TIDMLION
RNS Number : 9337A
Lionsgold Limited
30 March 2017
30 March 2017
Lionsgold Limited
Half Year Report
for the six months ended 31 December
2016
Lionsgold Limited ("Lionsgold" or the "Company"), formerly known
as Kolar Gold Limited, the India-focused gold exploration company
with additional exploration assets in Finland and an interest in a
physical gold online trading platform, announces its unaudited
results for the six months ended 31 December 2016.
Highlights for the period:
-- Refinancing and refocussing the Company through GBP900,000
placing and introduction of new management and entirely new board
of directors;
-- Positive review of existing interests in India through 20.5%
holding in leading India gold exploration and mine development
company, Geomysore Services (India) Private Limited ("Geomysore"),
including significant upgrade in JORC compliant resource at the
most advanced project, Jonnagiri;
-- Jurisdictional diversification achieved through investment
into Finnish gold exploration project (commencing with a 15.4%
interest in Kalevala Gold Oy ("Kalevala") and increasing stake to
28.3%);
-- 50/50 Joint Venture with TRAC Technology Limited ("TRAC") to
launch physical gold holding and trading platform for retail users
in India;
-- Strategic equity position acquired in TRAC of 27.3%;
-- Clearing of legacy expenses incurred under previous decentralised management;
-- Loss after tax for the period of GBP452,979 (2015: GBP533,065); and
-- Post period end, rebranding and change of name to Lionsgold Limited.
Cameron Parry, Chief Executive Officer of Lionsgold Limited,
commented:
"The first six months of this financial year has seen a great
deal of activity for the Company as the new Board undertook steps
to broaden the operational scope of the Company whilst looking to
open up our interests in India. We now have three complementary
gold-focused divisions all of which have important milestones
pending over the coming months.
"Our India partners, Geomysore (of which Lionsgold owns 20.5%),
are close to the conclusion of the economic feasibility study which
takes us to the 'decision to mine' stage around the end of May this
year. Lionsgold has also commissioned a valuation report on the
entirety of Geomysore's licences and licence applications in India
which we expect to complete in early April. Our Finnish operating
company, Kalevala Gold Oy, continues to progress preparatory work
in the lead up to bulk sampling and resulting gold production in Q3
2017. In addition, we are on the cusp of going live with our newly
branded physical gold and silver online holding and trading
platform initially targeting the India market.
"We look forward to providing further updates on each of our
divisions in the coming weeks and months."
For further information, please contact:
Lionsgold Limited Tel: +44 (0) 20 7397 2880
Cameron Parry (Chief Executive Officer)
Luke Cairns (Executive Director)
WH Ireland Limited (Nominated Adviser) Tel: +44 (0) 113 394 6600
Tim Feather
Ed Allsopp
Smaller Company Capital Limited (Joint Broker) Tel: +44 (0) 20 3651 2911
Rupert Williams
Jeremy Woodgate
Beaufort Securities Limited (Joint Broker) Tel: +44 (0) 20 7382 8300
Ellliot Hance
Tavistock (Financial PR) Tel: +44 (0) 20 7920 3150
Emily Fenton
Edward Lee
Review of Operations
The six-month period ended 31 December 2016 was one of great
activity for the Company following the placing of shares to raise
GBP900,000 in July 2016 and the concurrent changes in the board
with the appointments of new CEO Cameron Parry and executive
director Luke Cairns. Under the new leadership, the Company set out
to adopt a three-fold strategy: build on the existing relationships
and value in India ("India Gold"); achieve jurisdictional
diversification and near-term gold production via projects sourced
in Finland ("Finland Gold"); and adapt and establish an online
gold-trading platform via JV targeting the Indian market,
supplemented by a strategic equity position in JV partner TRAC
Technology Limited ("Fintech Gold").
India Gold
Lionsgold has a 20.5 per cent shareholding in Geomysore Services
(India) Private Limited ("Geomysore") as at the date of this report
following the investment of $2.4m by Thriveni Earth Movers Private
Limited to fund the completion of the internal economic feasibility
study ("EFS") currently scheduled the end of May this year.
During the period under review, Golder Associates Pty Limited
("Golder") estimated a JORC compliant indicated and inferred gold
resource of 351,000 ounces in aggregate at the East and West blocks
(234,000 and 117,000 ounces respectively) which was a significant
increase from the approximate 150,000 ounces identified at the East
Block and as announced in Company's half yearly report on 30 March
2016. Full details on this resource increase can be found in the
announcement dated 21 October 2016.
Post the period under review and following the increased drill
data resulting from the EFS drill programme Golder revised its
estimates to a JORC compliant gold resource (the "Resource") of
214,000 ounces (Indicated) and 147,000 ounces (Inferred) in total
at the East and West blocks (up from 103,000 ounces Indicated and
248,000 ounces Inferred as previously announced on 21 October
2016). Whilst the Resource increase in aggregate is marginal (up
from 351,000 ounces to 361,000 ounces), significantly, 111,000
ounces of the Resource at the East Block has materially shifted
from Inferred to Indicated category. No additional drilling was
undertaken at the West Block. Full details are set out below.
In addition, Golder has reported on the test drilling results in
the South Block of Jonnagiri which demonstrate highly prospective
intersections at shallow depth.
The best drill intersections include:
-- 8m @ 2.67 g/t from surface,
-- 2m @ 6.84 g/t from 26m,
-- 5m @ 3.52 g/t from 3m,
-- 5m @ 4.24 g/t from 6m,
-- 3m @ 5.98 g/t from 3m, and
-- 3m @ 7.84 g/t from 10m.
These intersections represent both detrital and primary ore,
which is found in the vicinity of ancient mine workings. The next
step for exploration at the South Block is a further programme of
diamond core and reverse circulation drilling (approximately 4,000
metres in aggregate) with a view to establishing a JORC compliant
resource to add to the East and West Block deposits.
Geomysore also has a number of other gold licences and
applications in India at different stages of development in some
very prospective areas including North, East and South Kolar Belt,
but all resources are currently focussed on the EFS at
Jonnagiri.
Prior to the final outcome of the EFS, Lionsgold commissioned
Golder to undertake a valuation report of Geomysore's exploration
assets in India, the results of which are expected in the coming
weeks. This independent report, together with the results of the
EFS and, subject to the decision to mine, any subsequent funding
arrangements to build mining operations at Jonnagiri, will assist
the Board in its discussions as to whether it may seek to increase
its interest in Geomysore and mechanisms by which it might achieve
this.
Finland Gold
In October 2016 the Company announced a Memorandum of
Understanding ("MOU") under which Lionsgold had the ability to take
an interest of up to 50 per cent of a new Finnish operating entity
to which various gold exploration licences were being assigned.
Under the MOU in the period under review the Company made an
initial payment of EUR150,000 in cash. Post period end Kalevala
Gold Oy ("Kalevala") was incorporated and, following the issue of
8.5m new ordinary shares in Lionsgold at an implied price of 1.6p
per share, the Company took its interest into Kalevala to
15.4%.
Under the MOU, the Company has committed to invest a further
EUR350,000 to take its interest to 28.3%. It was initially
envisaged that this would have been paid by 28 February 2017 but
payment is being requested in tranches as needed with the first
EUR50,000 paid in February of this year. Lionsgold has the option
to then increase its stake in Kalevala up to 50 per cent by the end
of H2 2017 subject to a further investment of up to EUR1m.
Once all assigned, Kalevala will hold gold exploration licences
covering 24km(2) in central east Finland. Subject to the level of
funding, Kalevala is targeting up to a 10,000 tonne gold ore bulk
sampling programme in Q3 of 2017 targeting production of 100kg of
gold.
Fintech Gold
In November 2016, the Company announced that it had initiated a
50/50 Joint Venture ("JV") with TRAC Technology Limited ("TRAC") to
launch an online gold and silver trading and storage platform
targeting the Indian market. In conjunction with this Lionsgold
acquired 27.3% of TRAC for a total consideration of $100,000
satisfied by payment of $50,000 in cash and the remainder through
the issue of 2.6m new ordinary Lionsgold shares with an implied
price of 1.6p per share.
Under the JV Lionsgold is to provide the first GBP50,000 to
develop and launch the platform for the Indian market utilising
TRAC's existing and proven gold trading platform:
www.therealasset.co.uk. In the past few months the JV has developed
its new brand and the site is nearing completion with a view to
going live in early April. Whilst the new site will be targeting
Indian customers, throughout its development the Company, together
with TRAC, has taken the decision to make the platform open to
customers from the UK introduced by Lionsgold.
Further announcements will be made as and when the site is ready
to go live with a view to commencing trading and generating
revenues immediately.
Board changes
On 28 July 2016 Cameron Parry was appointed to the Board as the
Chief Executive Officer (CEO), Luke Cairns was appointed to the
Board as an executive director and Vaidyanathan Venkateswaran
Sivakumar resigned from the Board.
On 30 September 2016 Harvinderpal Singh Hungin stepped down as
the Chairman and as a non-executive director.
On 23 November 2016 Dr. M. Hanuma Prasad was appointed to the
Board as a non-executive director.
On 31 December 2016 Stephen Oke stepped down from the board as a
non-executive director
Key financials
The loss after tax for the period was GBP452,979 compared to
GBP533,065 for the half year to 31 December 2015.
As at 31 December 2016, the Group's cash balances were
GBP612,383 (31 December 2015: GBP890,439).
Lionsgold Limited (formerly Kolar Gold Limited) and its
controlled entities
Condensed consolidated Statement of Comprehensive Income
(unaudited)
for the six months ended 31 December 2016
Note Six months Six months Year ended
ended 31 ended 31 30 June
December December 2016
2016 2015
(unaudited) (unaudited) (audited)
GBP GBP GBP
Salaries and wages (144,375) - (263,073)
Share Based Payments 6 (55,000) - -
Other administrative expenses (237,931) (501,757) (629,038)
Accretion of investment
in associate 3 - 2,994 2,994
Loss from operating activities (437,306) (498,763) (889,117)
------------ ------------ -----------
Finance income 383 3,234 5,799
Finance costs - (3,569) (3,477)
Net finance income/ (costs) 383 (335) 2,322
------------ ------------ -----------
Share of loss of associate 3 (16,056) (30,437) (39,635)
Loss on disposal of fixed
assets - (3,530) (4,348)
------------ ------------ -----------
Loss before tax (452,979) (533,065) (930,778)
Income tax - - -
------------ ------------ -----------
Loss for the period/ year (452,979) (533,065) (930,778)
Other comprehensive loss
Items that are or may
be reclassified subsequently
to profit or loss
Foreign exchange translation
variances (11,096) (5,405) (5,979)
------------ ------------ -----------
Total comprehensive loss
for the year (464,075) (538,470) (936,757)
============ ============ ===========
Basic and diluted loss
per share (GBP) (0.24) (0.51) (0.88)
All results are derived from continuing
activities.
Lionsgold Limited (formerly Kolar Gold Limited) and its
controlled entities
Condensed consolidated Statement of Financial Position
(unaudited)
as at 31 December 2016
31 December 31 December 30 June
Note 2016 2015 2016
GBP GBP GBP
Non-current assets (unaudited) (unaudited) (audited)
Plant and equipment - 5,802 -
Investment in associate 3 2,997,606 3,022,860 3,013,662
Investments - other 3 87,381 - -
Total non-current assets 3,084,987 3,028,662 3,013,662
------------ ------------ ------------
Current assets
Trade and other receivables 1,977 12,383 3,736
Prepayments and other
assets 11,529 16,289 26,218
Other receivables 4 135,233 - -
Term deposits 166,142 434,251 285,648
Cash and cash equivalents 446,241 456,188 119,158
Total current assets 761,122 919,111 434,760
------------ ------------ ------------
Total assets 3,846,109 3,947,773 3,448,422
------------ ------------ ------------
Current liabilities
Trade and other payables 118,640 174,662 144,996
Employee benefits - 71,398 -
Total current liabilities 118,640 246,060 144,996
------------ ------------ ------------
Total liabilities 118,640 246,060 144,996
------------ ------------ ------------
Total net assets 3,727,469 3,701,713 3,303,426
============ ============ ============
Equity
Share capital - 7,440,546 7,440,546
Share premium 23,957,858 15,690,724 15,690,724
Reserves 68,106 3,827,315 17,672
Accumulated losses (20,298,495) (23,256,872) (19,845,516)
------------ ------------ ------------
Total equity 3,727,469 3,701,713 3,303,426
============ ============ ============
Lionsgold Limited (formerly Kolar Gold Limited) and its
controlled entities
Condensed consolidated Statement of Changes in Equity
for the six months ended 31 December 2016
Share Share Share Foreign exchange Accumulated Total equity
capital premium based translation losses
payment reserve
reserve
GBP GBP GBP GBP GBP GBP
Balance at 1 July
2015 7,440,546 15,690,724 3,838,027 (5,307) (22,723,807) 4,240,183
------------ ------------ ---------- ----------------- ------------- -------------
Loss for the period - - - - (533,065) (533,065)
Other comprehensive
loss - foreign exchange
translation variances - - - (5,405) - (5,405)
------------ ------------ ---------- ----------------- ------------- -------------
Total comprehensive
loss for the period - - - (5,405) (533,065) (538,470)
Balance at 31 December
2015 7,440,546 15,690,724 838,027 (10,712) (23,256,872) 3,701,713
------------ ------------ ---------- ----------------- ------------- -------------
Balance at 1 July
2016 7,440,546 15,690,724 28,958 (11,286) (19,845,516) 3,303,426
Loss for the period - - - - (452,979) (452,979)
Other comprehensive
loss - foreign exchange
translation variances - - - (11,096) - (11,096)
------------ ------------ ---------- ----------------- ------------- -------------
Total comprehensive
loss for the period - - - (11,096) (452,979) (464,075)
------------ ------------ ---------- ----------------- ------------- -------------
Issue of ordinary
shares - 996,600 - - - 996,600
Cost of issue - (108,482) - - - (108,482)
Issue of warrants - (61,530) 61,530 - - -
Reallocation of share
capital to share premium
following designation
of shares to no par
value (7,440,546) 7,440,546 - - - -
Total contributions
by and distributions
to owners (7,440,546) 8,267,134 61,530 - - 888,118
Balance at 31 December
2016 - 23,957,858 90,488 (22,382) (20,298,495) 3,727,469
------------ ------------ ---------- ----------------- ------------- -------------
Lionsgold Limited (formerly Kolar Gold Limited) and its
controlled entities
Condensed consolidated Statement of Cash Flows
For the six months ended 31 December 2016
Six months Six months Year ended
ended 31 ended 31 30 June
December December 2016
2016 2015
GBP GBP GBP
(unaudited) (unaudited) (audited)
Cash flows from operating
activities
Loss for the period (452,979) (533,065) (930,778)
Adjustments for:
Depreciation - 792 2,050
Accretion of investment
in associate - 30,437 (2,994)
Share of loss of associate 16,056 (2,994) 39,635
Share-based payment 55,000 - -
Net finance income (383) (3,234) (2,338)
Foreign exchange variances (13,552) 17,757 (6,140)
Loss on disposal of 3,530
assets - -
Operating loss before
changes in working
capital and provisions (395,858) (486,777) (900,565)
Change in trade and
other receivables 1,760 (9,339) 3,213
Change in other current
assets 14,689 4,259 (9,576)
Change in trade and
other payables (26,356) 13,814 (15,852)
Change in employee
benefit liability - (49,734) (121,132)
------------ ------------ ------------
Net Cash used in operating
activities (405,765) (527,777) (1,043,912)
Cash flows from investing
activities
Interest received 383 3,234 5,138
Proceeds from disposal
of fixed assets - 1,297
Funds withdrawn from
term deposit 119,507 497,743 646,346
Loan advancement for -
future investment (135,233) -
Payments for investment -
acquisition (45,781) -
Payments for plant (873)
and equipment - -
Net cash from investing
activities (61,124) 501,401 651,484
------------ ------------ ------------
Cash flows from financing
activities
Proceeds from issues
of shares 900,000 - -
Cost of issue (108,482) - -
------------ ------------ ------------
Net cash from financing -
activities 791,518 -
------------ ------------ ------------
Net decrease in cash
and cash equivalents 324,629 (26,376) (392,428)
Foreign exchange gain/(loss)
on cash balances 2,454 (23,161) 5,861
Cash and cash equivalents
at 1 July 119,158 505,725 505,725
------------ ------------ ------------
Cash and cash equivalents
at 31 December
(Excludes term deposits
of GBP166,141)
(31 December 2015:
GBP434,251) 446,241 456,188 119,158
============ ============ ============
Lionsgold Limited (formerly Kolar Gold Limited) and its
controlled entities
Notes to the condensed consolidated interim financial
statements
For the six months ended 31 December 2016
1. Corporate Information
Lionsgold Limited, formerly Kolar Gold Limited, (the 'Company')
is a company incorporated and registered in Guernsey and its shares
are traded on AIM (LSE: LION). The condensed consolidated interim
financial statements of the Company as at and for the six months
ended 31 December 2016 comprise the Company and its subsidiaries
(together referred to as the 'Group').
As at 31 December 2016, the wholly owned subsidiaries of the
Company were:
-- Kolar Gold Resources Limited (Mauritius);
-- Kolar Gold Resources (India) Private Limited; and
-- Kolar Gold Pty Limited
Lionsgold is an AIM-quoted India-focused gold exploration
company, with complementary gold assets in Finland and an online
exchange targeting the India market for retail users to directly
own and trade of physical gold.
2. Basis of preparation and changes to the Group's accounting policies
Basis of Preparation:
These unaudited condensed consolidated half yearly financial
statements have been prepared under the historical cost convention
and in accordance with the AIM Rules for Companies. As permitted,
the Group has chosen not to adopt IAS 34 "Interim Financial
Statements" in preparing this interim financial information. The
unaudited condensed consolidated half yearly financial statements
should be read in conjunction with the annual financial statements
for the year ended 30 June 2016, which have been prepared in
accordance with International Financial Reporting Standards (IFRS)
as adopted by the European Union.
The unaudited condensed consolidated half yearly financial
statements do not constitute statutory financial statements within
the meaning of the Guernsey (Companies) Law, 2008, have been
prepared on a going concern basis in accordance with the
recognition and measurement criteria of IFRSs. Statutory financial
statements for the year ended 30 June 2016 were approved by the
Board of Directors on 8 December 2016 and delivered to the
Registrar of Companies. The report of the auditor on those
financial statements was unqualified.
The same accounting policies, presentation and methods of
computation are followed in these unaudited condensed consolidated
half yearly financial statements as were applied in the preparation
of the Group's annual audited financial statements for the year
ended 30 June 2016.
The preparation of unaudited condensed consolidated half yearly
financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the end of the reporting period. Significant items subject to such
estimates are set out in the Group's Annual Report and Financial
Statements for the year ended 30 June 2016. The nature and amounts
of such estimates have not changed significantly during the interim
period.
These interim condensed consolidated financial statements were
approved by the Board of Directors on 29 March 2017.
New standards, interpretations and amendments adopted by the
Group:
The accounting policies adopted in the preparation of the
interim condensed consolidated financial statements are consistent
with those followed in the preparation of the Group's annual
consolidated financial statements for the year ended 30 June
2016.
2. Basis of preparation and changes to the Group's accounting policies
New standards, interpretations and amendments adopted by the
Group (continued)
Several other new standards and amendments apply for the first
time in 2016. However, they do not impact the annual consolidated
financial statements of the Group or the interim condensed
consolidated financial statements of the Group.
The following accounting standards and amendments have been
issued but are not yet effective for the financial year beginning 1
July 2016 and not early adopted:
Effective
Standard Impact on initial application date
-------------------- --------------------------------------------------------------------------------- ----------
IAS 7 (Amendments) Disclosure Initiative 1 January
2017
IAS 12 (Amendments) Recognition of Deferred Tax 1 January
2017
IFRS 9 Financial Instruments 1 January
2018
IFRS 15 Revenue from Contracts with Customers 1 January
2018
IFRS 16 Leases 1 January
2019
IFRS 2 (Amendments) Classification and measurement of share-based payment transactions 1 January
2019
Annual Improvements Annual Improvements to IFRS Standards 2014-2016 cycle 1 January
2017
IFRIC 22 IFRIC Interpretation 22 Foreign Currency transactions and advanced consideration 1 January
2018
IAS 40 (Amendments) Transfer of investment property 1 January
2018
3. Investments
a) Investment in Associate
As at 30 June 2016 the Group held a 23.12% equity interest in
Geomysore with a carrying value of GBP3,013,662. Additional funds
of US$2.4 million were raised by Geomysore in July 2016 funded by
Thriveni - one of the four major shareholders of Geomysore. By not
participating in the fundraising the Group's interest was diluted
proportionately. The Group's shareholding in Geomysore was diluted
following the completion of the agreed funding from 23.12% to
20.5%.
31 December 31 December 30 June
2016 2015 2016
GBP GBP GBP
Investment in an associate (unaudited) (unaudited) (audited)
Opening balance 3,013,662 3,050,303 3,050,303
Accretion of investment - 2,994 2,994
Share of loss in associate (16,056) (30,437) (39,635)
Total 2,997,606 3,022,860 3,013,662
----------- ----------- ---------
b) Investment in TRAC Technologies
On 1 November 2016 the Company announced the acquisition of
27.3% of TRAC Technology Limited ("TRAC") for $100,000 satisfied
through $50,000 in cash and the issue of 2,600,000 new ordinary
shares at 1.6p per share.
At the date of these financial statements it was concluded that
the purchase price of the investment in TRAC reflected the value of
the investment as at 31 December 2016 and that there had been no
significant movements between the date of acquiring the investment
and the interim financial statement date. It was also concluded
that no impairment to the value of the investment was required.
4. Loan advancement for Finland Investment
On 13 October 2016 the Company entered into a Memorandum of
Understanding ("MOU") with Mineral Exploration Network (Finland)
Limited ("MENF") with a view to establishing a potential joint
venture in the future in order to develop gold exploration and
mining assets in Finland.
Under the MOU, the Company paid EUR150,000 upfront on 18 October
2016. The Company has agreed to issue the equivalent of EUR150,000
new ordinary shares at an implied price of 1.6p in return for 150
shares in Kalevala Gold Oy ("Kalevala"), a Finnish company
established to develop the various licences subject to the joint
venture with MENF. The Company has committed to invest a further
EUR350,000 in Q1 2017 with an option to provide a further EUR1m to
take its interest up to 50% in the JV.
Although the Company advanced the initial cash payment in
October, the share-based payment element of the acquisition did not
occur until after the period end. Furthermore, Kalevala, the entity
in which shares are being acquired, was not incorporated until
January 2017 and as such, the Company did not have a shareholding
in this investment at the date of these interim financial
statements. For this reason, it has been deemed appropriate to
treat the initial cash payment as a loan advancement for the future
acquisition of the investment.
5. Share Capital
31 December 31 December 30 June
2016 2015 2016
No of Shares No of Shares No of Shares
(unaudited) (unaudited) (audited)
Opening balance 106,293,537 106,293,537 106,293,537
Issued during the period/
year 89,418,182 - -
Total 195,711,719 106,293,537 106,293,537
------------ ------------ ------------
All shares issued by the Company are 'ordinary' shares and rank
equally in all respects, including for dividends, shareholder
attendance and voter rights at meetings, on a return of capital and
in a winding-up.
A resolution was passed at an Extraordinary General Meeting
('EGM') for the issue of 81,818,182 new ordinary shares (the
'Placing Shares') at a price of 1.1p per share (the 'Placing
Price') on 28 July 2016. The Placing on 28 July 2016 raised
GBP900,000 before fees and expenses. In addition the Company issued
81,818,182 warrants exercisable at 2.2p.
The EGM resolutions also included the redesignation of the
ordinary shares of 7p in the capital of the Company as ordinary
shares of no par value.
On the same date, the Company also issued 5,000,000 new ordinary
shares to Cameron Parry as part of his remuneration package.
On 1 November 2016 the Company announced the acquisition of
27.3% of TRAC Technology Limited ("TRAC") for $100,000 satisfied
through $50,000 in cash and the issue of 2,600,000 new ordinary
shares at a price of 1.6p per share.
6. Share-based payments
a) Options
The Company has the ability to issue options to Directors to
compensate them for services rendered and incentivise them to add
value to the Group's longer term share value.
As at 31 December 2016, there were no options in existence over
the shares of Lionsgold Limited.
250,000 options previously granted to Stephen Oke (125,000 on 31
December 2012 and 125,000 on 25 November 2013) lapsed during the
period due to his resignation from the Board on 31 December 2016
under the terms of the Company's option plan.
300,000 options previously granted to Harvinder Hungin (150,000
on 31 December 2012 and 150,000 on 25 November 2013) lapsed due to
his resignation from the Board on 30 September 2016.
b) Warrants
In addition to the Placing on 28 July 2016 which raised
GBP900,000 before fees and expenses, the Company issued 81,818,182
warrants exercisable at 2.2p. No warrants have been exercised
throughout the six month period to 31 December 2016 and no warrants
have expired in this period.
During the period an amount of GBP61,530, representing the fair
value of the warrants, has been recognised against share premium.
The fair value of the options was determined using the Black
Scholes model.
c) Share-based payments
On his appointment to the board, Cameron Parry was issued with
5,000,000 new ordinary shares. The issue of these shares occurred
simultaneously with the Placing of 81,818,182 shares which raised
GBP900,000 before fees and expenses.
The Placing shares were issued at a price of 1.1p which has also
been taken as the deemed fair value of the shares issued to Cameron
Parry.
These shares constitute a sign-on fee paid in shares and hence a
share-based payment of GBP55,000 which has been recognised in
profit and loss.
7. Operating Segments
For the financial period under review the Group had one
reportable segment, being Indian Exploration - Investment in gold
exploration activities and administration in the Kolar Gold Fields
region in Karnataka State, India.
The Group also has corporate administrative functions outside
India which generate corporate expenses that have not been
allocated to a segment. Due to the winding down of the Australian
subsidiary, much of these costs have since been reduced
materially.
The Group's Chief Executive Officer reviews internal management
reports for this segment on a monthly basis.
The Group has no revenue at this stage of its development and
performance is measured based on expenses incurred and exploration
activity levels in the Indian segment.
8. Subsequent events
Lionsgold Limited was formerly known as Kolar Gold Limited and
changed its name effective 23 February 2017.
Following the period ended 31 December 2016 the following
Options were granted:
Name Date of Ordinary Expiry Exercise
Grant Shares under Date Price
option GBP
Cameron Parry 18.01.2017 10,000,000 31.12.2019 0.022
Luke Cairns 18.01.2017 8,000,000 31.12.2019 0.022
M Hanuma Prasad 18.01.2017 1,800,000 31.12.2019 0.022
19,800,000
==============
Each Option entitles the holder to subscribe for one ordinary
share in Lionsgold Limited. Options do not confer any voting rights
on the holder.
Lionsgold Limited issued 8,500,000 new ordinary shares to
Mineral Exploration Network (Finland) Limited ("MENF") in January
2017 in return for 150 shares in Kalevala Gold Oy ("Kalevala"), the
recently incorporated Finnish company established to develop the
various licences subject to the joint venture with MENF (the "JV")
announced on 13 October 2016.
The New Shares were issued at an implied price of 1.6p per share
by reference to the consideration of EUR150,000 as detailed in
these financial statements.
There have been no other significant events subsequent to the
balance sheet date to report that would alter the condensed
consolidated interim financial statements as at 31 December 2016 or
require disclosure.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EKLFLDXFLBBF
(END) Dow Jones Newswires
March 30, 2017 02:00 ET (06:00 GMT)
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