REG - Mila Resources Plc - Interim Results

Mila ResourcesAnnouncement

01/06/2021 07:05

RNS Number : 3077A
  
Mila Resources PLC
  
01 June 2021
  
 

Mila Resources Plc / Index: LSE / Epic: MILA / Sector: Natural Resources
1 June 2021
Mila Resources Plc
("Mila" or "the Company")
Interim Results
 
Mila Resources Plc, a London listed natural resources company, is pleased to present its interim results for the six-month period ended 31 December 2020.
 
Highlights:
 
•    Towards the period end Mila entered into non-binding Heads of Terms with regard to the possible acquisition of 100% of the share capital of New Generation Minerals Limited ("NGM'); to be satisfied by the issue of New Ordinary Shares of the Company. NGM is a UK private company, whose principal asset is the Kathleen Valley gold project ("Project") in Western Australia. The Project is located in the prolific Wiluna-Norseman gold belt which hosts several world-class mines owned by a number of premier Australian gold companies including Northern Star and St Barbara. Since the initial Heads of Terms announcement, the structure of the proposed transaction has been simplified to the acquisition of NGM's gold project in Western Australia "Kathleen Valley". The nature of the deal will be an earn in process based on success milestones.
 
•    Cash balance at the end of the period £212,811. 
 
•    In March 2021, the Company announced that it had raised £350,000 through the issue of Convertible Loan Notes ("CLN") with supportive shareholders. 
 
 
Chairman Statement
 
I am pleased to present the interim financial statements to shareholders for the six months ended 31 December 2020.
 
The period under review was dominated by searching for a suitable reverse takeover candidate, culminating in the identification of New Generation Minerals Limited ("NGM'). Since the initial announcement the deal has been simplified to the acquisition of NGM's interest in the the Kathleen Valley Gold Project in Western Australia. The acquisition will be an earn in process based on success milestones. The Kathleen Valley Gold Project is a very exciting gold project and we believe the project will enable us to achieve the ambitions we have for Mila.
 
The current pandemic, although devastating to businesses globally, has not interrupted our plans to undertake a re-listing of the enlarged entity and the Company and its professional advisers are continuing with due diligence and preparing the documentation for the re-listing. Clearly, we will need to assess market conditions prior to raising any capital but it is very much our current intention to complete the transaction relatively shortly. The prospectus is advancing through the FCA and we will notify shareholders upon its release. 
 
I look forward to reporting our progress to you over the coming the weeks.
 
 
 
 
Financial Review
 
For the six months to 31 December 2020, the Company reports a net loss of £122,037 (2019: £50,504). During the six-months to 31 December 2020, the Company continued its strict financial discipline, incurring a net operating cash inflow of £26,495 (2019: outflow £33,248). The Company held cash at 31 December 2020 of £212,811 (2019: £395,425).
 
Directors      
The following directors have held office during the period:
Mark Stephenson
Lee Daniels
 
Corporate Governance
 
The UK Corporate Governance Code (September 2014) ("the Code"), as appended to the Listing Rules, sets out the Principles of Good Corporate Governance and Code Provisions which are applicable to listed companies incorporated in the United Kingdom.  As a standard listed company, the Company is not subject to the Code, but the Board recognises the value of applying the principles of the Code where appropriate and proportionate and has endeavoured to do so where practicable. 
 
Responsibility Statement
 
The Directors are responsible for preparing the Unaudited Interim Condensed Consolidated Financial Statements in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority ("DTR") and with International Accounting Standard 34 on Interim Reporting ("IAS 34"). The directors confirm that, to the best of their knowledge, this condensed consolidated interim report has been prepared in accordance with IAS 34 as adopted by the European Union. The interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
·    an indication of important events that have occurred during the six months ended 31 December 2020 and their impact on the condensed consolidated financial statements for the period, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
·    related party transactions that have taken place in the six months ended 31 December 2020 and that have materially affected the financial position of the performance of the business during that period.  
 
On behalf of the board 
 
 
 
Mark Stephenson
Director
31 May 2021
 
 
MILA RESOURCES PLC
Interim Statement of Comprehensive Income (Unaudited)
For the six months ended 31 December 2020
 
 




 


Notes


 


Six months ended

31 December 2020 Unaudited


 


Six months ended

31 December 2019 Unaudited


 


Year 

ended

30 June
2020 
Audited




 


 


 


£


 


£ 


 


£




 


 


 


 


 


 


 


 




Revenue


 


 


-


 


-


 


-




 


 


 


 


 


 


 


 




Administrative expenses


 


 


(123,590)


 


(50,504)


 


(220,220)




Operating loss


 


 


(123,590)


 


(50,504)


 


(220,220)




 


 


 


 


 


 


 


 




Interest receivable


 


 


1,553


 


-


 


849




Loss on ordinary activities before taxation


 


 


(122,037)


 


(50,504)


 


(219,371)




Income tax expense


3


 


-


 


-


 


-




 


 


 


 


 


 


 


 




Loss for the period


 


 


(122,037)


 


(50,504)


 


(219,371)




 


 


 


 


 


 


 


 




Other comprehensive income / (loss)


 


 


-


 


-


 


-




Total comprehensive loss for the year attributable to equity holders


 


 


(122,037)


 


(50,504)


 


(219,371)




 


 


 


 


 


 


 


 




Loss per share (basic and diluted) attributable to equity holders (p)


4


 


(0.53)p


 


(0.22)p


 


(0.95)p




 
 
The income statement has been prepared on the basis that all operations are continuing operations.
 
 
 
 
MILA RESOURCES PLC
Interim Statement of Financial Position (Unaudited)
As at 31 December 2020
 




 


 


 


At 31
 December 2020 Unaudited


 


At 31

  December

 2019
     Unaudited


 


At 30
 June
 2020
 Audited




 


Notes


 


£ 


 


£ 


 


£ 




 


 


 


 


 


 


 


 




Current assets


 


 


 


 


 


 


 




Trade and other receivables


 


 


835


 


5,815


 


23,705




Cash at bank and in hand


 


 


212,811


 


395,425


 


186,316




Loans receivable


 


 


-


 


-


 


85,849




 


 


 


213,646


 


401,240


 


295,870




Current liabilities


 


 


 


 


 


 


 




Trade and other payables


 


 


126,483


 


23,174


 


86,671




 


 


 


126,483


 


23,174


 


86,671




 


 


 


 


 


 


 


 




Net current assets


 


 


87,163


 


378,066


 


209,199




 


 


 


 


 


 


 


 




Net assets


 


 


87,163


 


378,066


 


209,199




 


 


 


 


 


 


 


 




Equity


 


 


 


 


 


 


 




Share capital


5


 


232,000


 


232,000


 


232,000




Share premium


5


 


849,300


 


849,300


 


849,300




Share based payment reserve


 


 


4,720


 


4,720


 


4,720




Retained losses


 


 


(998,857)


 


(707,954)


 


(876,821)




 


 


 


 


 


 


 


 




Equity attributable to the owners of the parent


 


 


87,163


 


378,066


 


209,199




 


 


 


 


 


 


 


 




 
 
 
MILA RESOURCES PLC
Statements of changes in equity (Unaudited)
For the six months ended 31 December 2020




 


 


 


 


 


 


 




 


 


Share   Capital


Share Premium Account 


Share Based Payment Reserve


Retained
 Loss


TOTAL




 


 


£ 


£ 


£ 


£ 


£ 




 


 


 


 


 


 


 




Balance at 30 June 2019


232,000


849,300


4,720


(657,450)


428,570




Total comprehensive loss for the year


-


-


-


(219,371)


(219,371)




Balance at 30 June 2020


232,000


849,300


4,720


(876,821)


209,199




Total comprehensive loss for the period


-


-


-


(122,036)


(122,036)




Balance at 31 December 2020


232,000


849,300


4,720


(998,857)


87,163




 
 
 
 
 
MILA RESOURCES PLC
Statement of cash flow (Unaudited)
For the six months ended 31 December 2020
 




 


 


Six months

  to 31 December


 


Six months

 to 31 December


 


12 months

 to 30

  June 




 


 


2020


 


2019


 


2020




 


 


£ 


 


£ 


 


£ 




Cash flows from operating activities


 


 


 


 


 


 




Loss for the period


 


(122,037)


 


(50,504)


 


(219,371)




Adjustments for:


 


 


 


 


 


 




    Costs settled by the payment of shares / warrants


 


-


 


-


 


-




Operating cashflow before working capital movements


 


(122,037)


 


(50,504)


 


(219,371)




    Decrease / (increase) in trade and other receivables


 


6,491


 


11,827


 


(6,063)




    Increase / (decrease) in trade and other payables


 


56,192


 


5,429


 


68,926




Interest income


 


-


 


-


 


(849)




Net cash flow from operating activities


 


(59,354)


 


(33,248)


 


(157,357)




 


 


 


 


 


 


 




Cash flow from investing activities


 


 


 


 


 


 




Loan to E-Tech


 


85,849


 


-


 


(85,000)




Net cash flow from investing activities


 


85,849


 


-


 


(85,000)




 


 


 


 


 


 


 




Net Increase / (decrease) in cash and cash equivalents


 


26,495


 


(33,248)


 


(242,357)




 


 


 


 


 


 


 




Cash and cash equivalents at beginning of the period


 


186,316


 


428,673


 


428,673




 


 


 


 


 


 


 




Cash and cash equivalents at end of the period


 


212,811


 


395,425


 


186,316




 
 
 
 
 
MILA RESOURCES PLC
Notes to the financial statements
For the six months ended 31 December 2020
 
1          General information
Mila Resources Plc (the "Company'') looks to identify potential companies, businesses or asset(s) that have operations in the natural resources exploration, development and production sector. 
The Company is domiciled in the United Kingdom and incorporated and registered in England and Wales, with registration number 09620350.
The Company's registered office is Lockstrood Farm, Ditchling Common, Burgess Hill, West Sussex RH15 0SJ.
2          Accounting policies
The principal accounting policies applied in preparation of these consolidated financial statements are set out below. These policies have been consistently applied unless otherwise stated.
Basis of preparation
The interim unaudited financial statements for the period ended 31 December 2020 have been prepared in accordance with IAS 34 Interim Financial Reporting. This interim financial information is not the Company's statutory financial statements and should be read in conjunction with the annual financial statements for the period ended 30 June 2020, which have been prepared in accordance with International Financial Reporting Standards (IFRS) and have been delivered to the Registrars of Companies.  The auditors have reported on those accounts; their report was unqualified, did not include references to any matters which the auditors drew attention by way of emphasis of matter without qualifying their report and did not contain statements under section 498 (2) or (3) of the Companies Act 2006.
The interim financial information for the six months ended 31 December 2020 is unaudited. In the opinion of the Directors, the interim consolidated financial information presents fairly the financial position, and results from operations and cash flows for the period. 
The Directors have made an assessment of the Company's ability to continue as a going concern and are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company, therefore, continues to adopt the going concern basis in preparing its consolidated financial statements.
The financial information of the Company is presented in British Pounds Sterling (£).
Critical accounting estimates and judgements
The preparation of interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and the reported amounts of income and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, the resulting accounting estimates will, by definition, seldom equal related actual results.
In preparing the interim financial information, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements for the year ended 30 June 2020.
3          Income tax expense
No tax is applicable to the Company for the six months ended 31 December 2020. No deferred income tax asset has been recognised in respect of the losses carried forward, due to the uncertainty as to whether the Company will generate sufficient future profits in the foreseeable future to prudently justify this. 
 
 
 
 
MILA RESOURCES PLC
Notes to the financial statements
For the six months ended 31 December 2020
 
4          Loss per share
Basic loss per ordinary 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. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.
There are currently no dilutive potential ordinary shares. 




 


                               Earnings 
                 £


Weighted average number of shares
 unit


Per-share amount
pence




Loss per share attributed to           ordinary shareholders


(122,037)


23,200,000


(0.53)p




 
5          Share capital




 


 


 


Number


 


 


 




 


 


 


of shares


Share 


Share 


 




 


 


 


in issue


capital


premium


Total




 


 


 


 


£ 


£ 


£ 




 


 


 


 


 




Balance at 30 June 2020


23,200,000


232,000


849,300


1,081,300




Movements during the period


-


-


-


-




Balance at 31 December 2020


23,200,000


232,000


849,300


1,081,300




 
The Company has one class of ordinary share which carries no right to fixed income.
 
6          Related party disclosures
Remuneration of directors and key management personnel
The remuneration of the Directors during the six-month period to 31 December 2020 amounted to £30,356 (31 December 2019: £24,000). 
Shareholdings in the Company
Shares and warrants held by the Directors of the Company.




 


Shares


Warrants 




Mr Mark Stephenson


1,200,000


-




Balance at 31 December 2020


 


 


1,200,000


-




 


 


 


 


 




                
 
 
 
MILA RESOURCES PLC
Notes to the financial statements
For the six months ended 31 December 2020 
 
 
7.    Subsequent events
 
Convertible Loan Notes
In March 2021, the Company announced that it had raised £350,000 through the issue of Convertible Loan Notes ("CLN") with supportive shareholders. 
 
 
 
 
 

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