Mila Resources PLC (LSE:MILA) reported £2.52mln cash at bank and in hand after what it called a “transformational” half-year that saw the shell company acquire its first interest in an operational mine, with an initial 30% interest in the Kathleen Valley gold project in Western Australia.
In November, a capital raise of £3.5mln was completed alongside the acquisition, with the aim of funding an 11,000m-plus drilling programme to build on the existing JORC inferred resource and unlock the full potential of the project.
Drilling got underway in February and is continuing in the second half of the year, with two zones of mineralisation identified so far, one of over 7m of sulphide mineralisation and another mineralised sulphide zone of 9.3m.
Conditional on the successful completion of 11,000m of drilling, Mila will have a right to purchase a further 25% interest in Kathleen Valley and the associated licence from Trans Pacific Energy Group Pty for £2.34mln by way of issuing 97,656,750 new ordinary shares at a price of £0.024 per share.
The interim results for the six months to 31 December 2021 showed a loss of £760,806, which includes a non-cash accounting charge of £493,232 relating to the issuance of warrants and options as part of the capital raise.
The initial 30% interest in the Kathleen Valley project and the exploration licence was satisfied by a £300,000 in cash consideration and the issue of shares.