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WideCells Group Plc – Operational Update

Posted on by emmaedwards


WideCells is pleased to announce an update on operations, in particular regarding its Iconic Labs new media and technology business, which is focussed on providing online marketing, content and technology driven products. 

Iconic Labs Operational Update:

Since the Iconic Labs team joined in March 2019, the Company has made strong progress in establishing its offering and building out its presence within the new media marketing space.  The team, led by John Quinlan and Liam Harrington, who were founders and key drivers behind UNILAD, the world’s largest social media publisher, has successfully tried, tested and soft launched its initial media and advertising focussed agency model. 

The Company is conducting a strategy of balancing long and short-term revenue by partnering with advertising and marketing agencies, assisting with their existing contracts, as well as pitching for larger contracts independently.  The methods of accomplishing this strategy are targeting contracts allocated to agencies that are resource or expertise constrained, joint pitching for distinct campaigns, along with a primary focus on independent pitches. 

In addition, the Company is looking at opportunities to develop social media publishing channels, whether through creation in-house or by acquisition.  Development of these publishing channels is intended not only to provide a source of revenue independent from agency and consulting revenue, but also, by providing a targeted, captive platform, to complement and enhance the strategy and consulting services.

Revenue Generation:

Significant interest and business development success has already resulted in multiple potential revenue contracts with immediate conversion prospects.  It is expected that the Company will finalise at least one such contract during May, with initial revenues being received from June. The current pipeline includes retained contracts, distinct campaigns and joint partnerships on campaign activations. 

The initial work and progress made on the sales pipeline has been highly successful.  However, the volume of work looks likely to require additional capacity and, as a result, the team is looking prudently to add members of staff to ensure that projects and engagements are developed and delivered to the exacting standards of the team.  This personnel growth will be undertaken gradually and carefully and is in line with lean cost strategy of adding personnel as revenue is generated and acquisitions are made.  Additionally, in line with the stated strategy, the Company will look to scale through appropriate acquisitions that are considered value accretive and will augment the rapid growth of the business.

Change of Name:

Progress continues to be made with the Company’s change of name to Iconic Labs Plc.  Documentation is being prepared and further announcements will be made in due course.

Operational Update: Stem Cells Business:

Despite significant efforts to restructure this part of the business and improve its viability, a number of senior staff from the stem cell business have departed and, as a result, the Company is continuing to assess its options with regards to this business, with a decision to be made imminently on its future.  The Company has already spent in excess of £900,000 in resolving legacy issues and continues to work on legacy liabilities associated with this business on an ongoing basis.

Update on European High Growth Opportunities Securitization Fund (“HGOSF”) Facility:

HGOSF remains supportive as evidenced by the inclusion of a conversion floor price mechanism as announced on 1 May 2019.  This puts a notional floor on the price of 0.4p.  Of the £1,600,000 originally announced, there is a further £500,000 potentially available under the drawdown facility.  The Company remains grateful for the support of HGOSF, without which the Company would almost inevitably have failed.  This would have led to the complete loss of shareholder equity as well as very significant losses for former employees, counterparties and contractors, against which the legacy business had no revenues or assets of any material value to be realised.

Shareholder Update:

The Company acknowledges that there have been considerable changes to the size and composition of the shareholder register over recent months and has requested a shareholder analysis to be undertaken.  The Company will update the market and website once the results of this analysis are complete.

Executive Chairman, David Sefton, said: “The Company remains focussed on a cash flow driven business model with pre-identified contracts, a defined path to profitability and exceptional growth prospects.  I am delighted with the progress made already and we are well on our way to securing initial revenues which we believe, through the interest shown in our proven offering, will increase rapidly as we continue to win contracts, bring in new personnel, and build Iconic Labs market presence.

“It is also important to note that the initial traction has been generated before there has even been a formal launch of Iconic Labs and while the restructuring process is on-going.  This is clearly a testament to the team.  The new business and acquisition pipeline already generated is set to grow significantly as we broaden the commercial marketing strategy of and formally launch Iconic Labs. 

“I look forward to the completion of the restructuring, which is close, the official name change, and with the support of our investors, an exciting future for the Company.”

Chief Executive Officer, John Quinlan, said: “With just a soft launch we have already made inroads into our market and have received extremely positive feedback on our plans and offering.  We understand the space and are well placed to exploit insights, network and proprietary technology to provide online marketing and create unique content for brands.

“With first contracts in place and revenue due, we have already reached the first stage of our growth strategy.  I look forward to updating investors on our progress and would like to thank all stakeholders for their support.”

**ENDS**

 For further information, please visit the Company’s website www.iconiclabs.co.uk or contact:

Shard Capital Partners LLP Co-broker – Damon Heath, Erik Woolgar Tel: +44 (0) 20 7186 9950
finnCap Ltd St Brides Partners Limited Co-broker – Chris Raggett, Scott Mathieson PR – Melissa Hancock, Juliet Earl Tel: +44 (0) 20 7220 0500 Tel: +44 (0) 20 7236 1177

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com. 

END



Chesterfield Resources Plc – Final Results, Notice of AGM, Director Resignation

Posted on by emmaedwards

Chesterfield Resources plc is pleased to announce its final results for the year ended 31 December 2018.

FINAL RESULTS

Chairman’s Statement

“Chesterfield Resources plc has made significant progress in its operations since the last Chairman’s letter to shareholders, a little over six months ago.

By way of recap, in July 2018 Chesterfield re-admitted as a Standard Listing on the main board of the London Stock Exchange. This was to effect an acquisition of HKP Exploration Limited, which held a number of mineral exploration licences in the Republic of Cyprus. In the third quarter of 2018 the Group commenced a preliminary drill campaign on a number of targets namely Evloimeni, Mavroyi, Magouda, Double Seven and Ayia Saranta.

The Company completed 3,097m of its drilling campaign in the last quarter of 2018 on several targets in its Troodos West Exploration area. From a preliminary analysis of core, the Board of Directors took a decision to greatly expand the Group’s land package in Cyprus. There were numerous intersections of 1-2% Cu and also a surprising amount of gold, with many intersections assaying at 1-2g per tonne. There was a geological surprise also, with the discovery of more recent epithermal systems alongside the well-established Cyprus-type Volcanogenic Massive Sulphide (“VMS”) mineralization. This means that copper-gold+/-zinc mineralisation can be hosted in two different types of system

The operations team was asked to focus its attention on identifying new minerals rights land packages for the Group to apply for. Because the permits were available directly from the authorities in Cyprus they were relatively inexpensive and easy to acquire. Thus, it made sense to secure first mover advantage by submitting applications over the most promising licence areas still available. The programme of new land applications was completed at the end of February 2019, almost quadrupling the Group’s total land position to 237 km2. This made Chesterfield by far the largest holder of mineral rights in Cyprus. The new licence areas expanded the Group’s position along both the northern and southern flanks of the Troodos mountains in the most prospective volcanic belt.

In addition, more prospecting permits were also granted on the Group’s existing batch of applications at Troodos North. I am pleased to report the current portfolio of approved prospecting permits now totals more than 50 km2.

In order to run this significantly expanded exploration programme, the Group recruited Mike Parker as Chief Operating Officer in January 2019. Mike brings a huge amount of experience to Chesterfield. Prior to joining our Group, Mike had a 20-year career for First Quantum. He was a key player in making two major copper discoveries for First Quantum and was its Country Manager for DRC and then Peru.

To provide a first sweep of our greatly enlarged exploration area, we commissioned a remote sensing survey, using both the Astra and the Sentinel 2 satellite platforms. The survey uses both high resolution satellite photography and also data from the non-visible spectrum using specially calibrated satellite sensors. The survey is able to identify geological faults that may control mineralization and associated rock alterations due to hydrothermal activity. The satellite data was interpreted using a specialist company in the US. It has allowed us to rapidly reduce our search areas to a number of specific targets, which would otherwise have taken many of months of field work on the ground. The survey has also identified targets outside of our exploration licence areas and, as a result, we may submit applications for further licences.

The Group has built a strong field team in Cyprus. This includes three graduates from Camborne School of Mines (CSM). We are pleased to have built a good relationship with one of the premier mining schools in the UK. We recently hosted a field visit in Cyprus for CSM’s third year students and will shortly be taking in two of its Master’s students on internships in Cyprus. It is important to us that we are well integrated into the local community. We now have employ four part-time Cypriot geologists on the team, have good relationship with the Mine Services department and we also employ contractors from the villages we operate around.

The team has been involved in an intensive period of data collection over the last few months. There is a very large volume of historical data in Cyprus, both from the period of mining in the 1960s and 1970s, and various exploration and study projects since. Sifting through this and digitising the most relevant information has been a meticulous but rewarding process. The team has spent much time in the field mapping and sampling the areas of greatest interest. The various layers of information are being collated into the Group’s geographic information system (GIS).

We have also made some corporate changes in Cyprus. PKF Savvides & Co Ltd have been appointed as our local auditors, Hive Management Services Ltd has been appointed as our in-country accountants, and we have changed the name of HKP Exploration Limited to CRC Chesterfield Chesterfield Resources (Cyprus) Limited.

We are looking forward to an active period ahead. The operations team has been conducting intensive field studies on several targets which we will shortly be further investigating using geophysics. The Group has a diamond drill in storage at our core shed in Cyprus and we expect to be drilling again soon. We have been careful to ensure we have completed detailed examination of each target before moving onto the most costly process of drill testing of targets.

Outside of the exploration there are a number of other opportunities that the Group is investigating that could yield near-term revenue potential. It is our intention to grow the business through joint ventures and new projects as these opportunities arise.

Having worked hard to build our land position in Cyprus, operations team and data sets, the Group now has a strong target list in final stages of preparation. We now also feel in a position to start releasing information regarding the Group’s operations and prospects more actively to the stock market. The shares are becoming more actively traded and the price stronger. We will be using various channels of communication to raise the profile of the Group. This will be accompanied by a more professional web site and revamped presentation. Chesterfield is entering an exciting phase of its growth and I look forward to bringing you regular news over coming weeks and months.

Director’s Resignation
David Hall, one of our directors, has decided not to stand for re-election this year. David is involved in a number of different junior resource projects, both listed and unlisted. Having helped shape our venture in Cyprus, he has now found many demands on his busy schedule. We would like to thank him for his hard work and wish him the best of luck.

Financial Review

The loss before taxation of the Group for the year ended 31 December 2018 amounted to £689,367 (period ended 31 December 2017: £111,012). 

The Group’s cash position at 31 December 2018 was £1,885,726 (2017: £1,184,424). 

In July 2018 the group raised £2,000,000 by issuing 26,666,667 new ordinary shares of 0.1 pence at a price of 7.5 pence per share. The funds raised is to primarily support the continued exploration of various license areas in Cyprus.

Outlook

I would like to thank our shareholders for their support, we are lucky to have a strong and supportive base of investors and we hope that the coming months and years will continue to be value accretive for all our stakeholders.”

 

Group Statement Of Comprehensive Income

For the year ended 31 December 2018

Continuing operations

31 December 2018

£

31 December 2017

£

Administrative expenses

(689,367)

(111,012)

Operating Loss

(689,367)

(111,012)

Loss before taxation

(689,367)

(111,012)

Income tax

–

–

Loss for the Period attributable to owners of the parent

(689,367)

(111,012)

Basic and Diluted Earnings Per Share attributable to owners of the parent (expressed in pence per share)

(1.524)

(1.01)

 

 

31 December 2018

£

31 December 2017

£

Loss for the period

(689,367)

(111,012)

Other Comprehensive Income:

Items that may be subsequently reclassified to profit or loss

Currency translation differences

6,181

–

Other comprehensive income for the period, net of tax

(6,181)

–

Total Comprehensive Income attributable to owners of the parent

(683,186)

(111,012)

 

Statement of Financial Position

For the year ended 31 December 2018

 

31 December 2018

£

31 December 2017

£

Non-Current Assets

Property, plant and equipment

13,891

–

Intangible assets

1,156,429

–

Investments in subsidiaries

–

–

1,170,320

–

Current Assets

Trade and other receivables

77,067

44,683

Cash and cash equivalents

1,885,726

1,184,424

1,962,793

1,229,107

Total Assets

3,133,113

1,229,107

Non-Current Liabilities

Deferred tax liabilities

(127,450)

–

(127,450)

–

Current Liabilities

Trade and other payables

(89,138)

(51,286)

Total Liabilities

(216,588)

(51,286)

Net Assets

2,916,525

1,177,821

Equity attributable to owners of the Parent

Share capital

159,933

126,600

Share premium

3,534,597

1,157,873

Other reserves

22,374

4,360

Retained losses

(800,379)

(111,012)

Total Equity

2,916,525

1,177,821

 

Group Statement of Changes in Equity

For the year ended 31 December 2018

 

Attributable to owners of the Parent

Share capital

£

Share premium

£

Other reserves

£

Retained losses

£

Total

£

Balance on Incorporation on 4 January 2017

–

–

–

–

–

Loss for the period

–

–

–

(111,012)

(111,012)

Other comprehensive income for the period

Items that may be subsequently reclassified to profit or loss

Currency translation differences

–

–

–

–

–

Total comprehensive income for the period

–

–

–

(111,012)

(111,012)

Proceeds from share issues

126,600

1,274,000

–

–

1,400,600

Issue costs

–

(116,127)

–

–

(116,127)

Share based payments

–

–

4,360

–

4,360

Total transactions with owners, recognised directly in equity

126,600

1,157,873

4,360

–

1,288,833

Balance as at 31 December 2017*

126,600

1,157,873

4,360

(111,012)

1,177,821

Balance as at 1 January 2018

126,600

1,157,873

4,360

(111,012)

1,177,821

Loss for the period

–

–

–

(689,367)

(689,367)

Other comprehensive income for the period

Items that may be subsequently reclassified to profit or loss

Currency translation differences

–

–

6,181

–

6,181

Total comprehensive income for the period

–

–

6,181

(689,367)

(683,186)

Proceeds from share issues

26,666

1,973,334

–

–

2,000,000

Issue costs

–

(89,943)

–

–

(89,943)

Share based payment

–

–

11,833

–

11,833

Shares issued on business combination

6,667

493,333

–

–

500,000

Total transactions with owners, recognised directly in equity

33,333

2,376,724

11,833

–

2,421,890

Balance as at 31 December 2018

159,933

3,534,597

22,374

(800,379)

2,916,525

 

Group Statement of Cash Flows

For the year ended 31 December 2018

 

Year ended

31 December 2018

£

Period ended

31 December 2017

£

Cash flows from operating activities

Loss before income tax

(689,367)

(111,012)

Adjustments for:

Depreciation and amortisation

2,864

–

Share options expense

11,833

4,360

Intercompany charges

–

–

Foreign exchange

6,158

–

(Increase)/Decrease in trade and receivables

17,350

(44,683)

Increase/(Decrease) in trade and payables

(56,946)

51,286

Net cash used in operating activities

(708,108)

(100,049)

Cash flows from investing activities

Cash acquired upon acquisition

1,744

–

Interest received

–

–

Purchase of property plant and equipment

(16,755)

–

Loans granted to subsidiary undertakings

–

–

Exploration and evaluation activities

(485,636)

–

Net cash used in investing activities

(500,647)

–

Cash flows from financing activities

Proceeds from issue of share capital

2,000,000

1,400,600

Transaction costs of share issue

(89,943)

(116,127)

Net cash generated from financing activities

1,910,057

1,284,473

Net increase in cash and cash equivalents

          701,302

1,184,424

Cash and cash equivalents at beginning of period

1,184,424

–

Exchange gain on cash and cash equivalents

–

–

Cash and cash equivalents at end of period

1,885,726

1,184,424

 

DIRECTOR RESIGNATION

Non-Executive Director David Hall has today announced his intention to resign from the Board to focus on his other business interests. His resignation will come into effect following the Company’s AGM. The Board would like to thank David for his contributions to the Company.

NOTICE OF AGM

The Company also gives notice that its Annual General Meeting (‘AGM’) will be held on June 5th at 11am. at The Washington Mayfair Hotel, 5 Curzon Street, London, W1J 5HE.

Copies of the Notice of AGM, together with the Form of Proxy and the Annual Report will be posted today to shareholders and will be available to view on the Company’s website at www.chesterfieldresourcesplc.com

 

Subscribe to Chesterfield Resources Plc announcements

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About Chesterfield Resources Plc

Chesterfield Resources is a copper-gold exploration and development Company active in Cyprus. The Company generates value for shareholders by discovering and developing multiple deposits to production. Chesterfield is currently progressing its Cyprus Project.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

**ENDS**

 For further information, please visit www.chesterfieldresourcesplc.com or contact:

 

Chesterfield Resources plc:

Martin French, Executive Chairman            Tel: +44 (0) 7901 552277

 

Shard Capital (Broker):

Damon Heath                                                    Tel: +44 (0) 20 7186 9952 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

European Metals Holdings Limited – Quarterly Activities Report

Posted on by emmaedwards

EUROPEAN METALS HOLDINGS LIMITED

QUARTERLY ACTIVITIES REPORT – MARCH 2019

European Metals Holdings Limited (“European Metals” or “the Company”) is pleased to report on its activities and continued progress in the development of the globally significant Cinovec Lithium / Tin Project (“the project” or “Cinovec”) in Czech Republic during the three-month period ending March 2019.

DRILL PROGRAMME UPDATE  

During the quarter the Company released two updates regarding the current eight core-hole resource drilling programme at the Cinovec Project.  Drilling of five of the eight holes was reported as completed.  Analytical results for the five drill holes from the Cinovec South deposit were also reported.

Key points:

·     Resource drill holes CIS-10, CIS-11, CIS-12, CIS-13 and CIS-14 were completed including analytical reports.

o  Hole CIS-11 returned 129.3m averaging 0.51% Li2O, incl. 2m @ 0.93% Li2O, 2m @0.93% Li2O; 5m @ 0.56% Sn and 0.11% W, 5m @ 0.21% Sn, and 7m @ 0.11% Sn.

o  Hole CIS-13 returned 108m averaging 0.45% Li2O and 0.11% Sn, incl. 4m @ 0.99% Li2O; 6m @ 0.29% Sn, 5m @ 0.34% Sn, 3m @ 0.77% Sn and 0.12% W, and 2m @ 1.03% Sn, incl. 1m @ 1.92% Sn.

o  Hole CIS-10 returned 89m averaging 0.47% Li2O, incl. 6m @ 1.02% Li2O and 6m @ 0.91% Li2O; 5m @ 0.26% Sn, 5m @ 0.14% Sn, and 7m @ 0.077% W.

o  Hole CIS-12 returned 93m averaging 0.48% Li2O, incl. 2m @ 1.32% Li2O, 2.4m @ 1.17% Li2O and 3m @ 1.08% Li2O; 8m @ 0.83% Li2O and 0.18% Sn, 4m @ 0.13% Sn, and 5m @ 0.16% W.

o  Hole CIS-14 returned 67m averaging 0.43% Li2O (incl. 3m @ 0.99% Li2O and 0.18% Sn); 8m @ 0.67% Li2O and 0.20% Sn (incl. 4.15m @ 1.00% Li2O and 0.35% Sn); 8m @ 0.21% Sn, 4m @ 0.39% Sn; and 3m @ 0.20% Sn

BATTERY GRADE LITHIUM HYDROXIDE SAMPLE PRODUCED

Post the quarter, the Company provided a project update highlighting the outcomes from a recently completed engineering assessment of the flowsheet and subsequent testwork aimed at demonstrating the ability to produce lithium hydroxide from Cinovec ore.  The move by the Company to develop a process for the production of lithium hydroxide from the Cinovec project has been in response to market forces that continue to move Czech and European manufacturers towards the production of advanced technology batteries.

The highlights were:

·     A flowsheet was successfully developed and tested for the production of lithium hydroxide from Cinovec ore.

·     A potential production rate in excess of 25,000 tpa lithium hydroxide was demonstrated to be possible utilising a robust process route proven in the lithium production sector.

·     A formal update of the project PFS reflecting the production of lithium hydroxide is underway and will be completed soon.

 

 

CORPORATE

HALF YEAR ACCOUNTS

The Company released the Half Year Accounts.

 

PERFORMANCE SHARES

As at 31 March 2019 the issued performance shares including the terms and conditions were as follows:

Number

Description

Summary Terms & Conversion Hurdles

1,000,000

1,000,000

A Class Performance Shares

B Class Performance Shares

Convert into Shares and an equivalent number of CDIs upon the Company’s Mineral Resource at Cinovec South and Cinovec Main being entered in the State Balance. The A Class Performance Shares and B Class Performance Shares shall convert into the number of Shares and equivalent number of CDIs equal to 1,000,000 multiplied by 0.5 and divided by the greater of: (A) $0.50 per CDI; and (B) the volume weighted average price of CDIs (expressed as a decimal of $1.00) as calculated over the 5 ASX trading days prior to the date the Mineral Resource is entered.

1,000,000

1,000,000

A Class Performance Shares

B Class Performance Shares

Convert into Shares and an equivalent number of CDIs upon the issuance of the preliminary mining licenses relating to the Cinovec Project. The A Class Performance Shares and B Class Performance Shares shall convert into the number of Shares and equivalent number of CDIs equal to 1,000,000 multiplied by 0.5 and divided by the greater of: (A) $0.50 per CDI; and (B) the volume weighted average price of CDIs (expressed as a decimal of $1.00)  as calculated over the 5 ASX trading days prior to the date the final preliminary mining license is issued.

3,000,000

3,000,000

A Class Performance Shares

B Class Performance Shares

Convert into Shares and an equivalent number of CDIs upon the completion of a definitive feasibility study (DFS). For clarity, the DFS must be: (i) of a standard suitable to be submitted to a financial institution as the basis for lending of funds for the development and operation of mining activities contemplated in the study; (ii) capable of supporting a decision to mine on the Permits; and (iii) completed to an accuracy of +/- 15% with respect to operating and capital costs and display a pre-tax net present value of not less than US$250,000,000. The A Class Performance Shares and B Class Performance Shares shall convert into the number of Shares and equivalent number of CDIs equal to 3,000,000 multiplied by 0.5 and divided by the greater of: (A) $0.50 per CDI; and (B) the volume weighted average price of CDIs (expressed as a decimal of $1.00) as calculated over the 5 ASX trading days prior to date of receipt of the completed DFS.

(Together the Milestones and each a Milestone).  For the avoidance of doubt, the number of Shares and equivalent number of CDIs which will be issued on conversion of the A Class Performance Shares and B Class Performance Shares will not exceed a ratio of 1 for 1.)

If the Milestone is not achieved or the Change of Control Event does not occur by the required date, then each A Class Performance Share and B Class Performance Share held by a Holder will be automatically redeemed by the Company for the sum of $0.000001 within 10 ASX trading days of non-satisfaction of the Milestone.

 

TENEMENT SCHEDULE

Permit

Code

Deposit

Interest at beginning of Quarter

Acquired / Disposed

Interest at end of Quarter

Exploration Area

Cinovec

N/A

100%

N/A

100%

Cinovec II

100%

N/A

100%

Cinovec III

100%

N/A

100%

Cinovec IV

100%

N/A

100%

Preliminary Mining Permit

Cinovec I

Cinovec East

100%

N/A

100%

Cinovec II

Cinovec South

100%

N/A

100%

 

BACKGROUND INFORMATION ON CINOVEC

PROJECT OVERVIEW

 

Cinovec Lithium/Tin Project

 

European Metals, through its wholly owned subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over the Cinovec Lithium/Tin Project. Cinovec hosts a globally significant hard rock lithium deposit with a total Indicated Mineral Resource of 372.4Mt @ 0.45% Li2O and 0.04% Sn and an Inferred Mineral Resource of 323.5Mt @ 0.39% Li2O and 0.04% Sn containing a combined 7.18 million tonnes Lithium Carbonate Equivalent and 263kt of tin reported 28 November 2017 (Further Increase in Indicated Resource at Cinovec South). An initial Probable Ore Reserve of 34.5Mt @ 0.65% Li2O and 0.09% Sn reported 4 July 2017 (Cinovec Maiden Ore Reserve – Further Information) has been declared to cover the first 20 years mining at an output of 22,500tpa of lithium carbonate reported 11 July 2018 (Cinovec Production Modelled to Increase to 22,500tpa of Lithium Carbonate).

This makes Cinovec the largest lithium deposit in Europe, the fourth largest non-brine deposit in the world and a globally significant tin resource.

The deposit has previously had over 400,000 tonnes of ore mined as a trial sub-level open stope underground mining operation.

EMH has completed a Preliminary Feasibility Study, conducted by specialist independent consultants, which indicated a return post tax NPV of USD540m and an IRR of 21% reported 19 April 2017 (PFS Confirms Potential Low Cost Lithium Carbonate Producer). It confirmed the deposit is amenable to bulk underground mining. Metallurgical test work has produced both battery grade lithium carbonate and high-grade tin concentrate at excellent recoveries. Cinovec is centrally located for European end-users and is well serviced by infrastructure, with a sealed road adjacent to the deposit, rail lines located 5 km north and 8 km south of the deposit and an active 22 kV transmission line running to the historic mine. As the deposit lies in an active mining region, it has strong community support.

The economic viability of Cinovec has been enhanced by the recent strong increase in demand for lithium globally, and within Europe specifically.

There are no other material changes to the original information and all the material assumptions continue to apply to the forecasts.

 

CONTACT

For further information on this update or the Company generally, please visit our website at www. http://europeanmet.com or contact:

Mr. Keith Coughlan
Managing Director  

COMPETENT PERSON

Information in this release that relates to exploration results is based on information compiled by Dr Pavel Reichl. Dr Reichl is a Certified Professional Geologist (certified by the American Institute of Professional Geologists), a member of the American Institute of Professional Geologists, a Fellow of the Society of Economic Geologists and is a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and a Qualified Person for the purposes of the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009. Dr Reichl consents to the inclusion in the release of the matters based on his information in the form and context in which it appears. Dr Reichl holds CDIs in European Metals.

The information in this release that relates to Mineral Resources and Exploration Targets has been compiled by Mr Lynn Widenbar. Mr Widenbar, who is a Member of the Australasian Institute of Mining and Metallurgy, is a full time employee of Widenbar and Associates and produced the estimate based on data and geological information supplied by European Metals. Mr Widenbar has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the JORC Code 2012 Edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Widenbar consents to the inclusion in this report of the matters based on his information in the form and context that the information appears.

CAUTION REGARDING FORWARD LOOKING STATEMENTS

Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the company’s business and operations in the future. The company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the company or management or beyond the company’s control.

Although the company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

LITHIUM CLASSIFICATION AND CONVERSION FACTORS

Lithium grades are normally presented in percentages or parts per million (ppm). Grades of deposits are also expressed as lithium compounds in percentages, for example as a percent lithium oxide (Li2O) content or percent lithium carbonate (Li2CO3) content.

Lithium carbonate equivalent (“LCE“) is the industry standard terminology for, and is equivalent to, Li2CO3. Use of LCE is to provide data comparable with industry reports and is the total equivalent amount of lithium carbonate, assuming the lithium content in the deposit is converted to lithium carbonate, using the conversion rates in the table included below to get an equivalent Li2CO3 value in percent. Use of LCE assumes 100% recovery and no process losses in the extraction of Li2CO3 from the deposit.

Lithium resources and reserves are usually presented in tonnes of LCE or Li.

The standard conversion factors are set out in the table below:

Table: Conversion Factors for Lithium Compounds and Minerals

Convert from

Convert to Li

Convert to Li2O

Convert to Li2CO3

Lithium

Li

1.000

2.153

5.324

Lithium Oxide

Li2O

0.464

1.000

2.473

Lithium Carbonate

Li2CO3

0.188

0.404

1.000

WEBSITE

A copy of this announcement is available from the Company’s website at www.europeanmet.com.

ENQUIRIES:

European Metals Holdings Limited

Keith Coughlan, Managing Director

Kiran Morzaria, Non-Executive Director

Julia Beckett, Company Secretary

Tel: +61 (0) 419 996 333

Email: keith@europeanmet.com

Tel: +44 (0) 20 7440 0647

Tel: +61 (0) 8 6245 2057

Email: julia@europeanmet.com

Beaumont Cornish (Nomad & Broker)

Michael Cornish

Roland Cornish

Tel: +44 (0) 20 7628 3396

Email: corpfin@b-cornish.co.uk

Joint Broker

Damon Health

Erik Woolgar

Shard Capital

Tel:  +44 (0) 20 7186 9950

The information contained within this announcement is considered to be inside information, for the purposes of Article 7 of EU Regulation 596/2014, prior to its release.  The person who arranged for the release of this announcement on behalf of the Company was Keith Coughlan, Managing Director.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

European Metals Holdings Limited – Quarterly Cashflow Report

Posted on by emmaedwards

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96  Origin Appendix 8  Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

European Metals Holdings Limited (ASX: EMH)

ABN

Quarter ended (“current quarter”)

55 154 618 989

31 March 2019

Consolidated statement of cash flows

Current quarter $A’000

Year to date (9 months)
$A’000

1.

Cash flows from operating activities

1.1

Receipts from customers

1.2

Payments for

(304)

(1,102)

(a)   exploration & evaluation

(b)   development

–

–

(c)   production

–

–

(d)   staff costs

(135)

(535)

(e)   administration and corporate costs

(244)

(968)

1.3

Dividends received (see note 3)

–

–

1.4

Interest received

–

1

1.5

Interest and other costs of finance paid

–

–

1.6

Income taxes paid

–

–

1.7

Research and development refunds

–

–

1.8

Other (legal costs)

–

–

1.9

Net cash from / (used in) operating activities

(683)

(2,604)

2.

Cash flows from investing activities

–

–

2.1

Payments to acquire:

(a)   property, plant and equipment

(b)   tenements (see item 10)

–

–

(c)   investments

–

–

(d)   other non-current assets

–

–

2.2

Proceeds from the disposal of:

–

–

(a)   property, plant and equipment

(b)   tenements (see item 10)

–

–

(c)   investments

–

–

(d)   other non-current assets

–

–

2.3

Cash flows from loans to other entities

–

–

2.4

Dividends received (see note 3)

–

–

2.5

Other (provide details if material)

–

–

2.6

Net cash from / (used in) investing activities

–

–

3.

Cash flows from financing activities

–

1,817

3.1

Proceeds from issues of shares

3.2

Proceeds from issue of convertible notes

–

–

3.3

Proceeds from exercise of share options

–

–

3.4

Transaction costs related to issues of shares, convertible notes or options

(4)

(127)

3.5

Proceeds from borrowings

–

–

3.6

Repayment of borrowings

–

–

3.7

Transaction costs related to loans and borrowings

–

–

3.8

Dividends paid

–

–

3.9

Other (provide details if material)

–

–

3.10

Net cash from / (used in) financing activities

(4)

1,690

4.

Net increase / (decrease) in cash and cash equivalents for the period

2,007

2,223

4.1

Cash and cash equivalents at beginning of period

4.2

Net cash from / (used in) operating activities (item 1.9 above)

(683)

(2,604)

4.3

Net cash from / (used in) investing activities (item 2.6 above)

–

–

4.4

Net cash from / (used in) financing activities (item 3.10 above)

(4)

1,690

4.5

Effect of movement in exchange rates on cash held

–

10

4.6

Cash and cash equivalents at end of period

1,320

1,319

5.

Reconciliation of cash and cash equivalents
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter
$A’000

Previous quarter
$A’000

5.1

Bank balances

1,319

2,007

5.2

Call deposits

–

–

5.3

Bank overdrafts

–

–

5.4

Other (provide details)

–

–

5.5

Cash and cash equivalents at end of quarter (should equal item 4.6 above)

1,319

2,007

6.

Payments to directors of the entity and their associates

Current quarter
$A’000

6.1

Aggregate amount of payments to these parties included in item 1.2

122

6.2

Aggregate amount of cash flow from loans to these parties included in item 2.3

6.3

Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Amounts paid to directors and their associates as director remuneration and reimbursement expenses (117k). Amounts paid to Wilgus Investments Pty Ltd a related entity of David Reeves for Rent ($5k).

7.

Payments to related entities of the entity and their associates

Current quarter
$A’000

7.1

Aggregate amount of payments to these parties included in item 1.2

7.2

Aggregate amount of cash flow from loans to these parties included in item 2.3

7.3

Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

8.

Financing facilities available
Add notes as necessary for an understanding of the position

Total facility amount at quarter end
$A’000

Amount drawn at quarter end
$A’000

8.1

Loan facilities

8.2

Credit standby arrangements

8.3

Other (please specify)

8.4

Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9.

Estimated cash outflows for next quarter

$A’000

9.1

Exploration and evaluation

288

9.2

Development

9.3

Production

9.4

Staff costs

218

9.5

Administration and corporate costs

289

9.6

Other (provide details if material)

9.7

Total estimated cash outflows

795

10.

Changes in tenements
(items 2.1(b) and 2.2(b) above)

Tenement reference and location

Nature of interest

Interest at beginning of quarter

Interest at end of quarter

10.1

Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced

Nil

10.2

Interests in mining tenements and petroleum tenements acquired or increased

Nil

Compliance statement

1        This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2        This statement gives a true and fair view of the matters disclosed.

Sign here:            Julia Beckett                     Date: 30 April 2019

                            (Company secretary)

Print name:       Julia Beckett

Notes

1.       The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2.       If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3.       Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

Nostra Terra Oil and Gas Company Plc – First Horizontal Well at Mesquite

Posted on by emmaedwards

Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, is pleased to announce plans to drill the Company’s first horizontal well at its Mesquite Asset in the Permian Basin, Texas (“Mesquite”).

 

Proposed new lease agreement & plans to drill

 

Nostra Terra is pleased to announce that it is in advanced discussions with regards to  a new 160-acre lease opportunity (the “New Lease”) in the Mesquite Target Area (the “Target Area”). The Target Area currently covers over 30,000 acres, of which the Company has secured 2,184 gross acres (1,984 net acres to Nostra Terra).

 

The New Lease, presents Nostra Terra with an immediate opportunity to drill a half-mile horizontal well to prove up and increase the Company’s overall Proven (1P) and Probable (2P) oil reserves at Mesquite. The New Lease is standalone, near, but not adjacent to, the existing acreage. Accordingly, the Company expects to be able to bring in partners on the New Lease whilst still maintaining a 100% interest in the existing Mesquite Asset

 

Nostra Terra intends to fund drilling of the proposed horizontal well using existing cash resources and through selling off a percentage working interest in the New Lease to certain oil and gas investors. Nostra Terra has already received expressions of interest from potential industry partners concerning the New Lease.

 

Next steps

 

Following completion of the placing announced on 27 February 2019, Nostra Terra engaged a landman to begin title work and to secure new leases for the Company in the Target Area.

 

The Company had previously identified the potential of the New Lease and has subsequently entered into discussions with the current mineral owners. These discussions are nearing conclusion and once complete Nostra Terra will apply for a permit to drill the first horizontal well.

 

Following permitting, Nostra Terra plans to secure a rig and prepare the pad, followed by drilling and completion operations. Subject to execution of the lease agreement, these activities are expected to take place in the coming weeks and months.

 

Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:

 

“This new lease presents an excellent strategic opportunity for Nostra Terra. We see such large potential in the area and plan to increase our footprint, including retaining a larger interest in the Mesquite Asset. We will be able to drill our first horizontal well at Mesquite, with the aim of proving reserves for additional horizontal drilling. We intend do this while retaining full ownership of the acreage we have already secured.

 

Much more importantly, we will also preserve our first mover advantage in the wider Mesquite target area. The first horizontal well could deliver substantial cash flow to the Company whilst significantly strengthening our position in any future farm out discussions for Mesquite.”

 

Competent Person Disclosure

 

John Stafford, a Director at Nostra Terra with over 35 years’ relevant experience in the oil industry, has reviewed this announcement for the purposes of the current Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in June 2009. Mr. Stafford is a Fellow of the Geological Society and a member of the Petroleum Exploration Society of Great Britain.

 

For further information, visit www.ntog.co.uk or contact:

 

Nostra Terra Oil and Gas Company plc

Matt Lofgran, CEO

 

Tel:

+1 480 993 8933

Strand Hanson Limited

(Nominated & Financial Adviser and Joint Broker)

Rory Murphy / Ritchie Balmer / Jack Botros

 

Tel:

+44 (0) 20 7409 3494

Shard Capital Stockbrokers (Joint Broker)

Damon Heath / Erik Woolgar

 

Smaller Company Capital Limited (Joint Broker)

Rupert Williams / Jeremy Woodgate

Tel:

 

 

Tel:

+44 (0) 207 186 9952

 

 

+44 (0) 203 651 2910

About Nostra Terra

 

Nostra Terra’s US portfolio includes its 100% working interest in the Pine Mills oil field, East Texas, and its various working interests in assets in the Permian Basin, West Texas, including Mesquite. Net Revenue Interest to Nostra Terra in each lease ranges from 75-80% after entitlements to mineral owners.

 

As of 14 February 2019, Nostra Terra’s net 2P (Proved and Probable) oil reserves across its US assets was 2,429,660 barrels of oil, including Net Proved reserves of 764,030 barrels of oil.

 

In Egypt, Nostra Terra owns a 50% working interest in the East Ghazalat Concession (“the Concession”), via its wholly owned subsidiary Independent Resources Egypt Limited (“IRE”). Nostra Terra’s attributable 2P Reserves from the Concession are 1,008,922 barrels of oil (according to the 2015 Competent Persons Report produced by DeGoyler and MacNaughton Canada). Nostra Terra is currently in international arbitration with the Concession’s operator, North Petroleum.

 

About Mesquite

 

The Mesquite asset covers 2,184 gross acres (1,984 net acres to Nostra Terra) in the Eastern Shelf of the prolific Permian Basin. The target formations at Mesquite are “tight”, meaning the oil-bearing rock formations are conventional horizons of low permeability. As such, the target formations have characteristics that make them ideal targets for horizontal drilling and have delivered substantial oil production in other areas of the Permian Basin using these techniques.

 

In the Engineered Economics Report for Mesquite, prepared by Trey Resources (“Trey”) and announced on 21 January 2019, the Company reported that the first 1,384 net acres at Mesquite contain 2,400,000 barrels of recoverable oil (Estimated Ultimate Recovery, “EUR”). The NPV 10 valuation assigned to these barrels, at US$60 oil, is US$28,600,000.

 

Trey’s Per Well Economic model is based on drilling 5,000ft (1,524m) lateral (horizontal) wells on 160-acre spacing. Each 5,000ft lateral is expected to have a 20-year well life and to produce 100,000 barrels of oil in its first three years. The estimated Internal Rate of Return for each well is 46% at US$60 oil.

 

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

Galileo Resources Plc – Holdings in Company

Posted on by emmaedwards

The Company has received a TR-1 which is set out, without amendment, below:

 

 

TR-1: S

 

NOTIFICATION OF MAJOR HOLDINGS (to be sent to the relevant issuer and to the FCA in Microsoft Word format if possible)i

1a. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attachedii:

Galileo Resources PLC

 

 

1b. Please indicate if the issuer is a non-UK issuer  (please mark with an “X” if appropriate)

Non-UK issuer

2. Reason for the notification (please mark the appropriate box or boxes with an “X”)

An acquisition or disposal of voting rights

X

An acquisition or disposal of financial instruments

An event changing the breakdown of voting rights

Other (please specify)iii:

3. Details of person subject to the notification obligationiv

Name

Peel Hunt LLP

City and country of registered office (if applicable)

London, United Kingdom

4. Full name of shareholder(s) (if different from 3.)v

Name

City and country of registered office (if applicable)

5. Date on which the threshold was crossed or reachedvi:

17/04/2019

6. Date on which issuer notified (DD/MM/YYYY):

23/04/2019

7. Total positions of person(s) subject to the notification obligation

% of voting rights attached to shares (total of 8. A)

% of voting rights through financial instruments
(total of 8.B 1 + 8.B 2)

Total of both in % (8.A + 8.B)

Total number of voting rights of issuervii

Resulting situation on the date on which threshold was crossed or reached

16.64%

n/a

16.64%

50,695,539

Position of previous notification (if

applicable)

14.97%

 

8. Notified details of the resulting situation on the date on which the threshold was crossed or reachedviii

A: Voting rights attached to shares

Class/type of
shares

ISIN code (if possible)

Number of voting rightsix

% of voting rights

Direct

(Art 9 of Directive 2004/109/EC) (DTR5.1)

Indirect

(Art 10 of Directive 2004/109/EC) (DTR5.2.1)

Direct

(Art 9 of Directive 2004/109/EC) (DTR5.1)

Indirect

(Art 10 of Directive 2004/109/EC) (DTR5.2.1)

GB00B115T142

50,695,539

n/a

16.64%

n/a

SUBTOTAL 8. A

50,695,539

16.64%

 

 

B 1: Financial Instruments according to Art. 13(1)(a) of Directive 2004/109/EC (DTR5.3.1.1 (a))

Type of financial instrument

Expiration
datex

Exercise/
Conversion Periodxi

Number of voting rights that may be acquired if the instrument is

exercised/converted.

% of voting rights

n/a

SUBTOTAL 8. B 1

 

 

B 2: Financial Instruments with similar economic effect according to Art. 13(1)(b) of Directive 2004/109/EC (DTR5.3.1.1 (b))

Type of financial instrument

Expiration
datex

Exercise/
Conversion Period xi

Physical or cash

settlementxii

Number of voting rights

% of voting rights

n/a

SUBTOTAL 8.B.2

 

 

 

9. Information in relation to the person subject to the notification obligation (please mark the

applicable box with an “X”)

Person subject to the notification obligation is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuerxiii

x

Full chain of controlled undertakings through which the voting rights and/or the
financial instruments are effectively held starting with the ultimate controlling natural person or legal entityxiv (please add additional rows as necessary)

Namexv

% of voting rights if it equals or is higher than the notifiable threshold

% of voting rights through financial instruments if it equals or is higher than the notifiable threshold

Total of both if it equals or is higher than the notifiable threshold

n/a

10. In case of proxy voting, please identify:

Name of the proxy holder

n/a

The number and % of voting rights held

n/a

The date until which the voting rights will be held

n/a

11. Additional informationxvi

n/a

Place of completion

London

Date of completion

23/04/2019

 

You can also follow Galileo on Twitter: @GalileoResource

 

For further information, please contact: Galileo Resources PLC

 

Colin Bird, Chairman

Andrew Sarosi, Executive Director

 

Tel +44 (0) 20 7581 4477

Tel +44 (0) 1752 221937

Beaumont Cornish Limited – Nomad

Roland Cornish/James Biddle

 

Tel +44 (0) 20 7628 3396

Novum Securities Limited  Broker

Colin Rowbury/Jon Belliss

Tel +44 (0) 20 7399 9400

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

ECM Insights – April 2019

Posted on by shardadmin

Market Overview

2019 has seen a drop in fundraising and listing activity in comparison to this time last year. There have been zero new issues on AIM in January and only three in the Main Market.

While there has been significant slowdown in the market, two bright spots in terms of fundraising are the Healthcare and Oil and Gas sectors, which make up the majority of the funds raised in January. While the Materials sector saw a high level of activity, the amounts of funds raised were disproportionately low.

Shard Capital is looking ahead to the release of February numbers to determine if January was only a bump in the road or the beginning of a downward trend.

While companies may be expected to “graduate” from AIM to the Main Market, potentially lower costs and regulatory requirements may have driven companies to do the opposite.

Over recent years, there has been a trend for smaller companies to choose the Main Market over AIM. This may be reversing.

So far, 2019 has seen two companies move from AIM to the Main Market while two companies have gone the other way.

Click here to read our newsletter.

Jubilee Metals Group Plc – Funding Secured for Kabwe Project and Acquisition

Posted on by emmaedwards

Jubilee is pleased to announce that it has executed a share purchase agreement for the acquisition of the Sable Zinc refinery in Kabwe Zambia. The refinery is situated immediately adjacent to the large stock piles of zinc, lead and vanadium that Jubilee has contracted from BMR Group PLC.

In making this agreement the Board is also pleased to announce that they have secured a combination of debt and equity financing to fully complete the transaction and deliver the Company’s Kabwe project.

 

Highlights

·    Consideration for the Sable Zinc refinery is GBP 9.16 million (US$12 million) in stage payments

·    The Acquisition reduces the time to build the refinery by some 18 months delivering the first metal within a year from the Acquisition

·    Overall project capital to produce first metal is significantly reduced to some GBP18.32 million (US$ 24 million)

·    The project will ramp up over a two-year period from 20 tonnes to 40 tonnes per hour producing significant amounts of zinc, vanadium and lead

·    Jubilee is financing the Acquisition and ramp up by an equity raising of GBP11.07 million (US$14.5 million) and a secured convertible loan note of GBP6.11 million (US$8 million)

·    The Kabwe project is expected to significantly enhance Company earnings on the back of three revenue producing metals

Leon Coetzer, Chief Executive Officer, says:

 

“I am delighted that, after months of test work, flowsheet design and refinery acquisition negotiations, we can announce the full implementation plan for the Kabwe base metal project.  My team and I are looking forward to managing an implementation programme to deliver to our shareholders this outstanding project on time and in budget.

I am particularly pleased that we have been able to secure the support of large institutional funders in the equity placing which, is testimony to Jubilee’s Metals Recovery strategy and the quality of the Kabwe project”

 

Sable Zinc Kabwe Project (“Project”)

The combined secured funding fully funds the Acquisition as well as the project capital required to implement the Project to produce zinc, vanadium and lead from the surface material at Kabwe. The Project targets an initial processing rate of 20 tonnes per hour producing a zinc concentrate and vanadium pentoxide before ramping up to a targeted 40 tonnes per hour producing zinc metal, vanadium pentoxide and a lead concentrate.  The Project targets to produce annually over 8 000 tonnes of zinc, 1 500 tonnes of vanadium and 15 000 tonnes of lead as it ramps up to full capacity over a 2-year period.

Jubilee has already secured Zambian ministerial approval for the transaction. The Minister also waived previous conditions placed on the Kabwe mining licences. 

 

Sable Zinc Acquisition

Jubilee executed the acquisition of Sable Zinc Kabwe Limited in Zambia from two subsidiaries of Glencore plc “Glencore” for a consideration of GBP9.16 million (US$12 million) (ZAR 175.97 million) (the “Acquisition”).

The Acquisition is funded through a combination of debt and equity. Jubilee secured a convertible loan note for GBP6.11 million (US$8 million) (ZAR 117.31 million) with ACAM LP and successfully completed a placing of 491,814,444 new Jubilee shares at an issue price of 2.25 pence per share to raise GBP11.07 million (US$14.50 million) (ZAR 212.57 million) before expenses.

The consideration for the Acquisition is payable in stages as follows:

 

·    US$6,000,000 within 5 business days after fulfilment or waiver of the conditions precedent to the share purchase agreement (“Closing Date”);

·    US$3,000,000 on the earlier of the date falling 30 days after the date of completion of the conversion of the Sable Zinc Kabwe plant to a zinc processing plant and the date falling 6 months after the Closing Date (“Second Instalment”); and

·    US$3,000,000 on the earlier of the date falling 30 days after the date of commencement of commercial production and the date falling 6 months after the Second Instalment.

The Acquisition is conditional upon the fulfilment of the following conditions precedent as contained in the agreement:

·    Approval and/or clearance of the transaction under the Zambian Competition Act; and

·    Conclusion of an acid supply agreement for the sale of acid produced at the plant by Sable Zinc Kabwe to Glencore until such time as such acid is required for the operations of Sable Zinc Kabwe in the production of saleable products.

 

Project loan

Jubilee also, through its wholly owned subsidiary Braemore Holdings (Mauritius) Pty Ltd, successfully secured debt funding of GBP6.11 million (US$8 million) from ACAM LP (“ACAM”), ACAM is an affiliate of two sophisticated investors based in London and New York. The funding is secured over Jubilee’s Zambian assets, bears interest at 12 per cent per annum and is repayable in full 36 months from the date of execution of the funding agreement. 

At any time that the loan is outstanding, ACAM may at its absolute discretion, by conversion notice, elect to convert the loan and all accrued but unpaid interest into 5 per cent unsecured convertible loan notes with a conversion price of 2.81 pence (ZAR 53.98 cents) (“Subscription Price”) and a maturity date which falls on the third anniversary of the Closing Date.

During the loan period, Jubilee may notify ACAM of its intention to prepay the whole of the loan balance by prepayment notice. On the date of any prepayment Jubilee will issue warrants to ACAM to a value equal to 50 per cent of the amount of the loan and all accrued but unpaid interest thereon divided by the Subscription Price.

Jubilee and ACAM have agreed to work together, without obligation from either party, to explore funding solutions for future expansion projects outside of South Africa as opportunities arise.

 

Equity Placing

The Company has successfully completed a placing of 491,814,444 new ordinary shares of 1 pence each (“Ordinary Shares”) in Jubilee (the “Placing Shares”) at a price of 2.25 pence (ZAR 43.22 cents) per share to raise approximately GBP 11.07 million (ZAR 212.57 million at current exchange rates) before expenses.

The placing includes the issuance of 1,473,055 warrants priced at a premium of 50 per cent of the placing price or 3.38 pence (ZAR 64.83 cents) per warrant share valid for a period of 2 years. 

The Placing Shares have been issued, conditional on Admission (as defined below), as fully paid and rank pari passu in all respects with the existing ordinary shares, including the right to receive all dividends and other distributions declared on or after the date on which they are issued.  Application will be made for the Placing Shares to be admitted to trading on AIM and to be listed on the AltX of the JSE Limited, which is expected to take place on or about 28 March 2019 (“Admission”).

Following Admission, the Company’s total issued share capital will comprise 1,855,300,673 Ordinary Shares. As the Company does not hold any Ordinary Shares in treasury, this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company following Admission.

The combined Loan and Placing ensures that the Kabwe project is fully funded to reach its operational targets.  The funding was successfully secured in partnership with the Company’s lead arranger RiverFort Global Capital Ltd and its corporate broker Shard Capital Partners LLP with assistance from WH Ireland.

 

 

United Kingdom

21 March 2019

Contacts

Jubilee Metals Group PLC

Colin Bird/Leon Coetzer
Tel: +44 (0) 20 7584 2155 / Tel: +27 (0) 11 465 1913

Corporate Adviser

RiverFort Global Capital Ltd

Brian Kinane

Tel: +44 (0) 753 496 7789

Corporate Broker

Shard Capital Partners LLP
Damon Heath/Erik Woolgar
Tel: +44 (0) 20 7 186 9900

Nominated Adviser

SPARK Advisory Partners Limited
Andrew Emmott/Vassil Kirtchev
Tel: +44 (0) 203 368 3555

JSE Sponsor

Sasfin Capital (a member of the Sasfin group)

Sharon Owens
Tel +27 (0) 11 809 7500

 

    

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

Jubilee Metals Group Plc – General Operations and Projects Update

Posted on by emmaedwards

Highlights

·     Company continues to grow

·     PlatCro Chrome operation acquired in January 2019 already contributing to group earnings ahead of schedule of GBP0.9 million (ZAR16.06 million) combined for January and February 2019

·     The PlatCro PGM project accelerates deliveries of PGM containing material to Northam’s Eland platinum concentrator, scheduled to commence PGM recovery and refining during May 2019

·     Jubilee completes commissioning and bringing into operation of industry first DCM fine chrome plant delivering saleable chrome concentrate to the market

·     The Hernic project continues to deliver strong earnings combined for January and February 2019 of GBP1.10 million (ZAR19.69 million)

 

1= * 6 Element Platinum Group Metals

 

Leon Coetzer, Chief Executive Officer, says:

“The period has been remarkable both operationally and financially for Jubilee leading to a solid South African platform which precedes our targeted growth into base metals in Zambia.

Jubilee has continued to demonstrate its ability to deliver projects on-time and in budget.  The quarter to date has delivered major growth in both our South African chrome and PGM operations.I am particularly pleased with the team’s performance at PlatCro Chrome delivering positive earnings ahead of schedule of GBP0.90 million during the months of January and February 2019. 

The progress is testimony to the operational excellence and tenacity of the Jubilee team.

We continue to consolidate our projects to further advance earnings and fast track our expansion plans both within and outside of South Africa.”

PlatCro chrome and PGM project

Jubilee completed the acquisition of its PlatCro chrome project in January 2019 and delivers positive earnings ahead of projections for January and February of GBP0.90 million (ZAR16.06 million). 

The PlatCro PGM project accelerated deliveries of the PGM containing material to Northam’s Eland platinum concentrator, scheduled to commence PGM recovery and refining during May 2019.  The project targets to process up to 60 000 tonnes per month of PGM material equating to a production potential of 30 000 PGM ounces per annum which equals the current Hernic PGM operation.

DCM fine chrome project

The DCM fine chrome plant was brought into production during January 2019 and ramped up to reach commercial production levels during March 2019.  The project is the first of its kind in the industry targeting the recovery of the super fine chrome component currently lost to tails by the chrome industry.  The DCM plant holds a capacity to process up to 25 000 tonnes per month of chrome containing tailings material.  Jubilee will target to roll-out this process to its other operations.

Hernic project

The Hernic operation continued to deliver strong earnings despite a delayed start-up following the December break and the challenges posed by increased power outages from the South African power grid.  The Company expects production to return to previous levels from March 2019.  Hernic delivered operational earnings of GBP1.10 million for January and February 2019.  The Company expects to further grow the earnings potential as its targets to increase delivery of feed material to the operation.

United Kingdom

20 March 2019

Contacts

Jubilee Metals Group PLC

Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913

Nominated Adviser

SPARK Advisory Partners Limited
Andrew Emmott/Vassil Kirtchev
Tel: +44 (0) 203 368 3555

Corporate Broker

Shard Capital Partners LLP
Damon Heath/Erik Woolgar
Tel +44 (0) 20 7 186 9900

JSE Sponsor

Sasfin Capital (a member of the Sasfin group)

Sharon Owens
Tel +27 (0) 11 809 7500

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

WideCells Group Plc – New Media Business Created

Posted on by emmaedwards

WideCells is pleased to announce that it has created a division encompassing a new media and technology business focussed on providing online marketing, content and technology driven products.  The Board intends to propose a change of name of the Company to Iconic Labs plc.

 

To this effect, two new executive directors are joining the Board with immediate effect: John Quinlan as CEO and Liam Harrington as CBO who were instrumental in growing UNILAD into the world’s most viewed and largest social first publisher.  The Company has also appointed additional non-executives, to bring important strategic insights, details of which are below.

 

Highlights

·     New media and technology business focused on providing online marketing, content and technology driven products

·     Experienced management with proven track record drawn from key individuals at UNILAD, the world’s largest social media publisher

·     Cash flow focussed business model with pre-identified contracts, an identified path to profitability and exceptional growth prospects

·     Taking advantage of structural change in the online market through proprietary technology and the team’s exceptional insights and network

·     Well positioned and with funding to enable rapid organic growth and active roll-up strategy

·     Substantial historic liabilities in the process of being settled and resolved

 

Executive Chairman, David Sefton, said: “Iconic Labs represents an exceptional opportunity for this Company.  The skills and experience of the team in the new media marketing space, as shown through their track record at UNILAD, the world’s largest social first publisher, can deliver an exciting and uniquely positioned business.  The growth of this market is accelerating at an unprecedented pace; global mobile ad spend is projected to increase from US$138 billion in 2018 to US$212 billion in 2021.  The team has the model to capitalise on this.  

 

“We are also highly focused on shareholder returns and value creation and have worked with the team to develop a robust plan which manages costs, so that they are driven by increases in revenue whilst at the same time maintaining high growth.  Both the Board and the team are committed to achieving net positive free cashflow this year.  Finally, we will continue to support the development of the stem cell services business from a solid footing and will invest on a scheduled, drip fed basis, against achieving milestones on a new, careful development plan and at the same time resolving substantial historical liabilities built up by Wide Cells.  Iconic Labs can also help with the education and information challenges of Wide Cells.”

 

New Iconic Labs CEO John Quinlan said: “We understand how to build a business and generate revenue in the new media space.  We have a unique proposition, in an extraordinarily high growth area.  On the back of revenue growth from pre identified contracts in our Agency Consultancy division, we will roll-out a range of services, content and cutting-edge technology that target future generation audiences and establish a leading position in the new media sector.  Exciting times are ahead; we’re going to grasp every opportunity to build a business that creates value for our clients, ourselves and our shareholders.” 

 

OVERVIEW

 

Iconic Labs is a new media and technology business focussed on providing online marketing, content and technology driven products to allow companies to increase consumer engagement and create iconic brands.  Leveraging the team’s unique knowledge and expertise of content and technology gained from their time at UNILAD, which achieved revenues in excess of £10 million per annum, the Company aims to deliver best-in-class consultancy advice, products, content, marketing and distribution for its clients. 

 

Iconic Labs operates in a dramatically growing market which is driven by several key changes within the industry: consumer habits shifting to digital and social from TV and print; increasing numbers of distribution platforms all fighting for premium content to attract audiences; and traditional agencies struggling to adapt to client demands and new technologies.  As examples, global mobile ad spend is projected to increase from US$138 billion in 2018 to US$212 billion in 2021, while SVOD services rose from 14% of households in 2014 to 39% in 2018.

 

The Board has recognised the team’s key differentiators to capitalise on this space which include: its network of developers, influencers and creators within the space who understand what moves the dial to create trends; experience in consumer data interpretation and insights, and critically its understanding of technology and a platform agnostic approach that utilises all tools at its disposal, as well as its ability to identify consumer trends and what makes an app, content or product go viral.

 

Iconic Labs will roll-out six complementary divisions over a phased period to ensure multiple revenue streams:

·     Agency Consultancy – a consultancy business advising companies looking to use social media tools and technology to better engage with consumers and key stakeholders. 

·     Online Publishing Brands – focused on creating, incubating or acquiring strong, distinct brands known for original content and with multi-platform distribution channels. 

·     E-Commerce – focused on using existing distribution channels and social media tools to sell a variety of products online. 

·     Content Licensing – focused on licensing User Generated Content (‘UGC’) created by users who have posted it to social media.

·     Content Studio – the establishment of a production studio to create original video formats that are tested on social media and further developed for viewing on TV and Subscription Video on Demand (‘SVOD’) platforms such as Netflix.

·     Tech Product Development – focused on developing unique, innovative and forward-thinking products in fast growth sectors.

 

The initial phase during the first 6-12 months will comprise the launch of the Agency Consultancy division, which the Board believes is quickly scalable and will drive early, high-margin, recurring revenues.  As experts at utilising social media platforms and the associated tools, as well as understanding how technology drives and changes a consumer’s behaviour, this division will assist clients (via advertising agencies and directly) with creating and developing brands.  This is achieved by establishing marketing and communications strategies that help build audiences and direct revenue generation and social platform monetisation.  Simultaneously, the Company will build its distribution and publishing division through organic and inorganic growth, after which it will launch the Content Licensing and E-Commerce divisions followed by the video production division.  

 

The Board believes that most businesses could benefit from Iconic Labs’ knowledge and expertise on social platforms as well as user behaviour to build market penetration.  The first target clients will be those who want to attract a future generation and millennial audience as well as those which currently spend significant amounts on ineffective TV advertising, when they should be focused on social media or alternative social platforms.  To this end, the team has strong relationships with key publishers and leading brands and anticipates building its client list aggressively.

 

The team is led by John Quinlan, who is joining the Board as CEO, Liam Harrington as CBO and Sam Asante as COO.  They all have wide experience and proven track records in operating in the new media arena, particularly with UNILAD, which they were instrumental in growing into the world’s most viewed and largest social first publisher, with over 40 billion video views and 1 billion engagements in 2017.  

 

To support this team, the Company has assembled a Board with the relevant industry, corporate and financial experience to ensure future growth, including Executive Chairman, David Sefton, and Non-Executive Director, Richard Thompson.  Newly appointed Non-Executive Directors include Will Muirhead, Xavier Latil and Rodolphe Cadio.

 

Will Muirhead is currently Chief Executive of Rocket Sports Internet Limited, an operator of football news websites and social media accounts, Will formed his first business, SportEV, at Edinburgh University in 1999, which developed the technology to power some of the original OTT/SVOD services.

 

Xavier Latil is the CEO of The Blockchain Group and is a highly experienced executive and entrepreneur with experience in technology, digital communication and e-commerce, communications, marketing and publishing.  He also brings considerable experience in managing high growth companies and in particular their international expansion and with his experience and network can significantly help the company and the new management team, in particular with strategic advice.

 

Rodolphe Cadio is a qualified accountant with considerable board level experience, including currently at Intrasense, Eyelixiby and Clever Cloud. Rodolphe understands the technology and media sectors and will in addition to strategic and sectoral advice, assist the management team in establishing robust and effective financial controls as well as helping to ensure that proper public company financial reporting processes are put in place.

 

Mr John Quinlan, aged 31, currently holds or has held the following directorships and partnerships in the last five years:

Current Directorships

Past Directorships

Surge Social

AMP Social

 

Golden Goose Media

Fullist Ltd

Wildfire Social

 

Mr Liam Harrington, aged 27, currently holds or has held the following directorships and partnerships in the last five years:

Current Directorships

Past Directorships

Bentley Harrington Ltd

 

Mr Will Muirhead aged 42, currently holds or has held the following directorships and partnerships in the last five years:

Current Directorships

Past Directorships

Rocket Sports Internet Limited

Tixdaq Limited

SportEV Limited

 

Mr Xavier Latil aged 46, currently holds or has held the following directorships and partnerships in the last five years:

Current Directorships

Past Directorships

Apophi

The Blockchain Group

 

Leadmedia Group

 

Mr Rodolphe Cadio aged 41, currently holds or has held the following directorships and partnerships in the last five years:

Current Directorships

Past Directorships

Intrasense

Eyelixiby

Clever Cloud

 

Market Abuse Regulation (MAR) Disclosure – Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

 

**ENDS**

 

For further information, please visit the Company’s website www.iconiclabs.co.uk or contact:

 

Shard Capital Partners LLP

Broker – Damon Heath & Erik Woolgar

Tel: +44 (0) 20 7186 9950

St Brides Partners Limited

PR – Melissa Hancock & Juliet Earl

Tel: +44 (0) 20 7236 1177

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.