- Part 2: For the preceding part double click ID:nRSd2760La
and non-current liabilities.
In September 2016, the Company advised the option holder that it wold not make
future option payments and would cease any further funding to the Chepica gold
and copper project. As a result, the Company has recognised a net impairment
charge of £2,343K in the consolidated income statement which comprises of an
impairment of mine properties charge of £5,105K and a write back of the unpaid
option instalments of £2,763K.
7. Property, plant and equipment
Cost or fair value on acquisition of subsidiary Mining plant & equipment Land & Buildings Furniture & Fittings Total
£'000 £'000 £'000 £'000
At 1 January 2016 1,417 103 12 1,532
Additions - at cost 272 - - 272
At 30 June 2016 1,689 103 12 1,804
Depreciation
At 1 January 2016 197 19 7 223
Charge for the period 57 8 2 67
At 30 June 2016 254 27 9 290
Net book value
At 30 June 2016 1,435 76 3 1,514
At 1 January 2016 1,220 84 5 1,309
8. Financial assets available for sale
30 June 2016£'000 30 June 2015£'000 31 December 2015£'000
At beginning of the period - 2,580 570
Disposal - - -
Movement in fair value - (810) (570)
At the end of the period - 1,770 -
9. Current Liabilities
As at 30 June 2016 £'000 As at30 June 2015£'000 As at31 December 2015£'000
Trade creditors and accruals 4,318 2,141 1,107
Option instalments - 978 2,448
SEDA backed loan 1,251 - -
5,569 3,119 3,555
10. Share capital
As at30 June 2016Number As at30 June 2015Number As at31 December 2015Number
Issued and fully paid Ordinary shares of 0.01p each at 1 January 8,603,503,522 3,830,599,981 3,830,599,981
Share issued during the period 1,137,258,065 2,814,297,716 4,772,903,541
9,740,761,587 6,644,897,697 8,603,503,522
The following ordinary shares were issued during the period:
· Issued 1 March 2016 - 1,137,258,065 ordinary shares at 0.25p per share
Options and warrants
The following warrants were issued during the period:
· Issued 9 May 2016 - 316,250,000 exercisable at 0.30p per share
The following share options were issued during the period:
· Issued 22 January 2016 - 30,000,000 exercisable at 0.19p per share
· Issued 1 March 2016 - 10,000,000 exercisable at 0.19p per share
11. Cash flows from operating activities
Six month period ended30 June 2016 £'000 Six month period ended30 June 2015£'000 Year ended 31 December 2015£'000
Profit/(loss) for the period (5,244) (810) (4,575)
Adjustments for:
Continuing Operations
Depreciation of property, plant and equipment 67 64 138
Amortisation of intangible fixed assets 180 94 186
Finance costs 806 84 84
Impairment of Chepica asset 2,343 - -
Impairment of O'Kiep asset - - 2,217
Impairment of available for sale investment - - 86
Other (gains) /losses 18 (8) (27)
Gain on disposal of intangible fixed assets - (359) (338)
Share-based payments expense 22 - 127
Operating cash flows before movements in working capital (1,808) (935) (2,102)
Decrease/(Increase) in inventories 33 - (45)
(Increase) in receivables 1,245 (106) (1,546)
(Decrease)/increase in payables 1,433 (294) (437)
Cash used in operations 903 (1,335) (4,130)
Income taxes paid - - -
Foreign currency exchange differences (135) 6 167
Net cash used in operating activities 768 (1,329) (3,963)
12. Related party transactions
Transactions between Group companies, which are related parties, have been
eliminated on consolidation and are therefore not disclosed. The only other
transactions which fall to be treated as related party transactions are those
relating to the remuneration of key management personnel, which are not
disclosed in the Half Yearly Report, and which will be disclosed in the
Group's next Annual Report.
13. Transactions with directors
Lion Mining Finance Limited, a company in which Colin Bird is a Director and
shareholder has provided administrative and technical services to the Company
amounting to £15K plus VAT in the period. The amount of £21K was outstanding
as at 30 June 2016 (30 June 2015: £21K).
As at 30 June 2016, loans from directors amounted to £23K (30 June 2015: £
Nil). These loans are interest free and repayable by mutual agreement.
14. Acquisition of Manica Gold Project
On 1 March 2016, the Company acquired from Auroch Minerals Mozambique (PTY)
Ltd the entire issued share capital of its wholly owned subsidiary, Mistral
Resource Development Corporation, the parent company of Explorator Limitada, a
Mozambican incorporated entity with a 100 % direct interest in the Manica Gold
Project. The total consideration of the acquisition was £8,537K.
The net assets acquired and goodwill arising are as follows: -
Carrying valuebefore combination Fair value adjustment Fair value
£(000) £(000) £(000)
Intangible fixed assets 4,311 4,210 8,521
Property, plant and equipment - - -
Trade and other receivables 2 - 2
Bank and cash balances 85 - 85
Trade and other payables (71) - (71)
4,327 4,210 8,537
Consideration:
Shares issued 2,843
Cash 3,902
Deferred Cash 1,792 (8,537)
Goodwill on consolidation -
The assessment of the fair values of the assets and liabilities is
provisional, and will be reviewed prior to the completion of the Group
Consolidated financial statements for the year ending 31 December 2016.
15. Events after the balance sheet date
Fundraising
Placing
In July 2016, the Company completed a Placing of 1,538,461,538 ordinary shares
of 0.01p at a price of 0.065p per Ordinary Share from new investors, to raise
£1 million (before expenses).
YAGM Loan Facility Draw-Down
In July 2016, the Company drew down a further US$0.45 million from its loan
facility with YA Global Master ("YAGM"). Following the Loan Facility
draw-down, the balance stands at US$2.1 million with a further US$1.85 million
available for draw-down.
Issue of Shares to Manica Creditors
In July 2016, the Company agreed as per the terms of the Manica acquisition,
to settle Manica Creditors amounting to US$0.78 million through the issue
600,694,007 new ordinary shares of 0.01p at a price of 0.0098p.
YAGM SEDA Draw-Down
In July 2016 the Company drew down £0.67 million from its existing SEDA with
YAGM. In accordance with the terms of the SEDA, which was extended on 9 May
2016 to 31 December 2017, the Company had issued YAGM with 1,032,811,415 new
Ordinary Shares at a price of 0.065p each.
In September 2016, The Company drew down £0.75 million from its existing SEDA
with YAGM. In accordance with the terms of the SEDA, which was extended on 9
May 2016 to 31 December 2017, the Company had issued YAGM with 1,875,000,000
new Ordinary Shares at a price of 0.04p each.
Auroch Minerals
In July 2016, the Company reached an agreement with Auroch Minerals NL
regarding the outstanding US$2.5million deferred consideration. Payments of
US$0.75 million and US$0.1 million were made after balance sheet date with a
total of US$1.65 million outstanding.
Chepica
In September 2016, the Company announced that it had undertaken a review of
the Chepica Gold/Copper Mine in Chile and determined that the underlying
fundamentals and the risk associated with the project were no longer
supportive of continuing investment by the Company. On this basis, the Company
advised the option holder that it would no longer make future option payments
and would relinquish its option and mining rights at Chepica.
Manica
In September 2016, the Board of Xtract announced that, the conditional sale
and purchase agreement between the Company, Nexus Capital Limited and Mineral
Technologies International Limited through which the Company was to dispose of
its 100% interest in the Manica gold project for US$17.5 million, had lapsed
due to certain conditions precedent not being met.
This information is provided by RNS
The company news service from the London Stock Exchange