TIDMPAT
RNS Number : 3053J
Panthera Resources PLC
16 August 2019
16 September 2019
Panthera Resources Plc
("Panthera" or "the Company")
Audited Financial Results and Management Update for the 12
Months Ended March 31, 2019
Panthera Resources PLC (AIM: PAT), the gold exploration and
development company with assets in India and West Africa, is
pleased to provide a summary of the Company's audited financial
results for the year ended March 31, 2019.
Highlights of the Year
The Bhukia Joint Venture (JV) project in Rajasthan, India is
targeted for a +6.0Moz resource drill-out
-- A high value partnership has been established with Galactic
Gold Mining Pvt Ltd (Galaxy) that is designed to align Indian
capital with the success of the JV and bring increased Indian
business and operational capabilities to advance Panthera's Indian
capabilities.
-- A JORC-Inferred Mineral Resource of 1.74Moz exists, with a
planned exploration programme that targets increasing this to over
6.0Moz.
-- The JV's Prospecting Licence Application (PLA) was rejected
by the Government of Rajasthan ("GoR") in August 2018 on various
spurious grounds, forcing the JV to challenge the rejection order
in court to protect its legal rights and the interests of its
shareholders.
-- The Hon'ble High Court of Rajasthan passed an interim Stay
Order protecting the legal rights of the JV by restraining the GoR
from granting third party rights within the entire area of the PLA.
Court proceedings are ongoing and the JV is confident of getting a
favourable judgment once all pleadings are complete.
-- Following the Rajasthan State and Indian General Elections,
the JV has reopened negotiations with the GoR towards the grant of
the PL over the Bhukia Gold Project.
-- The new National Mineral Policy 2019 declared by the
Government of India, aims to revive the exploration and mining
industry by bringing in necessary reforms to attract private
participation and investments.
High potential West Africa gold exploration portfolio with
drill-ready targets
-- The Company has acquired rights to the Labola gold project in
southern Burkina Faso, West Africa. Historically, combined
resources of over 600,000oz averaging about 1.2g/t Au were
estimated and quoted under JORC and NI43-101 guidelines and
Panthera's priority exploration will focus on confirming and
expanding these known zones of mineralisation.
-- At the Naton JV project in southern Burkina Faso, West Africa
the Company completed its first drill testing programme with
encouraging results which demonstrated ore grade gold
mineralisation on four out of five structures tested. Follow up
geological mapping and geochemical sampling has further refined
existing targets and identified additional high tenor gold
anomalies for drill testing.
-- At the Kalaka JV project in southern Mali, West Africa, a new
(replacement) tenement was granted to Panthera at the end of
December 2018. The new title can be renewed for a period of up to 7
years and will enable systematic exploration of the targets
generated by its technical team, including the potential extension
identified by the Company's geophysical survey of the known
mineralisation at the K1A prospect.
-- Geological mapping and sampling at the Bassala JV has
identified an extensive and highly encouraging gold in soil anomaly
that clearly requires drill testing. Further infill work is
underway to aid drill targeting.
A US$1.25 million funding package was negotiated
-- A strategic alliance and staged financing partnership was
agreed with Galaxy, an Indian company with a strategic objective to
become a premier listed Indian gold mining and investment
company.
-- Tranche one of US$250,000 was drawn down in January 2019 and
tranche two of US$250,000 was received in May 2019. The final
tranche of US$750,000 is due prior to the successful grant of the
Bhukia Gold Project PL.
Operating loss and cash flow reflect ongoing status as an
exploration company
-- The consolidated loss of the Group for the financial period
after providing for income tax and eliminating non-controlling
interests amounted to US$1,553,396 (2018: US$2,479,305).
-- The group incurred a net loss of US$1,580,720 and incurred
operating cash outflows of US$1,443,125.
-- The group had cash of US$188,376 as at 31 March 2019.
Subsequent to this the tranche two payment was received from Galaxy
and most recently the financing package with Republic Investment
Management (RIM) was restructured, such that payment of GBP500,000
was accelerated and due shortly.
-- Management indicate that on current expenditure levels, all
current cash held will be used prior to the 12 months subsequent of
the signing of the financial statements. As with many exploration
companies our auditors have highlighted that the group's ability to
continue as a going concern is dependent upon raising additional
capital. A key factor affecting this is the granting of the PL and
necessary environmental and forestry permits which triggers an
additional US$750,000 from Galaxy and GBP1m from RIM. The Company
will keep the market updated on progress with the PL grant and its
funding requirements.
The Annual Report and Accounts for the year ended 31 March 2019,
along with an explanatory note for shareholders, will be available
shortly to view and download from Panthera's website
(www.pantheraresources.com) in accordance with rule 26 of the AIM
Rules for Companies along with a notice of Annual General Meeting
and form of Proxy. The AGM is scheduled to take place at 11:00AM on
13 September 2019 at 2 Duke Street, Manchester Square London W1U
3EH.
Geoff Stanley, CEO Commented:
"I am delighted to be able to report results for our second year
and first whole year since listing on the AIM market in December
2017.
An exciting partnership was negotiated with Galaxy that is
designed to provide strategically timed capital injections to
Panthera while advancing our Bhukia JV Project in India by aligning
Indian capital, technical skills and business capabilities with the
success of the project.
While the GoR spuriously rejected the JV's rightful claim to a
prospecting licence, the Honourable High Court of Rajasthan passed
an interim Stay Order protecting our rights over the entire area of
the PL application. The strength of our case has allowed us to
recommence negotiations with the GoR giving the Company another
avenue to a potential successful outcome in parallel with the Court
process. The next Court hearing is currently scheduled for 18
October 2019.
On the west African front, the Company's management was able to
further leverage its depth and breadth of experience, its network
of connections, and its technical capabilities to significantly
upgrade its portfolio with the addition of the Labola property.
Labola sits on an exciting 9km long gold mineralised structure and
has been the subject of a previously reported 600koz gold resource
which we will be working diligently to confirm and expand. In
addition, targets at the three existing properties were further
upgraded and await drill testing.
Subsequent to the 30 March balance date we successfully
restructured the Republic Investment Management Tranche 3
investment which now allows for a near term capital injection of
GBP500,000 to support the Company in advance of the Bhukia JV
Project PL grant. This financing is an excellent example of the
success that can be achieved with supportive shareholders who share
the Company's vision for value creation"
Chairman's Statement
I am delighted to present the 2018-2019 Annual Report for
Panthera Resources PLC. We have had a good year and have
meaningfully advanced many of our key strategic and corporate
objectives. We remain dedicated to creating a successful
exploration and development Group and consistently enhancing value
for stakeholders.
Strategic Vision
Panthera aims to create a mid-tier mining company by building a
strong portfolio of high quality, low cost gold assets in India and
West Africa.
In light of this vision, the Company has worked tirelessly to
maintain mineral rights for the JV over the highly prospective
Bhukia Gold Project in India together with our JV partner, the
Indian private company Metal Mining India Pvt Ltd (MMI). Together
we are actively pursuing our rights through the Rajasthan High
Court. In addition, the Company has formed a strategic alliance to
advance the project with Galaxy, an Indian company with
international management with over 15 years' experience in the gold
exploration and mining industry in India. Furthermore, Panthera
aims to explore and grow the value of its prospective West African
gold portfolio. In its wider property portfolio, it will nurture
and eventually harvest other non-core exploration and development
assets.
In India, the GoR rejected the JV's PLA over the Bhukia Gold
Project, but Panthera remains extremely confident in its legal
right over the PL area by means of a Court Stay Order. The
partnership with Galaxy has bought Indian capital to support the
development of Bhukia and it also provides key corporate,
bureaucratic, technical and administrative capabilities in India,
which are necessary to advance the project.
The change of Government in the State of Rajasthan (State
Elections, December 2018) and the General Elections (May 2019)
necessitated a hiatus in negotiations with the Government. With
elections behind us and with the support of Galaxy, negotiations
have reopened with the new administration in Rajasthan and we are
optimistic of soon arriving at an agreement that will see the grant
of the PL and allow exploration to recommence.
The long overdue New National Mineral Policy 2019 promises to
address some of the major issues faced by the mining and
exploration industry in India. While auctioning remains the
preferred choice for granting tenements, the policies, if
implemented, aim to attract private investment in exploration by
providing seamless transition between tenements, allowing merger
and acquisitions of mining entities and transfer of tenements.
The Company has also met with considerable success in West
Africa. Work progressed on the three initial projects, these being
the Naton project in southern Burkina Faso and the Kalaka and
Bassala projects in southern Mali. The Company has now expanded its
footprint with the inclusion of the Labola project in southern
Burkina Faso.
Corporate
A successful cooperation and funding agreement negotiated with
Galaxy provides a total investment of US$1.25m, allowing Galaxy to
purchase a 10% stake in Panthera's India focussed subsidiary, Indo
Gold, and to earn additional equity by providing ongoing support
and services to advance the Bhukia Gold Project. An initial tranche
of US$250,000 was received in January 2019, and a second tranche of
US$250,000 was received in May 2019, completing the purchase of
Galaxy's first 5% holding in Indo Gold. The final tranche of
US$750,000 is scheduled for payment prior to the successful grant
of the Bhukia Gold Project PL.
Operations
India
The protracted PLA process continues in India. The rejection of
the JV's PLA over the Bhukia Gold Project (August 2018), forced the
JV to seek legal recourses and approached the High Court of
Rajasthan by means of a writ petition. The Hon'ble High Court
passed an interim Stay Order in the JV's favour, preventing the GoR
from granting third party rights over the area applied for by the
JV under the PLA. The indefinite Stay Order reaffirms the legal
right of the Company and we are confident of securing a favourable
judgement once all pleadings in court are complete and the matter
is put up for final hearing.
With the support of Galaxy, we have commenced a parallel path of
negotiations with the newly elected government in Rajasthan. We are
optimistic that the new Government will recognize the duplicitous
stand taken by the previous government in respect to our
application where our Court endorsed legal rights were completely
disregarded. Initial engagement with the new Government has been
encouraging and discussions are ongoing with the objective of
reaching an out of court settlement that will allow the JV to
commence the resource drill-out.
Africa
Activities in West Africa have advanced well over the last year
with the establishment of highly capable technical teams and the
creation of 100% owned subsidiary operating companies in both
Burkina Faso and Mali.
Initial drill testing at the Naton Project (Burkina Faso)
returned positive results with successful upgrading of the Kaga
Vein, Bido Vein and Somika East targets, with these all requiring
additional drill testing to ascertain size potential.
The acquisition of the Labola project (Burkina Faso) gives
Panthera an advanced, drill ready, property with a very large
footprint over a gold system that demonstrates potential for a
large, low grade deposit or series of deposits amenable to open pit
mining. Substantial work is justified to more systematically define
the limits of the system.
In Mali, geophysical work at the Kalaka Project has identified
potential extensions to the known mineralisation at the K1A
prospect. Recognition of similar mineralisation to the K1A style at
the Southern Artisanal Prospect is encouraging. It is now
considered a high priority target with potential for higher grade
mineralisation than K1A, based on the higher tenor chargeability
anomaly and structural considerations.
At the Bassala Project (Mali) first phase mapping and
geochemistry by Panthera has identified lateritic, alluvial,
eluvial and some hard rock artisanal gold workings occurring in a
large, roughly NNE trending zone over about 8km strike. Exploration
work is continuing.
Outlook
The Company's strategic approach of maintaining a vigorous
exploration effort to leverage its exploration expertise is paying
dividends, as our staged, systematic work has upgraded all three
properties and facilitated the acquisition of a fourth advanced
project in West Africa. Delays in India and muted capital market
conditions for mineral exploration companies, necessitates a more
prudent follow-up of the exciting drill targets defined in West
Africa than we might otherwise like. Nevertheless, with additional
financing now secured, increasingly attractive exploration targets
and ore grade intersections to follow up, the Board is confident
that 2020 provides an opportunity for great success.
In India, the Board is confident that the Courts of India, which
have always provided the JV with successful outcomes because of its
rightful and legally sound claims, will again rule favourably and
order the grant of the long overdue PL over the Bhukia Gold
Project. This confidence is strongly supported by the Stay Order
granted by the High Court protecting the JV's rights over the
relevant area.
On behalf of Panthera's executive and management team, I would
like to express our appreciation and gratitude to all of our
employees for their efforts, sacrifices and hard work during the
past year.
On behalf of the Board I would like to extend our immense
gratitude to Chris Rashleigh and Peter Carroll, two Directors who
did not stand for re-election at the Company's AGM. Chris was a
co-founder of the Group and Peter joined in 2005. They served the
Group tirelessly since its inception and their professionalism and
wise counsel will be missed. Succession planning in anticipation of
Chris and Peter's retirement saw the appointment to the Board of
Catherine Apthorpe. Ms Apthorpe, who was previously selected as one
of the Top 100 Global Inspirational Women in Mining, adds important
capabilities, knowledge and independence to Panthera's Board of
Directors.
Michael Higgins
Non-Executive Chairman
16 August 2019
Group statement of comprehensive income for the year ended 31
March 2019
2019 2018
Notes $ USD $ USD
---------------------- ------ -------------------------- ------------- ----------------------------
Continuing operations
Revenue - -
---------------------- ------ -------------------------- ------------- ----------------------------
Gross profit - -
Other Income 4 29,768 -
Exploration costs
expensed (675,810) (608,836)
Administrative
expenses (934,720) (1,094,570)
Share option expenses - (311,666)
Impairment expense - -
AIM Listing and
acquisition related
costs - (513,285)
---------------------- ------ -------------------------- ------------- ----------------------------
Loss from operations (1,580,762) (2,528,357)
Investment revenues 4 8,454 15,264
Loss on sale of
investments (8,412) -
---------------------- ------ -------------------------- -------------- ---------------------------
Loss before taxation (1,580,720) (2,513,093)
Taxation 9 - -
Other comprehensive
income
Items that may be
reclassified
to profit or loss:
Changes in the fair
value of
available-for-sale
financial assets 49,602 146,988
Gain on sale to
non-controlling
interest 500,040 -
---------------------- ------ -------------------------- -------------- ---------------------------
Exchange differences (35,521) 732,943
---------------------- ------ -------------------------- -------------- ---------------------------
Loss and total
comprehensive income
for the year (1,066,329) (1,633,162)
---------------------- ------ -------------------------- ------------- ----------------------------
Total loss for the year attributable
to:
* Owners of the parent Company (1,553,396) (2,479,305)
* Non-controlling interest (27,324) (33,788)
--------------------------------------------- -------------------------- ---------------------------
(1,580,720) (2,513,093)
--------------------------------------------- -------------------------- ---------------------------
Total comprehensive income for the
year attributable to:
* Owners of the parent Company (1,039,005) (1,599,374)
* Non-controlling interest (27,324) (33,788)
--------------------------------------------- -------------------------- ---------------------------
(1,066,329) (1,633,162)
--------------------------------------------- -------------------------- ---------------------------
Loss per share attributable to the
owners of the parent
Continuing operations
(undiluted/diluted) 10 (0.02) (0.04)
---------------------- --------------------- -------------------------- ---------------------------
Group statement of financial position for the year ended 31
March 2019
2019 2018
Notes $ USD $ USD
------------------------------- ----- ------------ -------------
Non-current assets
Property, plant and equipment 11 3,526 10,530
Investments 12 21,769 16,003
Available for sale financial
asset 13 1,918,257 1,341,362
------------------------------- ----- ------------ -------------
1,943,552 1,367,895
Current assets
Trade and other receivables 14 343,057 80,332
Cash and cash equivalents 188,376 1,571,578
531,433 1,651,910
-------------------------------------- ------------ -------------
Total assets 2,474,985 3,019,805
Non-current liabilities
Provisions 15 38,489 40,528
------------------------------- ----- ------------ -------------
38,489 40,528
Current liabilities
Provisions 15 5,646 1,624
Trade and other payables 16 299,519 161,520
------------------------------- ----- ------------ -------------
Total liabilities 343,654 203,672
-------------------------------------- ------------ -------------
Net assets 2,131,331 2,816,133
------------------------------- ----- ------------ -------------
Equity
Share capital 17 913,588 913,588
Share premium 17 17,373,601 17,373,601
Capital reorganisation reserve 18 537,757 537,757
Other reserves 25 (115,997) (497,524)
Retained earnings (16,352,292) (15,313,287)
------------------------------- ----- ------------ -------------
Total equity attributable
to owners of the
parent 2,356,657 3,014,135
Non-controlling interest (225,326) (198,002)
------------------------------- ----- ------------ -------------
Total equity 2,131,331 2,816,133
------------------------------- ----- ------------ -------------
Group statement of changes of equity for the year ended 31 March
2019
Share Share Capital Other Retained Total Non-controlling Total
capital premium re-organisation reserves earnings equity interest
account reserve
$ USD $ USD $ USD $ USD $ USD $ USD $ USD $ USD
----------------- ------------- ----------- ---------------- ------------ ------------- ------------ ---------------- ------------
Balance at 1
April 2017 16,210,761 - - (1,855,148) (12,833,982) 1,521,631 (164,214) 1,357,417
Loss for the
year - - - - (2,479,305) (2,479,305) (33,788) (2,513,093)
Movements in
unrealised gain
reserve - - - - 146,988 - 146,988 146,988
Foreign exchange
movement
on capital
re-organisation 657,819 657,819 - - 657,819
Foreign exchange
differences
on translation
of currency - - - 75,124 - 75,124 - 75,124
----------------- ------------- ----------- ---------------- ------------ ------------- ------------ ---------------- ------------
Total
comprehensive
income
for the year - - - 879,931 (2,479,305) (1,599,374) (33,788) (1,633,162)
Issue of share
capital in
Indo Gold prior
to acquisition 1,712,183 - - - - 1,712,183 - 1,712,183
Options issued
in lieu of
fees - - 142,399 - 142,399 - 142,399
Capital
re-organisation
on
reverse
acquisition (17,086,577) 15,891,001 537,757 - - (657,819) - (657,819)
Share issue
costs - (81,802) - - - (81,802) - (81,802)
Share options
cancelled and
re-issued in
Panthera - - - 318,860 - 318,860 - 318,860
Issue of share
capital in
Panthera 77,221 1,564,402 - - - 1,641,623 - 1,641,623
Options issued
to management - - - 16,434 - 16,434 - 16,434
----------------- ------------- ----------- ---------------- ------------ ------------- ------------ ---------------- ------------
Total
transactions in
the
year,
recognised
directly
in equity (15,297,173) 17,373,601 537,757 477,693 - 3,091,878 - 3,091,878
----------------- ------------- ----------- ---------------- ------------ ------------- ------------ ---------------- ------------
Balance at 31
March 2018 913,588 17,373,601 537,757 (497,524) (15,313,287) 3,014,135 (198,002) 2,816,133
----------------- ------------- ----------- ---------------- ------------ ------------- ------------ ---------------- ------------
Group statement of changes of equity for the year ended 31 March
2019 (continued)
Share Share Capital Other Retained Total Non-controlling Total
capital premium re-organisation reserves earnings equity interest
account reserve
$ USD $ USD $ USD $ USD $ USD $ USD $ USD $ USD
-------------------- -------- ----------- ---------------- ---------- ------------- ------------ ---------------- ------------
Balance at 1 April
2018 913,588 17,373,601 537,757 (497,524) (15,313,287) 3,014,135 (198,002) 2,816,133
Year ended 31 March
2019:
Loss for the year - - - - (1,553,396) (1,553,396) (27,324) (1,580,720)
Changes in the fair
value
of
available-for-sale
financial
assets 49,602 49,602 49,602
Gain on sale to non
controlling
interest 500,040 500,040 500,040
Foreign exchange
differences - - - - (35,251) (35,251)) - (35,251)
-------------------- -------- ----------- ---------------- ---------- ------------- ------------ ---------------- ------------
Total comprehensive
income
for the year - - - - (1,039,005) (1,039,005) (27,324) (1,066,329)
Foreign exchange
differences
on translation of
currency - - - (394,595) - (394,595) - (394,595)
Gain on fair value
of investment
assets - - - 776,122 - 776,122 - 776,122
-------------------- -------- ----------- ---------------- ---------- ------------- ------------ ---------------- ------------
Total transactions
with owners,
recognised
directly in equity - - 381,527 - 381,527 - 381,527
-------------------- -------- ----------- ---------------- ---------- ------------- ------------ ---------------- ------------
Balance at 31 March
2019 913,588 17,373,601 537,757 (115,997) (16,352,292) 2,356,657 (225,326) 2,131,331
-------------------- -------- ----------- ---------------- ---------- ------------- ------------ ---------------- ------------
Group statement of cash flows for the year ended 31 March
2019
2019 2018
Notes $ USD $ USD
-------------------------------- --------------------------------- --------- --------------- ----------------
Cash flows from operating
activities
Cash used in operations 29 (1,443,125) (1,869,249)
Income taxes paid - -
-------------------------------- --------------------------------- --------- --------------- ----------------
Net cash outflow from
operating activities (1,443,125) (1,869,249)
Investing activities - -
Purchase of intangible assets
Sale of property, plant and
equipment (3,485) (11,954)
Sale/(Purchase) proceeds
for investments 242,914 (77,317)
Proceeds from other investments - -
and loans
------------------------------------------------------------------- --------- --------------- ----------------
Net cash generated /(used)
in investing activities 239,429 (89,271)
Financing activities
Proceeds from issue of
shares - 3,353,806
Share Issue costs - (81,804)
Proceeds from share
applications - 24,636
Loans repaid from other
companies - 24,636
Loans advanced to other - -
companies
Effect of exchange rate
on cash (179,506) (31,286)
-------------------------------- --------------------------------- --------- --------------- ----------------
Net cash generated from
financing activities 70,494 3,265,352
Net decrease in cash and
cash equivalents (1,383,202) 1,306,832
Cash and cash equivalents
at beginning of year 1,571,578 264,746
Cash and cash equivalents
at end of year 188,376 1,571,578
-------------------------------- -------------------------------------------- --------------- ----------------
Enquiries
Panthera Resources PLC
Geoff Stanley (CEO) +1 (917) 941 7704
Nominated Advisor and Broker
RFC Ambrian +44 (0) 20 3440 6800
Rob Adamson
Bhavesh Patel
Charlie Cryer
Technical Information
The technical information contained in this disclosure has been
read and approved by Antony Truelove (BSc (Hon), MAusIMM, MAIG),
who is a qualified geologist and acts as the Competent Person under
the AIM Rules - Note for Mining and Oil & Gas Companies. Antony
Truelove has visited the Naton Project site and reviewed the
drilling and sampling protocols and procedures. Antony Truelove is
the COO of Panthera Resources PLC.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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