The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR").
Karelian Diamond
Resources plc
(“Karelian Diamonds” or “the
Company”)
28 February 2018
Half-yearly
results for the six months ended 30 November
2017
Karelian Diamond Resources plc (AIM: KDR), the diamond
exploration company focused on Finland, announces its results for the six
months ended 30 November 2017.
Highlights of the Half-year:
- Very close proximity to the source of the diamond discovery
by the Company in the Kuhmo region of Finland suggested by indicator mineral
sampling results.
- Lahtojoki diamond deposit – PEA completed – 5m tonnes, microdiamond data suggest grade of 40
carats per hundred tonnes (cpht) and high percentage of gem quality
stones
- Riihivaarä - kimberlite body follow up work shows geotherm
prospective for diamonds
Commenting, Chairman, Professor
Richard Conroy said:
“I am delighted that over the period
the search for the source for the green diamond has been so
encouraging with the recent sampling results suggesting close
proximity to source. I am also very pleased that the PEA on
the Lahtojoki diamond deposit has been so positive.”
Further Information:
Professor Richard
Conroy, Chairman, Karelian Diamond Resources plc |
Tel: +353-1-479-6180 |
Virginia Bull /
Nick Harriss, Allenby Capital Limited (Nomad) |
Tel:
+44-20-3328-5656 |
Jon Belliss /
Elliot Hance, Beaufort Securities Limited (Broker) |
Tel:
+44-20-7382-8300 |
Michael Padley,
Lothbury Financial Services Limited |
Tel:
+44-20-3290-0707 |
Don Hall, Hall
Communications |
Tel:
+353-1-660-9377 |
www.kareliandiamondresources.com
Chairman’s statement
Dear Shareholder,
I have great pleasure in presenting your Company’s Half-Yearly
results for the six month period ended 30
November 2017. The discovery of a green diamond in a till
sample in the Kuhmo region of eastern Finland has been followed up by an intensive
pitting programme designed to find the kimberlite source of the
diamond. The latest results suggest that we are now very close to
the source. Work has also continued at Riihivaarä, where we have
discovered a kimberlite body, and at the Lahtojoki diamond deposit,
over which we hold a mining concession and on which a Preliminary
Economic Assessment has been completed during the period with
highly encouraging results.
Principal activities and business
review
Diamond Discovery
Following the discovery by the Company of a green diamond in
January 2016, we have been engaged in
an intensive exploration programme to discover the source of the
diamond. The programme has included airborne geophysics and an
extensive pitting programme up-ice from the site of the discovery.
The work programme was designed to identify the kimberlite train
arising from the kimberlite source and to trace it back to
source.
Sampling results (as announced on 14
November 2017) indicated that the source was within two
hundred metres of some of the samples taken in the pitting
programme. The most recent results (as announced post period on
23 January 2018) suggest that we are
now in very close proximity to the source. This success in
tracing back the kimberlite train to source is a great achievement
considering that it is scarcely a year since the diamond was
found.
In October 2017 we were awarded an
Exploration Permit covering an area of 601.68 hectares surrounding
the location where the Company discovered the diamond.
Riihivaarä
In Eastern Finland, where your
Company has discovered a kimberlite body, the first to be
discovered in Finland in over 10
years, follow up work has shown that the geotherm there is
prospective for diamonds. The kimberlite has been sampled to a
model depth of over 200km, well into the diamond stability field,
and it is therefore likely to be diamondiferous. The kimberlite
body remains open in both directions along strike and to depth and
a drilling programme is now envisaged along the known
kimberlite.
Seitaperä
At Seitaperä, also in the Kuhmo region of Eastern Finland, where your Company has
outlined the largest known kimberlite body in Finland and has reported the presence of both
macro and micro diamonds, consideration is being given as to
whether or not some, or all, of these micro and macro diamonds may
have originated from a larger stone. Should this be considered to
be the case, it would have significant implications for any follow
up mini bulk sampling programme and for the diamond potential of
the kimberlite.
Lahtojoki Mining Development
Programme
A Preliminary Economic Assessment (“PEA”) has been carried out
during the period on the Lahtojoki diamond deposit in the
Kuopio-Kaavi region of Finland
over which your Company holds a Mining Concession.
I am delighted that the PEA was positive and a mining operation
recommended (as announced on 1 August
2017).
The PEA suggests a +1mm recoverable grade of 39.7 carats per
hundred tonnes (cpht) and also indicates the presence of a high
percentage of gem quality stones within the diamonds that have been
recovered to date. Previous drilling indicates 5,603,584 tonnes are
present to a depth of 160 metres below surface. For the purposes of
the PEA US$100/carat was used in the
economic evaluation and mine design. A total resource (non JORC)
estimate of 2,225,000 carats was indicated in the study with plant
recovery of diamonds estimated at 95 per cent. The location of
Lahtojoki is highly favourable for development and we believe the
Lahtojoki diamond deposit has the potential to become a profitable
open pit diamond mine.
Clearly much work remains to be done but the PEA Report is a
major and highly encouraging step forward in our assessment of the
Lahtojoki diamond deposit. Should the deposit be developed it would
be the first diamond mine in Europe (outside Russia).
Exploration by your Company suggests that in addition to the
Lahtojoki deposit there may also be further diamond resource
potential in the immediate area. Having considered a series of
geophysical and kimberlite indicator mineral anomalies in the area,
your Company has applied for a Claim Reservation in the area
adjacent to the Lahtojoki mining concession. The Claim
Reservation covers the up-ice area of the kimberlite boulder
discovery (as previously announced on 9
November 2016 and 12 January
2017) and totals an area of 8.67km². Post period a Claim
covering 28.84 hectares was granted within the Claim Reservation on
22 January 2018. The Claim surrounds
the location where the kimberlite boulder discovery was made.
Should a further significant diamond deposit be discovered close
to the Lahtojoki deposit, this would of course add greatly to the
economic potential and attractiveness of the Lahtojoki diamond
deposit.
Finance
The loss after taxation for the six month period ended
30 November 2017 was €211,590
(30 November 2016: €117,067) and the
net assets as at 30 November 2017
were €9,281,407 (30 November 2016:
€8,370,091).
Post period, at the Annual General Meeting on 21 December 2017, shareholders approved the
consolidation of the Company’s ordinary shares into new ordinary
shares of €0.00025 each. Immediately following which, each existing
shareholder held 1 new ordinary share in place of each 25 existing
ordinary shares. The consolidation was considered to be in the
shareholders’ interests as the existing number of shares was
unwieldy and the bid-offer range was too large as a proportion of
the share price. Following the consolidation of the ordinary shares
on 21 December 2017, the warrants in
issue were consolidated into one consolidated warrant for every 25
existing warrants. The exercise price in relation to the warrants
was also adjusted at this time.
Directors and Staff
I would like to thank my fellow directors, staff and consultants
for their support and dedication.
Outlook
The Company has made outstanding
progress in the period under review and I look forward with
confidence to further success during the coming period.
Yours faithfully,
Professor Richard Conroy
Chairman
27 February
2018
Condensed income
statements and condensed statement of comprehensive income for the
six month period ended 30 November
2017
Condensed income
statement |
|
|
|
|
|
|
|
Note |
Six month period
ended 30 November 2017
(Unaudited) € |
|
Six
month period ended 30 November 2016
(Unaudited) € |
|
Year
ended 31 May 2017
(Audited) € |
Continuing operations |
|
|
|
|
|
|
Operating
expenses |
|
(211,590) |
|
(117,067) |
|
(410,814) |
|
|
|
|
|
|
|
Loss
before taxation |
|
(211,590) |
|
(117,067) |
|
(410,814) |
|
|
|
|
|
|
|
Income tax
expense |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
Loss for
the financial period/year |
|
(211,590) |
|
(117,067) |
|
(410,814) |
|
|
|
|
|
|
|
Loss
per share |
|
|
|
|
|
|
Basic and
diluted loss per share |
2 |
(€0.0091) |
|
(€0.0050) |
|
(€0.0176) |
|
|
|
|
|
|
|
|
|
|
|
Condensed statement
of comprehensive income
|
|
Six month period
ended 30 November 2017
(Unaudited) € |
|
Six month period
ended 30 November 2016
(Unaudited) € |
|
Year ended 31 May
2017
(Audited) € |
|
|
|
|
|
|
|
Loss for the
financial period/year |
|
(211,590) |
|
(117,067) |
|
(410,814) |
|
|
|
|
|
|
|
Income/expense
recognised in other comprehensive income |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
Total comprehensive
expense for the financial period/year |
|
(211,590) |
|
(117,067) |
|
(410,814) |
Condensed statement of financial
position as at 30 November 2017
|
Note |
30 November 2017
(Unaudited) |
|
30 November 2016
(Unaudited) |
|
Year ended 31 May
2017 (Audited) |
|
|
€ |
|
€ |
|
€ |
Assets |
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
Intangible
assets |
3 |
9,607,634 |
|
9,014,182 |
|
9,276,955 |
Financial
assets |
|
4 |
|
4 |
|
4 |
Total
non-current assets |
|
9,607,638 |
|
9,014,186 |
|
9,276,959 |
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and
cash equivalents |
|
44,347 |
|
49,224 |
|
523,324 |
Other
receivables |
|
386,848 |
|
161,503 |
|
292,562 |
Total current
assets |
|
431,195 |
|
210,727 |
|
815,886 |
|
|
|
|
|
|
|
Total
assets |
|
10,038,833 |
|
9,224,913 |
|
10,092,845 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Capital and
reserves |
|
|
|
|
|
|
Called up
share capital |
|
5,844 |
|
3,177,850 |
|
5,844 |
Called up
deferred share capital |
|
3,174,672 |
|
- |
|
3,174,672 |
Share
premium |
|
8,201,664 |
|
6,791,581 |
|
8,201,664 |
Share
based payments reserve |
|
802,939 |
|
681,312 |
|
765,977 |
Retained
losses |
|
(2,903,712) |
|
(2,280,652) |
|
(2,692,122) |
Total
equity |
|
9,281,407 |
|
8,370,091 |
|
9,456,035 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
|
Trade and other
payables: amounts falling due after more than one year |
5 |
158,088 |
|
309,589 |
|
158,008 |
Total
non-current liabilities |
|
158,088 |
|
309,589 |
|
158,008 |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Trade and
other payables: amounts falling due within one year |
|
599,338 |
|
545,233 |
|
478,802 |
Total current
liabilities |
|
599,338 |
|
545,233 |
|
478,802 |
|
|
|
|
|
|
|
Total
liabilities |
|
757,426 |
|
854,822 |
|
636,810 |
|
|
|
|
|
|
|
Total equity and
liabilities |
|
10,038,833 |
|
9,224,913 |
|
10,092,845 |
Condensed
statement of cash flows for the six month period ended 30 November 2017
|
Six month period
ended 30 November 2017 (Unaudited) € |
|
Six month period
ended 30 November 2016 (Unaudited) € |
|
Year ended 31 May
2017 (Audited)
€ |
Cash flows from
operating activities |
|
|
|
|
|
Loss for the financial
period/year |
(211,590) |
|
(117,067) |
|
(410,814) |
Adjustments
for: |
|
|
|
|
|
Expense recognised in
income statement in respect of equity settled share based
payments |
6,810 |
|
2,900 |
|
74,280 |
Increase/(decrease) in
trade and other payables |
120,536 |
|
59,733 |
|
(6,698) |
(Increase)/decrease in
other receivables |
(94,633) |
|
49,865 |
|
(81,194) |
Net cash used in
operating activities |
(178,877) |
|
(4,569) |
|
(424,426) |
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
|
Investment in
exploration and evaluation |
(300,527) |
|
(287,944) |
|
(537,432) |
Net cash used in
investing activities |
(300,527) |
|
(287,944) |
|
(537,432) |
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
Issue of share
capital |
- |
|
- |
|
1,412,749 |
Share issue costs |
- |
|
- |
|
(117,723) |
Shareholders loan
repayment |
- |
|
- |
|
(151,581) |
Shareholders loan
reclassified |
80 |
|
- |
|
- |
Advances made to
related parties |
(143,339) |
|
- |
|
- |
Repayments from related
parties |
143,686 |
|
- |
|
- |
Net cash provided by
financing activities |
427 |
|
- |
|
1,143,445 |
|
|
|
|
|
|
(Decrease)/increase
in cash and cash equivalents |
(478,977) |
|
(292,513) |
|
181,587 |
Cash and cash
equivalents at beginning of financial period/year |
523,324 |
|
341,737 |
|
341,737 |
Cash and cash
equivalents at end of financial period/year |
44,347 |
|
49,224 |
|
523,324 |
Condensed statement
of changes in equity for the six month period ended 30 November 2017
|
Share
capital |
Share
premium |
Share-based payment reserve |
Retained
losses |
Total
equity |
|
€ |
€ |
€ |
€ |
€ |
Balance at 1 June
2017 |
3,180,516 |
8,201,664 |
765,977 |
(2,692,122) |
9,456,035 |
Share-based
payments |
- |
- |
36,962 |
- |
36,962 |
Loss for the financial
period |
- |
- |
- |
(211,590) |
(211,590) |
Balance at 30
November 2017 |
3,180,516 |
8,201,664 |
802,939 |
(2,903,712) |
9,281,407 |
|
|
|
|
|
|
Balance at 1 June
2016 |
3,177,850 |
6,791,581 |
665,127 |
(2,163,585) |
8,470,973 |
Share-based
payments |
- |
- |
16,185 |
- |
16,185 |
Loss for the financial
period |
- |
- |
- |
(117,067) |
(117,067) |
Balance at 30
November 2016 |
3,177,850 |
6,791,581 |
681,312 |
(2,280,652) |
8,370,091 |
Share capital
The share capital comprises the nominal value share capital
issued for cash and non-cash consideration. The share capital also
comprises deferred share capital. The deferred share
capital* arose through the restructuring of share capital
which was approved at the Annual General Meeting held on
9 December 2016.
Authorised share capital:
The authorised share capital at 30
November 2017 compromised 182,532,751,034 ordinary shares of
€0.00001 each, and 317,785,034 deferred shares of €0.00999
each* (€5,000,000), (30 November
2016: 500,000,000 ordinary shares of €0.01 each
(€5,000,000)).
*Capital reorganisation:
Following approval at the Annual General Meeting held on
9 December 2016, the Company
reorganised its share capital by subdividing and reclassifying each
issued ordinary share of €0.01 as one ordinary share of €0.00001
each and one deferred share of €0.00999 each. The Deferred
Shares have no right to vote, attend or speak at general meetings
of the Company and have no right to receive any dividend or other
distribution, and have only limited rights to participate in any
return of capital on a winding-up or liquidation of the Company,
which will be of no material value. No application was made to the
London Stock Exchange for admission of the Deferred Shares to
trading on the AIM.
Post period end:
After the period end, on 21 December
2017, the Company passed a Special Resolution at the
Company’s AGM, that all of the ordinary shares of €0.00001 each in
the capital of the Company, whether issued or unissued were
consolidated into New Ordinary Shares of €0.00025 each in the
capital of the Company (“consolidated shares”) on the basis of one
consolidated share for every 25 existing ordinary shares. Following
the consolidation of the ordinary shares on 21 December 2017, the warrants in issue were
consolidated into one consolidated warrant for every 25 existing
warrants. The exercise price in relation to the warrants was also
adjusted at this time (see Note 2).
Share premium
The share premium reserve comprises the excess consideration
received in respect of share capital over the nominal value of the
shares issued.
Share based payment reserve
The share based payment reserve represents the amount expensed
to the condensed income statement in addition to the amount
capitalised as part of intangible assets of share-based payments
granted which are not yet exercised and issued as shares.
Retained losses
This reserve represents the accumulated losses absorbed by the
Company to the condensed statement of financial position date.
Notes to and forming part of the
condensed financial statements for the six month period ended
30 November 2017
1. Accounting
policies
Reporting entity
Karelian Diamond Resources plc (the “Company”) is a company
domiciled in Ireland.
Basis of preparation and statement of
compliance
The condensed financial statements for the six months ended
30 November 2017 are unaudited.
The condensed financial statements have been prepared in
accordance with International Accounting Standard (“IAS”) 34:
Interim Financial Reporting.
The condensed financial statements do not include all the
information and disclosures required in the annual financial
statements, and should be read in conjunction with the Company’s
annual financial statements as at 31 May
2017, which are available on the Company’s website -
www.kareliandiamondresources.com. The accounting policies adopted
in the presentation of the condensed financial statements are
consistent with those followed in the preparation of the Company’s
annual financial statements for the year ended 31 May 2017. There are no new standards,
amendments to published standards or interpretations which are
effective for the first time in the current period that have a
material effect on the condensed financial statements.
The condensed financial statements have been prepared under the
historical cost convention, except for derivative financial
instruments which are measured at fair value at each reporting
date.
The condensed financial statements are presented in Euro (“€”).
€ is the functional currency of the Company.
The preparation of condensed financial statements requires the
Board of Directors and management to use judgements, estimates and
assumptions that affect the application of policies and reported
amounts of assets, liabilities, income and expenses. Actual results
may differ from those estimates. Estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the financial period in
which the estimate is revised and in any future financial periods
affected. Details of critical judgements are disclosed in the
accounting policies detailed in the annual financial
statements.
The financial information presented herein does not amount to
statutory financial statements that are required by Chapter 4 part
6 of the Companies Act 2014 to be annexed to the annual return of
the Company. The statutory financial statements for the financial
year ended 31 May 2017 were annexed
to the annual return and filed with the Registrar of Companies. The
audit report on those financial statements was unqualified.
These Condensed Financial Statements were authorised for issue
by the Board of Directors on 27 February
2018.
Going concern
The Company incurred a loss of €211,590 (30 November 2016: €117,067) for the six month
period ended 30 November 2017. The
Company had net current liabilities of €168,143 (30 November 2016: €334,506) at that date.
The Board of Directors have considered carefully the financial
position of the Company and in that context, have prepared and
reviewed cash flow forecasts for the period to 30 November 2018. As set out in the Chairman’s
statement, the Company expects to incur material levels of capital
expenditure in 2018, consistent with its strategy as an exploration
company. In reviewing the proposed work programme for exploration
and evaluation assets and on the basis of the equity raised during
the year to 31 May 2017, the results
obtained from the exploration programme and the prospects for
raising additional funds as required, the Board of Directors are
satisfied that it is appropriate to prepare the condensed financial
statements on a going concern basis.
Standards, interpretations and
amendments issued but not yet effective
The following new standards, amendments to standards and
interpretations have been issued to date and are not yet effective
for the financial period ended 30 November
2017, and have not been applied nor early adopted, where
applicable, in preparing these condensed financial statements:
- IFRS 9: Financial Instruments; Classification and
Measurement – effective for periods beginning 1 January 2018
- IFRS 15: Revenue from Contracts with Customers -
effective for periods beginning 1 January
2018
- IFRS 2: Classification and Measurement of Share-based
Payment Transactions (Amendment) - effective for periods
beginning 1 January 2018
- IFRS 1: Annual Improvements to IFRS 2014-2016 Cycle
(Amendments to IFRS 1) - effective for periods beginning
1 January 2018
- IAS 28: Annual Improvements to IFRS 2014-2016 Cycle
(Amendments to IAS 28) - effective for periods beginning
1 January 2018
- IFRS 16: Leases - effective for periods beginning
1 January 2019
- IFRS 17: Insurance Contracts - effective for periods
beginning 1 January 2021
- IFRS10/IAS28: Sale or contribution of an asset between an
investor and its Associate of Joint Venture (Amendment) –
Deferred indefinitely by amendments made in December 2015.
The Board of Directors anticipate that the adoption of new
standards, interpretations and amendments that were in issue at the
date of authorisation of these condensed financial statements, but
not yet effective, will have no material impact on the condensed
financial statements in the period of initial application.
2. Loss
per share
Basic earnings per share |
|
|
|
|
|
|
|
|
|
|
Six
month period ended 30 November 2017 (Unaudited) € |
|
Six month period ended 30 November 2016 (Unaudited)
€ |
|
Year ended 31 May 2017
(Audited) € |
Loss for the
financial period/year attributable to equity holders of the
Company |
|
|
(211,590) |
|
(117,067) |
|
(410,814) |
|
|
|
|
|
|
|
|
Number of ordinary
shares for the purposes of earnings per share¥ |
|
|
23,378,067 |
|
23,378,067 |
|
23,378,067 |
|
|
|
|
|
|
|
|
Loss per ordinary
share |
|
|
(€0.0091) |
|
(€0.0050) |
|
(€0.0176) |
|
|
|
|
|
|
|
|
|
|
¥ On 21 December
2017, the Company passed a Special Resolution at the
Company’s AGM, that all of the ordinary shares of €0.00001 each in
the capital of the Company, whether issued or unissued were
consolidated into new ordinary shares of €0.00025 each in the
capital of the Company (“consolidated shares”) on the basis of one
consolidated share for every 25 existing ordinary shares. (In
line with IAS 33: Earnings per share, the calculation of basic and
diluted EPS for all periods presented is adjusted retrospectively
when the number of ordinary or potential ordinary shares
outstanding increases as a result of a reverse share
split).
Diluted earnings per share
The effect of share options and warrants is anti-dilutive.
Following the consolidation of the ordinary shares on
21 December 2017, the warrants in
issue were consolidated into one consolidated warrant for every 25
existing warrants. The exercise price in relation to the warrants
was also adjusted at that time, to the following:
- Expiry date : 29 December 2018 -
20p sterling;
- Expiry date : 28 April 2019 - 20p
sterling;
- Expiry date : 19 November 2022 -
£2.20 sterling.
3. Intangible
assets
Exploration and evaluation
assets |
|
|
|
|
|
|
Cost |
30 November 2017
(Unaudited) € |
|
30
November 2016 (Unaudited) € |
|
31 May 2017
(Audited) € |
At 1 June |
9,276,955 |
|
8,712,953 |
|
8,712,953 |
Expenditure during the
financial period/year |
|
|
|
|
|
- Licence and appraisal costs
|
136,002 |
|
148,320 |
|
255,962 |
|
164,525 |
|
139,625 |
|
281,470 |
- Equity settled share based payments
|
30,152 |
|
13,284 |
|
26,570 |
At 30 November/31
May |
9,607,634 |
|
9,014,182 |
|
9,276,955 |
|
|
|
|
|
|
|
|
|
Exploration and evaluation assets relate to expenditure incurred
in the development of mineral exploration opportunities. These
assets are carried at historical cost and have been assessed for
impairment in particular with regard to the requirements of IFRS 6:
Exploration for and Evaluation of Mineral Resources relating
to remaining licence or claim terms, likelihood of renewal,
likelihood of further expenditure, possible discontinuation of
activities as a result of specific claims and available data which
may suggest that the recoverable value of an exploration and
evaluation asset is less than its carrying amount.
The Board of Directors have considered the proposed work
programmes for the underlying mineral resources. They are satisfied
that there are no indications of impairment.
The Board of Directors note that the realisation of the
intangible assets is dependent on further successful development
and ultimate production of the mineral resources and the
availability of sufficient finance to bring the resources to
economic maturity and profitability.
4. Commitments
and Contingencies
At 30 November 2017, there were no
capital commitments or contingent liabilities (31 May 2017: No capital commitments or
contingencies liabilities). Should the Company decide to develop
the Lahtojoki project, an amount of €100,000 is payable by the
Company.
5. Related
party transactions
(a) Shareholders loans |
30 November 2017
(Unaudited) € |
|
30 November 2016
(Unaudited) € |
|
31 May 2017
(Audited) € |
Opening balance 1 June |
158,008 |
|
309,589 |
|
309,589 |
Reclassification of loan
balance |
80 |
|
- |
|
- |
Loan repayment |
- |
|
- |
|
(151,581) |
Closing balance 30
November/31 May |
158,088 |
|
309,589 |
|
158,008 |
Prior to the various placings of shares, the immediate funding
requirements of the Company had been financed by advances from
Professor Richard Conroy (executive
chairman and major shareholder).
(b) Apart from
Directors remuneration, and loans from shareholders, (who are also
Directors), there here have been no contracts or arrangements
entered into during the six month period in which a Director of the
Company had a material interest.
(c) The Company
shares accommodation with Conroy Gold and Natural Resources plc
which have certain common Directors and shareholders. For the six
month period ended 30 November 2017, Conroy Gold and Natural
Resources plc incurred costs totalling €143,686 (30 November 2016:
€126,057) on behalf of the Company. These costs were recharged to
the Company by Conroy Gold and Natural Resources
plc.
At 30 November 2017, Conroy Gold and Natural Resources plc owed
€273,453 to the Company. Amounts owed from Conroy Gold and Natural
Resources plc are included within other receivables in the current
and previous financial periods/years.
6. Post
balance sheet events
Mr. James P. Jones resigned as
the Secretary of the Company on the 18
December 2017, and was replaced by Maureen T.A. Jones at that time. Mr.
James P. Jones also retired as a
director by rotation at the AGM on 21
December 2017, and did not offer himself for re-election at
that time.
On 21 December 2017, the Company
passed a Special Resolution at the Company’s AGM, that all of the
ordinary shares of €0.00001 each in the capital of the company,
whether issued or unissued were consolidated into new ordinary
shares of €0.00025 each in the capital of the Company
(“consolidated shares”) on the basis of one consolidated share for
every 25 existing ordinary shares. Following the consolidation of
the ordinary shares on 21 December
2017, the warrants in issue were consolidated into one
consolidated warrant for every 25 existing warrants. The exercise
price in relation to the warrants was also adjusted as detailed in
Note 2.
7. Approval
of the Condensed Financial Statements
These Condensed Financial Statements were approved by the Board
of Directors on 27 February 2018. A
copy of the Condensed Financial Statements will be available on the
Company’s website www.kareliandiamondresources.com on 28 February 2018.