AfriTin Mining Ltd (LON:ATM)

AfriTin Mining Ltd (LON:ATM)


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AfriTin Mining Ltd RNS Release

Interim Results


RNS Number : 0015F
AfriTin Mining Ltd
24 October 2018
 

 

AfriTin Mining Limited

("AfriTin" or the "Company" and with its subsidiaries the "Group")

Unaudited Interim Results

for the Six Months Ended 31 August 2018

AfriTin Mining Limited (AIM: ATM), a mining company with a portfolio of tin assets in Namibia and South Africa, is pleased to announce its interim results for the six months ended 31 August 2018.

This represents the first set of consolidated interim accounts for AfriTin which was incorporated on 1 September 2017. Accordingly, no comparative financial information is provided. However, comparative financial information for the underlying subsidiaries was provided to the market on 30 November 2017 and the first set of consolidated accounts for the Group were released to the market on 13 July 2018.

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

Chief Executive Officer's Statement

Introduction

During the first half of this financial year, AfriTin has achieved a number of important milestones in line with the stated objectives in our November 2017 Admission Document. We continue to look towards the ultimate goal of first material through the pilot plant by the end of 2018. The update below provides further details of our recent activities.

Review of business

The AfriTin team has been working exceptionally hard to achieve our long-term objective at Uis, which is to become a tin development and production company and the only pure play tin-listed company on AIM and we remain on track to do so.

The first step in the development of the project involved verification, through local and regional geological mapping, of the historical SRK report that produced a 70-year life-of-mine plan. This work was then translated into a preliminary mine design plan for the first phase pilot production plant. A key result of the mapping program was the delineation of more than 80 new pegmatite bodies, which all display visible tin mineralisation, and which bodes well for future exploration initiatives.

As detailed in AfriTin's Admission Document, the purpose of phase 1 is to provide early cash flow to the Company and provide a platform to transition the project into a bankable feasibility study and ultimately, a phase 2 plant capable of producing 5 000 tonnes of tin concentrate per annum. As a result of the accelerated development of the flagship project, the board of directors believed it opportune to raise a further £6m to advance the construction of the plant, as well as initiate work on the bankable feasibility study and undertake a drilling program to bring the historic resources into JORC compliance. At the same time, the Company appointed Terence Goodlace to the board as a Non-Executive Director. Mr Goodlace's mining career has spanned more than 40 years and brings a wealth of mining expertise to an existing strong board of directors.

Construction of the phase 1 plant has progressed well with the appointment of local contractors - construction is on schedule and the first run-of-mine material to the plant is expected by year-end. The results from the regional mapping program have also assisted the Company in identifying further licence areas of interest and acquisition.

The Company entered into an agreement with MRI AG, a trading company, to establish a buying station for local artisanal workers. The purpose of this is to establish economic activity on the ground as part of a community upliftment program. The project is going well and the Company has already noted an increase in the amount of concentrate coming through the buying station.

Outlook

The directors believe the next 6 months will be transformational for the Company. Construction of the pilot plant should be concluded in this period and the Directors aim to finalize verification drilling and a JORC-compliant resource at Uis based upon the 1980s SRK resource statements by early 2019. Once the Company begins to produce tin concentrate from the pilot plant, it is anticipated that it will continue to expand its footprint in the region through acquisition and that further work will be conducted on the other mining licence areas that form part of the AfriTin Portfolio.

 

Events after the reporting period

Post the period under review, AfriTin was pleased to announce the acquisition of Tantalum Investment ("TI") which contains two exploration licenses for tin, tantalum and other associated minerals. Included in the TI exploration licences is the Brandberg West Mine, mined for tin and tungsten by SWACO until the 1980s, the latter also containing additional Cu and Au mineralisation. The acquisition was made for £850 000 which was satisfied by way of issue of 25,000,000 ordinary shares in the Company, at a price of 3.40p. This is another positive step for the Company as we look to consolidate African tin assets and embark on a regional expansion drive in Namibia.

Anthony Viljoen, CEO   

The Company anticipates releasing an operational update on or around 25 October 2018.

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

AfriTin Limited

 

Anthony Viljoen, CEO

+27 (11) 268 6555

Nominated Adviser and Joint Broker

 

WH Ireland Limited

Katy Mitchell

James Sinclair-Ford

+44 (0) 207 220 1666 

Joint Broker

 

NOVUM Securities Limited

Jon Belliss

+44 (0)20 7399 9400

Financial PR (United Kingdom)

 

Tavistock

+44 (0) 207 920 3150

Jos Simson / Barney Hayward

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE Income

For the 6 months ended 31 August 2018

 

 

Period ended

31 August 2018

(unaudited)

 

Note

 

£

Continuing operations

 

 

 

Administrative expenses

5

 

(447 505)

Operating loss

 

 

(447 505)

Other income

 

 

15 584

Loss before tax

 

 

(431 921)

Income tax expense

6

 

-  

Loss for the period

 

 

(431 921)

Other comprehensive expense

 

 

(476,000)

Total comprehensive loss for the period

 

 

(907 921)

 

 

 

 

Loss for the period attributable to:

 

 

 

Owners of the parent

 

 

(428 951)

Non-controlling interests

 

 

(2 970)

 

 

 

(431 921)

 

 

 

 

Total comprehensive loss for the period attributable to:

 

 

 

Owners of the parent

 

 

(905 296)

Non-controlling interests

 

 

(2 625)

 

 

 

(907 921)

 

 

 

 

Loss per ordinary share

 

 

 

Basic and diluted loss per share (in pence)    

7

 

(0.11)

 

 

 

 

 

 

 

 

Consolidated Statement of Financial Position

As at 31 August 2018

Company number: 63974

 

 

31 August 2018

(unaudited)

 

28 February 2018

(audited)

 

Note

 

£

 

 

£

Assets

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Intangible assets: exploration and evaluation

8

 

6 140 243

 

 

6 300 864

Property, plant and equipment

9

 

1 552 655

 

 

538 369

Total non-current assets

 

 

7 692 898

 

 

6 839 233

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Trade and other receivables

10

 

223 424

 

 

121 687

Cash and cash equivalents

11

 

6 653 229

 

 

2 904 767

Total current assets

 

 

6 876 653

 

 

3 026 454

 

 

 

 

 

 

 

Total assets

 

 

14 569 551

 

 

9 865 687

 

 

 

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade and other payables

12

 

(448 387)

 

 

(516 107)

Total current liabilities

 

 

(448 387)

 

 

(516 107)

 

 

 

 

 

 

 

Net assets

 

 

14 121 164

 

 

9 349 580

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Share capital

13

 

16 533 136

 

 

10 853 631

Accumulated deficit

 

 

(1 962 415)

 

 

(1 533 464)

Foreign currency translation reserve

 

 

(476 345)

 

 

-

Warrant reserve

 

 

29 783

 

 

29 783

 

 

 

 

 

 

 

Equity attributable to the owners of the parent

 

 

14 124 159

 

 

9 349 950

Non-controlling interests

 

 

(2 995)

 

 

(370)

Total equity

 

 

14 121 164

 

 

9 349 580

 

The financial statements were authorised and approved for issue by the Board of directors and authorised for issue on 24 October 2018.

 

AR VILJOEN

Director

24 October 2018

 

Consolidated Statement of Changes in Equity

For the 6 months ended 31 August 2018

 

 

              Attributable to the owners of the parent company

 

 

 

 

Share Capital

Accumulated Deficit

Warrant Reserve

Foreign Currency Translation Reserve

Total

Non-controlling interests

Total Equity

 

£

£

£

£

£

£

£

 

 

 

 

 

 

 

 

Total equity at 1 September 2017

-

-

-

-

-

-

-

Loss for the period

-

(1 533 464)

-

-

(1 533 464)

(370)

(1 533 834)

Transactions with owners:

 

 

 

 

 

 

 

Warrants granted in period

(29 783)

-

29 783

-

-

-

-

Issue of shares

11 172 559

-

-

-

11 172 559

-

11 172 559

Share issue costs

(289 145)

-

-

-

(289 145)

-

(289 145)

 

 

 

 

 

 

 

Total equity at 28 February 2018 (audited)

10 853 631

(1 533 464)

29 783

-

9 349 950

(370)

9 349 580

Loss for the period

-

(428 951)

-

-

(428 951)

(2 970)

(431 921)

Foreign exchange differences

-

-

-

(476 345)

(476 345)

345

(476 000)

Transactions with owners:

Issue of shares

6 008 813

-

-

-

6 008 813

-

6 008 813

Share issue costs

(329 308)

-

-

-

(329 308)

-

(329 308)

Total equity at 31 August 2018 (unaudited)

16 533 136

(1 962 415)

29 783

(476 345)

14 124 159

(2 995)

14 121 164

 

 

Consolidated Statement of Cash Flows

For the 6 months ended 31 August 2018

 

 

Period ended

31 August 2018

(unaudited)

 

Note

 

£

Cash flows from operating activities

 

 

 

Loss before taxation

 

 

(431 921)

Adjustments for:

 

 

 

Depreciation property, plant and equipment

9

 

1 965

Finance income

 

 

-

Changes in working capital:

 

 

 

(Increase) in receivables

 

 

(101 737)

(Decrease) in payables

 

 

(67 720)

Net cash used in operating activities

 

 

(599 413)

 

 

 

 

Cash flows from investing activities

 

 

 

Finance income

 

 

-

Purchase of exploration and evaluation assets

8

 

(90 629)

Purchase of property, plant and equipment

9

 

(1 200 677)

Net cash used in investing activities

 

 

(1 291 306)

 

 

 

 

Cash flows from financing activities

 

 

 

Net proceeds from issue of shares

 

 

5 679 505

Net cash generated from financing activities

 

 

5 679 505

 

 

 

 

Net increase in cash and cash equivalents

 

 

3 788 786

Cash and cash equivalents at the beginning of the period

 

 

2 904 767

Foreign exchange differences

 

 

(40 324)

Cash and cash equivalents at the end of the period

11

 

6 653 229

 

 

 

 

Notes to the consolidated financial statements

For the 6 months ended 31 August 2018

 

1.     Corporate information and principal activities

 

AfriTin Mining Limited ("AfriTin") was incorporated and domiciled in Guernsey on 1 September 2017, and admitted to the AIM market in London on 9 November 2017. The company's registered office is 18-20 Le Pollet, St Peter Port, Guernsey, GY1 1WH and operates from Illovo Edge Office Park, 2nd Floor, Building 3, Corner Harries and Fricker Road, Illovo, Johannesburg, 2116, South Africa.

 

The AfriTin Group comprises AfriTin Mining Limited and its subsidiaries as noted below.

 

The wholly-owned Guernsey subsidiary, Greenhills Resources Limited (GRL) was acquired by AfriTin by way of a Demerger Agreement with Bushveld Minerals Limited effective 8 November 2017.

 

GRL is an investment holding company that holds investments in resource-based tin exploration companies in South Africa and Namibia. The South African subsidiaries are Mokopane Tin Company Pty Limited "Mokopane" and Pamish Investments 71 Pty Limited "Pamish 71", in which GRL holds 100% equity interest.

 

Mokopane owns a 74% equity interest in Renetype Pty Limited "Renetype" and a 50% equity interest in Jaxson 641 Pty Limited "Jaxson". The minority shareholders in Renetype are African Women Enterprises Investments Pty Limited and Cannosia Trading 62 CC who own 10% and 16% respectively.

 

The minority shareholder in Jaxson is Lerama Resources Pty Limited who owns a 50% interest in Jaxson. Pamish 71 owns a 74% interest in Zaaiplaats Mining Pty Limited "Zaaiplaats". The minority shareholder in Zaaiplaats is Tamiforce Pty Limited who owns 26%.

 

On 9 November 2017, GRL acquired the remaining 50.5% equity in Namibian subsidiary, Dawnmin Africa Investments Pty Limited "Dawnmin". Dawnmin owns an 85% equity interest in Guinea Fowl Investments Twenty Seven Pty Limited "Guinea Fowl". The minority shareholder in Guinea Fowl is The Small Miners of Uis who own 15%.

 

As at 31 August 2018, the AfriTin Group comprised:

 

Company

Equity holding and voting rights

Country of incorporation

Nature of Activities

AfriTin Mining Limited

N/A

Guernsey

Ultimate Holding Company

Greenhills Resources Limited (1)

100%

Guernsey

Holding Company

AfriTin Mining Pty Limited (1)

100%

South Africa

Group support services

Dawnmin Africa Investments Pty Limited (2)

100%

Namibia

Tin Exploration

Guinea Fowl Investments Twenty Seven Pty Limited (3)

85%

Namibia

Tin Exploration

Mokopane Tin Company Pty Limited (2)

100%

South Africa

Holding Company

Renetype Pty Limited (4)

74%

South Africa

Tin Exploration

Jaxson 641 Pty Limited (4)

50%

South Africa

Tin Exploration

Pamish Investments 71 Pty Limited (2)

100%

South Africa

Holding Company

Zaaiplaats Mining Pty Limited (5)

74%

South Africa

Property Owning

 

1. Held directly by AfriTin Mining Limited

2. Held by Greenhills Resources Limited

3. Held by Dawnmin Africa Investments Pty Limited

4. Held by Mokopane Tin Company Pty Limited

5. Held by Pamish Investments 71 Pty Limited

 

These financial statements are presented in Pound Sterling (£) because that is the currency in which the Group has raised funding on the AIM market in the United Kingdom. Furthermore, Pound Sterling (£) is the functional currency of the ultimate holding company, AfriTin Mining Limited.

 

 

2.     Significant accounting policies

 

Basis of accounting

 

The interim financial statements have been prepared using measurement and recognition criteria based on International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board (IASB) as adopted for use in the EU. The interim financial information has been prepared using the accounting policies which will be applied in the Group's statutory financial statements for the year ended 28 February 2019 and which were applied in the Group's statutory financial statements for the year ended 28 February 2018.

 

The Group has adopted the standards, amendments and interpretations effective for annual periods beginning on or after 1 March 2018. The adoption of these standards and amendments did not have a material effect on the financial statements of the Group. See Note 3.

 

The interim financial information for the six months to 31 August 2018 is unaudited and does not constitute statutory financial information. The statutory accounts for the year ended 28 February 2018 are available on the Company's website. The auditors' report on those accounts was unqualified.

 

The consolidated financial statements have been prepared under the historical cost convention.   The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates.  It also requires management to exercise judgement in the process of applying the Group's accounting policies.  The areas involving a higher degree of judgement or complexity and areas where assumptions and estimates are significant to the consolidated financial statements are discussed in further detail in this note.

 

Going Concern

 

These financial statements have been prepared on a going concern basis. In arriving at this position the Directors have had regard to the fact that the AfriTin Group has sufficient cash and other assets to fund administrative and other committed expenditure for a period of not less than 12 months from the date of this report.

 

Critical accounting estimates and judgements

 

In the application of the Group's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

Estimates and judgements are continually evaluated. Revisions to accounting estimates are recognised in the year in which the estimates are revised if the revision affects only that year, or in the year of revision and in future years if the revision affects both current and future years.

 

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are addressed below.

 

Impairment of exploration & evaluation assets

 

Determining whether an exploration and evaluation asset is impaired requires an assessment of whether there are any indicators of impairment, including by reference to specific impairment indicators prescribed in IFRS 6 "Exploration for and Evaluation of Mineral Resources". If there is any indication of potential impairment, an impairment test is required based on value-in-use of the asset. The valuation of intangible exploration assets is dependent upon the discovery of economically recoverable deposits which, in turn, is dependent on future tin prices, future capital expenditures and environmental, regulatory restrictions and the successful renewal of licenses. The directors have concluded that there are no indications of impairment in respect of the carrying value of intangible assets at 31 August 2018 based on planned future development of the projects and current and forecast tin prices. Exploration and evaluation assets are disclosed fully in Note 8.

 

 

3.     Adoption of new and revised standards

 

The Company adopted IFRS 9 "Financial Instruments" and IFRS 15 "Revenue from Customers" in the six-month period, following the standards becoming effective for periods commencing on or after 1 January 2018.

 

IFRS 9 "Financial instruments" addresses the classification and measurement of financial assets and financial liabilities and replaces the guidance in IAS 39 that relates to the classification and measurement of financial instruments. IFRS 9 retains but simplifies the mixed measurement model and establishes three primary measurement categories for financial assets: amortised cost, fair value through other comprehensive income (OCI) and fair value through profit or loss. The basis of classification depends on the entity's business model and the contractual cash flow characteristics of the financial asset. There is now a new expected credit loss model that replaces the incurred loss impairment model used in IAS 39. The Group has applied the modified retrospective approach to transition. The adoption of IFRS 9 did not result in any material change to the consolidated results of the Group. Following assessment of the consolidated financial assets no changes to classification of those financial assets was required. The Group has applied the expected credit loss impairment model to its financial assets.

 

IFRS 15 "Revenue from Customers" introduced a single framework for revenue recognition and clarified principles of revenue recognition. This standard modifies the determination of when to recognise revenue and how much revenue to recognise. The core principle is that an entity recognises revenue to depict the transfer of promised goods and services to the customer of an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Group is not yet revenue-generating and therefore the adoption of IFRS 15 has not had an impact but will be relevant in future periods upon commencement of production and sales.

 

Accounting standards and interpretations not applied

 

Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Group:

 

IFRS 16 Leases*

1 January 2019

The new standard recognises a leased asset and a lease liability for almost all leases and requires them to be accounted for in a consistent manner. This introduces a single lessee accounting model and eliminates the previous distinction between an operating lease and a finance lease.

* not yet endorsed by the EU

 

The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the financial statements of the Group based on current operations.

 

4.     Segmental reporting

 

The reporting segments are identified by the Directors of the Group (who are considered to be the chief operating decision-makers) by the way that the Group's operations are organised. As at 31 August 2018, the Group operated within two operating segments, tin exploration activities in Namibia and South Africa.

 

Segment results

 

The following is an analysis of the Group's results by reportable segment.

 

 

South Africa

 

Namibia

 

Total

 

£

 

£

 

£

For the 6 month period ending 31 August 2018

 

 

 

 

 

Segmental profit / (loss)

20 831

 

(57 276)

 

(36 445)

 

 

 

The reconciliation of segmental gross loss to the Group's loss before tax is as follows:

 

Period ended 31 August 2018

 

£

Segmental loss

(36 446)

Unallocated costs

(395 476)

Finance income

 -

Loss before tax

(431 921)

 

Unallocated costs mainly comprise head office corporate costs.

 

Other segmental information

 

South Africa

 

Namibia

 

Total

 

£

 

£

 

£

As at 31 August 2018

 

 

 

 

 

Intangible assets - exploration and evaluation

 3 211 202

 

 2 929 041

 

 6 140 243

Other reportable segmental assets

 71 947

 

 1 868 459

 

 1 940 406

Other reportable segmental liabilities

(54 600)

 

(302 067)

 

(356 667)

Unallocated net assets

 -  

 

 -  

 

 6 397 182

Total consolidated net assets

 3 228 549

 

 4 495 433

 

 14 121 164

 

 

 

 

 

 

As at 28 February 2018

 

 

 

 

 

Intangible assets - exploration and evaluation

 3 359 388

 

 2 941 476

 

 6 300 864

Other reportable segmental assets

 109 903

 

  538 209

 

 648 112

Other reportable segmental liabilities

(116 087)

 

(171 039)

 

(287 126)

Unallocated net assets

 -  

 

 -  

 

 2 687 730

Total consolidated net assets

3 353 204

 

3 308 646

 

9 349 580

 

Unallocated net assets are mainly comprised of cash and cash equivalents which are managed at a corporate level.

 

5.     Expenses by nature

 

The loss for the period has been arrived at after charging:

 

6 Months ended 31 August 2018

 

£

Staff costs

185 561

Depreciation of property, plant & equipment

2 176

Professional fees

26 537

Travelling expenses

37 778

Other costs

186 484

Auditor's remuneration

8 969

 

447 505

 

 

 

6.     Taxation

Period ended 31 August 2018

£

Factors affecting tax for the period:

 

The tax assessed for the period at the Guernsey corporation tax charge rate of 0%, is explained below:

Loss before taxation

(431 921)

Loss before taxation multiplied by the Guernsey corporation tax charge rate of 0%

-

Effects of:

 

Non-deductible expenses

-

Tax for the period

-

 

Accumulated losses in the subsidiary undertakings for which there is an unrecognised deferred tax asset are £556 281.

 

7.     Loss per share

 

From continuing operations

 

The basic loss per share of 0.11 pence, is calculated using the total loss for the period attributable to the owners of the Company of £428 951 and the weighted average number of shares in issue during the period of 391 593 793. Potentially dilutive instruments comprise 22 500 000 share options and 1 897 922 warrants. However, such instruments are anti-dilutive given the loss for the periods presented.  As a result the diluted loss per share is equal to the basic loss per share.

 

8.     Intangible exploration and evaluation assets

 

Cost and carrying value

£

As at 1 September 2017

-   

Additions for the period - acquisition of Greenhills Resources Limited

3 349 614

Additions for the period - acquisition of Dawnmin Africa Investments Pty Limited

2 773 503  

Additions for the period - other expenditure

177 747

As at 28 February 2018

6 300 864

Additions for the period - other expenditure

90 629

Foreign exchange difference

(251 250)

As at 31 August 2018

6 140 243

 

The Company's subsidiary, Greenhills Resources Limited has the following:

i)    a 74% interest in Renetype Pty Limited ("Renetype") which holds an interest in Prospecting Right 2205.

ii)  an 85% interest in Guinea Fowl Investments 27 Pty Limited ("Guinea Fowl") which holds an interest in mining rights, ML129, ML133 and ML134.

iii)  a 50% interest in Jaxson 641 Pty Limited ("Jaxson") which holds an interest in Prospecting Right 428.

iv)  a 74% interest in Zaaiplaats Mining Pty Limited ("Zaaiplaats") which holds an interest in Prospecting Right 183.

 

 

9.     Property, plant and equipment

 

Land

Mining Asset

Computer Equipment

Furniture

Total

Cost

 

 

 

 

 

As at 1 September 2017

-

-

-

-

-

Additions for the period - acquisition of Greenhills

15 366

-

-

-

15 366

Additions for the period - acquisition of Dawnmin

-

7 538

-

-

7 538

Additions for the period - other expenditure

-

511 303

4 540

-

515 843

As at 28 February 2018

15 366

518 841

4 540

-

538 747

Additions for the period - other expenditure

-

 1 182 804

15 040

2 834

1 200 677

Exchange differences

(2 352)

(179 702)

(2 155)

(275)

(184 484)

As at 31 August 2018

13 014

1 521 943

17 425

2 559

1 554 940

 

 

 

 

 

 

Accumulated Depreciation

 

 

 

 

 

As at 1 September 2017

-

-

-

-

-

Charge for the period

-

-

378

-

378

As at 28 February 2018

-

-

378

-

378

Charge for the period

-

-

1 781

184

1 965

Exchange differences

-

-

(58)

-

(58)

As at 31 August 2018

-

-

2 101

184

2 285

 

 

 

 

 

 

Net Book Value

 

 

 

 

 

As at 31 August 2018

13 014

1 521 943

15 324

2 376

1 552 655

As at 28 February 2018

15 366

518 841

4 162

-

538 369

As at 1 September 2017

-

-

-

-

-

 

 

10.  Trade and other receivables

 

31 August 2018

 

28 February 2018

 

 

£

 

 

£

Trade receivables

 

34 408

 

 

35 065

Other receivables

 

87 507

 

 

13 828

Other tax and social security costs

 

101 509

 

 

72 794

 

 

223 424

 

 

121 687

 

 

11.  Cash and cash equivalents

 

31 August 2018

 

28 February 2018

 

 

£

 

 

£

Cash on hand and in bank

 

6 653 229

 

 

2 904 767

 

12.  Trade and other payables

 

31 August 2018

 

28 February 2018

 

 

£

 

 

£

Trade payables

 

388 621

 

 

308 699

Other payables

 

46 550

 

 

145 962

Accruals

 

13 216

 

 

61 446

 

 

448 387

 

 

516 107

13.  Share capital

 

Number of ordinary shares of no par value issued and fully paid

Share Capital

 

 

£

Balance at 1 September 2017

-

-

"Greenhills" acquisition

85 341 358

3 328 313

"Dawnmin" acquisition

70 336 290

2 743 115

Initial Public Offering

89 743 584

3 500 000

Convertible loan notes converted into shares

36 629 947

1 000 000

Shares issued to staff and service provider for nil consideration

15 413 613

601 131

Warrants exercised 16 January 2018

1 348

-

Warrants exercised 2 February 2018

15 789

-

Share issue costs - excluding warrants

-

(289 145)

Share issue costs - fair value of warrants

-

(29 783)

Balance at 28 February 2018

297 481 929

10 853 631

Capital Raise - 14 June 2018

220 515 292

5 953 913

Share issue costs

-

(329 308)

Shares issued to Hannam & Partners

 1 591 304

54 900

Balance at 31 August 2018

 519 588 525

16 533 136

 

Authorised:

673 396 387 ordinary shares of no par value

Allotted, issued and fully paid:

519 588 525 shares of no par value

 

On Admission a placing and subscription to existing and new institutional and sophisticated private investors raised gross proceeds of £3.5m with a further £1m raised from convertible loan notes that converted on admission. Furthermore, 15,413,613 ordinary shares were issued to directors, employees and a service provider for nil consideration on admission. These transactions were recorded at 3.9p per share, being the placing price of the shares.

 

In accordance with the terms of a Demerger Agreement between Bushveld Minerals Limited and AfriTin Mining Limited, Bushveld warrant holders are entitled to exercise the same amount of warrants in AfriTin for nil consideration subject to the demerger ratio of 0.0899. This agreement effectively gave rise to 43,120 AfriTin warrants on admission. 1,348 and 15,789 of these warrants were exercised on 16 January 2018 and 2 February 2018 respectively.

 

On 23 May 2018, an accelerated bookbuild and subscription process was undertaken and gross proceeds of £5.9m was raised. The Placing of 220,515,292 shares were issued at a price of 2.7p per share. A resolution to issue the new ordinary shares was passed at a General Meeting on 14 June 2018.

 

On 17 August 2018, 1,591,304 ordinary shares of no par value were issued to Hannam & Partners Advisory Limited at 3.45p in lieu of a payment of £54,900, being part of their fees in relation to the capital raise that took place in June 2018.

 

14.  Operating Lease Commitments

 

The Group had no operating lease commitments at the reporting date.

 

 

15.  Events after Balance Sheet Date

 

Acquisition of Tantalum Investment Pty Limited

 

On 2 October 2018, AfriTin Mining Limited acquired from Jan Jonathan Serfontein the entire issued share capital of Tantalum Investment Pty Limited, containing Namibian exploration licenses EPL5445 and EPL5670 for the exploration of tin, tantalum and other associated minerals. The purchase price of £850,000 was settled by way of issue of 25,000,000 ordinary shares in the Company, at a price of 3.40p.

 

16.  Related-party transactions

 

Balances and transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.

 

Goldiblox Pty Limited ("Goldiblox") is a related party due to Frans van Daalen, key management personnel of AfriTin Mining Limited, being a 50% shareholder of Goldiblox. During the period, Goldiblox charged the Group £66, 554 for management services. At the period end, the Group did not owe Goldiblox any funds.

 

17.  Comparative Figures

 

The financial statements as presented are for the period 1 March 2018 to 31 August 2018. As the Company was incorporated on 1 September 2017, there is no comparative financial information for the corresponding prior period. 


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