REG - Horizonte Minerals - Interim Results <Origin Href="QuoteRef">HZM.L</Origin>

Horizonte MineralsAnnouncement

09/08/2016 07:05

RNS Number : 5631G
Horizonte Minerals PLC
09 August 2016
Horizonte Minerals plc / Index: AIM and TSX / Epic: HZM / Sector: Mining
9 August 2016
INTERIM RESULTS
____________________________________________________________________
Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) ('Horizonte' or 'the Company') the nickel development company focused in Brazil, announces its unaudited financial results for the six months ended 30 June 2016 and the Management Discussion and Analysis for the same period.
Both of the above have been posted on the Company's website at www.horizonteminerals.com and are also available on SEDAR at www.sedar.com. 
Overview
 Issue of the Preliminary Environmental Licence ('LP') a significant milestone, demonstrating the Par State government's confidence in and viability of the Araguaia Project ('Araguaia')
 Following the award of the LP Horizonte can now work towards the Installation Licence, which will permit construction of the project
 Completed the acquisition of the Glencore Araguaia Project ('GAP'). The combination of GAP and Araguaia creates one of the largest nickel saprolite projects globally
 In the final stages of delivering a new Pre-Feasibility study on the combined Araguaia Project with the aim of demonstrating the project will be one of the most competitive advanced nickel projects in the marketplace
 Continuing to consolidate land position with award of additional licence areas south of GAP totalling c. 20,000 hectares
 Cost reduction plan completed to lower the overall operating costs while maintaining project development 
 Strong cash position of 1.6 million
Chairman's Statement
In the last six months despite the very tough market conditions for the resource sector, the Company has delivered a number of significant milestones at Araguaia which we are developing as the next major nickel project in Brazil. 
We have been able to continue the critical aspect of permitting for the project, and in this respect we were delighted to receive the LP in June for the mining and beneficiation plant to produce ferronickel.This is a significant milestone which demonstrates the viability of Araguaia and represents the State Government approval for the planned project. The next stage is to advance the permitting process towards the award of the Installation Licence ('LI') which allows construction to commence. The Par State Government considers Araguaia to be a key economic driver for the southern part of the State with the potential to provide approximately 1,100 jobs in the construction phase, and around 500 jobs during the operational phase of the mine. We have also received strong community support for the project as evidenced in the 2015 Public Hearing in Conceio do Araguaia which received a high turnout at the meeting (+1,000 people) and the overriding support at the local and state level is a key factor for the future success of Araguaia.
The award of the LP is timely as we are in the final stages of completing the new Pre-Feasibility Study based on the enlarged project combining Araguaia with the GAP project following our acquisition of the project from Glencore. The combination of the two projects creates one of the largest nickel saprolite resources globally. The PFS will include a revised Mineral Resource, data from the full scale metallurgical pilot plant campaign completed in Q3 2015, and updated capital and operating costs. It is our aim, with the completion of the PFS, to show that Horizonte owns a Tier 1 asset with robust economics even at the current low nickel prices with a proven process route for the commercial production of ferronickel. If we are able to deliver a project at the lower end of the cost curve combined with significant resource upside and optionality, we will be well positioned for the upturn in the nickel markets which are forecast to rise further over the coming years from the lows of early 2016.
Another key achievement post period end was the completion of the Glencore transaction. This was a compelling transaction in terms of the purchase price for Horizonte and provides massive flexibility in the way the project is developed. Following the delivery of the PFS, it is our plan to advance to full Feasibility Study and we intend to commence this process later in the year.
I would like to take this opportunity to thank our shareholders for their continued support and we look forward to keeping the market updated with our progress during an exciting second half of 2016.
David Hall
Condensed Consolidated Interim Financial Statements for the six months ended 30 June 2016
Condensed consolidated statement of comprehensive income
6 months ended
30 June
3 months ended
30 June
2016
2015
2016
2015
Unaudited
Unaudited
Unaudited
Unaudited
Notes
Continuing operations
Revenue
-
-
-
-
Cost of sales
-
-
-
-
Gross profit
-
-
-
-
Administrative expenses
(385,028)
(415,968)
(200,938)
(201,531)
Charge for share options granted
(18,184)
(86,890)
(9,092)
(44,679)
Change in value of contingent consideration
(463,301)
(55,063)
(363,534)
190,312
Gain/(Loss) on foreign exchange
80,300
(196,620)
35,988
(69,478)
Other losses - Impairment of available for sale assets
-
(253,006)
-
-
Loss from operations
(786,213)
(1,007,547)
(537,576)
(125,376)
Finance income
2,964
10,329
909
3,212
Finance costs
(172,925)
(161,963)
(87,407)
(80,982)
Loss before taxation
(956,174)
(1,159,181)
(624,074)
(203,146)
Taxation
-
-
-
-
Loss for the year from continuing operations
(956,174)
(1,159,181)
(624,074)
(203,146)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Change in value of available for sale financial assets
-
253,006
-
-
Currency translation differences on translating foreign operations
8,206,506
(3,693,733)
4,917,794
(766,850)
Other comprehensive income for the period, net of tax
8,206,506
(3,440,727)
4,917,794
(766,850)
Total comprehensive income for the period
attributable to equity holders of the Company
7,250,332
(4,599,908)
4,293,720
(969,996)
Earnings per share from continuing operations attributable to the equity holders of the Company
Basic and diluted (pence per share)
9
(0.142)
(0.235)
(0.093)
(0.041)
Condensed consolidated statement of financial position
30 June 
2016
31 December
2015
Unaudited
Audited
Notes
Assets
Non-current assets
Intangible assets
6
28,292,139
20,046,102
Property, plant & equipment
6,278
11,888
Deferred tax assets
4,902,865
3,590,675
33,201,282
23,648,665
Current assets
Trade and other receivables
23,424
40,912
Cash and cash equivalents
1,660,194
2,738,905
1,683,618
2,779,817
Total assets
34,884,900
26,428,482
Equity and liabilities
Equity attributable to owners of the parent
Issued capital
7
6,712,044
6,712,044
Share premium
7
31,252,708
31,252,708
Other reserves
870,179
(7,336,327)
Accumulated losses
(12,019,163)
(11,081,173)
Total equity
26,815,768
19,547,252
Liabilities
Non-current liabilities
Contingent consideration
5,807,855
5,171,629
Deferred tax liabilities
2,130,886
1,560,581
7,938,741
6,732,210
Current liabilities
Trade and other payables 
130,391
149,020
Total liabilities
8,069,132
6,881,230
Total equity and liabilities
34,884,900
26,428,482
Condensed statement of changes in shareholders' equity
Attributable to the owners of the parent
Share
capital
Share 
premium
Accumulated
losses
Other
reserves
Total
As at 1 January 2015
4,924,271
31,095,370
(9,526,869)
(321,601)
26,171,171
Comprehensive income
Loss for the period
-
-
(1,159,181)
-
(1,159,181)
Other comprehensive income
Impairment of available for sale assets
-
-
-
253,006
253,006
Currency translation differences
-
-
-
(3,693,733)
(3,693,733)
Total comprehensive income
-
-
(1,159,181)
(3,440,727)
(4,599,908)
Transactions with owners
Share based payments
-
-
86,890
-
86,890
Total transactions with owners
-
-
86,890
-
86,890
As at 30 June 2015 (unaudited)
4,924,271
31,095,370
(10,599,160)
(3,762,328)
21,658,153
Attributable to the owners of the parent
Share
capital
Share 
premium
Accumulated
losses
Other
reserves
Total
As at 1 January 2016
6,712,044
31,252,708
(11,081,173)
(7,336,327)
19,547,252
Comprehensive income
Loss for the period
-
-
(956,174)
-
(956,174)
Other comprehensive income
Impairment of available for sale assets
-
-
-
-
-
Currency translation differences
-
-
-
8,206,506
8,206,506
Total comprehensive income
-
-
(956,174)
8,206,506
7,250,332
Transactions with owners
Share based payments
-
-
18,184
-
18,184
Total transactions with owners
-
-
18,184
-
18,184
As at 30 June 2016 (unaudited)
6,712,044
31,252,708
(12,019,163)
870,179
26,815,768
Condensed Consolidated Statement of Cash Flows
6 months ended
30 June
3 months ended
30 June
2016
2015
2016
2015
Unaudited
Unaudited
Unaudited
Unaudited
Cash flows from operating activities
Loss before taxation
(956,174)
(1,159,181)
(624,074)
(203,146)
Interest income
(2,964)
(10,329)
(909)
(3,212)
Finance costs
172,925
161,963
87,407
80,982
Loss on disposal of subsidiary
-
3,848
-
-
Realisation of Peruvian Reserves
-
13,353
-
-
Impairment of available for sale financial assets
-
253,005
-
-
Project impairment 
-
-
-
-
Gain on sale of fixed asset
-
(11,011)
-
(11,011)
Exchange differences
(80,300)
196,620
(35,988)
69,478
Employee share options charge
18,184
86,890
9,092
44,679
Change in fair value of contingent consideration
463,301
55,063
363,534
(190,312)
Depreciation
579
819
294
407
Operating loss before changes in working capital
(384,449)
(408,960)
(200,644)
(212,135)
Decrease/(increase) in trade and other receivables 
18,657
6,034
5,723
6,313
(Decrease)/increase in trade and other payables
(43,028)
(61,358)
3,842
17,238
Net cash outflow from operating activities
(408,820)
(464,284)
(191,079)
(188,584)
Cash flows from investing activities
Purchase of intangible assets
(751,986)
(1,978,727)
(359,011)
(870,162)
Proceeds from sale of property, plant and equipment
-
13,292
-
13,292
Interest received
2,964
10,329
909
3,213
Net cash used in investing activities
(749,022)
(1,955,106)
(358,102)
(853,657)
Net decrease in cash and cash equivalents
(1,157,842)
(2,419,390)
(549,181)
(1,042,241)
Cash and cash equivalents at beginning of period
2,738,905
5,030,968
2,173,055
3,527,280
Exchange gain/(loss) on cash and cash equivalents
79,131
(195,872)
36,320
(69,333)
Cash and cash equivalents at end of the period
1,660,194
2,415,706
1,660,194
2,415,706
 
Notes to the Financial Statements
1. General information
The principal activity of the Company and its subsidiaries (together 'the Group') is the exploration and development of precious and base metals. There is no seasonality or cyclicality of the Group's operations.
The Company's shares are listed on the Alternative Investment Market of the London Stock Exchange (AIM) and on the Toronto Stock Exchange (TSX). The Company is incorporated and domiciled in the United Kingdom. The address of its registered office is 26 Dover Street London W1S 4LY.
2. Basis of preparation
The condensed consolidated interim financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standard 34 Interim Financial Reporting. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2015, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.
The condensed consolidated interim financial statements set out above do not constitute statutory accounts within the meaning of the Companies Act 2006. They have been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union. Statutory financial statements for the year ended 31 December 2015 were approved by the Board of Directors on 15 March 2016 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified. 
The condensed consolidated interim financial statements of the Company have not been audited or reviewed by the Company's auditor, BDO LLP.
Going concern
The Directors, having made appropriate enquiries, consider that adequate resources exist for the Group to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt the going concern basis in preparing the condensed consolidated interim financial statements for the period ended 30 June 2016.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Group's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Group's 2015 Annual Report and Financial Statements, a copy of which is available on the Group's website: www.horizonteminerals.com and on Sedar: www.sedar.com The key financial risks are liquidity risk, foreign exchange risk, credit risk, price risk and interest rate risk.
Critical accounting estimates
The preparation of condensed consolidated interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in note 4 of the Group's 2015 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.
3. Significant accounting policies
The condensed consolidated interim financial statements have been prepared under the historical cost convention as modified by the revaluation of certain of the subsidiaries' assets and liabilities to fair value for consolidation purposes. 
The same accounting policies, presentation and methods of computation have been followed in these condensed consolidated interim financial statements as were applied in the preparation of the Group's Financial Statements for the year ended 31 December 2015.
4 Segmental reporting
The Group operates principally in the UK and Brazil, with operations managed on a project by project basis within each geographical area. Activities in the UK are mainly administrative in nature whilst the activities in Brazil relate to exploration and evaluation work. The reports used by the chief operating decision maker are based on these geographical segments.
2016
UK 
Brazil
Other
Total
6 months ended
30 June 
2016
6 months ended
30 June 
2016
6 months ended
30 June 
2016
6 months ended
30 June 
2016
Revenue
-
-
-
-
Administrative expenses
(256,251)
(128,777)
-
(385,028)
Profit on foreign exchange
63,320
16,980
-
80,300
(Loss) from operations per reportable segment
(192,931)
(111,797)
-
(304,728)
Inter segment revenues
-
567,589
-
567,589
Depreciation charges
(519)
(61)
-
(579)
Additions and foreign exchange movements to non-current assets 
-
8,175,863
-
8,175,863
Reportable segment assets
1,635,604
33,249,296
-
34,884,900
Reportable segment liabilities
5,848,311
2,220,821
-
8,069,132
2015
UK 
Brazil
Other
Total
6 months ended
30 June 
2015
6 months ended
30 June 
2015
6 months ended
30 June 
2015
6 months ended
30 June 
2015
Revenue
-
-
-
-
Administrative expenses
(318,060)
(84,555)
(13,353)
(415,968)
(Loss) on foreign exchange
(108,941)
(87,679)
-
(196,620)
(Loss) from operations per reportable segment
(427,001)
(172,234)
(13,353)
(612,588)
Inter segment revenues
-
427,513
-
427,513
Depreciation charges
(519)
(300)
-
(819)
Additions and foreign exchange movements to non-current assets 
-
1,310,368
-
1,310,368
Reportable segment assets
2,269,845
23,898,966
-
26,168,811
Reportable segment liabilities
2,503,815
2,006,843
-
4,510,658
2016
UK 
Brazil
Other
Total
3 months ended
30 June 2016
3 months ended
30 June 2016
3 months ended
30 June 2016
3 months ended
30 June 2016
Revenue
-
-
-
-
Administrative expenses
(113,961)
(86,977)
-
(200,938)
Profit on foreign exchange
25,808
10,180
-
35,988
(Loss) from operations per
(88,153)
(76,797)
-
(164,950)
reportable segment
Inter segment revenues
-
327,101
-
327,101
Depreciation charges
(259)
(35)
-
(294)
Additions and foreign exchange movements to non-current assets 
-
4,818,164
-
4,818,164
2015
UK 
Brazil
Other
Total
3 months ended
30 June 2015
3 months ended
30 June 2015
3 months ended
30 June 2015
3 months ended
30 June 2015
Revenue
-
-
-
-
Administrative expenses
(154,912)
(46,619)
-
(201,531)
(Loss) on foreign exchange
(63,700)
(5,778)
-
(69,478)
(Loss) from operations per
(218,612)
(52,397)
-
(271,009)
reportable segment
Inter segment revenues
-
221,935
-
221,935
Depreciation charges
(260)
(147)
-
(407)
Additions and foreign exchange movements to non-current assets 
--
28,722
-
28,722
A reconciliation of adjusted loss from operations per reportable segment to loss before tax is provided as follows:
6 months ended 
30 June 2016
6 months ended 
30 June 2015
3 months ended
30 June 2016
3 months ended
30 June 2015
Loss from operations per reportable segment
(304,728)
(612,588)
(164,950)
(271,009)
- Change in fair value of contingent consideration
(463,301)
(55,063)
(363,534)
190,312
- Charge for share options granted
(18,184)
(86,890)
(9,092)
(44,679)
- Impairment of available for sale asset
-
(253,006)
-
-
- Finance income
2,964
10,329
909
3,212
- Finance costs
(172,925)
(161,963)
(87,407)
(80,982)
Loss for the period from continuing operations
(956,174)
(1,159,181)
(624,074)
(203,146)
5 Change in Fair Value of Contingent Consideration
Contingent Consideration payable to the former owners of Teck Cominco Brasil S.A.
Contingent consideration payable to the former owners of Teck Cominco Brasil S.A. has a carrying value of 2,637,724 at 30 June 2016 (30 June 2015:  2,452,538). The fair value of the contingent consideration arrangement with the former owners of Teck Cominco Brasil S.A. was estimated at the acquisition date according to when future taxable profits against which the tax losses may be utilised were anticipated to arise. The fair value estimates were based on the current rates of tax on profits in Brazil of 34%. A discount factor of 7.0% was applied to the future dates at which the tax losses will be utilised and consideration paid.
As at 30 June 2016, there was a finance expense of 83,000 (30 June 2015: 161,963) recognised in finance costs within the Condensed Statement of Comprehensive Income in respect of this contingent consideration arrangement, as the discount applied to the contingent consideration at the date of acquisition was unwound.
The cash flow model used to estimate the contingent consideration was adjusted, to take into account changed assumptions in the timing of cash flows as derived from the Pre-Feasibility Study as published by the Group in March 2014. The key assumptions underlying the cash flow model derived from the Pre-Feasibility Study as published by the Group in March 2014 are unchanged as at 30 June 2016, other than that in 2015 the assumed date for commencement of commercial production was revised from 2017 to 2019. The change in the fair value of contingent consideration payable to the former owners of Teck Cominco Brasil S.A. generated a charge to profit or loss of  189,971 for the six months ended 30 June 2016 (30 June 2015: 55,063 charge) due to changes in the functional currency in which the liability is payable. 
Contingent Consideration payable to Xstrata Brasil Minerao Ltda
The contingent consideration payable to Xstrata Brasil Minerao Ltda has a carrying value of  3,170,131 at 30 June 2016 (30 June 2015:  nil). It comprises two elements: US$1,000,000 due after the date of issuance of a joint feasibility study for the combined Enlarged Project areas and to be satisfied by shares or cash, together with US$5,000,000 consideration in cash as at the date of first commercial production from any of the resource areas within the Enlarged Project area. The key assumptions underlying the treatment of the contingent consideration the US$5,000,000 are as per those applied to the contingent consideration payable to the former owners of Teck Cominco Brasil S.A.
As at 30 June 2016, there was a finance expense of 89,925 (2014: nil) recognised in finance costs within the Statement of Comprehensive Income in respect of this contingent consideration arrangement, as the discount applied to the contingent consideration at the date of acquisition was unwound.
The change in the fair value of contingent consideration payable to Xstrata Brasil Minerao Ltda generated a charge to profit or loss of 273,330 for the six months ended 30 June 2016 (30 June 2015: nil) due to changes in the functional currency in which the liability is payable.
6 Intangible assets
Intangible assets comprise exploration and evaluation costs and goodwill. Exploration and evaluation costs comprise internally generated and acquired assets. 
Group
Exploration and 
Goodwill 
Exploration licences
evaluation costs
Total
Cost
At 1 January 2016
192,028
3,174,275
16,679,799
20,046,102
Additions
-
-
784,588
784,588
Exchange rate movements
70,174
1,162,895
6,228,380
7,461,449
Net book amount at 30 June 2016
262,202
4,337,170
23,692,767
28,292,139
7 Share Capital and Share Premium
 
Issued and fully paid
Number of shares
Ordinary shares
Share premium
Total
At 1 January 2016
671,204,378
6,712,044
31,252,708
37,964,752
At 30 June 2016
671,204,378
6,712,044
31,252,708
37,964,752
8 Dividends
No dividend has been declared or paid by the Company during the six months ended 30 June 2016 (2015: nil).
9 Earnings per share
The calculation of the basic loss per share of 0.142 pence for the 6 months ended 30 June 2016 (30 June 2015 loss per share: 0.235 pence) is based on the loss attributable to the equity holders of the Company of  (956,174) for the six month period ended 30 June 2016 (30 June 2015: (1,159,181)) divided by the weighted average number of shares in issue during the period of 671,204,378 (weighted average number of shares for the 6 months ended 30 June 2015: 492,427,105). 
The calculation of the basic loss per share of 0.093 pence for the 3 months ended 30 June 2016 (30 June 2015 loss per share: 0.041 pence) is based on the loss attributable to the equity holders of the Company of  (624,074) for the three month period ended 30 June 2016 (3 months ended 30 June 2014:  203,146) divided by the weighted average number of shares in issue during the period of 671,204,378 (weighted average number of shares for the 3 months ended 30 June 2015: 492,427,105). 
The basic and diluted loss per share is the same, as the effect of the exercise of share options would be to decrease the loss per share.
Details of share options that could potentially dilute earnings per share in future periods are disclosed in the notes to the Group's Annual Report and Financial Statements for the year ended 31 December 2015 and in note 10 below. 
10 Issue of Share Options
No share options were issued in the first 6 months of 2016.
On 10 June 2015, the Company awarded 13,250,000 share options to Directors and senior management. All of the share options have an exercise price of 4.00 pence. One third of the options are exercisable from 10 December 2015, one third from 10 June 2016 and one third from 10 December 2016.
11 Ultimate controlling party
The Directors believe there to be no ultimate controlling party.
12 Related party transactions
The nature of related party transactions of the Group has not changed from those described in the Group's Annual Report and Financial Statements for the year ended 31 December 2015.
13 Events after the reporting period
On August 3rd 2016 the Company announced the transfer to a wholly-owned subsidiary of the Company of the remaining two licences that make up the Glencore Araguaia nickel project ('GAP'). This completes the licence transfer under the agreement ('Asset Purchase Agreement') to acquire GAP from Xstrata Brasil Explorao Mineral Ltda ('Xstrata'), a wholly owned subsidiary of Glencore, as announced by the Company on 28 September 2015. 
Following the registration by the National Department of Mineral Production of Brazil of the transfer of the outstanding GAP licences from Xstrata to a wholly-owned subsidiary of the Company and pursuant to the Asset Purchase Agreement, Horizonte has now completed the second and final allotment to Xstrata of Initial Consideration Shares.
Further to the above, the Company has issued and allotted 50,729,922 new Ordinary Shares to Xstrata, being the Initial Consideration Shares equivalent in value to US$1,340,000. These closing Initial Consideration Shares were issued at a price of 1.99 pence (the "Issue Price"). In accordance with the terms of the Asset Purchase Agreement the Issue Price was equal to the five day weighted average price per Ordinary Share on AIM, taken on the business day when the transfer of the remaining GAP licences was confirmed, and converted at a rate of exchange as set out in the Asset Purchase Agreement. This allocation of shares signifies the completion of the issuance of the Initial Consideration Shares to a total value of US$2,000,000. Initial Consideration Shares were previously issued under the Asset Purchase Agreement to the value of US$660,000 in November 2015 following transfer of the first GAP licence to a wholly-owned subsidiary of the Company.
Approval of interim financial statements
These Condensed Consolidated Interim Financial Statements were approved by the Board of Directors on 9 August 2016.
**ENDS**
For further information visit www.horizonteminerals.com or contact:
Jeremy Martin
Horizonte Minerals plc
Tel: +44 (0) 20 7763 7157
David Hall
Horizonte Minerals plc
Tel: +44 (0) 20 7763 7157
Joanna Weaving 
Christopher Raggett
finnCap Ltd (Corporate Broking)
finnCap Ltd (Corporate Finance)
Tel: +44 (0) 20 7220 0500
Tel: +44 (0) 20 7220 0500
Lottie Brocklehurst
Elisabeth Cowell
St Brides Partners Ltd (PR)
St Brides Partners Ltd
Tel: +44 (0) 20 7236 1177
Tel: +44 (0) 20 7236 1177
About Horizonte Minerals:
Horizonte Minerals plc is an AIM and TSX-listed nickel development company focused in Brazil, which wholly owns the advanced Araguaia nickel laterite project located to the south of the Carajas mineral district of northern Brazil. The Company is developing Araguaia as the next major nickel mine in Brazil, with targeted production by 2019. 
Horizonte has a strong shareholder structure including Teck Resources Limited 26.1%, Henderson Global Investors 15.7% and Glencore 10.3%.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
Except for statements of historical fact relating to the Company, certain information contained in this press release constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the potential of the Company's current or future property mineral projects; the success of exploration and mining activities; cost and timing of future exploration, production and development; the estimation of mineral resources and reserves and the ability of the Company to achieve its goals in respect of growing its mineral resources; and the realization of mineral resource and reserve estimates. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks related to: exploration and mining risks, competition from competitors with greater capital; the Company's lack of experience with respect to development-stage mining operations; fluctuations in metal prices; uninsured risks; environmental and other regulatory requirements; exploration, mining and other licences; the Company's future payment obligations; potential disputes with respect to the Company's title to, and the area of, its mining concessions; the Company's dependence on its ability to obtain sufficient financing in the future; the Company's dependence on its relationships with third parties; the Company's joint ventures; the potential of currency fluctuations and political or economic instability in countries in which the Company operates; currency exchange fluctuations; the Company's ability to manage its growth effectively; the trading market for the ordinary shares of the Company; uncertainty with respect to the Company's plans to continue to develop its operations and new projects; the Company's dependence on key personnel; possible conflicts of interest of directors and officers of the Company, and various risks associated with the legal and regulatory framework within which the Company operates. 
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

This information is provided by RNS
The company news service from the London Stock Exchange
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