REG-ECR Minerals plc Half-year Report
29/06/2021 08:00
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Half-year Report
ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)
AIM: ECR
UNAUDITED HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2021 AND
UPDATE
ECR Minerals plc, the gold exploration and development company, is pleased to
announce unaudited half-yearly financial results for the six months ending 31
March 2021 for the Company as consolidated with its subsidiaries (the
“Group”), along with a review of significant developments during the
period and subsequently.
HIGHLIGHTS
* Victoria, Australia continues to enjoy a gold exploration boom, with continued
third-party interest in ECR’s Creswick project in Victoria. Discussions are
ongoing in respect to a potential commercial transaction in relation to our
Creswick project.
* Late in 2020, the Company took delivery of its new Cortech CSD1300G diamond
drill rig and at the same time established a new operational base at Bendigo
in the Central Victoria Goldfields.
* The Company announced three new strategic licence applications, adding new
exploration opportunities in North Queensland, Australia. Three applications
for Exploration Permits - Minerals (“EPM”) licences have been submitted by
LUX Exploration Pty Ltd, ECR’s 100% owned subsidiary.
* In January 2021, ECR’s 100% owned Australian subsidiary MGA commenced
drilling operations at the Byron Prospect in the HR3 area of the Bailieston
Project. The Company’s newly acquired ‘Midas’ drill rig was utilised to
undertake the first of numerous planned drilling campaigns, all of which are
being coordinated from ECR’s central exploration facility compound at
Bendigo.
* Announced results from exploration activity in Victoria included immediate
success at the first drill hole at Creswick, intersecting 1m @ 9.68 g/t and
confirming high gold anomalies (up to 3.75 g/t Au) along with spatially
associated antimony which is thought to be from the mineral stibnite which
forms a close association with gold mineralisation. Furthermore, a total of
720 B-horizon soil samples were taken across the central and eastern part of
the Bailieston Historic Reserve #3 (HR3) between February and March 2021.
* Post-period end, the Company’s cash position was strengthened by a
£2,000,000 equity financing by Novum Securities in April 2021 to ramp-up
drilling and exploration activities on ECR’s gold exploration projects.
* During the period, the Company issued an aggregate of 11,800,000 share options
from the management and consultant option pool to certain key consultants and
staff, and also issued an additional 235,420,387 shares from the exercise of
warrants and options, receiving a total of £3,289,520.
* Group total comprehensive expenses of £468,112 are reported for the six
months ended 31 March 2021 (£1,846,202 for the six months ended 31 March
2020) and net assets of £6,442,465 at 31 March 2021 (£2,206,211 at 31 March
2020).
* A Group Operating Loss is reported for the six months ended 31 March 2021 of
£403,079, compared with £369,102 for the six months ended 31 March 2020.
* Adam Jones appointed as a Non-Executive Director.
* Despite the effect of the COVID-19 pandemic on the global economy, ECR is in a
robust financial position and continues to provide shareholders with exposure
to an exciting range of gold projects.
FINANCIAL RESULTS
For the six months ended 31 March 2021 the unaudited financial statements of
the Group record a total comprehensive expense of £468,112.
The Group’s total assets were £6,522,307 at 31 March 2021, compared with
£2,275,479 at 31 March 2020. The increase in total assets has occurred
largely due to the increase in purchase of property, plant and equipment and
exercise of warrants during the period.
The Group held £3,928,905 of cash and cash equivalents at 31 March 2021,
compared with £166,852 at 31 March 2020. Post the period end, the Group’s
cash position benefited from a £2,000,000 equity financing completed by the
Company in April 2021. Cash at 23 June 2021 is £5,242,081.
REVIEW OF PRINCIPAL DEVELOPMENTS DURING THE PERIOD AND SUBSEQUENTLY
The six months to 31 March 2021 and the subsequent period since have been
marked by a series of exciting developments for ECR, all of which are related
to the Group’s primary strategic activity, of exploration and development in
Australia through ECR’s wholly owned Australian subsidiary Mercator Gold
Australia Pty Ltd (“MGA”).
Currently, the Company is focused on an aggressive drilling programme at
Bailieston and Creswick properties in Victoria, with two diamond drill rigs
working every day to deliver large quantities of drill core for technical
review, processing and assay testing. The ongoing pace and sheer volume of
core and data recovered, along with the EPM applications in N Queensland is
expected to expose ECR to potential new gold discoveries.
Application for 300 Sub-Blocks West of Charters Towers in the Lolworth
District of North Queensland, Australia.
In May 2021, ECR Minerals announced three new strategic licence applications
with a view to adding new exploration opportunities in Queensland, Australia.
These were submitted by LUX Exploration Pty Ltd which is a 100%-owned
Australian subsidiary of ECR Minerals.
The three Exploration Permits - Minerals (EPM) in application (27901, 27902
and 27903) represent 300 sub-blocks covering a total 900 km2 of highly
prospective ground located within the Lolworth Range, 200km WSW of Townsville
and 30km north from Pentlands, North Queensland Australia.
The application area contains metamorphic rocks of the Charters Towers
Province, that host historical large gold producing centres such as Charters
Tower (6.6M Oz Au) and Ravenswood (>1M Oz Au). The structural and basement
geology is poorly understood in the area, suggesting numerous opportunities to
find new deposits. The area also contains reported rhyolitic volcanism, which
play host to intrusion-related breccia gold deposits in the region such as
Mount Leyshon (>2.5M oz) and Mount Wright (>1M oz).
The application area is encompassed on the southern boundary by rich alluvial
gold deposits of the Cape River and Gorge Creek area, which drain the southern
Lolworth Range.
The east boundary of EPM27902 and EPM27903 is bordered by current exploration
permits across the Lolworth dyke swarm; a north-west trending system of
rhyolitic dykes and small breccia pipes containing gold, copper and
molybdenum.
Historic samples also highlighted tin-tungsten mineralisation in the western
areas of EPM27902. Reports show no detailed follow-up work has been
undertaken.
ECR considers EPM27901, 27902 and 27903 offer significant potential for
precious and base metal discoveries in an area of Australia where multiple
large-scale discoveries have already been made.
Soil Sampling – HR3 Bailieston Project
In May 2021, MGA carried out soil sampling generated within the Historic
Reserve #3, (HR3) Bailieston in Victoria, Australia. The results of the study
were announced on 15 June 2021, and revealed high gold anomalies (up to 3.75
g/t Au) along with spatially associated antimony, which is thought to be from
the mineral stibnite, which forms a close association with gold
mineralisation. A total of 720 B-horizon soil samples were taken across the
central and eastern part of the Bailieston Historic Reserve # 3 (HR3) between
February and March 2021.
These findings mean we have now submitted a request for consent to undertake
additional exploration drilling at the location, which is over and above
initial planned drill holes in the area. The collected samples were tested by
portable X-ray fluorescence (“pXRF”) for anomalous pathfinder elements for
gold and a selected sub-set of 229 samples have been sent for trace element
analysis (TL) for Au, Ag, As, Sb, Zn, Cu and Pb. Results of this work show a
strong spatial relationship between Au (gold), Sb (antimony) and to a lesser
extent As (arsenic). Plotting of spatial Au-Sb elemental maps reveals trends
that may correspond to the weathering of high-grade gold shoots under shallow
cover.
Field mapping shows sub-cropping quartz with little to no historical workings
associated with these anomalies. Plans have been submitted for approval to
drill along strike to test these quartz reefs at depth.
Soils grids were designed over known and possible strike extensions of
gold-bearing quartz reefs. A 10m x 10m spaced grid was chosen as it is known
that narrow high-grade gold reefs will erode over a small spatial area into
the adjacent soil. Soils have been taken from the B-horizon, often at the
gravel-clay interface at a depth around 10cm. This is where the gravels have
not transported too far from their source rocks. Soils located within gullies
and adjacent mullock dumps were removed due to contamination. All soils were
sieved on site to < 2mm and bagged, producing a sample around 300g in
weight. A total of 720 samples have been taken to date (June 2021).
All soils were systematically analysed in-house using ECR’s owned Olympus
pXRF. Analysis is undertaken using three sequential beams with a 15 second
count attributing to each beam. Results are evaluated for traditional
pathfinder elements such as As, Ag, Pb, Zn, Cu and Sb.
Soil with moderate arsenic content (generally > 40 ppm) and soils spatially
close to extensions to known reef lines were selected for further trace
elemental analysis for Au, Ag, As, Pb, Zn, Cu and Sb. A total of 229
sub-samples have been selected and sent to ALS laboratories, Adelaide, South
Australia. Method Au-TL44/ME-ICP44 was chosen for analysis.
A detection limit in ppm is sufficient given the proximity to possible gold
sources. Any Au-TL44 results greater than 1 ppm was analysed by Au-AROR44,
which is used for ‘ore grade’ analysis. A 50g charge from a 95% passing
75µm pulverise was chosen due to the likely presence of coarse gold.
Thirteen samples returned gold values above 0.1 g/t Au. Silver, Copper, Lead
and Zinc results are low within the soils.
Arsenic is traditionally used as a pathfinder element for gold mineralisation
and occurs at moderate levels within soils at HR3 and is fairly distributed,
masking blind gold deposits.
Antimony (Sb) results are variable with high results correlating spatially
with high gold assays.
Rock chips taken during 2018 along strike of the main soil anomaly showed a
visible speck of coarse gold. Assays for these rock chips were analysed using
a small charge fire assay resulting in variable results (up to 0.32 g/t Au)
reflecting how coarse gold can be missed using traditional assay methods.
Furthermore, non-executive director (Adam Jones) in February 2019 has found
coarse gold by using a metal detector within the shallow soils in the vicinity
of the reported soil anomalies.
Early Successful RC Diamond Drilling at Creswick Project
MGA has made great progress to date with the completion of the four diamond
holes at Creswick and 909.2m of diamond drilling has been undertaken
efficiently at the Creswick Project. So far, the Company has received assay
results from hole CSD001, with gold intersected in the first drill hole.
The first hole, CSD001 has been completed to 295m. This hole is an orientation
hole to establish the position of the Dimocks Main Shale (DMS) and associated
structures. As previously reported (21 June 2019) data from the RC drilling
conducted in 2019 showed a lack of geological continuity indicating faulting
and folding of the DMS. CSD001 intersected quartz zones within the DMS in
addition to multiple reefs above and below it. Drilling of CSD001 has
demonstrated that much of the 2019 RC drilling was done into the minor reefs
above the DMS.
CSD001 revealed three parallel reef systems above the DMS that have been
folded by small and large parasitic folds. The DMS was reached at 72m down the
hole and continued to 93m and intersected two 2m quartz zones at the upper
contact and at 86m with minor veining throughout the shale. The hole continued
to 295m to test the folding and faulting beneath the DMS and encountered an
additional 8 reef zones that mostly related to east-dipping faults and minor
shales. 76 of the 108 samples sent for laboratory testing from CSD001 have
been reported from the lab with the best result 1 m @ 9.68 g/t from an
east-dipping fault beneath the DMS. Results from the final 32 samples are
awaiting laboratory analysis.
CSD002 was collared 10 m to the west of CSD001 and drilled steeper to target
where projected parasitic folding and the mineralised east-dipping fault
intersect the DMS. The previously reported result from 2019 from CSR005 of 1m
@ 81.0 g/t came from quartz in the parasitic folds. Drilling of CSD001
intersected an 8m quartz zone where the DMS and these structures intersect
plus minor veining throughout the shale. The core from CSD002 has been logged,
sampled and sent to the laboratory for analysis.
Work to better understand the nugget effect at Creswick is ongoing. As
described in the release dated 5 November 2019 grade variability due to the
nugget effect was demonstrated at Creswick with some of the initial samples
under-reported and others over-reported.
Outlook, Future Prospects and COVID 19
The Board of ECR Minerals plc is very positive in regard to the outlook for
the Company and for sustained demand for Gold over the longer term. We remain
enthused over the potential and prospectively of the Company’s projects in
Victoria, Australia.
As a consequence of COVID 19, governments around the world have imposed
restrictions on
international travel, and in particular extensive restrictions have been
imposed on domestic travel within Australia. These restrictions have meant
that until May 2021, the board have been unable to visit the assets. However,
the team on the ground in Victoria have continued the work at site without
interruption, and as a result there has been no significant negative impact on
the Company from the coronavirus.
FOR FURTHER INFORMATION, PLEASE CONTACT:
ECR Minerals plc Tel: +44 (0)20 7929 1010
David Tang, Non-Executive Chairman
Craig Brown, Director & CEO
Email: info@ecrminerals.com (mailto:info@ecrminerals.com)
Website: www.ecrminerals.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.ecrminerals.com&esheet=52452637&newsitemid=20210628005909&lan=en-US&anchor=www.ecrminerals.com&index=1&md5=134a802bb3efa2cd59ec73476cd2a786)
WH Ireland Ltd Tel: +44 (0)161 832 2174
Nominated Adviser
Katy Mitchell/James Sinclair-Ford
Novum Securities Tel: +44 (0)20 7399 9425
Broker
Jon Belliss
SI Capital Tel: +44 (0)1483 413500
Broker
Nick Emerson
Brand Communications Tel: +44 (0)7976 431608
PR & IR
Alan Green
ABOUT ECR MINERALS PLC
ECR Minerals is a mineral exploration and development company. ECR’s wholly
owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has
100% ownership of the Bailieston and Creswick gold projects in central
Victoria, Australia, has eight licence applications outstanding including two
licence applications lodged in eastern Victoria. (Tambo gold project). MGA is
currently drilling at both the Bailieston and Creswick projects and has an
experienced exploration team with significant local knowledge in the Victoria
Goldfields and wider region.
https://mercatorgold.com.au/
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fmercatorgold.com.au%2F&esheet=52452637&newsitemid=20210628005909&lan=en-US&anchor=https%3A%2F%2Fmercatorgold.com.au%2F&index=2&md5=4d8c9873450b07066948dd45f1db4ac9)
ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd
(“LUX”) which has three licence applications covering 900 km2 covering a
relatively unexplored area in Queesnland, Australia.
https://luxexploration.com/
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fluxexploration.com%2F&esheet=52452637&newsitemid=20210628005909&lan=en-US&anchor=https%3A%2F%2Fluxexploration.com%2F&index=3&md5=3d12a1eb06368a93a6e6aea88a7cfb10)
Following the sale of the Avoca, Moormbool and Timor gold projects in
Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the
subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd
(TSX-V: LVX), MGA has the right to receive up to A$2 million in payments
subject to future resource estimation or production at any of those projects.
ECR has earned a 25% interest in the Danglay gold project; an advanced
exploration project located in a prolific gold and copper mining district in
the north of the Philippines, and holds a royalty on the SLM gold project in
La Rioja Province, Argentina.
FORWARD LOOKING STATEMENTS
This announcement may include forward-looking statements. Such statements may
be subject to a number of known and unknown risks, uncertainties and other
factors that could cause actual results or events to differ materially from
current expectations. There can be no assurance that such statements will
prove to be accurate and therefore actual results and future events could
differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward looking statements. Any
forward looking statements contained herein speak only as of the date hereof
(unless stated otherwise) and, except as may be required by applicable laws or
regulations (including the AIM Rules for Companies), the Company disclaims any
obligation to update or modify such forward looking statements as a result of
new information, future events or for any other reason.
Consolidated Income Statement
For the six months ended 31 March 2021
Six months ended Six months ended Year ended
31 March 2021
31 March 2020
30 September 2020
£ £ £
Proceeds from disposal of licenses - - 275,701
Less: expenditure on licenses disposed - - (169,509)
Gain on disposal - - 106,192
Continuing operations
Other administrative expenses (403,092) (339,674) (799,585)
Currency exchange differences (11,375) (29,428) (33,497)
Total administrative expenses (414,467) (369,102) (833,082)
Operating loss (414,467) (369,102) (726,890)
Fair value movements – available for sale financial 2,024 17,243 13,683
asset
(412,443) (351,859) (713,207)
Finance income 104 237 478
Other income 10,519 - -
Finance costs (1,248) - 8,316
Finance income and costs 9,375 237 8,794
(403,079) (351,622) (704,413)
Loss for the period before taxation
Income tax - - -
Loss for the period from continuing operations (403,079) (351,622) (704,413)
- (1,602,539) (1,986,469)
Loss on disposal of subsidiary – discontinued operations
Loss attributable to:
Owners of the parent (403,079) (1,954,161) (2,690,882)
Loss per share – basic and diluted (0.14)p (0.08)p (0.14)p
On continuing operations
On discontinued operations - (0.36)p (0.39)p
Consolidated Statement of Comprehensive Income
For the six months ended 31 March 2021
Six months ended Six months ended Year ended
31 March 2021
31 March 2020
30 September 2020
£ £ £
Loss for the period (403,079) (1,954,161) (2,690,882)
Items that may be reclassified subsequently to
profit or loss
Gain/(losses) on exchange translation (65,034) 107,959 95,880
Other comprehensive income/(expense) for the (65,034) 107,959 95,880
period
Total comprehensive expense for the period (468,112) (1,846,202) (2,595,002)
Attributable to:
Owners of the parent (468,112) (1,846,202) (2,595,002)
Consolidated Statement of Financial Position
At 31 March 2021
As at As at As at
31 March 2021
31 March 2020
30 September 2020
Assets £ £ £
Non–current assets
Property, plant and equipment 206,110 1,912 183,539
Intangible exploration assets 2,224,304 2,029,364 1,869,184
Total non-current assets 2,430,415 2,031,276 2,052,723
Current assets
Trade and other receivables 134,094 46,922 108,617
Financial assets at fair value through profit or 28,894 30,430 26,870
loss
Cash and cash equivalents 3,928,905 166,852 1,497,231
4,091,892 244,204 1,632,718
Total assets 6,522,307 2,275,480 3,685,441
Current liabilities
Trade and other payables 79,842 69,569 121,622
Total liabilities 79,842 69,569 121,622
6,442,465 2,206,221 3,563,819
Net assets
Equity attributable to owners of the parent
Share capital 11,289,282 11,284,845 11,286,928
Share premium 50,358,598 45,391,202 47,090,048
Exchange reserve 16,582 124,901 531,453
Other reserves 453,867 742,698 440,706
Retained losses (55,675,866) (55,337,425) (55,785,316)
6,442,465 2,206,221 3,563,819
Total equity
Consolidated statement of changes in equity
For the six months ended 31March 2021
Share Share Exchange Other Retained Total
capital
premium
reserves
reserves
reserves
Equity
£ £ £ £ £ £
11,284,795 45,391,202 (394,876 ) 742,698 (53,383,264 ) 3,640,604
At 1 October 2019
Loss for the period – – – – (1,954,161 ) (1,954,161 )
Loss on exchange translation – – 107,959 – – 107,959
Total comprehensive income /(expense) – – 107,959 – (1,954,161 ) (1,846,202 )
Recycled through profit or loss on – – 411,819 – – 411,819
disposal of subsidiary
11,284,845 45,391,202 124,901 742,698 (55,337,425 ) 2,206,221
At 31 March 2020
Loss for the period – – – – (736,721 ) (736,721 )
Loss on exchange translation – – – – (12,079 )
(12,079 )
Total comprehensive income /(expense) – – (12,079 ) – (736,721 ) (748,800 )
Shares issued 2,067 1,754,986 – – – 1,757,053
Shares issue costs – (77,000 ) – – – (77,000 )
Share based payments – 13,161 – (301,992 ) 288,831 –
Shares issued in payment of creditors 15 7,699 – – – 7,714
Recycled through profit or loss on – – 418,630 – – 418,630
disposal of subsidiary
11,286,928 47,090,048 531,453 440,706 (55,785,315 ) 3,563,819
At 30 September 2020
Loss for the period – – – – (403,079 ) (403,079 )
Loss on exchange translation – – (65,034 ) – – (65,034 )
Total comprehensive income /(expense) – – (65,034 ) – (403,079 ) (468,112 ))
Shares issued 2,354 3,268,551 – – – 3,270,905
Share based payments – – – 13,161 – 13,161
Transfer – – (449,837 ) – 512,528 62,691
Total transactions with owners, 2,354 3,268,551 (449,837 ) 13,161 512,528 3,346,757
recognised directly in equity
11,289,282 50,358,598 16,582 453,867 (55,675,866 ) 6,442,465
At 31 March 2021
Consolidated Cash Flow Statement
For the six months ended 31 March 2021
Six months ended Six months ended Year ended
31 March 2021
31 March 2020
30 September 2020
£ £ £
Net cash flow used in operations (451,693) (299,976) (668,377)
Investing activities
Purchase of plant, property and equipment (32,520) (1,603) (186,307)
Increase in exploration assets (355,120) (203,171) (180,653)
Research and development grant - 295,515 307,818
Proceeds from disposal of licenses - - 275,701
Interest received 104 237 478
Net cash generated from/(used in) investing activities (387,537) 90,978 217,037
Financing activities
Proceeds from issue of shares (net of issue costs) 3,270,905 – 1,680,054
Net cash from financing activities 3,270,905 – 1,680,054
Net change in cash and cash equivalents 2,431,674 (208,998) 1,228,714
Cash and cash equivalents at beginning of the period 1,497,231 268,517 268,517
Effect of change in exchange rates - 107,959 -
Cash and cash equivalents at end of the period 3,928,905 167,478 1,497,231
Notes to the Condensed Half-Yearly Financial Statements
For the six months ended 31 March 2021
1. Basis of preparation
The condensed consolidated half-yearly financial statements incorporate the
financial statements of the Company and its subsidiaries (the “Group”)
made up to 31 March 2021. The results of the subsidiaries are consolidated
from the date of acquisition, being the date on which the Company obtains
control, and continue to be consolidated until the date such control ceases.
These condensed half-yearly consolidated financial statements do not include
all of the information required for full annual financial statements, and
should be read in conjunction with the consolidated financial statements of
the Group for the year ended 30 September 2020. They have been prepared in
accordance with the accounting policies adopted in the last annual financial
statements for the year to 30 September 2020. The report of the auditors on
those accounts was unqualified and did not contain a statement under section
498(2) or (3) of the Companies Act 2006, but did include a reference to
matters which the auditors drew attention to by way of emphasis without
qualifying their report.
The accounting policies have been applied consistently throughout the Group
for the purpose of preparation of these consolidated half-yearly financial
statements. New standards, amendments and interpretations effective for
accounting periods commencing after 1 January 2020 have been adopted but do
not have a material impact on the condensed consolidated financial statements.
The Group has not early adopted any other standard, interpretation or
amendment that has been issued but is not yet effective.
The financial information in this statement does not constitute full statutory
accounts within the meaning of Section 434 of the Companies Act 2006. The
financial information for the six months ended 31 March 2021 and 31 March 2020
is unaudited. The comparative figures for the period ended 30 September 2020
were derived from the Group’s audited financial statements for that period
as filed with the Registrar of Companies. They do not constitute the full
financial statements for that period.
2. Going concern
The Directors are satisfied that the Group has sufficient resources to
continue its operations and to meet its commitments for the immediate future.
The Group therefore continues to adopt the going concern basis in preparing
its condensed half-yearly financial statements.
3. Cash and cash equivalents
Cash includes petty cash and cash held in bank current accounts. Cash
equivalents include short-term investments that are readily convertible to
known amounts of cash and which are subject to insignificant risk of changes
in value.
4. Earnings per share
Six months ended Six months ended Year ended
31 March 2021
31 March 2020
30 September
2020
Weighted number of shares in issue during the period 783,384,516 445,840,783 512,411,527
£ £
Loss from continuing operations attributable to
owners of the parent
(403,079) (351,622) (704,413)
The disclosure of the diluted loss per share is the same as the basic loss per
share as the conversion of share options decreases the basic loss per share
thus being anti-dilutive.
5. Income tax
No charge to tax arises on the results and no deferred tax provision arises or
deferred tax asset is identified.
6. Shares and options transactions during the period
The share capital of the Company consists of three classes of shares: ordinary
shares of 0.001p each which have equal rights to receive dividends or capital
repayments and each of which represents one vote at shareholder meetings; and
two classes of deferred shares, one of 9.9p each and the other of 0.099p each,
which have limited rights as laid out in the Company’s articles: in
particular deferred shares carry no right to dividends or to attend or vote at
shareholder meetings and deferred share capital is only repayable after the
nominal value of the ordinary share capital has been repaid.
a) Changes in issued share capital and share premium:
Number of Ordinary Deferred Deferred Deferred Total Share
‘B’
Shares shares 9.9p shares 0.099p 0.199p shares premium Total
shares
shares
£ £ £ £ £ £ £
At 1 October 659,198,912 6,591 7,194,816 3,828,359 257,161 11,286,927 47,090,048 58,376,975
2019
Issue of shares 235,420,387 2,354 - - - 2,354 3,268,551 3,270,905
less costs
Balance at 31 894,619,299 8,945 7,194,816 3,828,359 257,161 11,289,281 50,358,599 61,647,880
March 2021
All the shares issued are fully paid up and none of the Company’s shares are
held by any of its subsidiaries.
7. Consolidated Cash Flow Statement
Six months ended 31 Six months ended Year ended
March
31 March
30 September
2021
2020
2020
£ £ £
Operating activities
Loss for the period, before tax (403,079) (1,314,260) (2,690,882)
Adjustments: 20,770 732 3,809
Depreciation expense, property, plant and
equipment
Loss on disposal of subsidiary - 962,638
(Gain)/Loss on available for sale financial assets (2,024) (17,243) (13,683)
Interest income (104) (237) (478)
(Increase) /decrease in accounts receivable (25,477) 45,616 36
Increase/(Decrease) in accounts payable (41,780) 22,778 82,546
Net cash flow used in operations (451,693) (299,976) (668,377)
8. Post period end events
\\\
On 9 April 2021, ECR Minerals plc (LON: ECR) announced the placing (the
“Placing”) of 90,909,091 new ordinary shares of 0.001p (the “Placing
Shares”) at a Placing price of 2.2p per share for gross proceeds of
£2,000,000. Placees will receive one warrant (“Warrant”) for every two
Placing Shares. Each Warrant is exercisable to subscribe for a new ordinary
share in the Company at a price of 1p for a period of 24 months. If all the
Warrants were to be exercised, this would generate proceeds of £1.7million
for the Company.
The net proceeds of the Placing will be used to ramp-up drilling and
exploration activities on ECR’s 100%-owned gold exploration projects in
Victoria, Australia and for working capital purposes. The Placing was arranged
by the Company’s joint-broker Novum Securities.
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ECR Minerals plc
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