REG - Hamak Gold Limited - Interim Results
28/09/2023 12:15
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RNS Number : 0271O Hamak Gold Limited 28 September 2023
28 September 2023
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 2023 (the "period").
Highlights
· £295,750 raised (before costs) for continuation exploration at the
Nimba licence
· Consulting group GeoFocus retained to conduct a detailed Induced
Polarisation ("IP") geophysical survey of the Nimba licence
· Some 21-line kilometres of geophysical survey successfully completed
over the high-grade Ziatoyah gold discovery and northern gold in soil anomaly
· Structural interpretation and evaluation of geology around the
Ziatoyah prospect completed
· Several priority drill targets selected based on geophysical
anomalies and structural targets
Highlights Post Period
· £350,000 raised (before costs) to fund drilling programme at the
Nimba Licence
· 13 holes drilled for 1000.60m to test geophysical and structural
targets, currently awaiting assays and interpretation
Karl Smithson, Executive Director of Hamak Gold commented:
"The first half of 2023 has seen the team at Hamak Gold focus on the promising
high-grade Ziatoyah gold discovery in the Nimba licence, where initial
drilling has intersected 20m at 7g/t Au near surface. These developments have
included structural mapping and the completion and interpretation of a
detailed geophysical survey over the immediate area around the discovery.
Several drill targets were selected based on the results and a 1,000m drill
programme was completed over a number of these in the quarter following the
interim report period.
"We are encouraged by the exploration progress being made to identify
extensions to the high-grade gold mineralization discovered in the Nimba
licence. Further work will continue to focus on detailed mapping, structural
interpretation and investigations into the extensive 3km x 1km gold in soil
anomaly associated with the gold discovery already made."
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
Sarah Hollins
Annabelle Wills
About Hamak Gold Limited
Hamak Gold Limited (LSE: HAMA) is a UK listed company focussed on gold
exploration of two priority exploration licences in highly prospective areas
of Liberia, where significant drilling results have identified a new
high-grade gold discovery with the discovery hole returning 20m @ 7g/t Au near
surface in the Nimba Licence.
INTERIM MANAGEMENT REPORT
Operating Review
The Company's focus during the period was dedicated to the Nimba Licence and
in particular the high-grade Ziatoyah gold discovery, where in May 2023, the
Company announced high priority drill targets were identified following the
competition of a geophysical survey.
Licence Holdings
Hamak Gold holds two exploration licences, covering a combined area of
1,115.20 square kilometres ("km"), Nimba and Gozohn. Bedrock gold discoveries,
associated with extensive gold in soil anomalies, have been made at both
licences. Exploration efforts during the reporting period focussed on the
Nimba licence Ziatoyah gold discovery.
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 some
25km west of the 3-million-ounce ("Moz") Ity Gold Mine in neighbouring Cote
D'Ivoire.
Since the Company's IPO in March 2022, detailed soil, trench/channel and rock
chip sampling have been completed with positive results. In late 2022 this
culminated in the discovery of an outcropping (at surface) gold mineralized
metadolerite unit at a site called Ziatoyah, which was subsequently drilled
and returned a best result of 20m at 7g/t Au near surface under the
mineralized outcrop.
The gold in soil anomaly extends over a 3km by 1km northeast trending area,
where outcrop is limited. Streams that dissect the anomaly are exploited by
artisanal gold miners, suggesting that the extent of the anomaly may be
related to an extensive hard rock gold deposit.
The gold mineralization intersected at Ziatoyah in the first drilling
programme, and observed in outcrop of the mineralized metadolerite unit,
suggests that the gold occurs as free grains within disseminated crystalline
and aggregates of vetiform pyrite attaining levels of between 1% and 10% of
the rock mass which is dominated by locally carbonatized metadolerites.
Microscopic free gold has also been identified at numerous points within the
mineralized sections of the drill core.
Based on the high percentage of disseminated sulphides (pyrite) associated
with the gold, the Induced Polarisation (IP) geophysical technique was
considered best suited to define the disseminated sulphide and gold-bearing
mineralized units below surface. International geophysical consulting group
Geo Focus was contracted to undertake the IP survey during the first quarter
of 2023.
A total of 21-line km of survey were run along traverses varying from 800
metres ("m") to 1,200m with line spacings of 100m and 200m. These lines were
chosen to cover the Ziatoyah gold discovery in the vicinity of the significant
drill intersection of 20m at 7 grammes per tonne ("g/t") Au as well as the
northern part of the 3km x 1km strong gold in soil anomaly. An initial IP
Orientation/Pilot survey block was surveyed (at 25m and 50m dipole-dipole
spacing) directly over the Ziatoyah discovery outcrop and Drill Holes 1 and 2
to get the "fingerprint" of the gold discovery and establish the optimal
survey parameters to be applied and conducted over the wider discovery area
and northern soil anomaly during the IP Follow Up survey.
Processing and interpretation of the geophysical data resulted in the
identification of a number of strong IP chargeability and resistivity
anomalies that can be correlated to the Ziatoyah discovery and the gold in
soil anomalies further to the north.
Structural interpretation based on the detailed multi-element geochemical
assays of the soil sampling, surface outcrop and drill core was also carried
out. A number of drill targets were selected with the objective of defining
extensions of the high-grade Ziatoyah gold discovery.
Post period end, a 1,000m drill programme was carried out. A total of 12
angled holes and one vertical hole were drilled, core logged, structural
measurements made, core cut and submitted for assay. The Company is
currently awaiting results which it hopes to share with the market in the
second half of 2023.
Gozohn Licence
The Gozohn licence (MEL 7002318) covers an area of 129.60 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.
Previous soil, rock and trench sampling has identified a 1,500m long gold in
soil anomalies with rock chip samples returning grades of 2.56g/t Au and 3.37
g/t Au, which are interpreted as being related to gold in quartz veins that
permeate the greenstone belt geology.
No exploration was undertaken on Gozohn during the reporting period as
resources were focussed on Nimba as a priority.
Outlook
The Company anticipates receiving the aforementioned drill assay results for
its Ziatoyah site during the next quarter. These results will subsequently
determine Hamak's next steps in its efforts to further explore the Ziatoyah
gold deposit and wider gold in soil anomalies, which, subject to funding, may
involve a more extensive drill programme to deliver a maiden gold resource for
the Company.
The principal risks identified for the Company in the forthcoming reporting
period include the scheduled elections in Liberia in the final quarter of
2023. Whilst recent elections in the Country have passed relatively
peacefully, any serious disturbance or public disorder could adversely affect
the efficiency and continuity of the exploration activities for a period of
time. In addition, the capital markets for junior exploration companies
remains challenging. The Company will seek to raise further capital going
forward and continuation of the exploration programme will be contingent on
the Company being able to successfully raise funds.
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' as contained in UK-adopted
international accounting standards;
(b) the interim management report includes a fair review of the information
required by DTR 4.2.7R of the Disclosure and Transparency Rules (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 of the Disclosure and Transparency Rules (disclosure of
related parties' transactions and changes therein).
Karl Smithson
Executive Director
28 September 2023
Hamak Gold Ltd
INTERIM RESULTS
30 June 2023
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2023
6 months ended 6 months ended
30 June 2023 Unaudited 30 June 2022 Unaudited
Note
Continuing operations $000 $000
General and administrative expenses 261 1,489
Operating Loss 261 1,489
Loss before taxation 261 1,489
Tax charge - -
Loss after taxation 261 1,489
Loss for the period 261 1,489
Loss per share from continuing operations in cents per share: Basic and
diluted
6 (0.006) (0.10)
Condensed Consolidated Statement of Financial Position
For the six months ended 30 June 2023
Note 6 months ended Year ended
30 June 2023 Unaudited 31 December 2022
Audited
$000 $000
Non-current assets
Property, plant and equipment 7 28 33
Intangible assets 8 1,502 1,481
Total non-current assets 1,530 1,514
Current assets
Trade and other receivables 17 26
Cash and cash equivalents 9 12 12
Total current assets 29 38
Total assets 1,559 1,552
Equity and Liabilities
Equity attributable to owners of the parent
Share capital 10 5,691 5,147
Share based payment reserve 10 80
Accumulated deficit (4,237) (4,086)
Total equity 1,464 1,141
Current liabilities
Trade and other payables 95 411
Unsecured convertible loan - -
Total current liabilities 95 411
Total equity and liabilities 1,559 1,552
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2023
Share based payment
Share capital Accumulated deficit
Total equity
$000 $000 $000 $000
Balance at 1 January 2022 - - (355) (355)
Loss for the period - - (1,489) (1,489)
Issue of share capital 2,734 - 2,734
Grant of share-based awards - 1,181 - 1,181
Balance at 30 June 2022 - Unaudited 2,734 1,181 (1,844) 2,071
Loss for the period - - (2,242) (2,242)
Issue of share capital 239 - - 239
Issue costs (215) - - (215)
Issue of shares on exercise of share awards 2,389 (3,570) - (1,181)
Grant of share-based awards - 2,469 - 2,469
Balance at 31 December 2022 - Audited 5,147 80 (4,086) 1,141
Loss for the period - - (261) (261)
Issue of share capital 563 - - 563
Issue costs (19) - - (19)
Share-based awards exercised or lapsed - (110) 110 -
Share based awards charge - 40 - 40
Balance at 30 June 2023 - Unaudited 5,691 10 (4,237) 1,464
Unaudited Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2023
6 months ended 6 months ended
30 June 2023 Unaudited 30 June 2022 Unaudited
$000 $000
Cash flows from operating activities
Operating loss (261) (1,489)
Adjusted for:
Share based payment charge 40 1,181
Directors' fees paid in shares 111 40
Depreciation and amortisation 5 2
Unrealised foreign exchange change 2 6
Net cash flow before changes in working capital (103) (260)
Adjusted for by:
Movement in payables (225) (285)
Movement in receivables 8 -
Net cash flow from operating activities (320) (545)
Investing activities
Purchase of property, plant and equipment - (26)
Exploration expenditure (21) (336)
Net cash flow from investing activities (21) (362)
Cash flow from financing activities
Issue of share capital (net of costs) 341 1,167
Net cash flow from financing activities 341 1,167
Net change in cash and cash equivalents during the year/period
- 260
Cash and cash equivalents at beginning of the period 12 (2)
Cash and cash equivalents at end of the period 12 258
Notes to the condensed consolidated interim financial information
1. GENERAL INFORMATION
Hamak Gold Ltd ("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.
The Company is a public limited company, which is listed on the Standard
Listing of the London Stock Exchange. Admission was completed on 1 March
2022. The principal activity of the Company is mineral exploration.
The Company together with its wholly owned subsidiary Hamak Gold Limited
(Liberia) is referred to as the Group.
2. BASIS OF PREPARATION
The consolidated interim financial statements for the six months ended 30 June
2023 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 2022, which have been prepared in accordance with the UK-adopted
International Accounting Standards and as applied in accordance with the
provisions of the applicable law. The report of the auditors on those
financial statements was unqualified.
The interim financial statements of the Group are unaudited financial
statements for the six months ended 30 June 2023 have not been audited or
reviewed by the Group's auditors. The financial statements have been prepared
under the historical cost convention. The consolidated financial statements
are presented in United States Dollars ($), which is the Group's functional
and presentation currency.
Comparatives
The comparatives presented are for the unaudited 6 months period ended 30 June
2022 for the Condensed Consolidated Statement of Comprehensive Income,
Condensed Consolidated Statement of Changes in Equity, Condensed Consolidated
Statement of Cash Flows and for the audited year ended 31 December 2022 for
the Condensed Consolidated Statement of financial Position and Condensed
Consolidated Statement of Changes in Equity.
Going concern
The Company is at an early stage in progressing its exploration assets and has
limited overhead costs. Funds raised from the IPO and subsequent share
placements have been used primarily to fund exploration work on its licences
in Liberia. Subsequent to the IPO in March 2022, in January 2023 the Company
raised £295,750 before expenses by the placement of new shares followed after
the end of the reporting period in July 2023 by a further £350,000 before
expenses. Additional plans are in place to raise further working capital to
enable the Company to progress its work programmes.
The Directors have a reasonable expectation that the Company will be able to
raise sufficient funds in order to meet planned expenditure for at least 12
months from the date of approval of these interim consolidated financial
statements and therefore the interim 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 2022.
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 2022.
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 2023 6 months ended 30 June 2022
$000 $000
Loss from continuing operations attributable to equity holders of the company
(261) (1,489)
Weighted average number of ordinary shares in issue
44,964 14,251
Basic and fully diluted loss per share from continuing operations in cents
(0.006) (0.10)
7. PROPERTY, PLANT AND EQUIPMENT
Plant and Equipment
Total
$000 $000
Cost
At 1 January 2023 41 41
Additions - -
At 30 June 2023 41 41
Cost
At 1 January 2022 - -
Additions 41 41
At 31 December 2022 41 41
Accumulated Depreciation
At 1 January 2023 8 8
Depreciation charge 5 5
At 30 June 2023 13 13
Accumulated Depreciation
At 1 January 2022 - -
Depreciation charge 8 8
At 31 December 2022 8 8
Net book value
At 30 June 2023 28 28
At 31 December 2022 33 33
8. INTANGIBLE ASSETS
Mineral
Properties Licences Total
$000 $000 $000
Cost
At 1 January 2023 618 863 1,481
Additions 21 - 21
At 30 June 2023 639 863 1,502
Cost
At 1 January 2022 - - -
Additions 618 863 1,481
At 31 December 2022 618 863 1,481
Accumulated Amortisation
At 1 January 2023 - - -
Amortisation charge - - -
At 30 June 2023 - - -
Accumulated Amortisation
At 1 January 2022 - - -
Amortisation charge - - -
At 31 December 2022 - - -
Net book value
At 30 June 2023 639 863 1,502
At 31 December 2022 618 863 1,481
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.
Following a full review by the Board, certain parts of the Gozohn licence were
relinquished during the period resulting in $516,000 being part of the licence
acquisition and exploration costs being written off.
9. CASH AND CASH EQUIVALENT
6 months ended 30 June 2023 Year ended 31 December 2022
Unaudited Audited
$000 $000
Cash at bank 12 12
12 12
10. SHARE CAPITAL
Number of ordinary shares of nil par value
Share Share premium
$000
capital
$000
Total as at 1 January 2022 50,000 - -
Share issue - licence acquisition 9,283,333 - 1,355
Share issue - placing 9,550,000 - 1,272
Share issue - directors fees 1,230,944 - 148
Share issue - corporate fees 983,000 - 131
Share issue - conversion of loan notes 666,667 - 67
Share issue - vesting shares 17,940,000 - 2,389
Share issue - costs - - (215)
At 31 December 2022 39,703,944 - 5,147
Share issue - in lieu of services provide 781,250 - 92
Share issue - placing 3,380,000 - 359
Share issue - directors fee shares 914,277 - 111
Share issue - exercise of performance rights 953,107 - -
Share issue - costs - - (19)
Total as at 30 June 2023 45,732,578 - 5,691
For a more detailed description of the share capital movements for 2022 refer
to the audited financial statements for the year ended 31 December 2023
Placing
In January 2023 the Company raised gross proceeds of £295,750 ($359,000)
issuing 3,380,000 new ordinary shares at £0.0875 per share.
Shares issued for services
In January 2023 the Company issued 781,250 new ordinary shares at £0.10 per
share to the directors of Cestos Drilling in lieu of £78,125 payable on
completing a 450m drilling programme at Nimba.
Directors fees
During the period 914,277 new ordinary shares were issued to the non-executive
Directors of the Company at 10p per shares in lieu of quarterly fees.
Exercise of performance rights
In March 2023 the Group achieved the first drill intersection showing
significant gold mineralisation (as determined by the Senior Technical
Consultant to the Board), triggering the vesting of 953,107 performance
rights. Accordingly, 953,107 new ordinary shares were issued at NIL cost to
directors and others.
Reconciliation of movement of share capital to the movements in the cashflow
statement
Share Share premium
$000
capital
$000
At 31 December 2022 - 5,147
Share capital issued for cash - 341
Share capital issued in settlement of contractual obligations - 203
Total as at 30 June 2023 - 5,691
11. SHARE BASED PAYMENTS
Performance Rights
At 30 June 2023, the Company had outstanding performance rights to subscribe
for ordinary shares as follows:
Weight average Expiry date At 01/01/203 expired or At 31/12/2022
exercise price lapsed
Issued
Nil 07/07/2032 1,064,924 - (1,064,924) -
Nil 07/07/2032 1,064,924 - (111,817) 953,107
2,129,848 - (1,064,924) 953,107
Information on the inputs and fair value calculations relating to the
performance rights are shown in the audited financial statements for the year
ended 31 December 2022
During the period 953,107 performance rights were exercised by directors and
others and 223,634 performance rights lapsed, relating to Walter McCarthy.
12. RELATED PARTY TRANSACTIONS
During the period certain directors were awarded Ordinary Shares in the
Company. Further details can be found in note 10, Share Capital.
13. EVENTS AFTER THE REPORTING DATE
In July 2023, the Company raised £350,000 before costs from the placement of
4,000,000 new ordinary shares of no par value at a price of 8.75 pence per
share of which 359,955 were issued in settlement of third party drilling
costs.
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