REG - Hamak Gold Limited - Interim Results
28/09/2022 07:01
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RNS Number : 9023A Hamak Gold Limited 28 September 2022
28 September 2022
Hamak Gold Limited
("Hamak Gold" or the "Company")
Interim Results
Hamak Gold Limited (LSE: HAMA) is pleased to announce its results for the
six-month period ending 30 June 2022.
Highlights
· Admission to trading on Standard List of LSE achieved on 1 March 2022
· Raised £955,000 (before costs) on admission
· Experienced Board and Management team appointed at IPO
· Focussed strategy of gold exploration across seven highly prospective
licences in Liberia
· Fast track exploration has led to significant discovery of gold
mineralisation in the Gozohn and Nimba licences, including rock chip samples
of 37 grammes per tonnes ("g/t") Au and 46g/t Au at Nimba
· 3,729 soil samples collected and assayed
· 110 channel samples collected and assayed
· 35 rock chip samples collected and assayed
· 29 stream samples collected and assayed
· Nimba soil sampling results are significant and suggestive of a bulk
tonnage gold target
Highlights Post Period
· Results for 53 Nimba Block-1 channel sampling results received, which
support the soil sample anomalies and identified a wide a gold mineralization
zone of 55m at 0.63 g/t Au, including 14m at 1.98 g/t Au, and 11m at 0.99g/t
Au including 3m at 3.14g/t Au
· Within these wide anomalous zones are 2m spaced channel samples
returning 8.56 g/t Au, 3.38 g/t Au and 1.33 g/t Au and also 1m spaced channel
samples returning 5.17 g/t Au and 3.26 g/t Au
· 706 soil samples collected as extensions to Nimba Block-1, assays
received and demonstrate continuation of strong gold in soil anomalies to the
south and south west of the block
· 518 metres ("m") of trench dug over two Nimba soil anomalies and 613
channel samples collected, results received and show anomalous gold values in
the trenches that are currently being evaluated
· Total samples collected from both Nimba and Gozohn licences is 5,630
demonstrating fast track exploration that has identified multiple high
interest gold anomalies that require further work, including geophysical
surveys and drilling
Karl Smithson, Executive Director of Hamak Gold commented:
"Since the IPO of Hamak Gold in March, our excellent geological teams have
moved very quickly to identify a number of gold mineralization targets in the
Nimba and Gozohn licences. At Nimba in particular, soil and channel sampling
results have revealed significant surface and bedrock gold mineralization over
a wide area which are suggestive of a bulk tonnage gold target. The next
step will comprise geophysical surveys and drilling to confirm the depth
extensions and widths of this gold mineralization.
"We also continue to assess a number of regional gold exploration
opportunities as we consider Hamak Gold to be company that can not only can
achieve organic growth through its own exploration results but can also be a
catalyst for project consolidation."
For further information you are invited to view the company's website at
www.hamakgold.com or please contact:
Hamak Gold Limited
Amara Kamara +231 (0) 77 005 0005
Karl Smithson +44 (0) 77 837 07971
Peterhouse Capital Limited (Broker) +44 (0) 20 7469 0930
Lucy Williams
Guy Miller
Yellow Jersey PR +44 (0) 20 3004 9512
Tom Randell +44 (0) 7775 194357
Annabelle Wills
About Hamak Gold Limited
Hamak Gold Limited (LSE: HAMA) is a UK listed company focussed on gold
exploration of a portfolio of licences in highly prospective areas of Liberia
and having a growth strategy that considers other exploration and development
opportunities in the wider West Africa region.
INTERIM MANAGEMENT REPORT
Initial Public Offering (IPO)
The Company achieved its IPO on the 1 March 2022 when its shares were admitted
to trading on the Standard List of the London Stock Exchange. £955,000 was
raised at a price of £0.10 per share, and at Admission the initial issued
share capital was 20,833,000 shares, giving a market capitalisation of £2.08
million. In order to provide an attractive valuation entry point for IPO
investors, and to share the risk with initial investors, the founding
directors Amara Kamara and Karl Smithson elected to defer 16,350,000 and
1,590,000 founder shares respectively, to be awarded in three equal tranches
subject to three operational milestones, being;
1. The collection and assay of 2,000 samples from the Gozohn licence
2. The collection and assay of 2,000 samples from the Nimba licence
3. Positive results from trenching of either the Nimba and Gozohn positive
geochemical targets which create identifiable drill targets
These milestones have been met, as reported in the operating review.
Board and Management
At the IPO the Board consisted of five persons being Amara Kamara (Executive
Chairman), Karl Smithson (Executive Director), Niall Young, Walter McCarthy
and Julius Baiden (all non-Executive Directors). On the 21(st) April 2022
Martin Lampshire was appointed as a non-Executive Director), further
strengthening the Board. The Board has extensive experience in the Liberian
operating environment, exploration, mining, accounting, capital markets and
finance.
The exploration programmes are led by Rowan Carr, as Chief Operating Officer,
who has 35 years' experience in exploration and mining in Africa, the last 15
years in West Africa including Liberia. Rowan leads a team of four
geologists who have been dedicated to the focussed exploration programmes in
the Nimba and Gozohn licences.
Operating Review
The Company's strategic exploration focus is on the discovery of orogenic
gold, Archean and Paleoproterozoic greenstone hosted gold and shear zone
hosted gold type mineralization in underexplored, yet highly prospective areas
of Liberia. However, the Company will also look at regional opportunities in
the wider West Africa region in known gold producing terranes. This may
include joint ventures, acquisitions, or option agreements to enter into new
projects that can bring significant value to Hamak Gold shareholders.
Licence Holdings
At IPO Hamak Gold held two exploration licences, covering a combined area of
1,752 square kilometres ("km") (Nimba and Gozohn) and also has an option over
a further five exploration licences covering an area of 3,213 square
kilometres (Lofa, Fasama, Cestos, Sinoe and River Gee). The licences were
carefully selected for their geological prospectively for gold including
structural features, active artisanal gold mining and proximity to producing
gold mines.
Since the IPO the Hamak Gold geological teams have focussed their efforts on
detailed exploration work in the Nimba and Gozohn licences, both of which have
yielded significant results that have identified bedrock gold
mineralization. The results of exploration work conducted so far have been
published and may be found on the Company's website.
Nimba Licence
The Nimba Licence (MEL7001518) covers an area of 985.60 square km and is
located approximately 120 km to the north-east of the Gozohn licence and also
some 25km west of the 3-million-ounce ("Moz") Ity Gold Mine in neighbouring
Cote D'Ivoire.
An application for a two-year extension to the Nimba licence, as permitted in
the Liberian 2000 Mining Code, was submitted to the Ministry of Mines and
Energy and has been approved.
Based on site visits in 2021 and the Competent Person's Report, which was
included in the Company's Prospectus, certain priority areas were identified
within the Nimba licence for soil sampling programmes. These areas were
mainly associated with active artisanal gold mine and favourable greenstone
belt geology.
Three soil sampling blocks have been completed across the priority areas,
totalling 2,881 samples, of which 2,175 were collected during the report
period and 706 post period. All assay results are available.
Results from Block-1 to the south of the Nimba licence returned significant
gold in soil anomalies over three extensive areas that remain open-ended.
These anomalies are also supported by excellent rock chip sample results with
two samples returning grades of 37g/t Au and 46g/t Au, proving the presence of
bedrock gold at a locality called Ziyatoyah.
Initial channel sampling across an exposed metadolerite outcrop, from which
the positive rock chip samples were obtained, returned wide areas of bedrock
gold mineralization (see highlights) and provides focussed targets for
drilling to determine the width and depth extensions of the mineralization.
Post period two trenches covering a joint length of 518m were excavated and
613 channel samples collected. Results demonstrate anomalous gold values in
the samples which are currently being assessed.
Elsewhere in the Nimba licence, 29 stream sediment samples have been collected
from an area in the centre of the Nimba licences from streams draining a
prominent greenstone ridge called Mount Blah; results so far (both from fire
assay and multi-element analysis) are significant based on the density of
sampling and the artisanal gold mining activity in the area.
Overall a total of 3,622 samples have been collected and assayed from the
Nimba licence during the report and post report periods to date.
Gozohn Licence
The Gozohn licence (MEL 7002318) covers an area of 766 square km and is
located some 30 km to the south of the high-grade Kokoya Gold mine operated by
MNG Gold. The licence is host to a number of structurally controlled
greenstone belts similar to those at Kokoya, with strongly deformed
amphibolite, quartzite, schist and banded ironstone formations which generally
occur as topographic highs.
Based on the 2021 site visits, the Competent Person's Report, results to date
and our strategy of quickly assessing licence areas, an application for
extension of the northern part of the licence, covering 129.60 square km has
been made, which is pending approval by the Ministry of Mines.
A total of 1,554 soil samples were collected during the report period,
comprising 853 samples from Block-1 (Mt. Koklun) and 701 samples from
Block-2. Post period a further 373 soil samples were collected as in-fill
samples on the western limb of Mt. Koklun, and results were received
indicating anomalous gold values which complement the original sampling
results, with an extensive gold in soil anomaly over 1.5km long being
identified. Various rock chip and channel samples across anomalous soil values
have also been collected with anomalous values of up to 2.56g/t Au which are
interpreted as being related to gold in quartz veins that permeate the
greenstone belt geology.
The gold and multi-element analytical results for the 701 samples of Block-2
returned weak gold anomalies over the centre of the block; however, given the
highly encouraging results from Gozohn Block-1 and Nimba Block-1, this area
has since been relinquished as the Company focusses its efforts on priority
targets.
Overall a total of 2,008 samples have been collected from the Gozohn licence
during the report and post report periods to date.
Outlook
Since its IPO, the Company has moved very quickly in assessing the gold
potential of both the Nimba and Gozohn licences, having collected and assayed
a total 5,630 samples to date.
Based on results to date, it is clear that the Nimba licence, commencing with
Block 1, should be prioritised for a geophysical survey and drilling campaign
in the coming dry season. Drill targets have already been identified from
the Ziatoyah channel sampling results and it is hoped that the ongoing
trenching and channel sampling programme over the peak gold-in-soil anomalies
of Block 1 will identify additional targets to be drilled. The objective of
the drilling programme will be to confirm the presence and extension of the
surface gold mineralisation at depth as well as the lateral extent of this
mineralisation.
Responsibility Statement
The Directors confirm that to the best of their knowledge:
(a) the condensed set of financial statements has been prepared in accordance
with IAS 34 'Interim Financial Reporting';
(b) the interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the first six
months and description of principal risks and uncertainties for the remaining
six months of the year; and
(c) the interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties' transactions and
changes therein).
Karl Smithson
Executive Director
28 September 2022
Hamak Gold Ltd
INTERIM RESULTS
30 June 2022
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2022
6 months ended
30 June 2022 Unaudited
Note
Continuing operations $
Revenue -
General and administrative expenses 1,488,719
Operating Loss 1,488,719
Loss Before income tax 1,488,719
Income tax -
Loss for the period 1,488,719
Total comprehensive loss for the period attributable to equity holders of the
parent
1,488,719
Loss per share from continuing operations in cents per share: Basic and
diluted
6 (0.10)
Condensed Consolidated Statement of Financial Position
For the six months ended 30 June 2022
6 months ended
30 June 2022 Unaudited Year ended 31 December 2021
Audited
Note
$ $
Non-current assets
Property, plant and equipment 7 23,584 -
Intangible assets 8 1,691,312 -
Total non-current assets 1,714,896 -
Current assets
Trade and other receivables 97,539 1,400
Cash and cash equivalents 9 258,688 500
Total current assets 356,227 -
Total assets 2,071,123 1,900
Equity and Liabilities
Equity attributable to owners of the parent
Share capital 11 2,733,863 -
Share based payment reserve 1,181,357 -
Accumulated deficit (1,844,097) (355,378)
Total equity 2,071,123 (355,378)
Current liabilities
Trade and other payables - 285,207
Unsecured convertible loan 10 - 70,000
Overdraft - 2,071
Total current liabilities - 357,278
Total equity and liabilities 2,071,123 1,900
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2022
Share capital Share based payment Accumulated deficit Total equity
$ $ $ $
Balance at 31 December 2021 - - (355,378) (355,378)
Loss for the period - - (1,488,719) (1,488,719)
Issue of shares 2,733,863 - 2,733,863
Vesting Shares vested 1,181,357 - 1,181,357
Balance at 30 June 2021 2,733,863 1,181,357 (1,844,097) 2,071,123
Unaudited Consolidated Statement of Cash Flows
For the six months ended 30 June 2022
6 months ended 30 June 2022
Unaudited
$
Cash flows from operating activities
Operating loss (1,488,719)
Adjusted for:
Share based payment charge 1,181,357
Directors' fees paid in shares 39,954
Depreciation 2,424
Unrealised foreign exchange movements 5,724
Net cash flow before changes in working capital (259,229)
Changes in working capital
Decrease in trade and other payables (285,207)
Net cash flow used in operating activities (544,436)
Cash flow from investing activities
Purchase of property, plant and equipment (26,009)
Exploration expenditure (335,852)
Net cash flow from investing activities (361,861)
Net cash flow before financing activities (906,297)
Cash flow from financing activities
Issued capital 1,166,556
Net cash flow from financing activities 1,166,556
Net increase in cash and cash equivalents in the period 260,258
Cash and cash equivalents at beginning of the period (1,570)
Cash and cash equivalents at end of the period 258,688
Notes to the condensed consolidated interim financial information
1. GENERAL INFORMATION
The Company was incorporated on 6 May 2021 and was incorporated under the BVI
Business Companies Act, 2004 (as amended) of the British Virgin Islands with
Company number 2062435. The Company is limited by shares. The Company's
registered office is Pasea Estate, P.O. Box 958, Road Town, Tortola, VG1110,
BVI.
Hamak Gold Limited Liberia was incorporated on the 27 May 2021 as a business
corporation under Business Corporation Act of Liberia with business
registration number 052672058. Hamak Gold Company Liberia is limited by its
common stock. Hamak Gold Limited Liberia's registered office is at Carey &
Randall Streets Intersection, Monrovia, Montserrado County, Liberia, West
Africa.
2. BASIS OF PREPARATION
The consolidated interim financial statements for the six months ended 30 June
2022 have been prepared in accordance with the requirements of IAS 34 "Interim
Financial Statements". The interim financial statements should be read in
conjunction with the annual financial statements for the year ended 31
December 2021, which have been prepared in accordance with International
Financial Reporting Standards (IFRS) in conformity with the requirements of
the Companies Act 2006.
The interim financial statements of Hamak Gold Ltd are unaudited financial
statements for the six months ended 30 June 2022. The unaudited financial
statements do not constitute statutory accounts, as defined under section 244
of the Companies Act 2006. The financial statements have been prepared under
the historical cost convention. The consolidated financial statement are
presented in United States Dollars ($), which is the Group's functional and
presentation currency.
Comparatives
The Company was incorporated on 6 May 2021 and its sole wholly owned
subsidiary, Hamak Gold Limited Liberia ("Hamak Liberia") was incorporated on
27 May 2021. During the period from incorporation to 30 June 2021 there were
no transactions in the Group, thus there are no comparatives presented for the
statement of comprehensive income and statement of cashflow. The comparative
presented for the statement of financial position and statement of changes in
equity are as at 31 December 2021.
Going concern
On 1 March 2022 the Group obtained a Standard Listing on the LSE raising gross
proceeds of £955,000 at £0.10 per share and concurrently acquired two
exploration licences and held options over a further five exploration licences
in the Republic of Liberia. The net proceeds received by the Group post
transaction costs were used primarily to continue and advance the exploration
activities on licenses as detailed in the work program of the prospectus
during the reporting period and post period..
The Company's financial forecasts are primarily dependent on the Group raising
additional funds during the going concern period which indicates that a
material uncertainty exists that may cast significant doubt on the group's
ability to continue as a going concern. However, the Directors believe that
the Company will have the ability to raise additional funds in addition to its
cash balance in order to meet planned expenditure for at least 12 months from
the date of approval of these condensed consolidated financial statements and
therefore the consolidated financial statement have been prepared on a going
concern basis.
3. SIGNIFICANT ACCOUNTING POLICIES
In preparing these condensed consolidated financial statements, the Group's
accounting policies were consistent with those applied to the Group's
consolidated financial statements for the year ended 31 December 2021.
Financial instruments
Financial assets
The Company classifies its financial assets in the following measurement
categories:
• those to be measured subsequently at fair value through profit or
loss; and
• those to be measured at amortised cost.
The classification depends on the business model for managing the financial
assets and the contracted terms of the cash flows. Financial assets are
classified as at amortised cost only if both of the following criteria are
met:
• the asset is held within a business model whose objective is to
collect contracted cash flows; and
• the contractual terms give rise to cash flows that are solely
payments of principal and interest.
Financial assets, including trade and other receivables and cash and bank
balances, are initially recognised at transaction price, unless the
arrangement constitutes a financing transaction, where the transaction is
measured at the present value of the future receipts discounted at a market
rate of interest.
Such assets are subsequently carried at amortised cost using the effective
interest method.
At the end of each reporting period, financial assets measured at amortised
cost are assessed for objective evidence of impairment. If an asset is
impaired, the impairment loss is the difference between the carrying amount
and the present value of the estimated cash flows discounted at the asset's
original effective interest rate. The impairment loss is recognised in the
consolidated income statement.
If there is a decrease in the impairment loss arising from an event occurring
after the impairment was recognised the impairment is reversed. The reversal
is such that the current carrying amount does not exceed what the carrying
amount would have been had the impairment not previously been recognised. The
impairment reversal is recognised in the consolidated income statement.
Financial assets are derecognised when (a) the contractual rights to the cash
flows from the asset expire or are settled, or (b) substantially all the risks
and rewards of the ownership of the asset are transferred to another party or
(c) despite having retained some significant risks and rewards of ownership,
control of the asset has been transferred to another party who has the
practical ability to unilaterally sell the asset to an unrelated third party
without imposing additional restrictions.
Financial liabilities
Basic financial liabilities, being trade and other payables, are initially
recognised at transaction price, unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present
value of the future receipts discounted at a market rate of interest.
Trade payables are obligations to pay for goods or services that have been
acquired in the ordinary course of business from suppliers. Accounts payable
are classified as current liabilities if payment is due within one year or
less. If not, they are presented as non-current liabilities. Trade payables
are recognised initially at transaction price and subsequently measured at
amortised cost using the effective interest method.
Financial liabilities are derecognised when the liability is extinguished,
that is when the contractual obligation is discharged, cancelled or expires.
The Company does not hold or issue derivative financial instruments.
Investment in subsidiaries
Investments in subsidiaries are initially measured as cost and reviewed for
impairment at each reporting period. An investor controls an investee when the
investor is exposed, or has rights, to variable returns from its involvement
with the investee and has the ability to affect those returns through its
power over the investee. The financial statements of subsidiaries are included
in the consolidated financial statements from the date that control is
obtained up to the date that control ceases.
Intra-group balances and any unrealised gains, losses, income or expenses
arising from intra-group transactions are eliminated in preparing the
consolidated financial statements.
Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated at the foreign exchange rate
ruling at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies at the date of the consolidated statement of
financial position are translated at the foreign exchange rate ruling at that
date. Foreign exchange differences arising on translation are recognised in
profit or loss.
Non-monetary assets and liabilities that are measured in terms of historical
cost in a foreign currency are translated using the exchange rate at the date
of the transaction. Non-monetary assets and liabilities denominated in foreign
currencies that are stated at fair value are translated at foreign exchange
rates ruling at the dates the fair value was determined.
Loss per share
The Group presents basic and diluted loss per share ("LPS") data for its
ordinary shares. Basic LPS is calculated by dividing the profit or loss
attributable to shareholders of the Company by the weighted average number of
ordinary shares outstanding during the period. Diluted LPS is determined by
adjusting the profit or loss attributable to shareholders and the weighted
average number of ordinary shares outstanding for the effects of all
potentially dilutive ordinary shares, which could comprise warrants, share
options and the conversion of loan notes into shares.
Intangible assets
Deferred exploration and evaluation costs
These comprise costs directly incurred in exploration and evaluation as well
as the cost of mineral licences. Costs which are capitalised include costs of
licence acquisition, technical services and studies, exploration drilling and
testing and appropriate technical and administrative expenses but do not
include general administrative expenses or costs incurred prior to having
obtained the legal rights to explore an area, which are expensed directly to
the income statement account as they occur. 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 and the exploration and
evaluation costs are amortised over the estimated life of the project. 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 Company can establish mineral reserves on its
properties, the ability of the Company to obtain necessary financing to
complete the development of such reserves and future profitable production or
proceeds from the disposition thereof.
Impairment of non-financial assets
The carrying amounts of the Group's assets are reviewed at the date of each
consolidated statement of financial position to determine whether there is any
indication of impairment. If any such indication exists, the asset's
recoverable amount is estimated. Impairment is measured by comparing the
carrying values of the asset with its recoverable amount. The recoverable
amount of the asset is the higher of the assets' fair value less costs to sell
and its value-in-use, which is measured by reference to discounted future cash
flow.
An impairment loss is recognised in the income statement immediately.
When there is a change in the estimates used to determine the recoverable
amount, a subsequent increase in the recoverable amount of an asset is treated
as a reversal of the previous impairment loss and is recognised to the extent
of the carrying amount of the asset that would have been determined (net of
amortisation and depreciation) had no impairment loss been recognised. The
reversal is recognised in the income statement immediately, unless the asset
is carried at its revalued amount, in which case the reversal of the
impairment loss is treated as a revaluation increase.
Share capital
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of new shares or options are shown in equity as a
deduction against share premium, net of tax, from the proceeds.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, demand deposits, and other
short-term highly liquid investments that are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value.
The carrying amount of these assets approximates their fair value.
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of condensed interim financial statements requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the end of the reporting period. Estimates and judgements
are continually evaluated based on historical experience and other factors,
including expectations of future events that are believed to be reasonable
under the circumstances. In the future, actual experience may differ from
these estimates and assumptions.
The judgements, estimates and assumptions applied in the condensed interim
financial statements, including the key sources of estimation uncertainty,
were the same as those applied in the Group's last annual financial statements
for the year ended 31 December 2021.
5. BUSINESS AND GEOGRAPHICAL REPORTING
The Group's chief operating decision maker is considered to be the executive
directors (the 'Executive Board'). The Executive Board evaluates the
financial performance of the Group. During the period the Group had one
activity only. The whole of the value of the Group's net assets was
attributable to mineral exploration.
6. LOSS PER SHARE
Basic earnings per share is calculated by dividing the loss attributable to
equity holders of the Company by the weighted average number of ordinary
shares in issue during the period.
6 months ended 30 June 2022
$
Loss from continuing operations attributable to equity holders of the company
(1,488,719)
Weighted average number of ordinary shares in issue 14,251,342
Basic and fully diluted loss per share from continuing operations in cents
(0.10)
7. PROPERTY, PLANT AND EQUIPMENT
Plant and Equipment
Total
$ $
Cost
At 31 December 2021 - -
Additions 26,009 26,009
At 30 June 2022 26,009 26,009
Depreciation
At 31 December 2021 - -
Additions (2,425) (2,425)
At 30 June 2022 (2,425) (2,425)
Net book value
At 30 June 2022 23,584 23,584
At 31 December 2021 - -
8. INTANGIBLE ASSETS
Mineral
Properties Licences Total
$ $ $
Cost
At 31 December 2021 - -
Additions 335,852 1,355,460 1,691,312
At 30 June 2022 355,852 1,355,460 1,691,312
Amortisation
At 31 December 2021 - - -
Amortisation - - -
At 30 June 2022 - - -
Net book value
At 30 June 2022 335,852 1,355,460 1,691,312
At 31 December 2021 - - -
On 1 March 2022, the Group acquired two mineral exploration licences (MELs),
being Nimba and Gozohn and an option to acquire five other MELs in
consideration for $1,355,460. See note 11 for further details.
9. CASH AND CASH EQUIVALENT
6 months ended 30 June 2022 Year ended 31 December 2021
Unaudited Audited
$ $
Cash at bank 258,688 500
258,688 500
10. UNSECURED CONVERTIBLE LOAN
6 months ended 30 June 2022 Year ended 31 December 2021
Unaudited Audited
$ $
Malcom Burne - 28,000
Gledhill Fund - 28,000
Nicholas Karl Smithson - 14,000
- 70,000
The unsecured convertible loan was automatically converted into 666,667
Ordinary Shares on 1 March 2022. See note 11 for further details.
11. SHARE CAPITAL
No. Ordinary shares Share Capital
$
Total
$
Total as at 31 December 2021 50,000 - -
Issue of shares 20,783,000 2,733,863 2,733,863
Total as at 30 June 2022 20,833,000 2,733,863 2,733,863
On incorporation on 6 May 2021, the Company issued 50,000 ordinary shares of
at no par value.
On 23 February 2022
Hamak Mining, as transferor, a Liberian incorporated private company
wholly-owned by Amara Kamara, entered into a Licence Transfer and Option
Agreement in respect of seven mining exploration licences (MELs) across
Liberia covering an area of 4,965 km(2) with the Company's wholly-owned
subsidiary, Hamak Gold Liberia, as transferee. Two MELs, being Nimba and
Gozohn were transferred from Hamak Mining to Hamak Gold Liberia. The
consideration paid was $1,355,460 (£1,000,000) by way of issuing 9,283,333
Ordinary Shares in the Company to Amara Kamara and Nicholas Karl Smithson.
On 1 March 2022
9,550,000 new Ordinary Shares were issued to certain investors pursuant to a
placing (the "Placing") at a price of 10 pence per Placing Share (the "Placing
Price").
666,667 new Ordinary Shares were issued on conversion of $66,590 (£50,000) in
aggregate principal amount of unlisted zero coupon convertible unsecured loan
notes, which were automatically converted into Ordinary Shares on Admission at
a discount of 25% to the Placing Price (the "Conversion Shares");
300,000 new Ordinary Shares were awarded to the non-executive directors of the
Company, at the Placing Price equivalent to $39,954 ($13,318 (£10,000) each),
in lieu of fees payable to each of them in connection with the production of
the Prospectus and admission to the London Stock Exchange.
983,000 new Ordinary Shares were awarded to Peterhouse Capital Limited in lieu
of fees payable to it in connection with the Placing at the Placing Price
equivalent to $130,915 (£98,300).
12. RELATED PARTY TRANSACTIONS
During the period certain directors were awarded Ordinary Shares in the
Company. Further details can be found in note 11, Share Capital.
13. EVENTS AFTER THE REPORTING DATE
On 12 July 2022, the Company announced that it had issued 465,472 new ordinary
shares to directors in respect of fees earned for the quarter ended 30 June
2022.
In addition, the Company has granted 2,129,847 Performance Rights in
accordance with its Unapproved Share Performance Rights Plan to directors and
to senior management. Each Performance Right entitles the holder to acquire
one ordinary share. The Performance Rights vest in accordance with the
conditions as set out in the Company's Prospectus.
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