logo-loader
viewArc Minerals Limited

Arc Minerals Limited - Half-year Report

RNS Number : 3981Y
Arc Minerals Limited
31 December 2019
 

31 December 2019

Arc Minerals Ltd 

('Arc' or the 'Company')

 

Interim Results

 

The Company is pleased to announce its unaudited financial results for the six months ended 30 September 2019.

 

The Interim Results are set out in the following pages.

 

For more information visit www.arcminerals.com.

 

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**

 

Contacts

Arc Minerals Ltd

Nick von Schirnding (Chairman)

 

+44 (0) 20 7917 2942

 

SP Angel (Nominated Adviser & Broker)

Ewan Leggat / Soltan Tagiev

+44 (0) 20 3470 0470

 

 

 

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

GROUP STATEMENT OF COMPREHENSIVE INCOME

for the period ended 30 September 2019

 

 

 

 

 

Six Months to
30 Sep
2019

 

Six Months to
30 Sep
2018

 

 

 

 

 

(Unaudited)

 

(Unaudited)

 

 

 

Notes

 

£ 000's

 

£ 000's

 

 

 

 

 

 

 

 

 

Other operating income

 

 

 

 

 

-

 

Administrative expenses

 

 

 

(944)

 

(1,193)

 

Gain on purchase of shares Casa Mining Ltd

 

 

 

-

 

199

 

Share based payments

 

 

 

(138)

 

(180)

 

Operating loss

 

 

 

(1,082)

 

(1,174)

 

 

 

 

 

 

 

 

 

Impairment - Casa Mining Ltd

 

 

 

(15,000)

 

-

 

Loss before tax

 

 

 

(16,082)

 

(1,174)

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

-

 

-

 

Loss for the period from continuing operations

 

3

 

(16,082)

 

(1,174)

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

Currency translation differences

 

 

 

(872)

 

305

 

Other comprehensive income for the period, net of tax

 

 

 

(872)

 

305

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

 

 

(16,954)

 

(869)

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

Owners of the parent

 

 

 

(14,954)

 

(869)

 

 

 

 

 

 

 

 

 

Loss per share from continuing and discontinued operations attributable to the owners of the parent during the period

(expressed in pence per share)

 

 

 

 

 

 

 

Basic

 

3

 

(2.26)

 

(0.23)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Group Statement of Financial Position

as at 30 September 2019

 

 

 

 

 

As at
30 Sep
2019

 

As at
30 Sep
2018

 

 

 

 

 

(Unaudited)

 

(Unaudited)

 

 

 

Notes

 

£ 000's

 

£ 000's

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

Intangible assets

 

5

 

2,831

 

24,298

 

Fixed assets

 

6

 

3,475

 

2,674

 

Investments

 

4

 

370

 

192

 

Available for sale financial investments

 

7

 

-

 

6,936

 

Total non-current assets

 

 

 

6,676

 

34,100

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Inventories - Zamsort Limited

 

 

 

261

 

847

 

Trade and other receivables

 

 

 

175

 

306

 

Available for sale financial investments

 

7

 

12,719

 

-

 

Cash and cash equivalents

 

 

 

105

 

484

 

Total current assets

 

 

 

13,260

 

1,637

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

     

19,936

 

35,737

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

Long term payables

 

8

 

(2,357)

 

(2,792)

 

Total non-current liabilities

 

 

 

(2,357)

 

(2,792)

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Trade and other payables

 

 

 

(1,597)

 

(2,246)

 

Available for sale financial liabilities

 

10

 

(1,946)

 

-

 

Total current liabilities

 

 

 

(3,543)

 

(2,246)

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

 

(5,900)

(5,038)

 

 

 

 

 

 

 

 

 

NET ASSETS

 

 

 

14,036

 

30,699

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

Share capital

 

9

 

-

 

-

 

Share premium

 

 

 

50,581

 

45,076

 

Share based payments reserve

 

 

 

1,458

 

1,333

 

Foreign exchange reserve

 

 

 

1,285

 

1,054

 

Retained earnings

 

 

 

(40,520)

 

(17,431)

 

Non-controlling interest

 

 

 

1,232

 

667

 

TOTAL EQUITY

 

 

       

14,036

 

30,699

 

 

 

 

 

 

 

 

 

 

 

GROUP STATEMENT OF CHANGES IN EQUITY

for the period ended 30 September 2019

 

Share
capital

 

Share premium

 

Foreign exchange reserve

 

Share based payment reserve

 

Retained earnings

 

Non-controlling
interest

 

Total
equity

 

£ 000's

 

£ 000's

 

£ 000's

 

£ 000's

 

£ 000's

 

£ 000's

 

£ 000's

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As at 1 April 2018

-

 

38,324

 

749

 

1,333

 

(16,257)

 

1,318

 

25,467

Profit/(loss) for the period

-

 

-

 

 

 

-

 

(1,174)

 

-

 

(1,174)

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

Currency translation differences

-

 

-

 

305

 

-

 

-

 

-

 

305

Other comprehensive income for the period

-

 

-

 

305

 

-

 

-

 

-

 

305

Total comprehensive income for the period

-

 

-

 

305

 

-

 

(1,174)

 

-

 

(869)

Share capital issued net of share issue costs

-

 

6,572

 

-

 

-

 

-

 

-

 

6,572

Share based payments

-

 

180

 

-

 

-

 

-

 

-

 

180

Non-controlling interest in Zamsort at acquisition

-

 

-

 

-

 

-

 

-

 

845

 

845

Share of loss for the period

-

 

-

 

-

 

-

 

-

 

(171)

 

(171)

Non-controlling interest of Casa purchased during the period

-

 

-

 

-

 

-

 

-

 

(1,325)

 

(1,325)

Total transactions with owners, recognised directly in equity

-

 

6,752

 

305

 

-

 

(1,174)

 

(651)

 

5,232

As at 30 September 2018

-

 

45,076

 

1,054

 

1,333

 

(17,431)

 

667

 

30,699

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As at 1 April 2019

-

 

50,222

 

2,157

 

1,320

 

(24,438)

 

696

 

29,957

Profit/(loss) for the period

-

 

-

 

-

 

-

 

(16,082)

 

-

 

(16,082)

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

Currency translation differences

-

 

-

 

(872)

 

-

 

-

 

-

 

(872)

Other comprehensive income for the period

-

 

-

 

(872)

 

-

 

 

 

-

 

(872)

Total comprehensive income for the period

-

 

-

 

(872)

 

-

 

(16,082)

 

-

 

(16,954)

Share capital issued net of share issue costs

-

 

287

 

-

 

-

 

-

 

-

 

287

Warrants exercised

-

 

72

 

-

 

-

 

-

 

-

 

72

Share based payments granted

-

 

-

 

-

 

138

 

-

 

-

 

138

Increase of NCI in Zamsort

-

 

-

 

-

 

-

 

-

 

536

 

536

Total transactions with owners, recognised directly in equity

-

 

359

 

-

 

138

 

-

 

536

 

1,033

As at 30 September 2019

-

 

50,581

 

1,285

 

1,458

 

(40,520)

 

1,232

 

14,036

 

GROUP CASH FLOW STATEMENT

for the period ended 30 September 2019

 

 

 

 

 

As at
30 Sep
2019

 

As at
30 Sep
2018

 

 

 

 

(Unaudited)

 

(Unaudited)

 

 

 

 

£ 000's

 

£ 000's

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

Loss before tax

 

 

 

(16,082)

 

(1,174)

Depreciation

 

 

 

36

 

-

Impairment

 

 

 

15,000

 

-

Share based payments

 

 

 

138

 

180

Gain on acquisition of Casa Mining Ltd

 

 

 

-

 

(199)

Operating loss before changes in working capital

 

 

 

(908)

 

(1,193)

 

 

 

 

 

 

 

Decrease in trade and other receivables

 

 

 

415

 

331

Increase in trade and other payables and available for sale liabilities

 

 

 

100

 

1,065

Net cash used in operating activities

 

 

 

(393)

203

 

 

 

 

 

 

 

Cash flows used in investing activities

 

 

 

 

 

 

Additions to intangible assets

 

 

 

(1,002)

 

(2,268)

Additions to property, plant and equipment

 

 

 

(360)

 

(410)

Investment in available-for-sale financial investments

 

 

 

(181)

 

(236)

Net cash used in investing activities

 

 

 

(1,543)

(2,914)

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

Proceeds from issue of ordinary shares net of share issue cost

 

 

 

72

 

2,389

Long term payables

 

 

 

743

 

630

Net cash inflow from financing activities

 

 

 

815

3,019

 

 

 

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

 

 

 

(1,121)

 

308

Cash and cash equivalents at beginning of period

 

 

 

1,226

 

176

Cash and cash equivalents at end of period

 

 

 

105

484

 

 

 

 

 

 

 

 

 

NOTES TO THE INTERIM FINANCIAL STATEMENTS
for the period ended 30 September 2019

1. Basis of preparation

The condensed consolidated interim financial statements have been prepared under the historical cost convention and on a going concern basis and in accordance with International Financial Reporting Standards and IFRIC interpretations adopted for use in the European Union ("IFRS") and those parts of the BVI Business Companies Act applicable to companies reporting under IFRS.

The condensed consolidated interim financial statements contained in this document do not constitute statutory accounts. In the opinion of the directors, the condensed consolidated interim financial statements for this period fairly presents the financial position, result of operations and cash flows for this period.

The Board of Directors approved this Interim Financial Report on 30 December 2019

Statement of compliance

The condensed consolidated interim financial statements have been prepared in accordance with the requirements of the AIM Rules for Companies. As permitted, the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing these interim condensed consolidated interim financial statements. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 March 2019, which have been prepared in accordance with IFRS as adopted by the European Union.

Accounting policies

The condensed consolidated interim financial statements for the period ended 30 September 2019 have not been audited or reviewed in accordance with the International Standard on Review Engagements 2410 issued by the Auditing Practices Board. The figures were prepared using applicable accounting policies and practices consistent with those adopted in the statutory annual financial statements for the year ended 31 March 2019. In addition, consideration has been given to IFRS 15 and IFRS 9 which both are effective since 1 April 2019.

Associates

Associates are entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognised at cost and the carrying amount is increased or decreased to recognise the investor's share of the profit or loss of the investee after the date of acquisition. The Group's investment in associates includes any goodwill identified on acquisition.

If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss where appropriate.

The Group's share of post-acquisition profit or loss is recognised in the statement of comprehensive income, and its share of post-acquisition movements in other comprehensive income is recognised in the other comprehensive income section of the statement of comprehensive income with a corresponding adjustment to the carrying amount of the investment. When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amounts of the associate and its carrying value and recognises the amount adjacent to 'share of profit/(loss) of associates' in the statement of comprehensive income.

Gains and losses resulting from upstream and downstream transactions between the group and its associates are recognised in the Group's financial statements only to the extent of unrelated investor's interests in the associates. Unrealised losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group.

Dilution gains and losses arising in investments in associates are recognised in the statement of comprehensive income.

 

2. Financial Risk Management

Risks and uncertainties

The Board continually assesses and monitors the key risks of the business. The key risks that could affect the Group's medium-term performance and the factors that mitigate those risks have not substantially changed from those set out in the Group's 2019 Annual Report and Financial Statements, a copy of which is available from the Group's website: www.arcminerals.com. The key financial risks are market risk, including currency risk, and liquidity.

 

3. Loss per share

 

 

 

 

 

Six Months to
30 Sep
2019

 

Six Months to
30 Sep
2018

 

 

 

 

(Unaudited)

 

(Unaudited)

 

 

Notes

 

£ 000's

 

£ 000's

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from Continuing Operations

 

 

 

(16,082)

 

(1,174)

 

 

 

 

 

 

 

Weighted average number of ordinary shares used in calculating basic loss per share (000's)

 

 

 

709,921

 

510,002

 

 

 

 

 

 

 

Basic & diluted loss per share (expressed in pence)

 

 

 

(2.26)

 

(0.23)

 

As the inclusion of the share options would result in a decrease in the earnings per share, they are considered to be anti-dilutive and, as such, a diluted loss per share is not included.

 

4. Investment in Associates

Set out below are the associates of the Group.

 

Zaco

Total

 

£ 000's

£ 000's

1 April 2018

-

-

Additions

192

192

30 September 2018

192

192

 

 

 

1 April 2019

331

331

Additions

39

39

30 September 2019

370

370

 

Further information about the assets of Zaco Limited is included in the 2019 Annual Report.

Zaco is a Zambian-registered company, owned 47.5% by Unico Minerals Limited (42.5% at 31 March 2019). Unico is a wholly-owned subsidiary of Arc. The Chairman of Arc has been appointed Chairman of Zaco. There were no operations during the period.

Subsequent to 30 September 2019 the Company purchased an additional 5% of Zaco which increased its interest to 52.5%. Zaco results will be consolidated in future.  

 

 

5. Intangible Assets

 

 

Zamsort

 

Zamsort

 

Casa

 

 

Total

 

 

Goodwill

 

Deferred Exploration Costs

 

Deferred Exploration Costs

 

 

 

 

 

£ 000's

 

£ 000's

 

£ 000's

 

 

£ 000's

 

 

 

 

 

 

 

 

 

 

As at 30 September 2018

 

2,557 (ii)

 

974

 

20,767

 

 

24,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As at 30 September 2019

 

-

 

2,831

 

- (i)

 

 

2,831

 

 

 

 

 

 

 

 

 

 

(i)                    Reclassified as Available For Sale Financial Investments (Note 7)

(ii)                  As noted below allocated to Deferred Exploration

Zamsort Limited

Zamsort is involved in the exploration for minerals in the Republic of Zambia. On 1 April 2018 the Company held a 14% interest in Zamsort at a cost of £546,000. The Company acquired equity control on 5 June 2018.

 

Consideration - £5,332,000

 

In May 2017 in exchange for a 14% equity interest in Zamsort the Company agreed to convert £546,000 (US$828,472) of US$1,200,000 Secured Loan Notes issued to the Company in 2015 by Zamsort;

 

On 15 May 2018 the Company issued 102,083,333 shares with an imputed cost of £3,072,708 to acquire a further 35% interest in Zamsort, thereby increasing its interest to 49%;

 

On 5 June 2018 the Company issued 17,500,000 shares with an imputed cost of £770,000 to acquire a 6% interest in Zamsort, thereby increasing its interest to 55%, a controlling interest;

 

On 18 June 2018 the Company issued 12,000,000 shares with an imputed cost of £509,400 to acquire a 6% interest in Zamsort, thereby increasing its interest to 61%;

 

On 11 July 2018 the Company issued 10,000,000 shares with an imputed cost of £420,000 to acquire a 5% interest in Zamsort, thereby increasing its interest to 66%;

 

The acquisition resulted in Goodwill of £671,000 as follows:

 

 

 

 

£ 000s

 

 

Net assets acquired:

 

Cash and cash equivalents

62

Intangible assets

Fixed assets, net

Inventory

218

2,753

507

Trade and other receivables

151

Trade and other payables

 (385)

Shareholder loans

(1,655)

Total net assets acquired

1,651

 

 

 

 

Total Consideration for 6% of Zamsort shares (49% - 55%)

Fair value of the associate at the Second Acquisition Date

770

809

Fair Value of Non-Controlling interest at the Second Acquisition Date

743

Less: Fair value of Zamsort

(1,651)

 

Goodwill

671

 

Goodwill has been allocated to Deferred exploration

 

 

Non-controlling interest:

 

The non-controlling interests of Zamsort Limited at the date of acquisition were measured at the fair value of these interests. This fair value was estimated by the consideration offered by the Company to acquire the controlling interest.

 

Impact of acquisitions on the results of the Group:

During the six months ended 30 September 2019 the net loss of the Group included the net loss of Zamsort of £342,000. Group revenue during the period includes £Nil from Zamsort.

 

The financial statements of Zamsort Limited for the six months ended 30 June 2019 have been consolidated in these results. Between 1 July 2019 and 30 September 2019 Zamsort incurred deferred exploration expenditures of £822,000 and fixed asset expenditures of £54,000 financed in part from funds advanced by Arc Minerals Limited (£513,000) and the minority shareholder (£220,000). As these expenditures were material in value, the consolidated financial statements have been adjusted to incorporate these transactions in accordance with IFRS 10 Consolidated Financial Statement.

 

6. Fixed Assets

 

Processing Plant

Mining Equipment

Motor Vehicles

Furniture & Fittings

Total

 

£ 000's

£ 000's

£ 000's

£ 000's

£ 000's

Cost

 

 

 

 

 

At 1 April 2019

3,249

215

91

43

3,598

Disposals

-

-

-

-

-

Additions

350

-

-

10

360

Foreign exchange

(217)

(6)

(3)

(3)

(229)

At 30 September 2019

3,382

209

88

50

3,729

 

 

 

 

 

 

Depreciation

 

 

 

 

 

At 1 April 2019

-

(172)

(42)

(25)

(239)

Disposals

-

21

-

-

21

Depreciation

-

(13)

(11)

(12)

(36)

At 30 September 2019

-

(164)

(53)

(37)

(254)

 

 

 

 

 

 

 

 

 

Cost

 

 

 

 

 

At 1 April 2018

-

-

-

-

-

 

 

 

 

 

 

Additions - Acquisition Zamsort

2,407

378

188

38

3,091

 

 

 

 

 

 

At 30 September 2018

2,407

378

                 188

38

3,011

 

 

 

 

 

 

Depreciation

 

 

 

 

 

At 1 April 2018

-

-

-

-

-

 

 

 

 

 

 

Additions - Acquisition Zamsort

-

(271)

(43)

(23)

(337)

 

 

 

 

 

 

At 30 September 2018

-

(271)

(43)

(23)

(337)

 

      NBV - 30 September 2019                                                      3,382                          45                                          35                         13                     3,475

      NBV - 30 September 2018                                                                                 2,407                                                107                           145                         15                     2,674

 

7. Available for Sale Financial Investments

 

 

Casa

 

Andiamo

 

Šturec

 

Total

 

 

 

 

 

 

 

 

 

 

 

£ 000's

 

£ 000's

 

£ 000's

 

£ 000's

As at 30 September 2018

 

-

 

392

 

6,544

 

6,936

 

 

 

 

 

 

 

 

 

As at 30 September 2019

 

6,719 (i)

 

-

 

6,000

 

12,719

 

 

 

 

 

 

 

 

 

(i)                    Reclassified from Intangible assets (Note 5); an Impairment charge for Casa Mining Ltd in the amount of £15,000,000 has been reported during the period. On 13 November 2019 the Company announced a conditional sale of Casa; the impairment charge has been estimated based on the terms of that transaction. Further details are provided in Note 10.  

During the year ended 31 March 2019 the Company sold its interest in Andiamo.

 

 

8. Long Term Payables

 

 

 

Group

 

Group

 

 

 

2019

 

2018

Long term payables

 

 

£ 000's

 

£ 000's

Shareholder loan

 

 

2,357

 

1,257

Deferred consideration

 

 

-

 

1,535

 

 

 

2,357

 

2,792

 

 

 

 

 

 

The shareholder loan represents a loan from the 34% minority shareholder in Zamsort Limited. The Company has also provided a loan to Zamsort on similar terms which had a balance on the reporting date of £4,196,000.

The deferred consideration (USD 2,000,000) was incurred by Casa Mining Ltd when that Company purchased for cancellation the shares held by the controlling shareholder. The liability is non-recourse to Arc; it is unsecured, non-interest bearing and due for payment in January 2020. It is included in Available for sale financial liabilities. (Refer to Note 10). 

 

9. Share Capital

The authorised share capital of the Company and the called up and fully paid amounts at 30 September 2019 were as follows:

A) Authorised

 

 

 

 

 

£ 000's

 

Unlimited ordinary shares of no par value

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

B) Called up, allotted, issued and fully paid

 

 

 

Number
of shares

 

Nominal
value

 

As at 1 April 2019

 

 

 

705,937,551

 

-

 

Additions:

 

 

 

 

 

 

 

4 July 2019, at 2.8p(i)

 

 

 

1,414,000

 

-

 

8 July 2019, at 2.5p(ii)

 

 

 

1,200,000

 

-

 

22 July 2019, at 2.8p(iii)

 

 

 

1,671,144

 

-

 

29 July 2019, at 4.78p(iv)

 

 

 

3,849,680

 

-

 

29 July 2019, at 2.4p(v)

 

 

 

1,041,667

 

-

 

22 August 2019, at 4.5p(iv)

 

 

 

1,563,728

 

-

 

 

 

 

 

 

 

 

 

As at 30 September 2019

 

 

 

716,677,770

 

-

 

 

(i)     Issued as consideration for the acquisition of an additional 5% equity stake in Zaco Ltd, increasing Arc's interest in Zaco from 42.5% to 47.5%.

(ii)    Issued to a service provider as consideration for consulting services in the amount of GBP 30,000; subject to a lock-in period of 12 months.

(iii)   Issued pursuant to an exercise of warrants for cash consideration of GBP 46,792.

(iv)   Issued pursuant to the Drill for Equity programme as first announced on 29 July 2019 whereby the Company's drilling contractor in Zambia has agreed to receive payment for 50% of total drilling costs by way of shares in Arc. Shares issued under the Drill for Equity Programme are subject to certain share trading restrictions which are monitored by Arc.

(v)    Issued pursuant to an exercise of warrants for cash consideration of GBP 25,000.

 

 

10. Post Balance Sheet Events

On 13 November 2019, the Company announced that it had entered into a binding Sale and Purchase Agreement to sell Arc's entire 99.43% equity interest in Casa Mining Ltd for consideration of up to USD 9.8m (the "Consideration"), subject to final due diligence being completed. The transaction is expected to close no later than 24 January 2020.

At closing the Purchaser as controlling shareholder of Casa will assume responsibility for its liabilities which were £1,907,000 as of 30 September 2019 and which are classified as Available for sale financial liabilities. Effective from the closing date these liabilities will no longer be included in Arc accounts.

The Consideration is comprised of the following:

(i)            Cash of USD 1,800,000;

(ii)           Cash of USD 2,500,000 when the 3,000,000-ounce inferred resource of the Misisi Project (which is majority-owned by Casa) has been increased to 6,000,000 ounces;

(iii)          Cash of USD 2,500,000 when the inferred resource of the Misisi Project has been increased from 6,000,000 ounces to 9,000,000 ounces;

(iv)         Cash of USD 3,000,000 when the inferred resource of the Misisi Project has been increased from 9,000,000 ounces to 12,000,000 ounces;

The Company has recorded an impairment charge of £15,000,000 against its investment in Casa. This is an estimate and subject to adjustment as future developments at the Misisi Project become known.

 

11. Other Matters

The condensed consolidated interim financial statements set out above do not constitute the Group's statutory accounts for the period ended 30 September 2019 or for earlier periods but are derived from those accounts where applicable.

 

 

 

A copy of this interim statement is available on the Company's website: www.arcminerals.com

 


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 [email protected] or visit www.rns.com.
 
END
 
 
IR BGBDDSDXBGCB

Quick facts: Arc Minerals Limited

Price: 2.425

Market: AIM
Market Cap: £17.89 m
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Investor Update: Oracle Power's Pakistan block recognised as potential...

Headlines from the Proactive UK newsroom. Oracle Power PLC’s (LON:ORCP) resource on Block VI at Thar in Pakistan has been officially recognised as a potential coal gasification into fertiliser project. Pakistan is estimated to face a sizeable fertiliser shortage by 2026. Arc Minerals Ltd...

on 19/11/19