TIDMSRB
For immediate release
15 May 2018
Serabi Gold plc
("Serabi" or the "Company")
Unaudited Interim Financial Results for the three month period to 31
March 2018 and Management's Discussion and Analysis
Serabi Gold (AIM:SRB, TSX:SBI), the Brazilian focused gold mining and
development company, today releases its unaudited interim financial
results for the three month period ending 31 March 2018 and at the same
time has published its Management's Discussion and Analysis for the same
period.
Key Financial Information
SUMMARY FINANCIAL STATISTICS FOR THE THREE MONTHSING 31 MARCH 2018
3 months to
31 March 12 months to 3 months to
2018 31 December 2017 31 March 2017
US$ US$ US$
Revenue 13,826,851 48,449,868 13,173,584
Cost of Sales (9,489,102) (32,015,498) (9,792,350)
Provision for impairment
of inventory - (950,000) (220,000)
Depreciation and
amortisation charges (1,992,853) (10,465,283) (1,900,704)
Gross profit 2,344,896 5,019,087 1,260,530
(Loss) / profit before
tax 339,866 (1,745,503) (33,941)
(Loss) / profit after
tax 10,786 (2,397,903) (114,043)
Earnings per ordinary
share (basic) 0.0015 cents (0.343 cents) (0.016 cents)
Average gold price
received US$1,319 US$1,244 US$1,204
As at
31 March As at
2018 31 December 2017
(US$) (US$)
Cash and cash
equivalents 6,695,525 4,093,866
Net assets 60,614,360 60,770,712
Cash Cost and All-In
Sustaining Cost
("AISC")
3 months to 12 months to 3 months to
31 Mar 2018 31 December 2017 31 March 2017
Gold production for cash
cost and AISC purposes 9,188 37,004 9,861
Total Cash Cost of US$907 US$799 US$800
production (per ounce)
Total AISC of production US$1,166 US$1,071 US$1,043
(per ounce)
Key Operational Information
SUMMARY PRODUCTION STATISTICS FOR 2018 YEAR TO DATE
AND 2017
Year
to
Qtr 1 Date Qtr 1 Qtr 2 Qtr 3 Qtr 4 Total
2018 2018 2017 2017 2017 2017 2017
Horizontal
development
- Total Metres 2,353 2,353 2,251 1,855 2,996 2,762 9,864
Mined ore -
Total Tonnes 39,669 39,669 36,918 41,684 41,263 49,011 168,876
Gold grade (g/t) 7.49 7.49 10.12 7.80 9.80 8.25 8.92
Milled ore Tonnes 43,145 43,145 41,722 43,294 44,205 43,345 172,565
Gold grade (g/t) 7.04 7.04 7.62 6.29 7.28 7.27 7.11
Gold
production
(1) (2) Ounces 9,188 9,188 9,861 8,148 9,657 9,337 37,004
1. Gold production figures are subject to amendment pending final agreed
assays of the gold content of the copper/gold concentrate and gold
doré that is delivered to the refineries.
2. Gold production totals for 2018 include treatment of 1,763 tonnes of
flotation tails at a grade of 2.70 g/t (2017 full year : 4,568 tonnes)
3. The table may not sum due to rounding.
Financial Highlights
-- Concluding, in January 2018, an additional US$3 million loan with Sprott
Resource Lending Partnership ("Sprott").
-- Gross profit from operations of US$2.3 million (Q1 2017 US$1.3 million)
-- Cash holdings at 31 March 2018 of US$6.7 million (31 December 2017:
US$4.09 million).
-- Completion, on 12 April 2018, of a share subscription by Greenstone
Resources LP raising US$15 million.
-- Announcement, on 29 March 2018, of a brokered share placing raising gross
proceeds of GBP6.36 million, which is expected to complete on 15 May
2018.
-- Payment, on 16 April 2018, of second US$5 million instalment for the
purchase of Chapleau Resource Ltd and the Coringa Gold Project.
-- Estimated cash following completion of brokered share placing of
approximately US$23 million.
2018 Guidance
-- Management expects that gold production for 2018 will exceed that of 2017
and be up to 40,000 ounces.
Operational Highlights
-- First quarter production of 9,188 ounces of gold.
-- Mine production totalling 39,669 tonnes at 7.49 grammes per tonne ("g/t")
of gold.
-- 43,145 tonnes processed through the plant for the combined mining
operations, with an average grade of 7.04 g/t of gold.
-- 2,353 metres of horizontal mine development completed during the quarter.
-- Palito development and production continues to focus on the four main
sectors of Senna, Pipocas, G3 and Mogno, whilst in the Sao Chico orebody,
the main ramp has now reached level -3mRL, approximately 260 vertical
metres below surface. Production is coming from levels 86mRL, 70mRL and
56mRL. With levels 40mRL, 26mRL and 10mRL all either developed or being
developed, ahead of production.
-- By the end of the quarter, surface ore stocks were approximately 10,200
tonnes, (December 2017: 15,000 tonnes) with an average grade of 3.0 g/t
of gold, together with approximately 40,000 tonnes of flotation tailings
grading approximately 3.0 g/t of gold.
Mike Hodgson, CEO of Serabi commented,
"This first quarter of 2018 has been extremely exciting for the Company
and represents a step change in its growth and development.
"Gold production was in line with both guidance and our internal plans
and, after allowing for capital expenditure and mine development costs,
the gold production operations generated approximately US$1.7 million
after tax in cash flow which has been used to fund the exploration
programmes and the working capital requirements of the newly acquired
Coringa project.
"On 11 May 2018, shareholders of the Company approved the issue of new
shares required to complete the placing of shares arranged through our
brokers Peel Hunt LLP as announced on 29 March 2018. This share placing
is due to be finally completed and funds received on 15 May 2018.
Together with the placing of shares with Greenstone Resources which was
completed in April the Company will have raised gross proceeds of
approximately US$23.5 million.
"We are now well funded, the exploration programmes that we have been
planning are being implemented, and the permitting and planning of the
Coringa project being progressed.
"The financial results for the quarter are very satisfying, and even
before the cash received form the share issues, cash holdings had grown
from US$4.1million at the end of 2017 to US$6.7 million at the end the
first quarter, whilst gross profit from operations improved from US$1.26
million for the same quarter in 2017 to US$2.34 million for the first
quarter of 2018. Administration costs were slightly higher but the
Company has incurred some one-off costs in the period, including costs
associated with the acquisition of Coringa, the debt renegotiation with
Sprott that was completed in January 2018 and of course some costs
associated with the raising of new equity.
"Finance costs are significantly higher than the comparative quarter,
but in fact many of these are non-cash items, with actual interest
charges on loans being US$152,000, with US$348,000 arising from
accounting treatment of a derivatives transaction and the future payment
obligations for Coringa.
"Whilst we have past tax losses, regulations regarding the use of these
mean our profits in Brazil remain subject to profits taxes. We benefit
however from being in a designated development area and therefore enjoy
a lower tax rate than for other parts of the county. This dispensation
was recently renewed for a further 10 year period and is something that
we will seek to have extended to the Coringa project when the project is
in production.
"The rest of the year promises to be very interesting and we expect to
generate steady positive news flow from a successful exploration
campaign from Palito and Sao Chico as well as progress at Coringa. The
new funds that have been raised will allow significant acceleration of
our organic growth plans and outstanding capital programmes whilst
continuing the progress at Coringa, where completing the first stages of
the initial permitting remains the immediate objective. We have made
the first significant steps to realising our ambition to establish
ourselves as a significant gold producer in Brazil with a target of an
annualised production rate of 100,000 ounces within the next two years."
SERABI GOLD PLC
Condensed Consolidated Statements of Comprehensive Income
For the three months ended
31 March
2018 2017
(expressed in US$) Notes (unaudited) (unaudited)
CONTINUING OPERATIONS
Revenue 13,826,851 13,173,584
Cost of sales (9,489,101) (9,792,350)
Provision for impairment of Inventory - (220,000)
Depreciation and amortisation charges (1,992,853) (1,900,704)
Gross profit 2,344,897 1,260,530
Administration expenses (1,331,424) (1,241,455)
Share-based payments (77,293) (65,620)
Gain on sales of assets disposal 51,115 -
Operating profit / (loss) 987,295 (46,545)
Foreign exchange (loss) / gain (57,090) 46,837
Finance expense (590,373) (33,817)
Finance income 34 34
Profit / (loss) before taxation 339,866 (33,491)
Income tax expense (329,080) (80,552)
Profit / (loss) for the period from continuing operations
attributable to the owners of the parent(1) 10,786 (114,043)
Other comprehensive income (net of tax)
Items that may be reclassified subsequently to profit
or loss
Exchange differences on translating foreign operations (334,431) 1,467,847
Total comprehensive profit for the period operations
attributable to the owners of the parent (323,645) 1,353,804
Profit / (loss) per ordinary share (basic) (1) 3 0.0015c (0.016c)
Profit / (loss) per ordinary share (diluted) (1) 3 0.0015c (0.016c)
(1) All revenue and expenses arise from continuing operations.
SERABI GOLD PLC
Condensed Consolidated Balance Sheets
As at As at As at
31 March 31 March 31 December
2018 2017 2017
(expressed in US$) (unaudited) (unaudited) (audited)
Non-current assets
Deferred exploration costs 25,295,721 10,234,360 23,898,819
Property, plant and equipment 47,736,835 45,862,328 48,980,381
Taxes receivable 1,569,140 - 1,474,062
Deferred taxation 2,772,101 3,313,099 2,939,634
Total non-current assets 77,373,797 59,409,787 77,292,896
Current assets
Inventories 6,160,750 6,534,060 6,934,438
Trade and other receivables 1,151,999 2,996,060 1,277,142
Prepayments and accrued income 3,914,034 4,417,677 3,237,412
Cash and cash equivalents 6,695,525 3,407,117 4,093,866
Total current assets 17,922,308 17,354,914 15,542,858
Current liabilities
Trade and other payables 5,291,005 4,713,274 5,347,964
Interest bearing liabilities 5,760,390 2,523,787 2,845,712
Acquisition payment outstanding 5,000,000 - 5,000,000
Derivative financial liabilities 754,462 - 709,255
Accruals 591,830 485,765 614,198
Total current liabilities 17,397,687 7,722,826 14,517,129
Net current assets 524,621 9,632,088 1,025,729
Total assets less current
liabilities 77,898,418 69,041,875 78,318,625
Non-current liabilities
Trade and other payables 2,590,883 2,260,691 2,753,409
Provisions 2,157,944 1,904,989 2,047,131
Acquisition payment outstanding 10,235,707 - 9,997,961
Interest bearing liabilities 2,299,524 77,798 2,749,412
Total non-current liabilities 17,284,058 4,243,478 17,547,913
Net assets 60,614,360 64,798,397 60,770,712
Equity
Share capital 5,555,775 5,540,960 5,540,960
Share premium reserve 1,797,407 1,722,222 1,722,222
Option reserve 1,111,040 1,404,272 1,425,024
Other reserves 4,406,657 3,273,143 4,015,369
Translation reserve (31,533,999) (29,140,001) (31,199,568)
Retained surplus 79,277,480 81,997,801 79,266,705
Equity shareholders' funds 60,614,360 64,798,397 60,770,712
The interim financial information has not been audited and does not
constitute statutory accounts as defined in Section 434 of the Companies
Act 2006. Whilst the financial information included in this announcement
has been compiled in accordance with International Financial Reporting
Standards ("IFRS") this announcement itself does not contain sufficient
financial information to comply with IFRS. The Group statutory accounts
for the year ended 31 December 2017 prepared under IFRS as adopted in
the EU and with IFRS and their interpretations adopted by the
International Accounting Standards Board will be filed with the
Registrar of Companies following their adoption by shareholders at the
next Annual General Meeting. The auditor's report on these accounts was
unqualified. The auditor's report did not contain a statement under
Section 498 (2) or 498 (3) of the Companies Act 2006.
SERABI GOLD PLC
Condensed Consolidated Statements of Changes in Shareholders' Equity
(expressed in
US$)
Share Other
Share Share option reserves Translation Retained Total
(unaudited) capital premium reserve (1) reserve Earnings equity
Equity
shareholders'
funds at 31
December
2016 5,540,960 1,722,222 1,338,652 3,051,862 (30,607,848) 82,333,125 63,378,973
Foreign
currency
adjustments - - - - 1,467,847 - 1,467,847
Loss for the
period - - - - - (114,043) (114,043)
Total
comprehensive
income for
the period - - - - 1,467,847 (114,043) 1,353,804
Transfer to
taxation
reserve - - - 221,281 - (221,281) -
Share option
expense - - 65,620 - - - 65,620
Equity
shareholders'
funds at 31
March 2017 5,540,960 1,722,222 1,404,272 3,273,143 (29,140,001) 81,997,801 64,798,397
Foreign
currency
adjustments - - - - (2,059,567) - (2,059,567)
Loss for the
period - - - - - (2,283,860) (2,283,860)
Total
comprehensive
income for
the period - - - - (2,059,567) (2,283,860) (4,343,427)
Transfer to
taxation
reserve - - - 742,226 - (742,226) -
Share options
lapsed in
period - - (294,990) - - 294,990 -
Share option
expense - - 315,742 - - - 315,742
Equity
shareholders'
funds at 31
December
2017 5,540,960 1,722,222 1,425,024 4,015,369 (31,199,568) 79,266,705 60,770,712
Foreign
currency
adjustments - - - - (334,431) - (334,431)
Profit for the
period - - - - - 10,786 10,786
Total
comprehensive
income for
the period - - - - (334,431) 10,786 (323,645)
Transfer to
taxation
reserve - - - 391,288 - (391,288) -
Share options
lapsed in
period - - (391,277) - - 391,277 -
Shares issued
in period 14,815 75,185 - - - - 90,000
Share option
expense - - 77,293 - - - 77,293
Equity
shareholders'
funds at 31
March 2018 5,555,775 1,797,407 1,111,040 4,406,657 (31,533,999) 79,277,480 60,614,360
1. Other reserves comprise a merger reserve of US$361,461 and a taxation
reserve of US$4,045,196 (31 December 2017: merger reserve of US$361,461
and a taxation reserve of US$3,653,908).
SERABI GOLD PLC
Condensed Consolidated Cash Flow Statements
For the three months
ended
31 March
2018 2017
(expressed in US$) (unaudited) (unaudited)
Operating activities
Operating profit / (loss) 10,786 (114,043)
Net financial expense 557,429 13,054
Depreciation - plant, equipment and mining properties 1,992,853 1,900,704
Provision for impairment of inventory - 220,000
Provision for taxation 329,080 80,552
Share based payments 167,293 65,620
Foreign exchange (68,424) 99,230
Changes in working capital
Decrease / (Increase) in inventories 737,113 1,470,683
(Increase) / Decrease in receivables, prepayments
and accrued income (499,348) (2,243,810)
Increase / (Decrease) in payables, accruals and
provisions (129,853) (891,243)
Net cash inflow from operations 3,096,929 600,747
Investing activities
Purchase of property, plant and equipment and assets
in construction (425,694) (267,915)
Capitalised mine development costs (965,523) (1,086,790)
Geological exploration expenditure (568,418) (2,521)
Pre-operational project costs (793,430) -
Proceeds from sale of assets 51,115 -
Interest received 34 34
Net cash outflow on investing activities (2,701,916) (1,357,192)
Financing activities
Draw-down of secured loan 3,000,000 -
Repayment of secured loan (333,333) -
Repayment of finance lease liabilities (283,147) -
Interest paid and finance charges (152,420) (11,648)
Net cash inflow / (outflow) from financing activities 2,231,100 (11,648)
Net increase / decrease in cash and cash equivalents 2,626,113 (768,093)
Cash and cash equivalents at beginning of period 4,093,866 4,160,923
Exchange difference on cash (24,454) 14,287
Cash and cash equivalents at end of period 6,695,525 3,407,117
Notes
1. General Information
The financial information set out above does not constitute statutory
accounts as defined in Section 434 of the Companies Act 2006. Whilst the
financial information included in this announcement has been compiled in
accordance with International Financial Reporting Standards ("IFRS")
this announcement itself does not contain sufficient financial
information to comply with IFRS. A copy of the statutory accounts for
2016 will be filed with the Registrar of Companies following their
adoption by shareholders at the next Annual General Meeting. The full
audited financial statements for the years end 31 December 2017 do
comply with IFRS.
2. Basis of Preparation
These interim condensed consolidated financial statements are for the
three month period ended 31 March 2018. Comparative information has been
provided for the unaudited three month period ended 31 March 2017 and,
where applicable, the audited twelve month period from 1 January 2017 to
31 December 2017. These condensed consolidated financial statements do
not include all the disclosures that would otherwise be required in a
complete set of financial statements and should be read in conjunction
with the 2017 annual report.
The condensed consolidated financial statements for the periods have
been prepared in accordance with International Accounting Standard 34
"Interim Financial Reporting" and the accounting policies are consistent
with those of the annual financial statements for the year ended 31
December 2017 and those envisaged for the financial statements for the
year ending 31 December 2018.
The Group has not adopted any standards or interpretations in advance of
the required implementation dates.
As of 1 January 2018, lFRS 9 - Financial Instruments, and lFRS 15 -
Revenue from Contracts, became effective and have been adopted. The
effect of implementation has not had a material impact on the financial
results of the Group
As of the date of authorisation of these financial statements, IFRS 16 -
Leases, was in issue but not effective and has not been applied to these
financial statements.
IFRS 16 will require the recognition of an asset and liability with
respect to the material operating lease commitments that the group have.
Management are currently considering the impact that this will have on
the financial statements. The Group does not at this time anticipate
voluntary early adoption of IFRS 16.
These financial statements do not constitute statutory accounts as
defined in Section 434 of the Companies Act 2006.
1. Going concern
On 12 April 2018 the Company completed a Subscription Agreement with
Greenstone Resources II LP ("Greenstone"), whereby Greenstone agreed to
subscribe ("the Subscription") for 297,759,419 New Ordinary Shares ("the
Subscription Shares") at a price of 3.6 pence per share (the
"Subscription Price"). The New Ordinary Shares issued pursuant to the
Subscription rank pari passu with the existing Ordinary Shares.
On 29 March 2018 the Company announced the conditional placing of a
further 176,678,445 new ordinary shares ("Placing Shares") at a price of
3.6 pence per Placing Share (the "Placing Price"), raising gross
proceeds of approximately US$9.0 million (GBP6.36 million) for the
Company. The Placing was conditional upon, among other things, the
completion of the Greenstone Subscription and approval of the Placing by
the Company's shareholders at the General Meeting held on 11 May 2018.
The Placing Shares will, upon issue, rank pari passu with the existing
ordinary shares. Application has been made to the London Stock Exchange
for the Placing Shares to be admitted to trading on AIM ("Admission")
and listed for trading on the TSX. It is currently expected that
settlement of all of the Placing Shares and Admission will take place at
8.00 a.m. on 15 May 2018.
The Directors anticipate the Group now has access to sufficient funding
for its immediate projected needs. The Group expects to have sufficient
cash flow from its forecast production to finance its on-going
operational requirements, to repay its secured loan facilities and to
fund planned exploration and development activity on its other gold
properties. However additional funding will be required to bring the
newly acquired Coringa gold project into production including the final
acquisition payment. The secured loan facility is repayable by 30 June
2020 and at 31 March 2018, the amount outstanding under this facility
was US$7.21 million (2017: US$4.48 million).
The Directors consider that the Group's operations are performing at the
levels that they anticipate but the Group remains a small-scale gold
producer. Any unplanned interruption or reduction in gold production,
unforeseen reductions in the gold price or appreciation of the Brazilian
currency, could adversely affect the level of free cash flow that the
Group can generate on a monthly basis. Nonetheless with the proceeds to
be received from the Subscription, the Directors consider that they will
nonetheless be able to meet its financial obligations as they fall due.
On this basis, the Directors have therefore concluded that it is
appropriate to prepare the financial statements on a going concern
basis.
(ii) Use of estimates and judgements
There have been no material revisions to the nature and amount of
changes in estimates of amounts reported in the 2017 annual financial
statements.
(iii) Impairment
At each balance sheet date, the Group reviews the carrying amounts of
its property, plant and equipment and intangible assets to determine
whether there is any indication that those assets have suffered
impairment. Prior to carrying out of impairment reviews, the significant
cash generating units are assessed to determine whether they should be
reviewed under the requirements of IFRS 6 - Exploration for and
Evaluation of Mineral Resources or IAS 36 - Impairment of Assets. Such
determination is by reference to the stage of development of the project
and the level of reliability and surety of information used in
calculating value in use or fair value less costs to sell. Impairment
reviews performed under IFRS 6 are carried out on a project by project
basis, with each project representing a potential single cash generating
unit. An impairment review is undertaken when indicators of impairment
arise; typically when one of the following circumstances applies:
(i) sufficient data exists that render the resource
uneconomic and unlikely to be developed
(ii) title to the asset is compromised
(iii) budgeted or planned expenditure is not expected in the
foreseeable future
(iv) insufficient discovery of commercially viable resources
leading to the discontinuation of activities
Impairment reviews performed under IAS 36 are carried out when there is
an indication that the carrying value may be impaired. Such key
indicators (though not exhaustive) to the industry include:
(i) a significant deterioration in the spot price of gold
(ii) a significant increase in production costs
(iii) a significant revision to, and reduction in, the life of
mine plan
If any indication of impairment exists, the recoverable amount of the
asset is estimated, being the higher of fair value less costs to sell
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money
and the risks specific to the asset for which the estimates of future
cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is
estimated to be less than its carrying amount, the carrying amount of
the asset (or cash-generating unit) is reduced to its recoverable
amount. Such impairment losses are recognised in profit or loss for the
year.
Where an impairment loss subsequently reverses, the carrying amount of
the asset (or cash-generating unit) is increased to the revised estimate
of its recoverable amount, but so that the increased carrying amount
does not exceed the carrying amount that would have been determined had
no impairment loss been recognised for the asset (or cash-generating
unit) in prior years. A reversal of an impairment loss is recognised in
profit or loss for the year.
3. Earnings per share
3 months ended
31 March 2018 3 months ended
(unaudited) 31 March 2017 (unaudited)
Profit / (loss) attributable to ordinary shareholders
(US$) 10,786 (114,043)
Weighted average ordinary shares in issue 700,320,019 698,701,772
Basic profit / (loss) per share (US cents) 0.0015 (0.016)
Diluted ordinary shares in issue 735,055,019 748,611,772
Diluted profit/ (loss) per share (US cents) 0.0015 (0.016) (1)
1. As the effect of dilution is to reduce the loss per share, the diluted
loss per share is considered to be the same as the basic loss per share
4. Post balance sheet events
On 12 April 2018 the Company completed a Subscription Agreement with
Greenstone Resources II LP ("Greenstone"). Greenstone subscribed ("the
Subscription") for 297,759,419 New Ordinary Shares ("the Subscription
Shares") at a price of 3.6 pence per share (the "Subscription Price").
The New Ordinary Shares issued pursuant to the Subscription rank pari
passu with the existing Ordinary Shares.
On 29 March 2018 the Company announced the conditional placing of a
further 176,678,445 new ordinary shares ("Placing Shares") at a price of
3.6 pence per Placing Share (the "Placing Price"), raising gross
proceeds of GBP6.36 million for the Company. The Placing was
conditional upon, among other things, the completion of the Greenstone
Subscription and approval of the Placing by the Company's shareholders
at the General Meeting held on 11 May 2018. The Placing Shares will,
upon issue, rank pari passu with the existing ordinary shares.
Application has been made to the London Stock Exchange for the Placing
Shares to be admitted to trading on AIM ("Admission") and listed for
trading on the TSX. It is currently expected that settlement of all of
the Placing Shares and Admission will take place at 8.00 a.m. on 15 May
2018.
Enquiries:
Serabi Gold plc
Michael Hodgson Tel: +44 (0)20 7246 6830
Chief Executive Mobile: +44 (0)7799 473621
Clive Line Tel: +44 (0)20 7246 6830
Finance Director Mobile: +44 (0)7710 151692
Email: contact@serabigold.com
Website: www.serabigold.com
Beaumont Cornish Limited
Nominated Adviser and Financial Adviser
Roland Cornish Tel: +44 (0)20 7628 3396
Michael Cornish Tel: +44 (0)20 7628 3396
Peel Hunt LLP
UK Broker
Ross Allister Tel: +44 (0)20 7418 9000
James Bavister Tel: +44 (0)20 7418 9000
Blytheweigh
Public Relations
Tim Blythe Tel: +44 (0)20 7138 3204
Camilla Horsfall Tel: +44 (0)20 7138 3224
Copies of this announcement are available from the Company's website at
www.serabigold.com.
Neither the Toronto Stock Exchange, nor any other securities regulatory
authority, has approved or disapproved of the contents of this
announcement.
The Company will, in compliance with Canadian regulatory requirements,
post the Unaudited Interim Financial Statements and the Management
Discussion and Analysis for the three month period ended 31 March 2018
on SEDAR at www.sedar.com. These documents will also available from the
Company's website - www.serabigold.com.
Serabi's Directors Report and Financial Statements for the year ended 31
December 2017 together the Chairman's Statement and the Management
Discussion and Analysis, are available from the Company's website -
www.serabigold.com and on SEDAR at www.sedar.com.
This announcement is inside information for the purposes of Article 7 of
Regulation 596/2014. The person who arranged for the release of this
announcement on behalf of the Company was Clive Line, Director.
GLOSSARY OF TERMS
The following is a glossary of technical terms:
"Au" means gold.
"assay" in economic geology, means to analyse the proportions of metal
in a rock or overburden sample; to test an ore or mineral for
composition, purity, weight or other properties of commercial interest.
"development" - excavations used to establish access to the mineralised
rock and other workings.
"doré - a semi-pure alloy of gold silver and other metals produced
by the smelting process at a mine that will be subject to further
refining.
"DNPM" is the Departamento Nacional de Produção Mineral.
"grade" is the concentration of mineral within the host rock typically
quoted as grams per tonne (g/t), parts per million (ppm) or parts per
billion (ppb).
"g/t" means grams per tonne.
"granodiorite" is an igneous intrusive rock similar to granite.
"igneous" is a rock that has solidified from molten material or magma.
"Intrusive" is a body of igneous rock that invades older rocks.
"on-lode development" - Development that is undertaken in and following
the direction of the Vein.
"mRL" - depth in metres measured relative to a fixed point - in the case
of Palito and Sao Chico this is sea-level. The mine entrance at Palito
is at 250mRL.
"saprolite" is a weathered or decomposed clay-rich rock.
"stoping blocks" - a discrete area of mineralised rock established for
planning and scheduling purposes that will be mined using one of the
various stoping methods.
"Vein" is a generic term to describe an occurrence of mineralised rock
within an area of non-mineralised rock.
Qualified Persons Statement
The scientific and technical information contained within this
announcement has been reviewed and approved by Michael Hodgson, a
Director of the Company. Mr Hodgson is an Economic Geologist by training
with over 26 years' experience in the mining industry. He holds a BSc
(Hons) Geology, University of London, a MSc Mining Geology, University
of Leicester and is a Fellow of the Institute of Materials, Minerals and
Mining and a Chartered Engineer of the Engineering Council of UK,
recognising him as both a Qualified Person for the purposes of Canadian
National Instrument 43-101 and by the AIM Guidance Note on Mining and
Oil & Gas Companies dated June 2009.
Forward Looking Statements
Certain statements in this announcement are, or may be deemed to be,
forward looking statements. Forward looking statements are identified by
their use of terms and phrases such as "believe", "could", "should"
"envisage", "estimate", "intend", "may", "plan", "will" or
the negative of those, variations or comparable expressions, including
references to assumptions. These forward looking statements are not
based on historical facts but rather on the Directors' current
expectations and assumptions regarding the Company's future growth,
results of operations, performance, future capital and other
expenditures (including the amount, nature and sources of funding
thereof), competitive advantages, business prospects and opportunities.
Such forward looking statements reflect the Directors' current beliefs
and assumptions and are based on information currently available to the
Directors. A number of factors could cause actual results to differ
materially from the results discussed in the forward looking statements
including risks associated with vulnerability to general economic and
business conditions, competition, environmental and other regulatory
changes, actions by governmental authorities, the availability of
capital markets, reliance on key personnel, uninsured and underinsured
losses and other factors, many of which are beyond the control of the
Company. Although any forward looking statements contained in this
announcement are based upon what the Directors believe to be reasonable
assumptions, the Company cannot assure investors that actual results
will be consistent with such forward looking statements.
ENDS
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Serabi Gold plc via Globenewswire
http://www.serabigold.com
(END) Dow Jones Newswires
May 15, 2018 02:00 ET (06:00 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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