TIDMPALM
RNS Number : 8320M
Panther Metals PLC
24 September 2021
Panther Metals Plc
Half Yearly Financial Report
For the six months ended 30 June 2021
PANTHER METALS PLC
OPERATIONAL AND FINANCIAL REVIEW
FOR THE SIX MONTHSED 30 JUNE 2021
Operational Highlights
Key operational milestones achieved during the six-month period
to 30 June 2021.
Canada
-- On 22 February 2021, Panther Metals PLC ("Panther" or "the
Company") received the Dotted Lake property airborne geophysics
survey data and report. A total of 138 geophysical anomalies were
identified by the survey, with high priority anomalies since
prioritised for follow-up ground investigation.
-- On 4 May 2021, Panther announced the issue of the Dotted Lake
Exploration Permit which allowed Panther Metals (Canada) Limited
("Panther Canada") to embark on plans for reconnaissance diamond
drilling, grid soil sampling, ground geophysics and trenching
focussed on testing intrusive contact shear-zone hosted gold
mineralisation in the vicinity of the north shore of Dotted Lake.
Two new exploration permit applications were also lodged for the
Big Bear Project, Big Duck Creek and Hays Lake East, target
areas.
-- At the Dotted Lake property, the planned soil sampling
programme commenced in mid-June and Panther Canada contracted a
local firm to construct the Dotted Lake drill rig access trail.
Australia
-- Panther Metals Limited (formerly known as Panther Metals Pty
Ltd) ("Panther Australia") completed a soil geochemical sampling
programme at the Merolia Gold Project using Kalgoorlie based
drilling and survey company Gyro Australia Pty Ltd. An airborne
magnetic and radiometric survey was completed across the Merolia
Project and at the Annaburroo and Marrakai projects in the Northern
Territory.
-- In February 2021, Panther Australia appointed Mr. Ranko Matic
and Mr. Daniel Tuffin to its board in Australia and converted the
company to a UPC called Panther Metals Limited.
-- On 15 April 2021, the Company announced its intention to
pursue a listing of its Australian assets on the Australian
Securities Exchange with a pre-IPO seed funding round. The Company
will continue to hold a material position in Panther Australia upon
the listing.
-- On 10 May 2021 the Company announced the completion of the
first stage in the process to pursue a listing of its Australian
assets on the Australian Securities Exchange (the "ASX" or "ASX
Exchange") with the completion of a pre-IPO seed financing raising
AUD$300,000. As a result of the financing, the interest of Panther
in its subsidiary, Panther Australia, reduced from 100% to
89.3%.
Corporate and Financial Highlights
-- On 21 April 2021, the Company announced the completion of a
private placing for a total of 1,666,666 ordinary shares at a price
of 12p raising a total of GBP200,000. The admission of those shares
took place on 23 April 2021.
-- On 17 May 2021, the Company announced that it has received
notice of exercise of a total of 1,318,331 warrants with an
exercise price of 6p per share, raising GBP79,100 for the Company.
The admission of those shares took place on 20 May 2021.
Dr Kerim Sener, Chairman, commented:
The first half of 2021 commenced with certain strategic
developments associated with the advancement of our Australian
portfolio. During the latter part of the previous year, we
concluded a transaction on the Merolia Project near Laverton in
Western Australia. Recognising the significance of this asset and
the enhanced requirements for project development, we quickly made
steps towards giving Panther Australia a life of its own. This
involved enhancing the board with two additional minerals industry
professionals and immediately commencing fieldwork across the
project area. The latter activity involved an extensive auger
geochemistry programme over a previously unsampled part of the
Merolia Project, the result of which was the discovery of the 40
Mile Camp gold anomaly. In addition, an airborne magnetic and
radiometric geophysical survey was conducted across the whole
project area; the aircraft and survey crew then being sent to the
Northern Territory to complete an airborne survey over those assets
as well. This set the scene for a successful placing undertaken in
late April for GBP200,000 at a price of 12p per share and
representing a 20% premium over a previous fundraise in late
2020.
In Canada, early in the year, the Company received the processed
data products from its airborne magnetic and electromagnetic
geophysical survey over the Dotted Lake Project, which had been
undertaken at the very end of 2020. A large number of geophysical
anomalies were identified in this survey, several of which were
prioritised for follow-up work. A subsequent soil geochemical
programme was undertaken across the project to help refine targets
identified from the airborne survey. Further planning was
undertaken for additional work across both the Big Bear and Dotted
Lake projects, pending permits and land access requirements.
Returning to Australia, a decision was made to advance our
subsidiary, which had recently been renamed Panther Metals Limited,
towards a listing on the ASX. A fundraise was completed for the
subsidiary to this end for A$300,000 to help advance additional
exploration and corporate development costs, which had the effect
of diluting the interests of the Company to about 89%. As part of
these developments, further tenement applications were made to the
west of the Merolia Project, in an area known as Red Flag, which
hosts potential for nickel-cobalt and gold mineralisation.
Towards the end of the period, the Company completed its first
JORC Exploration Target of 30Mt-50Mt at 0.6-0.8% nickel and
400-600ppm cobalt on the Coglia deposit, which occurs at the far
southern end of the Merolia Project. This identified a stand-out
opportunity for the Company in a set of commodities which are
receiving increased attention for their use in battery
technologies. While the mineralisation identified to date has been
determined as lateritic, there is evidence for sulphide
mineralisation contained within the underlying ultramafic volcanic
rocks, which are yet to be tested systematically.
Consequently, the activities of the Company during the period
have been tremendous and we would like to congratulate our teams
both in Australia and in Canada for their drive and determination.
While travel remains impacted by the ongoing issues associated with
COVID-19, we have taken steps to advance the interests of the
Company across both Australia and Canada by utilising wholly
in-country teams. This will remain a core feature of our overall
strategy going forward, as will the concept of spinning-out parts
of our project portfolio into country or project specific
entities.
Operational Review
Canada
The ongoing COVID-19 pandemic and related restrictions on travel
into Ontario continued to impact on exploration staffing,
permitting and logistics across the sector. However, with a growing
local network of contractors, Panther was able to progress work
across the Canadian projects.
On 22 February 2021 Panther Canada announced the receipt of the
processed high-resolution Airborne Time Domain Electromagnetic
("TDEM") and Magnetics ("Mag") geophysics survey data and
associated maps and report over the Dotted Lake Property on the
north limb of the Schreiber-Hemlo greenstone belt in Ontario,
Canada. Prospectair Geosurveys, the same company who flew the Big
Bear property in June 2020, had conducted the helicopter 818
line-km survey over a series of seven flights between 9th -11th
December 2020. A total of 138 geophysical anomalies were identified
by the survey, with high priority anomalies since prioritised for
follow-up ground investigation.
In early May, the Company received the Dotted Lake Exploration
Permit (number PR-20-000376) which has allowed the Company to
embark on plans for reconnaissance diamond drilling, grid soil
sampling, ground induced polarisation ("IP") geophysics and
trenching focussed on testing intrusive contact shear-zone hosted
gold mineralisation in the vicinity of the north shore of Dotted
Lake. Panther's reconnaissance sampling in historical trenches at
this locality has confirmed high-grade gold at surface (announced 5
November 2020) in an area that has never been drill-tested.
The Dotted Lake Exploration Permit allows the below permitted
activities to be undertaken over a three-year period between 27
April 2021 and 26 April 2024 on Dotted Lake claim numbers 548354,
548355, 548356, 548357 and 548358, it replaces previous (2018)
Dotted Lake Exploration Permit (PR-18-000152) considering the
current claim focus and revised drilling plans. Permitted
activities consist of:
-- Mechanised drilling. Provision for an initial 8 planned
diamond drill collars to step-out along strike of any positive
drill intersections.
-- Mechanised stripping. Allowance for a total 2,500m(2) of
ground cover stripping to facilitate bedrock mapping and structural
interpretation.
-- Pitting and trenching. Covers 7 planned trenches to provide
strike cross-sections across the target shear zone.
-- Ground geophysics incorporating the use of a generator.
Planned work includes an initial 2.5-line km of ground IP survey
across the sheared contact.
-- Construction of access roads and survey line cutting.
-- Permitted fuel storage for drill rig, vehicles, and
generators.
At the Big Bear Project, also in May 2021, Panther Canada
submitted a further two Exploration Permit Applications which will
facilitate reconnaissance drill testing and ground IP geophysics
across key prospective targets which have emerged from the results
of the airborne TDEM and Mag geophysics survey completed in August
2020 and the Autumn 2020 fieldwork programme.
The Big Duck Creek Permit Application will allow testing of high
priority AEM and Mag targets in the 'Big Duck Creek' area to the
north and west of Little Bear Lake, in the north of the project
area. The requested activities consist:
-- Mechanised drilling. Provision for up to 10 planned priority
1 diamond drill collars with a further proposed 9 drill pad
locations preplanned to follow-up on encouraging results.
-- Ground geophysics incorporating the use of a generator.
Planned work includes an initial 5-line km of IP survey arranged
over 9 planned survey lines.
-- Construction of access roads and survey line cutting.
-- Permitted fuel storage for drill rig, vehicles and generators
and construction of a temporary personnel camp.
The Hays Lake East Permit Application area overlies the
interpreted northern intrusive contact of the Terrace Bay
Batholith, targeting the Joa-Walton gold occurrence and potential
eastern extensions to the historical Jedder gold mine. This
application focusses on claims Panther acquired last year
(announced 13 July 2020) which includes the Jedder mine and mill,
which was intermittently worked between 1934-1986, with gold
bearing quartz veins by open cuts up to 15m deep site. Historical
gold production was not reported but channel sampling of an 87m
long section of the Mill Vein in 1984 reportedly yielded values up
to 39.50g/t Au & 73.17 g/t Ag over 0.5m.
The Joa-Walton occurrence includes at least three quartz veins
(with government assays up to 210g/t Au & 258g/t Ag) which
Panther intends to test through three-dimensional geophysical
modelling and drilling.
Requested activities in the Hays Lake East Permit Application
consist of:
-- Mechanised drilling. Provision for up to 5 planned priority 1
diamond drill collars with a further proposed 4 drill pad locations
pre-planned to follow-up on encouraging results.
-- Ground geophysics incorporating the use of a generator.
Planned work includes an initial 2.5-line km of IP survey arranged
over 5 planned survey lines.
-- Construction of access roads and survey line cutting.
-- Permitted fuel storage for drill rig, vehicles and generators
and construction of a temporary personnel camp.
In June 2021, Panther Canada contracted the experienced Thunder
Bay based Fladgate Exploration Consulting Corporation ("Fladgate")
to commence a soil geochemistry sampling programme over a 1.60km by
0.85km target area coinciding with the Dotted Lake Exploration
Permit area.
The soil geochemistry survey is designed to build out and
in-fill the westerly strike extensions of high-grade gold
mineralisation intersected by historical trenching undertaken by a
previous licence holder in 2010 (Tr-10-4) and as confirmed during
Panther Canada's reconnaissance sampling (gold up to 18.9g/t Au)
announced 5 November 2020. The soil survey will also provide
important geochemical coverage of target structures outlined by
Panther's airborne geophysical survey. At the same time a separate
contract was agreed for the construction of the Dotted Lake drill
rig access trail.
Post period end, over the period mid-July to mid-August, the
regional government issued a forest fire risk related work-stop
safety implementation order, following a long period of hot dry
weather. With many uncontrolled forest fires burning throughout the
district exploration work must be put on hold, impacting the Dotted
Lake drilling access trail construction, and delaying the
completion of the soil programme until the end of August.
Also post period end, on 2 August 2021, as detailed in the
Outlook section below, Panther announced the acquisition of 1,128
claims, constituting the new Obonga Project.
The COVID-19 pandemic has continued to impact on the Canadian
exploration sector and in line with other claim holders in Ontario
Panther Canada has been granted and taken the option to apply for
12-month extensions to claim expiry dates. The scheme is now
expected to come to an end on 31st October 2021.
Australia
A 5,867 line-km airborne geophysical survey was undertaken over
the Merolia Project in Western Australia by Thomson Airborne Pty
Ltd. The high-resolution survey involved the collection of
magnetic, radiometric and elevation data on a 50m line spacing and
at a nominal flight altitude of 35m above ground, utilised a
conventional fixed-wing platform. This survey was followed by the
collection of 1,715 line-km airborne geophysical data over the
Annaburroo and Marrakai gold project areas in the Northern
Territory using the same survey parameters as used in Western
Australia. Geophysical consultants, Core Geophysics, subsequently
undertook the raw data processing and stitched the resultant
outputs with other regional datasets. The full suite of derivative
geophysical data products is being utilised to guide the
exploration targeting process.
An extensive auger drill geochemistry programme was completed
within tenement E38/3384 which forms part of the Merolia Project.
This programme, which was undertaken by contractors Gyro Drilling
Pty Ltd, covered a large part of the south-eastern extension of the
Comet Well Gold trend from which significant gold anomalism in soil
was previously identified over at least 2.5km of strike. The Comet
Well Trend has also yielded over 40 ounces of gold nuggets by
prospectors in recent times yet remains undrilled. All samples were
submitted for ionic leach analyses, the results of which helped to
define the 40 Mile Camp gold anomaly.
An independent historical data review undertaken by consultants
to the Panther Australia considered the results of two historical
exploration campaigns at Coglia, at the far southern end of the
Merolia Project. Twenty reverse circulation ("RC") drill holes,
totalling 1,562m delineated a horizon of nickel-cobalt laterite
mineralisation from approximately 40m below transported alluvial
sediments. A more recent programme involving 48 air-core holes
totalling 2,866m also intersected a layer of nickel-cobalt
enrichment in lateritic material at a depth of between 40m to 70m.
Significant drilling intersections in 18 holes from these two
drilling programmes define a broadly north-south trending,
approximately 5.5km long, zone of nickel and cobalt enriched
laterite from which a JORC Exploration Target of 30Mt-50Mt at
0.6-0.8% nickel and 400-600ppm was established. As the underlying
geology consists, in part, of ultramafic rocks which show evidence
for nickel sulphide mineralisation from two deeper inclined drill
holes, there is additional exploration upside which requires
further follow-up.
Financial Review
The Group has reported an unaudited loss for the six months
ended 30 June 2021 of GBP97,559 (six months ended 30 June 2020 -
loss GBP378,466). The basic and diluted loss per share for the
period was 0.17p (six months ended 30 June 2020 - loss 0.79p).
The key performance indicators are set out below:
At At At
30-Jun-21 30-Jun-19 31-Dec-20
(unaudited) (unaudited) (audited)
GBP GBP GBP
Net asset value 1,728,043 1,094,566 1,517,916
Outlook
Canada Outlook
Obonga Greenstone Belt Transaction
On 2 August 2021, the Company announced the acquisition of 1,128
claims, constituting an almost exclusive exploration holding over
the Obonga Greenstone Belt located approximately 80km north of the
Lac Des Iles Mine and 160km north of Thunder Bay in the Canadian
Province of Ontario. The acquisition of claims, consolidating
Panther Canada's new Obonga Project, results from an agreement with
Broken Rock Resources Ltd and Panther Canada's own claim staking
strategy which provides the Company with control of an important
mineral belt with identified and permitted high prospectivity
drill-ready base and precious metal targets.
The acquisition agreement for the 80 claims held by Broken Rock
Resources Ltd, together with associated exploration data and
permits, entails Panther delivering combined cash and stock
consideration together with a right to an additional deferred
consideration and a net smelter return ("NSR") royalty. In
addition, as part of the agreement, Panther has made an exploration
commitment which will be directed towards drilling and associated
exploration works and will designate the 1,084 claims it has staked
directly into the Obonga Project.
Consideration for the transaction consisted of CAD$50,000 in
cash, 228,925 Panther shares credited as fully paid, the right to
receive deferred consideration comprising four tranches of
CAD$30,000 in cash each payable within 30 days of the annual
anniversary of the acquisition agreement, followed by a final
payment of CAD$250,000 in cash payable within 30 days of the fifth
anniversary of the date of the acquisition agreement and 1.5% NSR
royalty (which has provision for Panther to reduce the royalty to
1.0% NSR through a CAD$3,000,000 buy-back). As part of the
transaction Panther will also award 500,000 share options with an
exercise price of 13p per share and a life of five years.
With Exploration Permits in place for the drilling of two target
areas within the Obonga Project, tender processes have been
completed. On 20 September 2021, the Company announced that it had
confirmed the completion of the required access trail to the
planned drill hole location at its 100% owned Dotted Lake property
and had engaged Niigaani Drilling to undertake the Company's
targeted diamond drilling programme.
Australia Outlook
On 7 September, the Company announced that its Australian
subsidiary Panther Metals Limited had appointed Sanlam Private
Wealth Pty Ltd and Kerr Allan Financial Ltd as joint lead managers
as it moves towards listing on the Australian Securities Exchange.
The subsidiary raised a further AUD$300,000 Australian dollars to
fund the listing process and as a result of this second round of
financing, the interest of Panther Metals PLC in its Australian
subsidiary, reduced from 89% to 77%.
Panther Australia is now in the process of preparing its
prospectus documentation and an independent geological report, with
the assistance of its legal advisors and geological consultants. It
is expected that an ASX in principle submission will be made to the
Australian Securities Exchange in the near future, which would
trigger the initial process of an ASX listing.
Corporate Outlook
The start of 2021 has witnessed several corporate actions by the
Company as the business positions itself to exploit the remarkable
team and network it has developed. Panther now moves into a period
of development that will see a major upturn in work across its
entire portfolio of assets.
Post the six-monthly financials, a soil sampling program has
already been completed at Dotted Lake and it is with a high level
of confidence that the proposed drilling campaigns at Dotted Lake
and Wishbone will be conducted in the Autumn.
The remainder of 2021 is an extraordinarily exciting time for
the Company. This was recently further supported by the news that
Panther Metals Limited's proposed listing in Australia has advanced
with the appointment of a broker and a AUD$300,000 fundraise. The
Company is already well positioned to implement its strategy of
capital growth via discovery, but this position is further enhanced
by potentially holding a significant stake in a separate listed
vehicle that is well financed and controlled by a very capable
team.
On 9 July 2021 the Company announced that it has received notice
of exercise of a total of 333,334 warrants with an exercise price
of 6p per share, raising GBP20,000 for the Company (admission of
333,334 new Ordinary Shares on 14 July 2021).
On 29 July 2021 the Company announced that it has received
notice of exercise of a total of 181,667 warrants with an exercise
price of 6p per share, raising GBP10,900 for the Company (admission
181,667 new Ordinary Shares on 3 August 2021).
On 20 August 2021 the Company announced that following its
annual compensation review, the Remuneration Committee made
recommendations to the Board which have been approved by the Board
and as a result the Company has granted a total of 4,600,000
options to Directors and staff members. All the options have a
five-year term from date of grant and an exercise price of 15p per
share. The options are all subject to the vesting condition of the
price of the Company's ordinary shares trading on the London Stock
Exchange PLC at a volume weighted average price of 30p per share
over any period of 10 trading days during the life of the
options.
On 22 September 2021 the Company announced completion of a
capital raise for a total of 5,250,000 ordinary shares of no par
value (the "Placing Shares"), raising GBP630,000 before expenses,
at a price of 12p per Placing Share. Each Placing Share will be
issued with a one-for-one warrant attached. The warrants have an
exercise price of 18p and a 24-month life. The warrants are subject
to an accelerator, shortening the exercise period, if the volume
weighted average price of the Company's shares exceeds 30p for five
consecutive trading days. It is expected that admission of the
Placing Shares will take place at 8.00am on 29 September 2021.
PANTHER METALS PLC
INTERIM MANAGEMENT REPORT
FOR THE SIX MONTHSED 30 JUNE 2021
The Directors are required to provide an Interim Management
Report in accordance with the Financial Conduct Authorities ("FCA")
Disclosure Guidance and Transparency Rules ("DTR"). The Directors
consider the Operational and Financial Review on pages 1 to 6 of
this Half Yearly Financial Report provides details of the important
events which have occurred during the period and their impact on
the financial statements as well as the outlook for the Company for
the remaining six months of the year ended 31 December 2021.
The following statement of the Principal Risks and
Uncertainties, the Related Party Transactions, the Statement of
Directors' Responsibilities and the Operational and Financial
Review constitute the Interim Management Report of the Company for
the six months ended 30 June 2021.
Principal Risks and Uncertainties
The principal risks and uncertainties of the Company are
detailed on pages 16 and 17 of the Company's most recent Annual
Report for the year ended 31 December 2020 which can be found on
the Company's website at www.panthermetals.co.uk. The principal
risks and uncertainties facing the Company remain unchanged from
those disclosed in the Annual Report for the year ended 31 December
2020 and the Board are of the opinion that they will continue to
remain unchanged for the forthcoming six-month period.
The principal risks and uncertainties facing the Company are as
follows:
-- Adverse foreign exchange fluctuations;
-- If the Group is unable to raise additional capital when
needed or on suitable terms it could force a delay, reduce or
eliminate its exploration development and production plans and
efforts; and
-- There are significant risks associated with any discovery and
the ability of the Company to then generate any operational
cashflows.
The Board has also reviewed emerging risks which may impact the
forthcoming six-month period and the main risk facing the Company
is the ongoing impact of the COVID-19 pandemic.
Related Party Transactions
There have been no material changes to the related party
transactions described in the Annual Report that could have an
effect on the financial position or performance of the Company.
On 10 May 2021 the Company announced the completion of the first
stage in the process to pursue a listing of its Australian assets
on the Australian Securities Exchange (the "ASX" or "ASX Exchange")
with the completion of a pre-IPO seed financing raising
AUD$300,000. As a result of the financing, the interest of Panther
in its subsidiary, Panther Australia, reduced from 100% to 89.3%.
In accordance with the requirements of IFRS 10 "Consolidated
Financial Statements", as Panther continues to effect control over
its subsidiary, it continues to fully consolidate it. The dilution
does give rise to a non-controlling interest in respect of the
share of net assets of the Australian subsidiary held by the
third-party investors.
Going Concern
As at 30 June 2021 the Group had total cash reserves of
GBP275,021 (31 December 2020: GBP241,194). The directors are aware
of the reliance on fundraising within the next 12 months and having
reviewed the Group's working capital forecasts they believe the
Group is well placed to manage its business risks successfully
providing future fundraisings are successful. The interim financial
statements have been prepared on a going concern basis and do not
include adjustments that would result if the Group was unable to
continue in operation.
The Company successfully raised GBP200,000 through the placing
and admission of its shares to the Main Market of the London Stock
Exchange on 21 April 2021. On 22 September 2021 the Company
announced completion of a capital raise for a total of 5,250,000
ordinary shares of no par value raising GBP630,000 before expenses.
As a junior exploration company, the Directors are aware that the
Company must go to the marketplace to raise significant funds in
the next 12 months to meet its investment and exploration plans and
to maintain its listing status.
For and on behalf of the Board of Directors
Darren Hazelwood
Chief Executive Officer
23 September 2021
PANTHER METALS PLC
STATEMENT OF DIRECTORS' RESPONSIBILITY FOR THE HALF YEARLY
REPORT
FOR THE SIX MONTHSED 30 JUNE 2021
The Directors confirm to the best of their knowledge:
-- The interim financial statements have been prepared in
accordance with International Accounting Standard 34, Interim
Financial Reporting, as adopted by the EU;
-- Give a true and fair view of the assets and liabilities,
financial position and the loss of the Group
-- The interim report includes a fair review of the information
required by DTR 4.2.7R of the Disclosure and Transparency Rules,
being an indication of important events that have occurred during
the first six months of the financial year and their impact on the
interim financial information, and a description of the principal
risks and uncertainties for the remaining six months of the year;
and
-- The interim financial information includes a fair review of
the information required by DTR 4.2.8R of the Disclosure and
Transparency Rules, being information required on related party
transactions.
For and on behalf of the Board of Directors
Darren Hazelwood
Chief Executive Officer
23 September 2021
PANTHER METALS PLC
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2021
Notes Period ended Period ended
30 June 30 June
2021 2020
GBP GBP
Unaudited Unaudited
Revenue - -
Cost of sales - -
Gross profit - -
Administrative expenses (222,629) (252,377)
Share-based payment charge 5 134,164 (135,806)
Operating loss (88,465) (388,183)
Finance income - 57
Loss before taxation (88,465) (388,126)
Taxation - -
Loss for the period (88,465) (388,126)
Other comprehensive income
Translation of foreign currency transactions (9,094) 9,660
Total comprehensive loss for the period (97,559) (378,466)
Loss attributable to:
Equity holders of the company: (97,559) (378,466)
(97,559) (378,466)
Basic and diluted loss per share (pence) 2(0.17)p (0.79)p
PANTHER METALS PLC
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION
FOR THE SIX MONTH PERIODED 30 JUNE 2021
As at As at As at
30 June 30 June 31 December
Notes 2021 2020 2020
GBP GBP GBP
Unaudited Unaudited Audited
Non-current assets
Goodwill 553,656 553,656 553,656
Exploration and evaluation
assets 913,254 401,577 736,567
Total non-current assets 1,466,910 955,233 1,290,223
Current assets
Receivables 73,931 14,191 93,922
Cash at bank and in hand 275,021 261,786 241,194
Total current assets 348,952 275,977 335,116
Total assets 1,815,862 1,231,210 1,625,339
Current liabilities
Trade and other payables (87,819) (136,644) (107,423)
Total liabilities (87,819) (136,644) (107,423)
Net assets 1,728,043 1,094,566 1,517,916
Capital and reserves
Called up share capital 3 4,053,396 2,882,988 3,675,421
Equity attributable to
the parent 4 142,536 - -
Share-based payment reserve 5 164,292 476,682 397,331
Retained losses (2,652,395) (2,265,104) (2,554,836)
Total equity attributable
to equity shareholders 1,707,829 1,094,566 1,517,916
Non-controlling interest 4 20,214 - -
Total equity 1,728,043 1,094,566 1,517,916
PANTHER METALS PLC
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIODED 30 JUNE 2021
As at As at As at
30 June 30 June 31 December
Notes 2021 2020 2020
GBP GBP GBP
Unaudited Unaudited Audited
Cash flows from operating
activities
Loss for the financial
year (97,559) (378,466) (668,198)
Adjusted for:
Interest received - (57) (64)
Foreign exchange 9,094 (9,660) -
Grant Income - - (10,000)
Share-based payment charge (134,164) 135,806 155,747
(Increase)/decrease in
receivables (1,860) (6,146) (85,877)
(Decrease)/increase in
payables (19,603) (243,290) (273,345)
Net cash (used in)/generated
from operating activities (244,092) (501,813) (881,737)
Investing activities
Interest received - 57 64
Cash spent on exploration
activities (176,687) (75,786) (359,570)
Net cash generated from
investing activities (176,687) (75,729) (359,506)
Financing activities
Proceeds from issuing shares 3 200,000 823,000 1,373,000
Proceeds from exercising
warrants 3 79,100 10,000 93,109
Proceeds from shares issued
by subsidiary 4 165,506 - -
Proceeds received in advance 10,000 - -
Grant income received - - 10,000
Net cash generated from
financing activities 454,606 833,000 1,476,109
Net increase in cash and
cash equivalents 33,827 255,458 234,866
Cash and cash equivalents
at beginning of period 241,194 6,328 6,328
Cash and cash equivalents
at end of period 275,021 261,786 241,194
PANTHER METALS PLC
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTH PERIODED 30 JUNE 2021
Group Equity Share
attributable based Non
Share to the payment Retained Total Controlling Total
Note capital parent reserve losses equity Interest equity
GBP GBP GBP GBP GBP GBP GBP
Balance at
1 January 2020 1,958,071 - 342,793 (1,886,638) 414,226 - 414,226
Loss for the
year - - - (668,198) (668,198) - (668,198)
Total
comprehensive
loss for the
year - - - (668,198) (668,198) - (668,198)
Transactions
with owners
of the company
Shares issued 3 1,373,000 - - - 1,373,000 - 1,373,000
Shares issued
for services
provided 3 90,000 - - - 90,000 - 90,000
Shares issued
to acquire
exploration
and evaluation
assets 3 92,910 - - - 92,910 - 92,910
1,555,910 - - - 1,555,910 - 1,555,910
Other
transactions
Placing warrants
issued - - 148,989 - 148,989 - 148,989
Shares issued
upon exercise
of warrants 161,440 - (61,572) - 99,868 - 99,868
Forfeited
options - - (32,879) - (32,879) - (32,879)
Balance at
31 December
2020 3,675,421 - 397,331 (2,554,836) 1,517,916 - 1,517,916
Balance at
1 January 2021 3,675,421 - 397,331 (2,554,836) 1,517,916 - 1,517,916
Total
comprehensive
loss for the
period - - - (97,559) (97,559) - (97,559)
- - - (97,559) (97,559) - (97,559)
Transactions
with owners
of the company -
Shares issued
by the Company 3 200,000 - - 200,000 - 200,000
Shares issued
by subsidiary 4 - 142,536 - - 142,536 20,214 162,750
200,000 142,536 - - 342,536 20,214 362,750
Other
transactions
Shares issued
upon exercise
of warrants 5 177,975 - (119,464) - 58,511 - 58,511
Forfeited
options 5 - - (113,575) - (113,575) - (113,575)
177,975 - (233,039) - (55,064) - (55,064)
Balance at
30 June 2021 4,053,396 142,536 164,292 (2,652,395) 1,707,829 20,214 1,728,043
PANTHER METALS PLC
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL
STATEMENTS
FOR THE SIX MONTH PERIODED 30 JUNE 2021
1 Accounting policies
1.1. Half-yearly report
This interim financial information for the six months ended 30
June 2021 and 30 June 2020 is unaudited and does not constitute
statutory financial statements within the meaning of the Companies
Act 1982 (Isle of Man). The Board of Directors approved it on 23
September 2021.
The figures for the year ended 31 December 2020 have been
extracted from the statutory financial statements which have been
prepared in accordance with International Financial Reporting
Standards, as adopted by the European Union, ("IFRS") and which
have been reported on by the company's auditor. The auditor's
report on those financial statements was unqualified.
The condensed interim financial statements have not been
reviewed by the Company's auditors.
1.2. Basis of accounting
The condensed interim financial information has been prepared in
accordance with the requirements of IAS 34 "Interim Financial
Reporting".
The interim financial information does not include all notes of
the type normally included in the annual financial report and
therefore cannot be expected to provide as full an understanding of
the financial performance, financial position and financing and
investing activities of the group as the full financial report.
The financial information has been prepared on the historical
cost basis. The accounting policies and methods of computation
adopted in the Company's preparation of the condensed interim
financial information are consistent with those adopted and
disclosed in the financial statements for the year ended 31
December 2020 and those expected to be used for the year ending 31
December 2021.
The Company will report again in full for the year ending 31
December 2021.
1.3. Accounting policies
The accounting policies are unchanged from those used in the
last published annual financial statements for the year ended 31
December 2020.
2 Loss per share
The basic loss per share for the interim period to 30 June 2021
is 0.17p (2020: - loss 0.79p) and has been calculated by dividing
the loss for the period by the weighted average number of ordinary
shares in issue of 58,792,331 (2020: 47,896,267).
Shares issued in the period to 30 June 2021 are detailed in note
3.
There are 4,832,223 potentially issuable shares which relate to
share options issued to Directors and professional advisers under
option (see note 4) and warrants issued as part of various placings
of the Company shares. The weighted average number of potential
ordinary shares in issue is 73,289,000 (2020: 66,346,425). Due to
the losses for the period the diluted loss per share is
anti-dilutive and therefore has been kept the same as the basic
loss per share of 0.17p per share.
3 Share capital
Number of
new Ordinary Share
shares Capital
No GBP
Allotted, issued and fully paid:
As at 1 January 2020 33,513,302 1,958,071
Share issue on 9 January 2020 13,716,666 823,000
Share issue to Australian Consultants 1,500,000 90,000
Share issue upon exercising Subscription
warrants 166,667 11,917
Share issue on 13 July 2020 3,846,153 250,000
Share issue upon exercising Subscription
warrants 166,666 11,833
Share issue upon exercising Bookrunner
warrants 1,218,492 137,690
Share issue on 9 December 2020 3,000,000 300,000
Share issue to acquire Merolia Gold
Project 734,473 92,910
As at 31 December 2020 57,862,419 3,675,421
As at 1 January 2021 57,862,419 3,675,421
Placing on 21 April 2021 1,666,666 200,000
Shares issued upon exercising Subscription
warrants 1,318,331 177,975
As at 30 June 2021 60,847,416 4,053,396
On 9 January 2020, the Company raised GBP823,000 (before
expenses) following the placing of 13,716,666 Ordinary Shares at a
price of 6 pence per share on the Main Market of the London Stock
Exchange. A further 1,500,000 Ordinary Shares were issued to
Australian consultants in connection with the acquisition of
Panther Metals Pty Limited at Admission.
On 19 June 2020 the Company announced that it has received
notice of exercise of 166,667 Subscription Warrants to acquire
166,667 shares of no par value at a price of 6p per share for a
cash consideration of GBP10,000. The admission of those shares took
place on 25 June 2020.
On 13 July 2020, the Company issued 3,846,153 new Ordinary
Shares at a price of 6.5 pence per share in connection with a
placing raising GBP250,000. The admission of those shares took
place on 16 July 2020.
On 12 August 2020 the Company announced that it has received
notice of exercise of 166,666 Subscription Warrants to acquire
166,667 shares of no par value at a price of 6p per share for a
cash consideration of GBP10,000. The admission of those shares took
place on 17 August 2020.
3 Share capital (continued)
On 4 November 2020 the Company announced that it has received
notice of exercise of 1,218,492 Bookrunner Warrants to acquire
1,218,492 shares of no par value at a price of 6p per share for a
cash consideration of GBP64,580. The admission of those shares took
place on 10 November 2020.
On 4 December 2020, the Company issued 3,000,000 new Ordinary
Shares at 10p per share in connection with a placing raising
GBP300,000. The admission of those shares took place on 9 December
2020.
In December 2020, Panther Australia acquired the Merolia Gold
Project from White Cliffs Limited, with an AUD$112,500 payment in
cash and the issue of 734,473 new Ordinary Shares of 12.65p in the
Company, a total value in sterling of GBP155,576, of which
GBP92,910 was represented by new Ordinary Shares.
On 21 April 2021, the Company announced the completion of a
private placing for a total of 1,666,666 ordinary shares at a price
of 12p raising a total of GBP200,000. The admission of those shares
took place on 23 April 2021.
On 17 May 2021, the Company announced that it has received
notice of exercise of a total of 1,318,331 warrants with an
exercise price of 6p per share, raising GBP79,100 for the Company.
The admission of those shares took place on 20 May 2021.
.
4 Issue of shares by a subsidiary
On 10 May 2021 the Company announced the completion of the first
stage in the process to pursue a listing of its Australian assets
on the Australian Securities Exchange with the completion of a
pre-IPO seed financing raising AUD$300,000. As a result of the
financing, the interest of Panther in its subsidiary, Panther
Australia, reduced from 100% to 89.3%.
In accordance with the requirements of IFRS 10 "Consolidated
Financial Statements", as Panther continues to effect control over
its subsidiary, it continues to fully consolidate it. The dilution
does give rise to a non-controlling interest in respect of the
share of net assets of the Australian subsidiary held by the
third-party investors.
5 Share based payment transactions
Equity settled share based payments
Options issued, cancelled and outstanding at 30 June 2021
At 1 At Weighted
January 30 June average
2021 2021 exercise
No of No of price
options Issued Forfeited Exercised options (pence)
May 2018 500,000 - (500,000) - - 0.04
Bonus options 500,000 - (500,000) - - 0.10
Subscription
Warrants 1,833,334 - - (1,318,331) 515,003 0.06
Bookrunner Warrants 265,000 - - - 265,000 0.06
Placing Warrants 13,716,666 - - - 13,716,666 0.12
16,815,000 - (1,000,000) (1,318,331) 14,496,669 0.38
On 9 March 2018, 20,000,000 share options were awarded to
certain directors. The date of was taken as 10 May 2018 being the
date the options were approved at the delayed General Meeting. The
options were exercisable at 0.2 pence per share and became
exercisable six months after their grant. They could be exercised
at any time between this date and to the day before the third
anniversary of their grant, being 9(th) May 2021.If the option
holders exercised 50% or more of their options before the first
anniversary of their grant, the holders received, upon exercise of
each option, one new bonus option with an exercise price of 0.5
pence each, expiring at the same date as the original options.
Following the Share Consolidation, the May 2018 options were
rebased to 1,000,000 share options exercisable at 4 pence per share
and the bonus options are rebased to 1,000,000 share options at 10
pence per share. 500,000 options were exercised in the period
entitling the holders to 500,000 bonus options. The remaining
500,000 bonus options were forfeited. On 9 May 2021 the Company had
not received notice of exercise of any of the May 2018 or Bonus
options and therefore these 1,000,000 options expired at this date
and were forfeited.
On 17 May 2021 the Company announced that it has received notice
of exercise of a total of 1,318,331 warrants with an exercise price
of 6p per share, raising GBP79,100 for the Company.
5 Share based payment transactions (continued)
Options and warrants outstanding and exercisable at the interim
period end
No of options, Exercise Weighted
vested and price average
exercisable contractual
life Expiry date
(years)
Subscription
Warrants 515,003 0.06 1.06 22 July 2022
Bookrunner Warrants 265,000 0.06 0.53 9 January 2022
Placing Warrants 13,716,666 0.12 0.53 9 January 2022
A Black-Scholes model has been used to determine the fair value
of the share options and warrants on the date of grant. The model
assesses a number of factors in calculating the fair value. These
include the market price on the date of grant, the exercise price
of the share options, the expected share price volatility of the
Company's share price, the expected life of the options, the
risk-free rate of interest and the expected level of dividends in
future periods.
For those options granted where IFRS 2 "Share-Based Payment" is
applicable, the fair values were calculated using the Black-Scholes
model. The inputs into the model were as follows:
Date of grant Risk free Share price Expected Share price
rate volatility life at grant date
GBP
May 2018 1.30% 24.9% 3 years 0.180
September 2018 1.24% 31.0% 2 years 0.180
Subscription
Warrants 0.53% 33.0% 2 years 0.150
Bookrunner Warrants 0.66% 45.0% 2 years 0.075
Placing Warrants 0.66% 45.0% 2 years 0.075
The total charge/(credit) to the consolidated statement of
comprehensive income for the period to 30 June 2021 was a credit of
GBP134,164 (2020: charge of GBP135,806). The transactions from
exercising share options are shown within the statement of changes
in equity.
6 Subsequent events
Warrant Exercises
On 9 July 2021 the Company announced that it has received notice
of exercise of a total of 333,334 Subscription warrants with an
exercise price of 6p per share, raising GBP20,000 for the Company
(admission of 333,334 new Ordinary Shares on 14 July 2021).
On 29 July 2021 the Company announced that it has received
notice of exercise of a total of 181,667 Subscription warrants with
an exercise price of 6p per share, raising GBP10,900 for the
Company (admission of 181,667 new Ordinary Shares on 3 August
2021).
Canada- Obonga Greenstone Belt Transaction
On 2 August 2021, the Company announced the acquisition of 1,128
claims, constituting an almost exclusive exploration holding over
the Obonga Greenstone Belt located approximately 80km north of the
Lac Des Iles Mine and 160km north of Thunder Bay in the Province of
Ontario Canada. The acquisition of claims, consolidating Panther
Canada's new Obonga Project, results from an agreement with Broken
Rock Resources Ltd and Panther's own claim staking strategy which
provides the Company with control of an important mineral belt with
identified and permitted high prospectivity drill-ready base and
precious metal targets.
The acquisition agreement for the 80 claims held by Broken Rock
Resources Ltd, together with associated exploration data and
permits, entails Panther delivering combined cash and stock
consideration together with a right to an additional deferred
consideration and a net smelter return ("NSR") royalty. In
addition, as part of the agreement, Panther has made an exploration
commitment which will be directed towards drilling and associated
exploration works and will designate the 1,084 claims it has staked
directly into the Obonga Project.
Consideration for the transaction consisted of CAD$50,000 in
cash, 228,925 Panther shares credited as fully paid, the right to
receive deferred consideration comprising four tranches of
CAD$30,000 in cash each payable within 30 days of the annual
anniversary of the acquisition agreement, followed by a final
payment of CAD$250,000 in cash payable within 30 days of the fifth
anniversary of the date of the acquisition agreement and 1.5% NSR
royalty (which has provision for Panther to reduce the royalty to
1.0% NSR through a CAD$3,000,000 buy-back). As part of the
transaction Panther will also award 500,000 share options with an
exercise price of 13p per share and a life of five years.
Issue of Share Options
On 20 August 2021 the Company announced that following its
annual compensation review, the Remuneration Committee made
recommendations to the Board which were approved by the Board and
as a result the Company has granted a total of 4,600,000 options to
Directors and staff members. All the options have a five-year term
from date of grant and an exercise price of 15p per share. The
options are all subject to the vesting condition of the price of
the Company's ordinary shares trading on the London Stock Exchange
PLC at a volume weighted average price of 30p per share over any
period of 10 trading days during the life of the options.
Australia- appointment of brokers and capital raise
On 7 September, the Company announced that its Australian
subsidiary Panther Metals Limited had appointed Sanlam Private
Wealth Pty Ltd and Kerr Allan Financial Ltd as joint lead managers
as it moves towards listing on the Australian Securities Exchange.
The subsidiary raised $300,000 Australian dollars to fund the
listing process and because of the financing, the interest of the
Company in its Australian subsidiary, had reduced from 89% to
77%.
6 Subsequent events (continued)
Issue of Equity
On 22 September 2021 the Company announced completion of a
capital raise for a total of 5,250,000 ordinary shares of no par
value (the "Placing Shares"), raising GBP630,00 before expenses, at
a price of 12p per Placing Share. Each Placing Share will be issued
with a one-for-one warrant attached. The warrants have an exercise
price of 18p and a 24-month life. The warrants are subject to an
accelerator, shortening the exercise period, if the volume weighted
average price of the Company's shares exceeds 30p for five
consecutive trading days. It is expected that admission of the
Placing Shares will take place at 8.00am on 29 September 2021.
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