Trading Symbols
AIM: AGQ
FWB: I3A
ARIAN
SILVER
29 September
2016
Financial results
for the six months ended 30 June
2016
Arian Silver Corporation (“Arian” or the “Company”) is pleased
to announce its financial results for the six months ended
30 June 2016.
Strategy
Arian is focused on identifying economic sources of silver and
other precious metals, and developing mineral projects through to
production. The Company has previously concentrated exclusively on
projects within the Zacatecas
silver belt in Mexico, but recent
economic conditions have presented abnormally high value
opportunities around the world, and the Company may broaden its
focus beyond solely the Zacatecas
region and indeed beyond Mexico to
ensure the Company does not automatically preclude valuable
opportunities should they arise elsewhere.
Financial highlights
As at 30 June 2016, the Company
had total assets of US$2.5 million
(2015: US$40.0 million) of which
US$1.2 million (2015: US$0.8 million) was cash. The Company had total
liabilities of US$0.1 million (2015:
US$26.4 million) of which
US$0.1 million were current
liabilities (2015: US$5.0
million).
In the six months ended 30 June
2016 the Company made an operating loss of US$3.4 million (2015: US$1.6 million) and a loss per share of
US$2.66 (2015: US$0.05). The Company raised proceeds by way of
private placings of shares of US$2.1
million before costs and expenses, to further its
strategy.
Overview of operations
During the six months ended 30 June
2016, the Company has focused primarily on identifying
projects with good potential for near-term production and in
May 2016 the Company entered into an
exclusive arrangement with Tierra Nuevo Mining Limited (“TNM”) in
Mexico to conduct further
assessment and due diligence on its assets, including a tailings
project containing gold and silver, adjacent to Goldcorp’s
Peñasquito open-pit mine. The period of exclusivity has been
extended to 28 October 2016.
A NI 43-101 report prepared for TNM in 2012 outlined an
indicated mineral resource in respect of its tailings project,
containing 1 million tonnes with 3 grams per tonne (g/t) gold and
55 g/t silver, representing approximately 100,000 ounces (oz) of
gold and some 1.7 million oz of silver.
Arian’s detailed metallurgical test work continues together with
a scoping study, with a view to producing a saleable gold and
silver concentrate from the tailings project.
As announced on 26 January 2016,
Arian concluded the financial settlement with Quintana AGQ Holding
Co. LLC and its affiliates and received a final payment of
US$50,000.
The Company conducted an assessment of its Calicanto project and
concluded its size and location made it impracticable for the
Company to exploit. Accordingly, a buyer was sought and an
agreement entered into in July 2016,
after the interim reporting period.
Properties
As at 30 June 2016, the Company
had 19 fully owned mining concessions split between three distinct
project areas and covering over 1,500 hectares:
Los Campos
The Los Campos project
comprises four concessions covering an area of approximately 500
hectares, located on the south side of the city of Zacatecas. The property is easily accessible
and is only a 15-minute drive from the centre of the City of Zacatecas and from the Calicanto
project.
San Celso project
San Celso consists of three contiguous mining concessions
totalling 88 hectares. The concessions are located in the historic
mining district of Pánfilo Natera-Ojocaliente and are surrounded by
other concessions to the south and west.
Calicanto project
The Calicanto property, the sale of which was announced on
1 August 2016, consists of seven
contiguous mining concessions totalling approximately 75 hectares.
The property is located in the heart of the Zacatecas mining district, adjacent and partly
contiguous to Capstone Mining’s Cozamin mine, and covers four known
main vein systems.
Others
Arian Silver holds five
additional concessions covering over 900 hectares. These
concessions were acquired in 2006 because of their strategic
position to the San Celso project. These concessions too require
further exploratory work to fully assess their economic
potential.
Post balance sheet
events
On 1 August 2016 the Company
announced its Mexican subsidiary, Compañía Minera Estrella De Plata
SA de CV, had executed a binding agreement with Minera Oro Silver
de Mexico SA de CV (“Minera Oro Silver”), a subsidiary of Endeavour
Silver Corporation, to sell the Company’s 75 hectare Calicanto
Project in the State of Zacatecas,
for a cash consideration of US$400,000, which will be received upon the
execution and ratification of the assignment agreement in respect
of the relevant mineral concessions. The Calicanto Project had a
carrying value of US$602,000 as at
31 December 2015 and has therefore
been impaired to the consideration value of US$400,000.
Future outlook
The management team continues to advance potential opportunities
to expand and develop the Company’s mining assets, with a
particular focus on assets giving access to near-term revenues.
Notice of no auditor
review of interim financial statements
The interim unaudited consolidated financial statements for the
six month period ended 30 June 2016
have been prepared by and are the responsibility of the Company’s
management, in accordance with International Accounting Standards
(“IAS”) 34 Interim Financial Reporting.
Arian Silver Corporation
Consolidated statement of
comprehensive income
For the six months ended
30 June 2016
(tabular amounts expressed in thousands of US dollars unless
otherwise stated)
|
Note |
Unaudited
six months ended
30 June
2016 |
Unaudited
six months ended
30 June
2015 |
Audited
year ended
31 December
2015 |
Continuing
operations |
|
|
|
|
Administrative
expenses |
|
(602) |
(1,548) |
(2,871) |
Share-based payments
charge |
|
(2,764) |
(18) |
(18) |
Impairment |
|
(202) |
- |
- |
Operating
loss |
|
(3,568) |
(1,566) |
(2,889) |
|
|
|
|
|
Net investment
income |
|
- |
(11) |
21 |
Loss from continuing
operations |
|
(3,568) |
(1,577) |
(2,868) |
|
|
|
|
|
Discontinued
operations |
|
|
|
|
Gain /(loss) from
discontinued operations |
|
- |
5,070 |
(12,671) |
|
|
|
|
|
Profit/(loss) for
the period attributable to equity shareholders of the
parent |
|
(3,568) |
3,493 |
(15,539) |
|
|
|
|
|
Other comprehensive
income |
|
|
|
|
Foreign exchange
translation differences recognised directly in equity |
|
(143) |
(1,220) |
5,306 |
Other comprehensive
income for the year |
|
(143) |
(1,220) |
5,306 |
Total comprehensive
income for the year attributable to equity shareholders of the
parent |
|
(3,771) |
2,273 |
(10,233) |
Basic and diluted loss
per share ($/share) |
|
(2.82) |
(0.05) |
(0.46) |
Basic and diluted loss
per share from continuing operations ($/share) |
|
(2.82) |
(0.05) |
(0.09) |
Basic and diluted loss
per share from discontinued operations ($/share) |
|
- |
- |
(0.37) |
The accompanying notes are an
integral part of these consolidated financial statements.
These consolidated financial
statements have been approved by the Company’s directors.
Arian Silver Corporation
Consolidated statement of financial
position
For the six months ended
30 June 2016
(tabular amounts expressed in thousands of US dollars)
|
|
Unaudited
30 June |
Unaudited
30 June |
Audited
31 December |
|
Note |
2016 |
2015 |
2015 |
Assets |
|
|
|
|
Non-current
assets |
|
|
|
|
Intangible assets |
2 |
731 |
981 |
881 |
Property, plant and
equipment |
3 |
10 |
34,008 |
5 |
Total non-current
assets |
|
741 |
34,989 |
886 |
|
|
|
|
|
Current
assets |
|
|
|
|
Inventories |
4 |
- |
1,439 |
- |
Trade and other
receivables |
|
351 |
2,795 |
311 |
Cash and cash
equivalents |
|
1,169 |
778 |
474 |
Total current
assets |
|
1,520 |
5,012 |
785 |
Total
assets |
|
2,261 |
40,001 |
1,671 |
|
|
|
|
|
Equity attributable
to equity shareholders of the parent |
|
|
|
|
Share capital |
5 |
53,728 |
51,781 |
51,781 |
Warrant reserve |
5 |
2,763 |
3,455 |
3,455 |
Share-based payment
reserve |
5 |
1,417 |
7,701 |
7,701 |
Foreign exchange
translation reserve |
5 |
1,949 |
(4,434) |
2,092 |
Accumulated losses |
|
(57,717) |
(44,854) |
(63,886) |
Total
equity |
|
2,140 |
13,649 |
1,143 |
|
|
|
|
|
Liabilities |
|
|
|
|
Convertible note |
|
- |
300 |
- |
Trade and other
payables |
|
121 |
1,600 |
528 |
Derivative
liabilities |
|
- |
2,796 |
- |
Total current
liabilities |
|
121 |
4,696 |
528 |
|
|
|
|
|
Convertible note |
|
- |
11,780 |
- |
Derivative
liabilities |
|
- |
9,020 |
- |
Provision for mine
closure |
|
- |
856 |
- |
Total non-current
liabilities |
|
- |
21,656 |
- |
Total
liabilities |
|
121 |
26,352 |
528 |
Total equity and
liabilities |
|
2,261 |
40,001 |
1,671 |
The accompanying notes are an
integral part of these consolidated financial statements.
These consolidated financial
statements have been approved by the Company’s directors.
Arian Silver Corporation
Consolidated statement of cash
flows
For the and six months ended
30 June 2016
(tabular amounts expressed in thousands of US dollars)
|
Note |
Unaudited
six months ended
30 June
2016 |
Unaudited
six months ended
30 June
2015 |
Audited
year ended
31
December
2015 |
Cash flows from
operating activities |
|
|
|
|
(Loss)/profit before
tax from continuing operations |
|
(3,568) |
3,493 |
(2,868) |
Loss before tax from
discontinued operations |
|
- |
- |
(12,671) |
Adjustments for
non-cash items: |
|
|
|
|
Depreciation and
amortisation |
|
1 |
69 |
164 |
Exchange
difference |
|
(91) |
(208) |
6,797 |
Net investment
(loss)/income |
|
(1) |
11 |
(21) |
Change in fair value of
derivative liability |
|
- |
(5,533) |
(7,038) |
Proceeds from Quintana
for working capital |
|
(50) |
- |
(650) |
Impairment of
intangible assets |
|
202 |
- |
- |
Loss on discontinuing
operations |
|
- |
- |
10,494 |
Equity-settled
share-based payment transactions |
|
2,832 |
(18) |
18 |
Operating cash flows
before movements in working capital |
|
(675) |
(2,186) |
(5,775) |
Increase in trade and
other receivables |
|
(117) |
(841) |
(1,027) |
(Decrease)/increase in
trade and other payables |
|
(380) |
37 |
2,227 |
Increase in
inventories |
|
- |
(23) |
(211) |
Cash used in
operating activities |
|
(1,172) |
(3,013) |
(4,786) |
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
Interest received |
|
1 |
10 |
21 |
Proceeds from Quintana
for working capital |
|
50 |
- |
650 |
Cash from discontinued
operations |
|
- |
- |
(47) |
Purchase of intangible
assets |
|
(52) |
- |
- |
Acquisition of
property, plant and equipment |
|
(7) |
(5,019) |
(5,726) |
Cash used in
investing activities |
|
(8) |
(5,009) |
(5,102) |
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
Proceeds from issue of
share capital |
|
2,089 |
- |
- |
Issue costs |
|
(210) |
- |
- |
Proceeds from Base
Metal Purchase Agreement |
|
- |
5,920 |
7,576 |
Repayment of Base Metal
Purchase Agreement |
|
- |
- |
(45) |
Cash from financing
activities |
|
1,879 |
5,920 |
7,531 |
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents |
|
699 |
(2,102) |
(2,357) |
Cash and cash
equivalents at beginning of period/year |
|
474 |
2,846 |
2,846 |
Effect of exchange rate
fluctuations on cash held |
|
(4) |
34 |
(15) |
Cash and cash
equivalents at end of period/year |
|
1,169 |
778 |
474 |
The accompanying notes are an
integral part of these consolidated financial statements.
These consolidated financial
statements have been approved by the Company’s directors.
Arian Silver Corporation
Consolidated statement of changes in
equity
For the six months ended
30 June 2016
(tabular amounts expressed in thousands of US dollars)
For the six months ended 30 June
2016
|
Share
capital |
Warrant
reserve |
Share
based
payment reserve |
Foreign exchange
translation reserve |
Accumulated
losses |
Total |
Balance: 1 January
2016 |
51,781 |
3,455 |
7,701 |
2,092 |
(63,888) |
1,143 |
Loss for the
period |
- |
- |
- |
- |
(3,568) |
(3,568) |
Foreign exchange |
- |
- |
- |
(143) |
- |
(143) |
Total comprehensive
income |
- |
- |
- |
(143) |
(3,568) |
(3,711) |
Shares issued |
2,157 |
- |
- |
- |
|
2,157 |
Share issue costs |
(210) |
- |
- |
- |
|
(210) |
Share options
lapsed |
- |
- |
(6,284) |
- |
6,284 |
- |
Cancellation of
warrants |
- |
(3,455) |
- |
- |
3,455 |
- |
Fair value of
warrants |
- |
2,763 |
- |
- |
- |
2,763 |
Balance: 30 June
2016 |
53,728 |
2,763 |
1,417 |
1,949 |
(57,517) |
2,140 |
For the six months ended 30 June
2015
|
Share
capital |
Warrant
reserve |
Share
based
payment reserve |
Foreign exchange
translation reserve |
Accumulated
losses |
Total |
Balance: 1 January
2015 |
51,781 |
3,455 |
7,683 |
(3,214) |
(48,347) |
11,358 |
Profit for the
period |
- |
- |
- |
- |
3,493 |
3,493 |
Foreign exchange |
- |
- |
- |
(1,220) |
- |
(1,220) |
Total comprehensive
income |
- |
- |
- |
(1,220) |
3,493 |
2,273 |
Fair value of share
options |
- |
- |
18 |
- |
- |
18 |
Balance: 30 June
2015 |
51,781 |
3,455 |
7,701 |
(4,434) |
(44,854) |
13,649 |
For the year ended 31 December
2015
|
Share
capital |
Warrant
reserve |
Share
based
payment reserve |
Foreign exchange
translation reserve |
Accumulated
losses |
Total |
Balance: 1 January
2015 |
51,781 |
3,455 |
7,683 |
(3,214) |
(48,347) |
11,358 |
Loss for the year |
- |
- |
- |
- |
(15,539) |
(15,539) |
Foreign exchange |
- |
- |
- |
(3,917) |
- |
(3,917) |
Foreign
exchange reclassified to discontinued operations |
- |
- |
- |
9,222 |
- |
9,222 |
Total comprehensive
income |
- |
- |
- |
5,306 |
(15,539) |
(10,233) |
Fair value of share
options |
- |
- |
18 |
- |
- |
18 |
Balance: 31 December
2015 |
51,781 |
3,455 |
7,701 |
2,092 |
(63,888) |
1,143 |
The accompanying notes are an
integral part of these consolidated financial statements.
These consolidated financial
statements have been approved by the Company’s directors.
Arian Silver Corporation
Notes to Consolidated Financial
Statements (Unaudited)
For the six months ended
30 June 2016
(tabular amounts expressed in thousands of US dollars unless
otherwise stated)
1. Basis of
preparation, going concern and adequacy of project finance
These interim unaudited consolidated financial statements for
Arian Silver Corporation (“ASC” or the “Company”) have been
prepared in accordance with International Financial Reporting
Standards.
ASC is a company domiciled in the British Virgin Islands. The consolidated
financial statements of the Company comprise financial statements
of the Company and its subsidiaries (together referred to as the
“Group”). The Group is primarily involved in the exploration and
development of mineral resource assets.
The accounting policies and methods of computation used in the
preparation of the interim unaudited consolidated financial
statements are the same as those described in the Company’s audited
consolidated financial statements and notes thereto for the year
ended 31 December 2015. In the
opinion of the management, the interim unaudited consolidated
financial statements include all adjustments considered necessary
for fair and consistent presentation of financial statements. These
interim unaudited consolidated financial statements should be read
in conjunction with the Company’s audited financial statements and
notes for the year ended 31 December
2015.
These consolidated financial statements are presented in
United States dollars as the
Company believes it to be the most appropriate and meaningful
currency for investors. The functional currencies of the Company
and its subsidiaries are pounds sterling, Mexican peso and
United States dollars.
The Financial Statements have been prepared on a going concern
basis. The directors regularly review cash flow forecasts to
determine whether the Group has sufficient cash reserves to meet
future working capital requirements and discretionary business
development opportunities including exploration activities.
The Company’s financial obligations to Quintana AGQ Holding Co.
LLC and its affiliates (“Quintana”) were cancelled in the latter
part of 2015 in lieu of Quintana taking over the Company’s San José
project. The Company retains its San Celso, Calicanto and
Los Campos projects along with all
other mining concessions held at the time when the Company became
public on AIM and TSXV in 2006, such remaining concessions all
comprising more than 1,600 hectares. As part of the settlement,
Quintana paid US$650,000 to the
Company during the year ended 31 December
2015, and a further US$50,000
was paid in January 2016.
In February 2016, the Company
successfully raised $1.1 million
before expenses (net US$1.0 million)
and in May 2016, raised a further
US$1.0 million before expenses (net
US$0.9 million).
The Group’s assets are at an early stage and in order to meet
financing requirements for their development previously the Company
has raised equity funds in several discrete share placements, which
is a common practice for junior mineral exploration companies.
Although the Company has been successful in the past in raising
equity finance, there can be no assurance that the funding required
by the Group will be made available to it when needed or, if such
funding were to be available, that it would be offered on
reasonable terms. The terms of such financing might not be
favourable to the Group and might involve substantial dilution to
existing shareholders.
The directors currently believe that the Group has adequate
resources for the foreseeable future or access to such resources in
order to continue to prepare the Company’s financial statements on
a going concern basis. In reaching this conclusion, the directors
have reviewed cash flow forecasts to the end of July 2017 and considered their ability to reduce
expenditure in the event that further fundraisings are not
completed within that timeframe, and have concluded they can make
such savings as may be necessary in order to operate within the
funds currently available to them.
The discontinued operations referred to for the year ended
31 December 2015 relate to the
formerly owned San José property in Zacatecas State, Mexico. The Company was compelled to enter
into a settlement agreement with its financing partner Quintana in
November 2015. This settlement
agreement resulted in Quintana taking control of the Company’s
primary operating subsidiary Arian Silver de Mexico SA de CV.
Under the terms of the settlement agreement, Quintana was
required to transfer back to ASC the mineral concessions not
related to the San José project.
In return for receiving certain indemnities and releases,
Quintana paid ASC US$650,000 (plus a
further US$50,000 during 2016).
2.
Intangible assets – deferred exploration and evaluation costs
The Group’s deferred exploration and evaluation costs comprise
costs directly incurred in exploration and evaluation as well as
the cost of maintaining mineral licences. They are capitalised as
intangible assets pending the determination of the feasibility of
the project. When the decision is taken to develop a mine, the
related intangible assets are transferred to property, plant and
equipment. Where a project is abandoned or is determined not
economically viable, the related costs are written off.
The recoverability of deferred exploration and evaluation costs
is dependent upon a number of factors common to the natural
resource sector. These include the extent to which the Group can
establish economically recoverable reserves on its properties, the
ability of the Group to obtain necessary financing to complete the
development of such reserves and future profitable production or
proceeds from the disposition thereof.
Intangible assets for the six months ended 30 June 2016 are detailed in the following table
and relate entirely to deferred exploration and development
costs:
|
Unaudited
30 Jun
2016
$ |
Unaudited
30 Jun
2015
$ |
Audited
31 Dec
2015
$ |
Cost |
|
|
|
Opening balance 1 January |
881 |
1,223 |
1,223 |
Additions for the period |
52 |
- |
- |
Discontinued operations |
- |
- |
(38) |
Impairment |
(202) |
- |
(185) |
Foreign exchange |
- |
(57) |
(118) |
Closing balance |
731 |
981 |
881 |
The impairment relates to the Calicanto Project, being the
difference in the carrying value of US$602,000 and the consideration received of
US$400,000.
3. Property, plant
and equipment
The Group’s property, plant and equipment incorporates mine
development costs, including appropriate deferred exploration and
evaluation costs transferred on development of an exploration
property, and costs incurred in the acquisition and development of
the Company’s processing plant. Before reclassification, such costs
are assessed for impairment, with any impairment recognised in
profit or loss for the period.
All subsequent development and commissioning costs are
capitalised. Once the mine and plant are operating in the manner
intended by management, the mining assets will be amortised over
the estimated life of the reserves on a unit of production
basis.
Changes in property, plant and equipment for the six months
ended 30 June 2016 are detailed in
the following table:
|
Unaudited
30 Jun
2016
US$ |
Unaudited
30 Jun
2015
US$ |
Audited
31 Dec
2015
US$ |
Opening balance 1 January |
5 |
28,440 |
28,440 |
Additions for the period |
7 |
5,019 |
5,726 |
Interest capitalised |
- |
1,414 |
2,973 |
Discontinued operations |
- |
- |
(35,067) |
Depreciation and amortisation |
(1) |
(69) |
(164) |
Foreign exchange |
(1) |
(796) |
(1,903) |
Closing balance |
10 |
34,008 |
5 |
The amount shown for discontinued operations at 31 December 2015 of $35.1
million, relates to the formerly owned San José property in
Zacatecas State, Mexico, which was
taken over by Quintana under the terms of the senior secured
financing arrangement.
4. Inventories
Inventories comprise silver concentrate produced, ore stockpiles
and consumables, and are stated at the lower of cost and net
realisable value. Silver concentrate produced and ore stockpiles
are calculated on an average cost basis and include all costs
directly incurred up to the relevant point of the process, such as
mining costs, milling costs, transport, operating and
administration costs. Net realisable value is determined with
reference to market prices.
|
Unaudited
30 Jun
2016
US$ |
Unaudited
30 Jun
2015
US$ |
Audited
31 Dec
2015
US$ |
Consumables |
- |
28 |
- |
Stockpiled ore |
- |
1,377 |
- |
Lead silver concentrate |
- |
34 |
- |
Closing balance |
- |
1,439 |
- |
5. Share capital and
reserves
Share capital
The Company is authorised to issue an unlimited number of common
shares of no par value.
Changes in share capital for the six months ended 30 June are as
follows:
|
Number of
Shares
‘000 |
Amount
US$ |
Opening balance 1
January 2015 |
33,907 |
51,781 |
Closing balance 30
June 2015 (unaudited) |
33,907 |
51,781 |
Closing balance 31
December 2015 (audited) |
33,907 |
51,781 |
Shares issued |
149,788 |
2,157 |
Share issue costs |
- |
(210) |
Closing balance 30
June 2016 (unaudited) |
183,695 |
53,728 |
2015
- No shares were issued during the year ended 31 December 2015.
Six months ended
30 June 2016
- 27 January 2016 79,787,493 common
shares were issued at £0.01 each, £797,875 (US$1,137,419)
- 13 May 2016 70,000,000 common
shares were issued at £0.01 each, £700,000 (US$1,019,970)
Warrant
reserve
The number and weighted average exercise price for the period
ended 30 June 2016 are set out in the
table below:
|
Outstanding
(000’s) |
Weighted average
exercise price
US$ |
Opening balance 1
January 2015 |
12,152 |
0.88 |
Closing balance 30
June 2015 (unaudited) |
12,152 |
0.88 |
Closing balance 31
December 2015 (audited) |
12,152 |
0.88 |
Issued |
114,787 |
0.02 |
Cancelled |
(12,152) |
0.88 |
Closing balance 30
June 2016 (unaudited) |
114,787 |
0.02 |
The 12,151,926 common share purchase warrants granted to
Quintana were cancelled on 26 January
2016.
On 27 January 2016 79,787,493
common share purchase warrants were issued, exercisable at 1.5p per
common share, until 27 February
2019.
On 13 May 2016 35,000,000 common
share purchase warrants were issued, exercisable at 1.5p per common
share, until 28 April 2019.
Fair value of Warrants and assumptions
The estimate of the fair value of the Warrants is measured based
on the Black-Scholes model. The following inputs were used in the
calculation of the fair value of the warrants granted.
|
13 May 2016 |
27 January
2016 |
Fair value (US$
000s) |
631 |
2,132 |
Share price (£) |
0.018 |
0.025 |
Weighted average
exercise price (£) |
0.015 |
0.015 |
Expected
volatility |
109% |
110% |
Expected warrants
life |
3 years |
3 years |
Expected dividend
yield |
0% |
0% |
Risk-free interest
rate |
1.05% |
1.05% |
Share based payment reserve
The share based payment reserve arises on the grant of share
options to directors, employees and other eligible persons under
the share option plan.
A summary of the changes in the Group’s contributed surplus for
the six months ended 30 June 2016 is
set out below:
|
Unaudited
30 Jun
2016
US$ |
Unaudited
30 Jun
2015
US$ |
Audited
31 Dec
2015
US$ |
Opening balance 1 January |
7,701 |
7,683 |
7,683 |
Fair value of share options |
- |
18 |
18 |
Incentive stock options lapsed |
(6,284) |
- |
- |
Closing balance |
1,417 |
7,701 |
7,701 |
Foreign exchange
translation reserve
The translation reserve comprises both foreign exchange
differences arising on the translation of amounts relating to
overseas operations and the presentation of the financial
statements in United States
dollars.
A summary of the changes in the Group’s foreign exchange
translation reserve for the six months ended 30 June 2016 is set out below:
|
Unaudited
30 Jun
2016
US$ |
Unaudited
30 Jun
2015
US$ |
Audited
31 Dec
2015
US$ |
Opening balance 1 January |
2,092 |
(3,214) |
(3,214) |
Movement in period |
(143) |
(1,220) |
5,306 |
Closing balance |
1,949 |
(4,434) |
2,092 |
Retained loss
Retained loss comprises accumulated losses in the current and
prior years.
6. Incentive stock
options
A summary of the Company’s stock options as at 30 June 2016 is set out below:
Outstanding
shares |
Exercise
price |
Expiry |
50,000 |
£2.00/C$3.2077 |
29 May 2017 |
725,000 |
£0.70/C$1.09123 |
29 May 2018 |
50,000 |
£0.44/C$0.79 |
5 January 2020 |
7. Related party
transactions
These unaudited interim consolidated financial statements
include balances and transactions with directors and officers of
the Company and/or corporations related to them. All transactions
have been recorded at the exchange amount which is the
consideration established and agreed to between the related
parties.
Control of the Company
In the opinion of the Board, at 30 June
2016 there was no ultimate controlling party of the
Company.
Identity of related parties
The Company and its subsidiaries have a related party
relationship, with its Directors and executive officers.
Directors’ interests in shares of the Company
At 30 June 2016 the Directors of
the Company and their immediate relatives controlled approximately
2.8% (30 June 2015: 1.9%,
31 December 2015: 1.9%) of the voting
shares of the Company.
Directors’ interests in the common shares of the Company as at
30 June 2016 are set out below.
|
Unaudited
30 Jun
2016 |
Unaudited
30 Jun
2015 |
Audited
31 Dec
2015 |
A J Williams |
1,688,702 |
- |
- |
J T Williams |
1,500,000 |
500,000 |
500,000 |
T A Bailey |
1,314,226 |
- |
- |
J A Crombie |
566,665 |
150,000 |
150,000 |
Transactions with key management personnel
During the period ended 30 June
2016 the Company entered into the following transactions
involving key management personnel:
Siberian
Goldfields Ltd (“SGL”)
On 24 September 2013 the Company
acquired an option for US$200,000 to
conduct due diligence on SGL and its mineral properties, with a
view to ASC undertaking a potential equity transaction or other
corporate transaction or investment with SGL (“Transaction”). On
27 November 2013, ASC gave notice to
SGL of its election not to proceed with a Transaction.
The option grant fee is repayable by SGL to ASC together with
interest payable at a rate of 10% per annum in the event that ASC
elects not to proceed with a Transaction. Interest accrued during
the period ended 30 June 2016
amounted to US$10,000 (30 June 2015: US$10,000, 2015: US$20,000). As at 30 June
2016 US$255,000 (30 June 2015: US$235,000, 31 December
2015: US$245,000) was owed to
ASC by SGL.
A.J. Williams is a director and
shareholder of SGL.
Dragon Group Ltd charged the Company a total of US$67,834 (30 June
2015: US$77,172, 31 December 2015: US$154,851). This relates to the reimbursement of
A.J. Williams’ remuneration paid on behalf of the Company.
A.J. Williams, Chairman and a
director of the Company, beneficially owns Dragon Group Ltd. At
30 June 2016, $11,306 (30 June
2015: US$13,271, 31 December 2015: US$12,498) was outstanding.
Key management personnel also participate in the Group’s share
option programme as disclosed in note 7.
JS Cable consulting fees
During the period JS Cable charged the Company a total of nil
(30 June 2015: nil, 31 December 2015: US$16,000) in respect of consulting fees. There
was no outstanding balance at 30 June
2016 (30 June 2015: nil, 2015:
nil).
TA Bailey consulting fees
During the period TA Bailey charged the Company a total of nil
(30 June 2015: nil, 2015:
US$28,000) in respect of consulting
fees, of which $nil (30 June 2015:
nil, 31 December 2015: US$19,482) was outstanding at 30 June 2016.
8. Post
balance sheet events
On 1 August 2016 the Company
announced its Mexican subsidiary, Compañía Minera Estrella De Plata
SA de CV, had executed a binding agreement with Minera Oro Silver
de Mexico SA de CV (“Minera Oro Silver”), a subsidiary of Endeavour
Silver Corporation, to sell the Company’s 75 hectare Calicanto
Project in the State of Zacatecas,
for a cash consideration of US$400,000, which will be received upon the
execution and ratification of the assignment agreement in respect
of the relevant mineral concessions. The Calicanto Project had a
carrying value of US$602,000 as at
31 December 2015 and has therefore
been impaired to the consideration value of US$400,000.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
For further
information please contact:
Arian Silver
Corporation
Jim Williams, CEO
David Taylor, Company Secretary
Tel: +44 (0)20 7887 6599 |
Northland Capital
Partners Limited
Gerry Beaney / David Hignell
Tel: +44 (0)203 861 6625 |
OR |
OR |
Beaufort Securities
Limited
Jon Belliss
Tel: +44 (0)20 7382 8300 |
Yellow Jersey PR
Limited
Dominic Barretto
Tel: +44 (0)7768 537 739 |
Forward-Looking
Information
This press release contains certain “forward-looking
information”. All statements, other than statements of historical
fact that address activities, events or developments that the
Company believes, expects or anticipates will or may occur in the
future are deemed forward-looking information.
This forward-looking information reflects the current
expectations or beliefs of the Company based on information
currently available to the Company as well as certain assumptions.
Forward-looking information is subject to a number of significant
risks and uncertainties and other factors that may cause the actual
results of the Company to differ materially from those discussed in
the forward-looking information, and even if such actual results
are realised or substantially realised, there can be no assurance
that they will have the expected consequences to, or effects on the
Company.
Any forward-looking information speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking information, whether as a result of new
information, future events or results or otherwise. Although the
Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information
due to the inherent uncertainty therein.