliance with licence obligations;
-Liquidity risks; and
- Going concern risks.
The directors are aware that by its nature there is an inherent
uncertainty in such exploration and evaluation expenditure as to
the value of the asset. Having reviewed the deferred development
expenditure at 30 June 2017, the directors are satisfied that the
value of the intangible asset is not less than carrying value.
5. SHARE CAPITAL AND SHARE PREMIUM
30 June 30 June 31 Dec
17 16 16
EUR'000 EUR'000 EUR'000
Authorised:
200,000,000 ordinary shares
of EUR0.01 each 2,000 2,000 2,000
=========== ========= =========
Allotted, Called Up and Share Share
Fully Paid: Number Capital Premium
EUR'000 EUR'000
Balance at 1 January 2016 55,779,711 558 4,809
Issued during the period 20,010,000 200 279
Share issue expenses - - (24)
----------- --------- ---------
Balance at 30 June 2016 75,789,711 758 5,064
Issued during the period - - -
----------- --------- ---------
Balance at 31 December
2016 75,789,711 758 5,064
Issued during the period - - -
----------- --------- ---------
Balance at 30 June 2017 75,789,711 758 5,064
=========== ========= =========
On 13 May 2016, a total of 20,010,000 shares were issued at a
price of 2p per share to provide additional working capital and
fund the drilling programme on the Donegal gold licences. For each
placing share subscribed for, the investors received one warrant to
subscribe for an additional ordinary share at a price of 5p per
share at any time until 26 May 2018.
6. POST BALANCE SHEET EVENTS
Placing
On 15 August 2017 the Company raised a total of GBP200,000 by
way of a placing of 7,848,837 new ordinary shares at a price of
1.72p per share and directors' subscribing to 3,779,070 new
ordinary shares at a price of 1.72p per share.
For each share place and subscribed for, the investors also
received one warrant to subscribe for an additional new ordinary
share at a price of 3.4p per share at any time until 15 August
2019.
Group 11 Resources Corp.
On 13 September the board of Connemara Mining Company plc
announced that Group Eleven Resources Corp. ("G11"), a private
company, has acquired the 76.56% interest held by Teck Ireland
("Teck") in TILZ Minerals, the joint venture company, which holds
six (6) prospecting licences covering the Stonepark zinc project in
Limerick, Ireland. Connemara owns the remaining 23.44%.
G11 is a private Canadian company with extensive base metal
licence holdings in Ireland. MAG Silver Corp. and Teck Resources
(both listed Canadian companies) hold 22.0% and 6.3% respectively
of the equity on a fully diluted basis. G11 have announced that
they are preparing to list publicly in Canada later in 2017.
Consideration for the Acquisition
Consideration for the above acquisition by G11 of the Teck stake
is summarised below:
-- C$2,150,000 in cash - Paid
-- Net smelter return (NSR) royalty of 4.5% (on 76.56% of
production) with buy-back provisions:
o 0.5% for C$2,000,000 - at any time
o 1.0% for C$1,000,000 - on delivery of a preliminary economic
assessment (PEA)
o 1.0% for C$1,000,000 - on delivery of a preliminary
feasibility study (PFS)
o 1.0% for C$3,000,000 - on delivery of a bankable feasibility
study (BFS)
This would leave Teck with a 1.0% NSR if all buy-back provisions
were exercised.
Connemara was offered equivalent terms as above and if Connemara
had chosen to sell then the consideration for Connemara's stake
(assuming all buybacks were exercised) would be C$2.80 million and
an NSR of 1% on 23.44% of production.
Following discussions with G11 the board of Connemara decided to
retain its 23.44% interest rather than sell on the same terms as
Teck.
7. The Interim Report for the six months to June 30(th) 2017 was
approved by the Directors on 25(th) September 2017
8. The Interim Report will be available on Connemara Mining Company Plc's website www.connemaramc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PGUBCBUPMUAQ
(END) Dow Jones Newswires
September 26, 2017 02:01 ET (06:01 GMT)
Arkle Resources (LSE:ARK)
Historical Stock Chart
From Apr 2024 to May 2024
Arkle Resources (LSE:ARK)
Historical Stock Chart
From May 2023 to May 2024