TIDMEEE
RNS Number : 0717D
Empire Metals Limited
19 June 2023
Empire Metals Limited / LON : EEE / Sector: Natural
Resources
19 June 2023
Empire Metals Limited
("Empire " or "the Company")
Final Results
Empire Metals Limited (LON: EEE), the AIM-quoted resource
exploration and development company, announces its final results
for the year ended 31 December 2022.
The annual report and accounts for the year ended 31 December
2022 will be posted to shareholders today and will be available for
download on the Company's website, www.empiremetals.co.uk, later
today.
Highlights:
-- Confirmed discovery of a new emerging "Giant" mineral system
at the Pitfield Project which has been found to host titanium
mineralisation of globally significant size and grade in addition
to widespread anomalous copper values.
-- Titanium rich mineralisation (between 4% and 10% TiO(2) ) was
identified in all but one of 21 holes drilled, starting at or very
near surface and with nearly a quarter of the holes still ending in
high TiO(2) values of up to 154 metres depth.
-- Only 2% of this highly prospective, giant mineral system has
been drilled to date demonstrating enormous potential for
additional discoveries through future drilling currently being
planned.
-- Cash at bank as at the date of signing the Financial
Statements of GBP1.8 million, well-funded for planned work
programmes focussed on our recent titanium discovery at the
Pitfield Project.
-- Continued exploration activity at the Eclipse-Gindalbie
Project - a highly prospective and high-grade gold project with a
new kaolin discovery of potential economic significance.
-- Significant growth of exploration footprint across
Australia's premier mining regions - portfolio now has exposure to
commodities including gold, copper, titanium and lithium.
-- Increased exploration area from 3.1km(2) to 2,155km(2)
comprising four major projects and transforming Empire into a
significant explorer and potential developer in Australia.
-- Talented exploration and development team now established in
Western Australia including Ed Baltis, Louisa Stokes and bolstered
by the appointment of Andrew Faragher as Exploration Manager post
period end.
Shaun Bunn, Managing Director, commented: "Empire can now boast
one of the largest and most prospective exploration footprints
across Australia - a premier mining jurisdiction which continues to
produce some of the most exciting exploration success stories
globally. Our agreement in April 2022 which saw Empire acquire
majority interests in three highly prospective exploration
projects, Pitfield, Walton and Stavely, set the tone for our
activities for the next year. All projects are in geological
regions well known for world-class copper and/or gold discoveries
and we are actively leveraging the expertise of our technical team
to deliver new discoveries as our exploration programmes
continue.
"We have also been building an experienced and highly capable
exploration team and we are now in an excellent position to move
forward with exploration programmes across multiple projects,
prioritising work at our Pitfield Project in Western Australia.
Although at an early stage, Pitfield has consistently demonstrated
that there is a "Giant" mineral system present and understandably,
our exploration team are eager to press on with work here towards
defining the parts of this giant mineral system that host
economically significant concentrations of metals. To this end, our
maiden drill programme at Pitfield discovered a zone of high-grade
titanium mineralisation of genuinely massive proportions; a Giant
in a Land of Giants. Copper values are also ubiquitously anomalous
indicating that the fluid(s) involved in the titanium mineralising
event were also carrying huge amounts of copper which we believe
formed significant copper deposits in other parts of this giant
mineral system as evidenced by the historic copper mines and
prospects in this region. Pitfield has every potential to become a
giant polymetallic orebody district of global significance that
Empire now controls.
"I look forward to sharing updates from across our portfolio
over the coming months, including more from our exploration
activities at Pitfield, expected during the course of Q3. We are
also expecting more news from Eclipse-Gindalbie including further
details about the kaolin discovery, plus the launch of our
exploration programme at Walton. We are entering into an exciting
year of exploration activity and potential discovery, and I remain
very enthusiastic about what the future has in store for us."
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, as incorporated into UK law by the
European Union (Withdrawal) Act 2018, until the release of this
announcement.
**S**
For further information please visit www.empiremetals.co.uk or contact:
Empire Metals Ltd Tel: 020 4583 1440
Shaun Bunn / Greg Kuenzel
S. P. Angel Corporate Finance LLP (Nomad Tel: 020 3470 0470
& Broker)
Ewan Leggat / Adam Cowl
-------------------
Shard Capital Partners LLP (Joint Broker) Tel: 020 7186 9950
Damon Heath
-------------------
St Brides Partners Ltd (Financial PR) Tel: 020 7236 1177
Susie Geliher / Ana Ribeiro
-------------------
CHAIRMAN'S STATEMENT
Our objective for 2022 was to establish a portfolio of
high-quality exploration assets through which to deliver value to
our shareholders by making new discoveries, and by developing known
deposits. We had a strong first project in the Eclipse-Gindabie
Project, however our exploration aspirations were truly realised in
April of last year when we acquired majority interests in three
large new project areas, Pitfield, Walton and Stavely. Pitfield and
Walton are located in mining regions of Western Australia, and in
the Stavely Arc region of Victoria in the case of the Stavely
project, and all are known for world class and significant copper
and/or gold discoveries. These new projects opened up prospective
new geological terranes for us, and importantly, increased our
exploration area from 3.1km2 to 2,155km2, instantly transforming
Empire into an explorer and potential developer with substantial
scope and scale.
Our immediate priority has been the Pitfield Project, which has
demonstrated all the hallmarks of a "Giant" mineral system with the
potential to contain multiple giant metal deposits across its huge
regional extent. Given the many historic copper prosects and small
mines in the district our focus has been on locating the parts of
this giant mineral system most favourable for hosting economic
copper deposits. On our very first reconnaissance drill program
this giant mineral system has delivered to us a globally
significant primary titanium discovery. Copper values are also
strongly anomalous which tells us that other parts of this giant
mineral system may host significant copper deposits as well.
Pitfield lies within the Neoproterozoic Yandanooka intracratonic
sedimentary basin; the Neoproterozoic being one of the major copper
mineralisation epochs globally. Pitfield is located immediately
adjacent to the historic Baxters copper mine at Arrino which
produced 106 tonnes of copper at a grade between 20-30% which,
along with numerous other prospects, demonstrates high regional
prospectivity for copper. We embarked on our exploration efforts
confident in our ability to demonstrate a new copper discovery but
realizing that giant mineral systems are special and can
surprise.
Our work began with an airborne magnetic survey, carried out in
June 2022, which identified a significant structure along the
western boundary of the magnetic anomaly that closely aligns with a
surface copper anomaly stretching over 7km, previously identified
by Conzinc Riotinto of Australia (which became part of Rio Tinto
Group) when conducting surface sampling in the early 1990s. This
airborne magnetic survey was quickly followed with an airborne
electro-magnetic survey, and an evaluation of the historical
exploration database, which, following an expert review undertaken
by Ed Baltis, confirmed the presence of an exceptionally large
magnetic anomaly extending over 40km in length.
Field work began in November 2022, with the first phase of
activity comprised of mapping surface geology and soil sampling.
This surface mapping resulted in a number of rock samples being
collected which confirmed copper enrichment along with quartz and
magnetite hosted by sandstones -key elements of certain types of
sediment-hosted stratabound copper deposits such as Udokan in
Russia. The following month, a contract geophysical survey crew was
mobilised and they completed five traverses of Dipole-Dipole
Induced Polarisation (DD-IP) for a total of 8,450-line metres. The
aim of the DD-IP survey was to identify drillable targets of
sufficient scale within the prospective Mt. Scratch Formation
sandstones, as supported by existing geological mapping and surface
sampling results. Although the lines were wide-spaced the DD-IP
programme successfully outlined a number of extensive, strong
IP/resistivity anomalies, many coinciding with the regional gravity
and magnetics anomalies, copper-in-soil geochemical anomalies and
the prospective sedimentary host rocks.
Armed with this information, Empire launched its maiden drill
programme post period end in March 2023, completing 21 holes for a
total of 3,206m. The results of this programme, announced in May
2023, were both expected and unexpected. As expected, the holes
confirmed the presence of a regionally significant and robust,
giant (40km by 8km) metal-rich hydrothermal mineral system formed
by a fluid(s) that carried a lot of copper but unexpectantly where
the Company has drilled widespread and high-grade concentrations of
titanium were found which were nonetheless extremely exciting.
Titanium rich mineralisation (between 4% and 10% TiO2) was
identified in all but one of the 21 holes drilled, starting at or
very near surface and with nearly a quarter of the holes still
ending in high TiO2 values of up to 154 metres depth. Given the
scale and extent of the known mineral system, as defined by
combined geological-geophysical-geochemical datasets, the Company
believes it has discovered a new high-grade, titanium deposit with
the potential to be among the most significant primary titanium
orebodies globally. The Company also maintains that other parts of
this giant mineral system are more prospective for the formation
and preservation of significant copper deposits and perhaps other
metals as well. This is a complex but rich mineral system that
clearly will reward our continued exploration.
Only 2% of this highly prospective, giant mineral system has
been drilled to date demonstrating enormous potential for
additional discoveries through future drilling currently being
planned. In order to fully realise the Company's exploration
ambitions at Pitfield, in mid-December, Empire took the decision to
expand our exploration licence area through the addition of two new
Exploration Licence Applications, covering extensions to the north
and south of the massive alteration footprint previously identified
by us. These new Exploration Licences increase our Pitfield
exploration camp from 615km2 to over 1,041km(2) .
Looking to the wider portfolio, our work at Eclipse-Gindalbie
continues to generate positive results for us. The period started
with news that Empire had negotiated a tribute agreement to access
the highly prospective Gindalbie Gold Project, which is contiguous
with the Eclipse licence, therefore consolidating the mineralised
footprint around our foundation asset. This move increased Empire's
exploration land package in the area by over 200%, to a total of
943ha.
Empire has conducted multiple drilling campaigns at
Eclipse-Gindalbie during 2022, which has confirmed that the
mineralised system at Eclipse is much larger than originally
thought. Drilling identified high-grade parallel veins to the
Eclipse lode and wide strike extensions at Jack's Dream, confirming
the presence of exceptional gold mineralisation and also a thick
layer of kaolin around the South Gippsland #3 shaft at
Gindalbie.
Drilling at the Homeward Bound prospect, located toward the
western extent of the Gindalbie project, reported stellar grade
intercepts including 5m @ 8.99 g/t Au from 31m downhole (including
1m at 40.90 g/t Au), 3m @ 8.96 g/t Au from 98m downhole (including
2m at 13.28 g/t Au), and 3m @ 9.88 g/t Au from 46m downhole
(including 1m at 26.20 g/t Au).
Eclipse-Gindalbie continues to merit further exploration
efforts, particularly with regard to the kaolin discovery. Kaolin
could provide Empire with a new industrial mineral dimension to its
commodity focus, with kaolin used extensively in a number of
industries including paper, plastics, adhesives, rubber, paint,
refractories, cement, bricks and ceramics, and is considered to be
a desirable feedstock for the production of high-purity aluminium
oxide, an essential component in lithium-ion batteries. Further
work to assess the commercial potential of this discovery is
ongoing and will be reported in due course.
Financial Results
As an exploration and development group which has no revenue we
are reporting a loss for the 12 months ended 31 December 2022 of
GBP1,162,720 (31 December 2021: loss of GBP589,254).
The Group's cash position at the date of signing this report is
GBP1.8 million.
Outlook
2023 is looking like a particularly promising and productive
year for Empire, as we push forward determinedly with exploration
programmes across multiple projects; most notably Pitfield and
Eclipse-Gindalbie, but also the Stavely and Walton Projects.
Following our spectacular drilling results from our maiden
programme at Pitfield, the team is keen to keep up the forward
momentum and undertake additional work to better define and test
this giant mineral system for additional discoveries including
copper and begin to prove up the titanium find which we believe
will become an asset of globally significant magnitude. Across our
wider portfolio, we are also awaiting the metallurgical testwork
and evaluation of the kaolin mineralisation at Eclipse-Gindalbie,
and we are eager to commence maiden exploration at Stavely and
Walton using airborne geophysical surveys at Stavely and geological
mapping and rock/soil sampling at Walton.
Under the experienced leadership of Managing Director Shaun
Bunn, and Andrew Faragher, our new Exploration Manager, I believe
Empire is very well positioned to make significant new discoveries
and bring new exploration success stories to our shareholders.
As ever, I am extremely grateful to our shareholders for their
continued support and I look forward to sharing more news with you
from across our portfolio of assets during the course of 2023.
Neil O'Brien
Non-Executive Chairman
16 June 2023
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2022
Group
----------------------------
Registered number: 1570939 Note 2022 2021
GBP GBP
---------------------------------------- ----- ------------- -------------
Non-Current Assets
Property, plant and equipment 8 1,328 -
Intangible assets 9 3,337,598 1,952,419
Total Non-current assets 3,338,926 1,952,419
---------------------------------------- ----- ------------- -------------
Current Assets
Trade and other receivables 10 69,695 87,198
Financial assets at fair value through 11 - -
profit or loss
Cash and cash equivalents 12 1,467,769 2,210,371
Total current assets 1,537,464 2,297,569
---------------------------------------- ----- ------------- -------------
Total Assets 4,876,390 4,249,988
---------------------------------------- ----- ------------- -------------
Current Liabilities
Trade and other payables 13 110,304 124,543
---------------------------------------- ----- ------------- -------------
Total Current Liabilities 110,304 124,543
---------------------------------------- ----- ------------- -------------
Total Liabilities 110,304 124,543
---------------------------------------- ----- ------------- -------------
Net Assets 4,766,086 4,125,445
---------------------------------------- ----- ------------- -------------
Equity attributable to owners of
the Parent
Share capital 14 - -
Share premium 14 45,523,695 43,836,855
Reverse acquisition reserve (18,845,147) (18,845,147)
Other reserves 15 448,309 520,293
Accumulated losses (22,360,771) (21,386,556)
---------------------------------------- ----- ------------- -------------
Total equity attributable to owners
of the Parent 4,766,086 4,125,445
---------------------------------------- ----- ------------- -------------
Total Equity 4,766,086 4,125,445
---------------------------------------- ----- ------------- -------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 31 December 2022
Group
----------------------------
Note Year ended Year ended
31 December 31 December
2022 2021
Continuing Operations GBP GBP
------------------------------------------------------------------- ----- ------------- -------------
Revenue - -
Cost of sales - -
------------------------------------------------------------------- ----- ------------- -------------
Gross profit - -
------------------------------------------------------------------- ----- ------------- -------------
Administration expenses 6 (1,046,638) (1,912,498)
Other losses 17 (114,587) (417,138)
Operating loss before taxation (1,161,225) (2,329,636)
------------------------------------------------------------------- ----- ------------- -------------
Income tax 7 (1,495) (11,154)
------------------------------------------------------------------- ----- ------------- -------------
Loss for the year from continuing
operations (1,162,720) (2,340,790)
------------------------------------------------------------------- ----- ------------- -------------
(Loss)/profit from discontinued operations
(attributable to equity holders of
the Company) - 1,751,536
------------------------------------------------------------------- ----- ------------- -------------
Loss for the year (1,162,720) (589,254)
------------------------------------------------------------------- ----- ------------- -------------
Loss attributable to:
* owners of the Parent (1,162,720) (589,254)
(1,162,720) (589,254)
------------------------------------------------------------------- ----- ------------- -------------
Other Comprehensive Income:
Items that may be subsequently reclassified
to profit or loss
Exchange differences on translating
foreign operations 58,301 (8,056)
Total Comprehensive Income (1,104,419) (597,310)
------------------------------------------------------------------- ----- ------------- -------------
Attributable to:
* owners of the Parent (1,104,419) (597,310)
Total Comprehensive Income (1,104,419) (597,310)
------------------------------------------------------------------- ----- ------------- -------------
* Total comprehensive income attributable to
discontinued operations
- 1,751,536
* Total comprehensive income attributable to continuing
operations (1,104,419) (2,349,326)
------------------------------------------------------------------- ----- ------------- -------------
Earnings per share (pence) from continuing
operations attributable to owners of
the Parent - Basic & Diluted 20 (0.292) (0.706)
------------------------------------------------------------------- ----- ------------- -------------
Earnings per share (pence) from discontinued
operations attributable to owners of
the Parent - Basic & Diluted 20 - 0.528
------------------------------------------------------------------- ----- ------------- -------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
For the year ended 31 December 2022
Reverse
Share acquisition Other Retained Total
premium reserve reserves losses equity
GBP GBP GBP GBP GBP
--------------------------------- ----------- ------------- ---------- ------------- ------------
As at 1 January 2021 43,065,981 (18,845,147) 152,793 (20,985,991) 3,387,636
--------------------------------- ----------- ------------- ---------- ------------- ------------
Loss for the year - - - (589,254) (589,254)
--------------------------------- ----------- ------------- ---------- ------------- ------------
Other comprehensive income
Exchange differences on
translating foreign operations - - (8,056) - (8,056)
--------------------------------- ----------- ------------- ---------- ------------- ------------
Total comprehensive income
for the year - - (8,056) (589,254) (597,310)
--------------------------------- ----------- ------------- ---------- ------------- ------------
Transactions with owners
Issue of ordinary shares 770,874 - - - 770,874
Share option charge - - 564,245 - 564,245
Expiry of Share Options - - (188,689) 188,689 -
--------------------------------- ----------- ------------- ---------- ------------- ------------
Total transactions with
owners 770,874 - 375,556 188,689 1,335,119
As at 31 December 2021 43,836,855 (18,845,147) 520,293 (21,386,556) 4,125,445
--------------------------------- ----------- ------------- ---------- ------------- ------------
As at 1 January 2022 43,836,855 (18,845,147) 520,293 (21,386,556) 4,125,445
--------------------------------- ----------- ------------- ---------- ------------- ------------
Loss for the year - - - (1,162,720) (1,162,720)
Other comprehensive income
Exchange differences on
translating foreign operations - - 58,301 - 58,301
Total comprehensive income
for the year - - 58,301 (1,162,720) (1,104,419)
--------------------------------- ----------- ------------- ---------- ------------- ------------
Transactions with owners
Issue of ordinary shares 1,775,760 - - - 1,775,760
Cost of capital (88,920) - - - (88,920)
Share option charge - - 58,220 - 58,220
Expiry of Share Options - - (188,505) 188,505 -
Total transactions with
owners 1,686,840 - (130,285) 188,505 1,745,060
--------------------------------- ----------- ------------- ---------- ------------- ------------
As at 31 December 2022 45,523,695 (18,845,147) 448,309 (22,360,771) 4,766,086
--------------------------------- ----------- ------------- ---------- ------------- ------------
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2022
Group
--------------------------
Note 2022 2021
GBP GBP
------------------------------------------------- ------------ ------------
Cash flows from operating activities
Loss after taxation including discontinued
operations (1,162,720) (589,254)
Adjustments for:
Services satisfied by issue of shares 27,500 438,059
Share based payment 58,220 473,336
Share of loss/ (profit) on joint venture
- discontinued operations - 23,593
Net finance income (2,795) (71)
Impairment of investments in joint
venture - 417,138
Impairment of intangible assets 114,587 -
Gain on sale of investment - discontinued
operations - (1,775,129)
Tax expense 1,495 11,154
Depreciation and amortisation 300 1,423
Decrease/ (increase) in trade and
other receivables 17,506 (22,071)
Increase/(Decrease) in trade and other
payables (26,490) 31,281
Net cash used in operating activities (972,397) (990,541)
--------------------------------------------- --- ------------ ------------
Cash flows from investing activities
Loans granted to subsidiaries and
joint venture partners - discontinued
operations - (22,240)
Purchase of property, plant and equipment (1,628) -
Additions to exploration and evaluation
intangible asset (1,339,952) (1,512,430)
Sale of investment in joint venture
- discontinued operations - 2,327,944
Net cash used in investing activities (1,341,580) 793,274
--------------------------------------------- --- ------------ ------------
Cash flows from financing activities
Proceeds from issue of shares, less
shares issued in lieu of fees 1,657,500 118,000
Cost of share issue (88,920) -
Interest received 2,795 -
Net cash generated from financing
activities 1,571,375 118,000
--------------------------------------------- --- ------------ ------------
Net decrease in cash and cash equivalents (742,602) (79,267)
Cash and cash equivalents at beginning
of year 2,210,371 2,289,638
--------------------------------------------- --- ------------ ------------
Cash and cash equivalents at end
of year 12 1,467,769 2,210,371
--------------------------------------------- --- ------------ ------------
Non-cash investing and financing
activities
Acquisition of exploration license
- share based payment(1/2) 9 78,227 332,185
Advisory fees settled in shares(/3) - 438,059
Share options and warrants issued
in respect of services 16 58,220 473,336
Acquisition of exploration license
- issue of warrants 16 - 90,909
--------------------------------------------- --- ------------ ------------
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2022
ACCOUNTING POLICIES
1. General Information
The principal activity of Empire Metals Limited ("the Company")
and its subsidiaries (together "the Group") is to implement its
mineral exploration strategy to advance projects towards defining a
sufficient in-situ mineral resource to support a detailed
feasibility study towards mine development and production.
The Company's shares are traded on AIM, a market operated by the
London Stock Exchange. The Company is incorporated in the British
Virgin Islands and domiciled in the United Kingdom. The Company
changed its name to Empire Metals Limited on 10 February 2020.
The address of its registered office is Craigmuir Chambers, PO
Box 71, Road Town, Tortola, BVI.
2. Summary of Significant Accounting Policies
The principal accounting policies applied in the preparation of
these Financial Statements are set out below. These policies have
been consistently applied to all the periods presented, unless
otherwise stated.
2.1 Basis of Preparation of Financial Statements
The Group Financial Statements have been prepared in accordance
with International Financial Reporting Standards (IFRS) and IFRS
Interpretations Committee (IFRS IC) interpretations as adopted by
the European Union. The Group Financial Statements have been
prepared under the historical cost convention, unless stated
otherwise.
The Financial Statements are presented in UK Pounds Sterling
rounded to the nearest pound.
The preparation of Financial Statements in conformity with IFRSs
requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of
applying the Group's Accounting Policies. The areas involving a
higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the Financial
Statements, are disclosed in Note 4 .
2.2 Changes in accounting policy and disclosures
(a) New and amended standards mandatory for the first time for
the financial periods beginning on or after 1 January 2022
The International Accounting Standards Board (IASB) issued
various amendments and revisions to International Financial
Reporting Standards and IFRIC interpretations. The amendments and
revisions were applicable for the period ended 31 December 2022 but
did not result in any material changes to the Financial Statements
of the Group.
b) New standards, amendments and interpretations in issue but
not yet effective or not yet endorsed and not early adopted
Standards, amendments and interpretations that are not yet
effective and have not been early adopted are as follows:
Standard Impact on initial application Effective date
--------- ------------------------------------- ---------------
IAS 12 Income taxes 1 January 2023
------------------------------------- ---------------
IFRS 17 Insurance contracts 1 January 2023
------------------------------------- ---------------
IAS 8 Accounting estimates 1 January 2023
------------------------------------- ---------------
IAS 1 Presentation of Financial Statements 1 January 2023
------------------------------------- ---------------
The Group is evaluating the impact of the new and amended
standards above which are not expected to have a material impact on
future Group Financial Statements .
2.3 Basis of Consolidation
The Group Financial Statements consolidate the Financial
Statements of Empire Metals Limited and the Financial Statements of
all of its subsidiary undertakings made up to 31 December 2022.
Subsidiaries are entities over which the Group has control. The
Group controls an entity when the Group is exposed to, or has
rights to, variable returns from its involvement with the entity
and has the ability to affect those returns through its power over
the entity. Where an entity does not have returns, the Group's
power over the investee is assessed as to whether control is held.
Subsidiaries are fully consolidated from the date on which control
is transferred to the Group. They are deconsolidated from the date
that control ceases.
Below is a summary of subsidiaries of the Group:
Parent company Share
Place of Registered capital Principal
Name of subsidiary business capital held activities
-------------------- ---------------- ----------------- ------------------ --------- ----------------
Kibe Investments British Empire Metals Ordinary 100% Dormant
No.2 Limited Virgin Islands Ltd shares US$12
-------------------- ---------------- ----------------- ------------------ --------- ----------------
Noricum Gold Austria Kibe Investments Ordinary 100% Exploration
AT GmbH No.2 Limited shares EUR35,000
-------------------- ---------------- ----------------- ------------------ --------- ----------------
GMC Investments British Empire Metals Ordinary 100% Dormant
Limited Virgin Islands Ltd shares US$1
-------------------- ---------------- ----------------- ------------------ --------- ----------------
European Mining United Kingdom Empire Metals Ordinary 100% Mining Services
Services Limited Ltd shares
GBP1
-------------------- ---------------- ----------------- ------------------ --------- ----------------
Eclipse Exploration Australia Empire Metals Ordinary 100% Exploration
Pty Ltd Ltd Shares
AUD$1
-------------------- ---------------- ----------------- ------------------ --------- ----------------
Inter-company transactions, balances, income and expenses on
transactions between group companies are eliminated. Profits and
losses resulting from intercompany transactions that are recognised
in assets are also eliminated. Accounting policies of subsidiaries
have been changed where necessary to ensure consistency with the
policies adopted by the Group.
2.4 Going Concern
The Group's business activities, together with the factors
likely to affect its future development, performance and position,
are set out in the Chairman's Report from page 3. In addition, Note
3 to the Financial Statements includes the Group's objectives,
policies and processes for managing its capital; its financial risk
management objectives; and details of its exposure to credit and
liquidity risk.
The Financial Statements have been prepared on a going concern
basis. Although the Group's assets are not generating steady
revenue streams, an operating loss has been reported and an
operating loss is expected in the 12 months to 31 December 2023,
the Directors believe that the Group will have sufficient funds to
meet its immediate working capital requirements and undertake its
targeted operating activities over the next 12 months from the date
of approval of these Financial Statements. As at the balance sheet
date, the Group has cash and cash equivalents of GBP1,467,769 and a
further GBP1.25 million was raised via the issue of new ordinary
shares in March 2023. These amounts combined are expected to
adequately cover forecast working capital requirements.
The Directors have, in the light of all the above circumstances,
a reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future. Thus,
they continue to adopt the going concern basis of accounting in
preparing the Group Financial Statements.
2.5 Segment Reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker.
The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating
segments, has been identified as the Board of Directors that makes
strategic decisions.
Segment results, include items directly attributable to a
segment as well as those that can be allocated on a reasonable
basis.
2.6 Foreign Currencies
(a) Functional and presentation currency
Items included in the Financial Statements of the Group's
entities are measured using the currency of the primary economic
environment in which the entity operates (the 'functional
currency'). The functional currency of the Company is Sterling, the
functional currency of the BVI subsidiaries is US Dollars, the
functional currency of the Austrian subsidiary is Euros and the
functional currency of the Australian subsidiary is AUD Dollars.
The Financial Statements are presented in Pounds Sterling, rounded
to the nearest pound.
(b) Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions or valuation where such items are re-measured. Foreign
exchange gains and losses resulting from the settlement of such
transactions and from the translation at year-end exchange rates of
monetary assets and liabilities denominated in foreign currencies
are recognised in the Income Statement.
(c) Group companies
The results and financial position of all the Group's entities
(none of which has the currency of a hyperinflationary economy)
that have a functional currency different from the presentation
currency are translated into the presentation currency as
follows:
-- assets and liabilities for each statement of financial
position presented are translated at the closing rate at the date
of that statement of financial position;
-- income and expenses for each statement of comprehensive
income presented are translated at average exchange rates (unless
this average is not a reasonable approximation of the cumulative
effect of the rates prevailing on the transaction dates, in which
case income and expenses are translated at the dates of the
transactions); and
-- all resulting exchange differences are recognised in other
comprehensive income where material.
On consolidation, exchange differences arising from the
translation of the net investment in foreign entities, and of
monetary items receivable from foreign subsidiaries for which
settlement is neither planned nor likely to occur in the
foreseeable future, are taken to other comprehensive income. When a
foreign operation is sold, such exchange differences are recognised
in the income statement as part of the gain or loss on sale.
2.7 Intangible Assets
Exploration and evaluation assets
The Group recognises expenditure as exploration and evaluation
assets when it determines that those assets will be successful in
finding specific mineral resources. Expenditure included in the
initial measurement of exploration and evaluation assets and which
are classified as intangible assets, relate to the acquisition of
rights to explore, topographical, geological, geochemical and
geophysical studies, exploratory drilling, trenching, sampling and
activities to evaluate the technical feasibility and commercial
viability of extracting a mineral resource. Capitalisation of
pre-production expenditure ceases when the mining property is
capable of commercial production.
Exploration and evaluation assets are recorded and held at
cost.
Exploration and evaluation assets are assessed for impairment
annually or when facts and circumstances suggest that the carrying
amount of an asset may exceed its recoverable amount. The
assessment is carried out by allocating exploration and evaluation
assets to cash generating units, which are based on specific
projects or geographical areas. IFRS 6 permits impairments of
exploration and evaluation expenditure to be reversed should the
conditions which led to the impairment improve. The Group
continually monitors the position of the projects capitalised and
impaired.
Whenever the exploration for and evaluation of mineral resources
in cash generating units does not lead to the discovery of
commercially viable quantities of mineral resources and the Group
has decided to discontinue such activities of that unit, the
associated expenditures are written off to the Income
Statement.
2.8 Property, Plant and Equipment
Property, plant and equipment is stated at historical cost less
accumulated depreciation and any accumulated impairment losses.
Depreciation is provided on all property, plant and equipment to
write off the cost less estimated residual value of each asset over
its expected useful economic life on a straight-line basis at the
following annual rates:
Computer equipment - 20 to 50% straight line
Field equipment - 20 to 50% straight line
All assets are subject to annual impairment reviews. An asset's
carrying amount is written down immediately to its recoverable
amount if the asset's carrying amount is greater than its estimated
recoverable amount.
Subsequent costs are included in the asset's carrying amount or
recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item
will flow to the Group and the cost of the item can be measured
reliably. The carrying amount of the replacement part is
derecognised. All other repairs and maintenance are charged to the
Income Statement during the financial period in which they are
incurred.
The asset's residual value and useful economic lives are
reviewed, and adjusted if appropriate, at the end of each reporting
period.
Gains and losses on disposal are determined by comparing the
proceeds with the carrying amount and are recognised within 'Other
gains / (losses)' in the income statement.
2.9 Impairment of non-financial assets
Assets that have an indefinite useful life, for example,
intangible assets not ready to use, are not subject to amortisation
and are tested annually for impairment. An impairment loss is
recognised for the amount by which the asset's carrying amount
exceeds its recoverable amount. The recoverable amount is the
higher of an asset's fair value less costs to sell and value in
use. For the purposes of assessing impairment, assets are grouped
at the lowest levels for which there are separately identifiable
cash flows (cash generating units).
Non-financial assets that suffered impairment (except goodwill)
are reviewed for possible reversal of the impairment at each
reporting date.
2.10 Assets classified as held for sale
Assets are classified as held for sale if their carrying amount
will be recovered principally through a sale transaction rather
than through continuing use and a sale is considered highly
probable. They are measured at the lower of their carrying value
and fair value less costs to sell. An impairment loss is recognised
for any subsequent write-down of the asset to fair value less costs
to sell.
2.11 Financial Assets
(a) Classification
The Group classifies its financial assets in the following
categories: at amortised cost including trade receivables and other
financial assets at amortised cost, at fair value through other
comprehensive income and at fair value through profit or loss,
loans and receivables, and available-for-sale. The classification
depends on the purpose for which the financial assets were
acquired. Management determines the classification of its financial
assets at initial recognition.
(b) Recognition and measurement
Amortised cost
Trade and other receivables are recognised initially at the
amount of consideration that is unconditional, unless they contain
significant financing components, in which case they are recognised
at fair value. The group holds the trade and other receivables with
the objective of collecting the contractual cash flows, and so it
measures them subsequently at amortised cost using the effective
interest method.
The group classifies its financial assets as at amortised cost
only if both of the following criteria are met:
-- the asset is held within a business model whose objective is
to collect the contractual cash flows; and
-- the contractual terms give rise to cash flows that are solely
payments of principle and interest.
(c) Impairment of financial assets
The Group recognises an allowance for expected credit losses
(ECLs) for all debt instruments not held at fair value through
profit or loss. ECLs are based on the difference between the
contractual cash flows due in accordance with the contract and all
the cash flows that the Group expects to receive, discounted at an
approximation of the original EIR. The expected cash flows will
include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for
which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses that
result from default events that are possible within the next
12-months (a 12-month ECL). For those credit exposures for which
there has been a significant increase in credit risk since initial
recognition, a loss allowance is required for credit losses
expected over the remaining life of the exposure, irrespective of
the timing of the default (a lifetime ECL).
For trade receivables (not subject to provisional pricing) and
other receivables due in less than 12 months, the Group applies the
simplified approach in calculating ECLs, as permitted by IFRS 9.
Therefore, the Group does not track changes in credit risk, but
instead, recognises a loss allowance based on the financial asset's
lifetime ECL at each reporting date.
The Group considers a financial asset in default when
contractual payments are 90 days past due. However, in certain
cases, the Group may also consider a financial asset to be in
default when internal or external information indicates that the
Group is unlikely to receive the outstanding contractual amounts in
full before taking into account any credit enhancements held by the
Group. A financial asset is written off when there is no reasonable
expectation of recovering the contractual cash flows and usually
occurs when past due for more than one year and not subject to
enforcement activity.
At each reporting date, the Group assesses whether financial
assets carried at amortised cost are credit impaired. A financial
asset is credit-impaired when one or more events that have a
detrimental impact on the estimated future cash flows of the
financial asset have occurred.
(d) Derecognition
The Group derecognises a financial asset only when the
contractual rights to the cash flows from the asset expire, or when
it transfers the financial asset and substantially all the risks
and rewards of ownership of the asset to another entity.
On derecognition of a financial asset measured at amortised
cost, the difference between the asset's carrying amount and the
sum of the consideration received and receivable is recognised in
profit or loss. This is the same treatment for a financial asset
measured at FVTPL.
2.12 Financial Liabilities
Financial liabilities are classified, at initial recognition, as
financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated as hedging
instruments in an effective hedge, as appropriate. All financial
liabilities are recognised initially at fair value and, in the case
of loans and borrowings and payables, net of directly attributable
transaction costs. The Group's financial liabilities include trade
and other payables.
Subsequent measurement
The measurement of financial liabilities depends on their
classification, as described below:
Trade and other payables
After initial recognition, trade and other payables are
subsequently measured at amortised cost using the EIR method. Gains
and losses are recognised in the statement of profit or loss and
other comprehensive income when the liabilities are derecognised,
as well as through the EIR amortisation process.
Amortised cost is calculated by considering any discount or
premium on acquisition and fees or costs that are an integral part
of the EIR. The EIR amortisation is included as finance costs in
the statement of profit or loss and other comprehensive income.
Derecognition
A financial liability is derecognised when the associated
obligation is discharged or cancelled or expires.
When an existing financial liability is replaced by another from
the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange
or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in
the respective carrying amounts is recognised in profit or loss and
other comprehensive income.
Fair value
All assets and liabilities for which fair value is measured or
disclosed in the consolidated Financial Statements are categorised
within the fair value hierarchy. The fair value hierarchy
prioritises the inputs to valuation techniques used to measure fair
value. The Group uses the following hierarchy for determining and
disclosing the fair value of financial instruments and other assets
and liabilities for which the fair value was used:
- level 1: quoted prices in active markets for identical assets or liabilities;
- level 2: inputs other than quoted prices included in level 1
that are observable for the asset or liability, either directly (as
prices) or indirectly (derived from prices); and
- level 3: inputs for the asset or liability that are not based
on observable market data (unobservable inputs).
2.13 Cash and Cash Equivalents
Cash and cash equivalents comprise cash at bank and in hand.
2.14 Taxation
Tax for the period comprises current and deferred tax. Tax is
recognised in the income statement, except to the extent that it
relates to items recognised directly in equity. In this case the
tax is also recognised directly in other comprehensive income or
directly in equity, respectively.
The current income tax charge is calculated on the basis of the
tax laws enacted or substantively enacted at the end of the
reporting period in the countries where the Company's subsidiaries
and associates operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect
to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate on the
basis of amounts expected to be paid to the tax authorities.
Deferred income tax is recognised, using the liability method,
on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the consolidated
Financial Statements . However, the deferred tax is not accounted
for if it arises from initial recognition of an asset or liability
in a transaction other than a business combination that, at the
time of the transaction, affects neither accounting nor taxable
profit or loss. Deferred income tax is determined using tax rates
(and laws) that have been enacted, or substantially enacted, by the
end of the reporting period and are expected to apply when the
related deferred income tax asset is realised, or the deferred
income tax liability is settled.
Deferred income tax assets are recognised only to the extent
that it is probable that future taxable profit will be available
against which the temporary differences can be utilised.
Deferred income tax liabilities are provided on taxable
temporary differences arising from investments in subsidiaries,
associates and joint arrangements, except for deferred income tax
liability where the timing of the reversal of the temporary
difference is controlled by the group and it is probable that the
temporary difference will not reverse in the foreseeable future.
Generally the group is unable to control the reversal of the
temporary difference for associates. Only where there is an
agreement in place that gives the group the ability to control the
reversal of the temporary difference not recognised.
Deferred income tax assets are recognised on deductible
temporary differences arising from investments in subsidiaries,
associates and joint arrangements only to the extent that it is
probable the temporary difference will reverse in the future and
there is sufficient taxable profit available against which the
temporary difference can be utilised.
Deferred income tax assets and liabilities are offset when there
is a legally enforceable right to offset current tax assets against
current tax liabilities, and when the deferred income tax assets
and liabilities relate to income taxes levied by the same taxation
authority on either the taxable entity or different taxable
entities where there is an intention to settle the balances on a
net basis.
There has been no tax credit or expense for the period relating
to current or deferred tax.
2.15 Share Capital, share premium and other reserves
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of new shares or options are
shown in equity, as a deduction, net of tax, from the proceeds
provided there is sufficient premium available. Should sufficient
premium not be available placing costs are recognised in the Income
Statement.
Other reserves consist of the share option reserve and the
foreign exchange translation reserve. See Notes 15 and 16 for
further detail.
2.16 Reverse acquisition reserve
The reverse acquisition reserve arose on the acquisition of Kibe
Investments No. 2 Limited in 2010. There has been no movement in
the reserve since that date.
2.17 Share Based Payments
The Group operates a number of equity-settled share-based
schemes, under which the entity receives services from employees or
third-party suppliers as consideration for equity instruments
(shares, options and warrants) of the Group. The Group may also
issue warrants to share subscribers as part of a share placing. The
fair value of the equity-settled share based payments is recognised
as an expense in the income statement or charged to equity
depending on the nature of the service provided or instrument
issued. The total amount to be expensed or charged in the case of
options is determined by reference to the fair value of the options
or warrants granted:
-- including any market performance conditions;
-- excluding the impact of any service and non-market
performance vesting conditions (for example, profitability or sales
growth targets, or remaining an employee of the entity over a
specified time period); and
-- including the impact of any non-vesting conditions (for
example, the requirement for employees to save).
In the case of shares and warrants the amount charged to the
share premium account is determined by reference to the fair value
of the services received if available. If the fair value of the
services received is not determinable the shares are valued by
reference to the market price and the warrants are valued by
reference to the fair value of the warrants granted as described
previously.
Non-market vesting conditions are included in assumptions about
the number of options or warrants that are expected to vest. The
total expense or charge is recognised over the vesting period,
which is the period over which all of the specified vesting
conditions are to be satisfied. At the end of each reporting
period, the entity revises its estimates of the number of options
that are expected to vest based on the non-market vesting
conditions. It recognises the impact of the revision to original
estimates, if any, in the income statement or equity as
appropriate, with a corresponding adjustment to another reserve in
equity.
When the warrants or options are exercised, the Company issues
new shares. The proceeds received, net of any directly attributable
transaction costs, are credited to share capital (nominal value)
and share premium when the warrants or options are exercised.
2.18 Operating Leases
Leases of assets under which the short-term exemption under IFRS
16 has been taken and which a significant amount of the risks and
benefits of ownership are effectively retained by the lessor are
classified as operating leases. Operating lease payments are
charged to the income statement on a straight-line basis over the
period of the respective leases.
2.19 Revenue Recognition
Revenue is recognised in respect of amounts recharged to project
strategic partners in accordance with their contractual terms.
Revenue is also generated from management and consulting services
to third parties.
The Group derives revenue from the transfer of services overtime
and at a point in time in the service lines detailed below.
Revenues from external customers come from consulting services.
The Group provides management services to subsidiary
undertakings and joint venture entities for a fixed monthly fee.
Revenue from providing services is recognised in the accounting
period in which the services are rendered. Efforts to satisfy the
performance obligation are expended evenly throughout the
performance period and so the performance obligation is considered
to be satisfied evenly over time.
2.20 Finance Income
Finance income consists of bank interest on cash and cash
equivalents which is recognised using the effective interest rate
method.
2.21 Discontinued Operations
A discontinued operation is a component of the Group's business,
the operations and cash flows of which can be clearly distinguished
from the rest of the Group and which:
-- represents a separate major line of business or geographic area of operations;
-- is part of a single co-ordinated plan to dispose of a
separate major line of business or geographic area of operations;
or
-- is a subsidiary acquired exclusively with a view to resale.
Classification as a discontinued operation occurs at the earlier of
disposal or when the operation meets the criteria to be classified
as held-for-sale.
When an operation is classified as a discontinued operation, the
comparative statement of profit or loss and OCI is represented as
if the operation had been discontinued from the start of the
comparative year.
3. Financial Risk Management
3.1 Financial Risk Factors
The Group's activities expose it to a variety of financial risks
being market risk (including, interest rate risk, currency risk and
price risk), credit risk and liquidity risk. The Group's overall
risk management programme focuses on the unpredictability of
financial markets and seeks to minimise potential adverse effects
on the Group's financial performance.
Market Risk
(a) Foreign currency risks
The Group operates internationally and is exposed to foreign
exchange risk arising from various currency exposures, primarily
with respect to the USD and Euros against the UK pound. Foreign
exchange risk arises from future commercial transactions,
recognised assets and liabilities and net investments in foreign
operations. The Group negotiates all material contracts for
activities in relation to its subsidiary in USD and Euros. The
Directors will continue to assess the effect of movements in
exchange rates on the Group's financial operations and initiate
suitable risk management measures where necessary.
(b) Price risk
The Group is not exposed to commodity price risk as a result of
its operations, which are still in the exploration phase. Other
than insignificant consulting revenue, there is no revenue. The
Directors will revisit the appropriateness of this policy should
the Group's operations change in size or nature.
The Group has no exposure to equity securities price risk, as it
has no listed equity investments.
(c) Interest rate risk
As the Group has no borrowings, it is not exposed to interest
rate risk on financial liabilities. The Group's interest rate risk
arises from its cash held on short-term deposit, which is not
significant.
Credit Risk
Credit risk arises from cash and cash equivalents as well as
outstanding receivables. Management does not expect any losses from
non-performance of these receivables.
The amount of exposure to any individual counter party is
subject to a limit, which is assessed by the Board. No credit
limits were exceeded during the reporting period, and management
does not expect any losses from non-performance by these
counterparties.
The Group considers the credit ratings of banks in which it
holds funds in order to reduce exposure to credit risk.
Liquidity Risk
In keeping with similar sized mineral exploration groups, the
Group's continued future operations depend on the ability to raise
sufficient working capital through the issue of equity share
capital. The Directors are confident that adequate funding will be
forthcoming with which to finance operations. Controls over
expenditure are carefully managed. In March 2023, the Company
raised net proceeds of GBP1.25m. See note 2.4 for further details
on going concern and liquidity.
3.2 Capital Risk Management
The Group's objectives when managing capital are to safeguard
the Group's ability to continue as a going concern, in order to
provide returns for shareholders and to enable the Group to
continue its exploration and evaluation activities. The Group has
no debt at 31 December 2022 and defines capital based on the total
equity of the Company being GBP4.6m. The Group monitors its level
of cash resources available against future planned exploration and
evaluation activities and may issue new shares in order to raise
further funds from time to time.
4. Critical Accounting Estimates and Judgements
The preparation of the Group Financial Statements in conformity
with IFRSs requires Management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
Financial Statements and the reported amount of expenses during the
year. Actual results may vary from the estimates used to produce
these Financial Statements.
Estimates and judgements are continually evaluated and are based
on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the
circumstances.
Significant items subject to such estimates and assumptions
include, but are not limited to:
Impairment of exploration and evaluation costs
Exploration and evaluation costs have a carrying value at 31
December 2022 of GBP3,337,598 (2021: GBP1,952,419): refer to Note 9
for more information. The Group has a right to renew exploration
permits and the asset is only depreciated once extraction of the
resource commences. Management tests annually whether exploration
projects have future economic value in accordance with the
accounting policy stated in Note 2.7 . Each exploration project is
subject to an annual review by either a consultant or senior
company geologist to determine if the exploration results returned
during the year warrant further exploration expenditure and have
the potential to result in an economic discovery. This review takes
into consideration the expected costs of extraction, long term
metal prices, anticipated resource volumes and supply and demand
outlook. In the event that a project does not represent an economic
exploration target and results indicate there is no additional
upside, a decision will be made to discontinue exploration.
Towards the end of 2021, management had doubts over the
viability of Central Menzies. These were confirmed shortly after
the year end with the publication of the results of a second phase
of RC drilling which focused on testing the Nugget Patch gold trend
to confirm if there was higher grade mineralisation sitting at
depth below a supergene gold enriched zone and to confirm historic
high grade gold intersections closely associated with the main
workings at Teglio. The results were generally inconclusive, with
no obvious continuity along strike and no significant high-grade
intercepts. In February 2022, the Directors formally announced that
it would not take up the Option over the Central Menzies Gold
Project. As such, management believe there were conditions at the
year end to suggest that Central Menzies exploration asset was
impaired and it was written off in full.
Share based payment transactions
The Group has made awards of options and warrants over its
unissued share capital to certain Directors and employees as part
of their remuneration package. Certain warrants have also been
issued to shareholders as part of their subscription for shares and
to suppliers for various services received.
The valuation of these options and warrants involves making a
number of critical estimates relating to price volatility, future
dividend yields, expected life of the options and forfeiture rates.
These assumptions have been described in more detail in Note
16.
5. Segmental Information
As at 31 December 2022, the Group operates in three geographical
areas, the UK, Austria and Australia. The Company operates in one
geographical area, the UK. Activities in the UK are mainly
administrative in nature whilst activities in Austria and Australia
relate to exploration and evaluation work. The reports used by the
chief operating decision maker are based on these geographical
segments.
The Group generated no revenue during the year ended 31 December
2022: GBPnil (2021: GBPnil).
2022 Australia Austria UK Total
GBP GBP GBP
--------------------------------- ---------- --------- ---------- ------------
Revenue - - - -
Administrative expenses (143,454) (13,151) (890,033) (1,046,638)
Other gains/(losses) (114,587) - - (114,587)
----------
Operating loss from continued
operations per reportable
segment (258,041) (13,151) (890,033) (1,161,225)
---------- --------- ---------- ------------
Additions to non-current assets 1,410,026 6,778 1,375 1,418,179
Reportable segment assets 3,416,905 76,126 1,383,359 4,876,390
Reportable segment liabilities 34,196 3,239 72,869 110,304
--------------------------------- ---------- --------- ---------- ------------
Segment assets and liabilities are allocated based on
geographical location.
2021 Australia Austria UK Total
GBP GBP GBP
-------------------------------- ---------- --------- ------------ ------------
Revenue - - - -
Administrative expenses (493,695) (16,090) (1,402,713) (1,912,498)
Other gains/(losses) (417,138) - - (417,138)
---------- --------- ------------ ------------
Operating loss from continued
operations per reportable
segment (910,833) (16,090) (1,402,713) (2,329,636)
---------- --------- ------------ ------------
Additions to non-current
assets 1,915,069 24,675 - 1,939,744
Reportable segment assets 1,959,947 61,506 2,228,535 4,249,988
Reportable segment liabilities 77,538 3,207 43,798 124,543
-------------------------------- ---------- --------- ------------ ------------
6. Expenses by Nature
2022 2021
GBP GBP
------------------------------------------------ ---------- ----------
Directors' fees (note 19) 342,095 233,849
Employee Expenses 40,882 23,522
Fees payable to the Company's auditors for
the audit of the Parent Company and group
financial statements 39,000 30,955
Professional, legal and consulting fees 142,507 362,808
Accounting related services 36,226 26,471
Insurance 32,270 19,830
Office and administrative expenses 71,585 89,985
Depreciation 300 1,423
Travel and subsistence 84,556 19,354
AIM related costs including investor relations 188,703 182,446
Share option expense 58,220 473,336
Fees paid in shares - 438,059
Other expenses 10,294 10,460
------------------------------------------------ ---------- ----------
Total administrative expenses 1,046,638 1,912,498
------------------------------------------------ ---------- ----------
7. Taxation
The tax on the Group's loss differs from the theoretical amount
that would arise using the weighted average tax rate applicable to
the losses of the consolidated entities as follows:
Group
2022 2021
GBP GBP
Profit/Loss before tax from continued
operations (1,162,720) (2,340,790)
------------ ------------
Tax at the weighted average rate of 23%
(2021: 23.3%) (267,082) (545,404)
Expenditure not deductible for tax purposes 45,863 111,184
Effect of differing tax rates across
juristictions 78,186 26,984
Net tax effect of losses carried forward
on which no deferred tax asset is recognised 144,528 418,390
------------ ------------
Income tax for the year 1,495 11,154
------------ ------------
No charge to taxation arises due to the losses incurred.
The weighted average applicable tax rate of 23% (2021: 23.3%)
used is a combination of the 19% standard rate of corporation tax
in the UK, 25% Austrian corporation tax and 25% Australian
corporation tax.
The Group has accumulated tax losses of approximately
GBP7,110,000 (2021: GBP6,965,000 ) available to carry forward
against future taxable profits. A deferred tax asset has not been
recognised because of uncertainty over future taxable profits
against which the losses may be utilised.
8. Property, Plant and Equipment
Field Computer Total
equipment equipment GBP
GBP GBP
--------------------------------------- ----------- ----------- -------
Cost
--------------------------------------- ----------- ----------- -------
As at 31 December 2021 10,229 25,545 35,774
---------------------------------------- ----------- ----------- -------
As at 1 January 2022 10,229 25,545 35,774
Additions - 1,628 1,628
Exchange differences - - -
As at 31 December 2022 10,229 27,173 37,402
---------------------------------------- ----------- ----------- -------
Depreciation
--------------------------------------- ----------- ----------- -------
As at 31 December 2021 10,229 25,545 35,774
---------------------------------------- ----------- ----------- -------
Charge for the year - 300 300
---------------------------------------- ----------- ----------- -------
As at 31 December 2022 10,229 25,845 36,074
---------------------------------------- ----------- ----------- -------
Net book value as at 31 December 2021 - - -
--------------------------------------- ----------- ----------- -------
Net book value as at 31 December 2022 - 1,328 1,328
---------------------------------------- ----------- ----------- -------
9. Intangible Assets
Exploration & Evaluation Assets at Cost 2022 2021
and Net Book Value GBP GBP
----------------------------------------- ---------- ----------
Balance as at 1 January 1,952,419 31,673
Additions 1,418,179 1,512,430
Transfer from financial assets - 427,314
Impairments (114,587) -
Foreign exchange differences 81,587 (18,998)
As at 31 December 3,337,598 1,952,419
----------------------------------------- ---------- ----------
The additions in the year relate to two of the Group's main
project areas; the Eclipse-Gindalbie Project and the Pitfield
Project.
Eclipse-Gindalbie Project
In 2020 the Group acquired an option to purchase 75% of the
Eclipse Gold license. The option was exercised in February 2021 for
a consideration of AUD$1,000,000 (approximately GBP550,000) in cash
and AUD$500,000 (GBP277,750) settled via the issue of 7,095,510 new
ordinary shares of no-par value at a price of 3.91p.
In January 2022, the Group entered into a Tribute Agreement for
the Gindalbie license. The cost to enter into the Tribute Agreement
was AUD$250,000 for an initial 6-month exploration term. An
additional A$250,000 was paid in August 2022 to extend the
exploration period by a further 18 months.
In February 2022, 1,676m of Reverse Circulation ("RC") drilling
was completed, focused mainly on the Homeward Bound,
Laurel-Bulletin, South Gippsland #3, Golden Puzzle and Bud's Find
areas. Of the four RC holes drilled at the Homeward Bound target,
three reported very high-grade intercepts.
Following from this, a further six Diamond Drill ("DD") holes
for a total of 999m were completed at Eclipse during the year to
test for continuity between Eclipse and Jack's Dream and to the
north-west of Jack's Dream. Five of the six DD holes intercepted
the mineralised shear reporting significant gold intercepts.
Following on from successful drilling campaigns in February 2022
and June 2022, the Company decided to carry out a small RC campaign
consisting of nine RC drill holes for 770m. The Company found
evidence of kaolinite-rich clays within the intensely leached upper
part of the weathering profile. The next phase of the exploration
programme will focus on the metallurgical quality of the white
kaolin samples collected from this drill programme.
Pitfield Project
During 2022, work was focussed on the reinterpretation of
historic geochemical and geophysical work undertaken by previous
explorers as well as some first phase mapping and sampling.
In accordance with IFRS 6, the Directors undertook an assessment
of the following areas and circumstances which could indicate the
existence of impairment:
-- The Group's right to explore in an area has expired or will
expire in the near future without renewal.
-- No further exploration or evaluation is planned or budgeted for.
-- A decision has been taken by the Board to discontinue
exploration and evaluation in an area due to the absence of a
commercial level of reserves.
-- Sufficient data exists to indicate that the book value may
not be fully recovered from future development and production.
The Directors do not consider the assets to be impaired.
10. Trade and Other Receivables
2022 2021
GBP GBP
------------------- ------- -------
Trade receivables - 2,862
VAT receivable 15,796 59,523
Prepayments 18,230 11,481
Other receivables 35,669 13,332
------------------- ------- -------
69,695 87,198
------------------- ------- -------
Trade and other receivables are all due within one year. The
fair value of all receivables is the same as their carrying values
stated above. These assets, excluding prepayments, are the only
form of financial asset within the Group, together with cash and
cash equivalents.
The carrying amounts of the Group's trade and other receivables
are denominated in the following currencies:
2022 2021
GBP GBP
-------------------- ------- -------
UK Pounds 58,308 67,049
Euros 626 304
Australian Dollars 10,761 19,845
69,695 87,198
-------------------- ------- -------
The maximum exposure to credit risk at the reporting date is the
carrying value of each class of receivable mentioned above. The
Group does not hold any collateral as security. All trade and other
receivables are considered fully recoverable and performing.
11. Financial Assets At Fair Value Through Profit or Loss
2022 2021
GBP GBP
------------------------------------------- ------ ----------
Balance as at 1 January - 427,314
Additions - 416,547
Impairment - (416,547)
Transferred to Exploration and Evaluation
assets - (427,314)
As at 31 December - -
------------------------------------------- ------ ----------
On 22 February 2021, the Company announced that it had
successfully completed the Eclipse acquisition and owned 75% of the
project and license. The cost of the option was transferred to
Exploration and Evaluation assets in line with IFRS 6.
In May 2021, the Group purchased an option to acquire a 75%
interest in four exploration licences which comprise the Central
Menzies Gold project. The Group committed to spend AUD$500,000 on
exploration at Central Menzies within the 9-month option
period.
At the year-end management did not have plans to spend further
funds on the Central Menzies license area and the minimum spend
commitment had been met. Shortly after the period end, the Company
announced that it would not exercise the option to acquire the 75%
interest in the project. Given the existence of impairment
indicators at the year end, management took the view to impair the
Central Menzies exploration asset in full.
12. Cash and Cash Equivalents
2022 2021
GBP GBP
-------------------------- ---------- ----------
Cash at bank and in hand 1,467,769 2,210,371
-------------------------- ---------- ----------
The Group's cash is held with facilities with AA and A credit
ratings .
The carrying amounts of the Group and Company's cash and cash
equivalents are denominated in the following currencies:
2022 2021
GBP GBP
-------------------------- ---------- ----------
UK Pounds 1,200,351 1,607,045
Euros 11,469 6,939
US Dollars 185,458 554,436
Australian Dollars 70,491 41,951
Cash at bank and in hand 1,467,769 2,210,371
-------------------------- ---------- ----------
13. Trade and Other Payables
2022 2021
GBP GBP
------------------ -------- --------
Trade payables 67,298 86,665
Other payables 6,422 4,478
Accrued expenses 36,584 33,400
------------------ -------- --------
110,304 124,543
------------------ -------- --------
The carrying amounts of the Group's trade and other payables are
denominated in the following currencies:
2022 2021
GBP GBP
-------------------- -------- --------
UK Pounds 72,869 44,516
Euros 3,239 5,441
Australian Dollars 34,196 74,586
110,304 124,543
-------------------- -------- --------
14. Share Capital and Share Premium
On 15 December 2010 the shareholders approved the removal of the
Company's authorised share capital and so there is no limit on the
number of shares the Company is authorised to issue. On that date
the shareholders also approved the removal of the nominal value of
the shares, as permitted under local company legislation. As such
all amounts raised are considered to be share premium.
Issued share capital
Group Number of Share premium Total
shares GBP GBP
------------------------------------------- ------------ -------------- -----------
At 1 January 2021 314,683,361 43,065,981 43,065,981
------------------------------------------- ------------ -------------- -----------
Issue of Ordinary Shares - 22 February
2021 7,095,510 277,434 277,434
Issue of Ordinary Shares - 22 February
2021 7,095,510 277,434 277,434
Issue of Ordinary Shares - 20 May 2021 1,921,068 54,750 54,750
Issue of Ordinary Shares - 20 May 2021 1,921,068 54,750 54,750
Issue of Ordinary Shares - 10 June 2021 3,995,238 106,506 106,506
------------------------------------------- ------------ -------------- -------------
At 31 December 2021 336,711,755 43,836,855 43,836,855
------------------------------------------- ------------ -------------- -----------
Issue of Ordinary Shares - 13 April 2022 5,611,863 75,760 75,760
Issue of Ordinary Shares - 28 April 2022 85,000,000 1,700,000 1,700,000
Cost of Capital - 28 April 2022 - (88,920) (88,920)
------------------------------------------- ------------ -------------- -------------
At 31 December 2022 427,323,618 45,523,695 45,523,695
------------------------------------------- ------------ -------------- -------------
On 22 February 2021, the Company issued and allotted 7,095,510
new Ordinary Shares at a price of 3.9 pence per share as
consideration for the purchase of 75% of the equity of Eclipse
Exploration Pty. The Company issued and allotted a further
7,095,510 new Ordinary Shares at the same price as payment of a
finder's fee in respect of the Eclipse transaction.
On 20 May 2021, the Company issued and allotted 1,921,068 new
Ordinary Shares at a price of 2.85 pence per share as consideration
for the purchase of 75% of the equity of Central Menzies. The
Company issued and allotted a further 1,921,068 new Ordinary Shares
at the same price as payment of a finder's fee in respect of the
Central Menzies transaction.
On 10 June 2021, pursuant to the advisory agreement, a fee of
US$150,000 settled via the issue of 3,995,238 new ordinary shares
in the Company at a price of 2.65p were allotted to the Company's
Georgian advisor.
On 13 April 2022, following completion on Pitfield Copper
Project, the Company issued 5,611,863 consideration shares to
Century Minerals Pty Ltd.
On 28 April 2022, the Company announced a placing of 85,000,000
new ordinary shares of no par value, at a price of 0.02p.
15. Other reserves
2022 2021
GBP GBP
-------------------------------------- ---------- ----------
Foreign currency translation reserve (180,776) (239,077)
-------------------------------------- ---------- ----------
Share option Reserve 629,085 759,370
-------------------------------------- ---------- ----------
448,309 520,293
-------------------------------------- ---------- ----------
Foreign currency translation reserve - the foreign currency
translation reserve represents the effect of changes in exchange
rates arising from translating the Financial Statements of
subsidiary undertakings into the Company's presentation
currency.
Share option reserve - the share option reserve represents the
fair value of share options and warrants in issue. The amounts
included are recycled to share premium on exercise or recycled to
retained earnings on expiry. Note 16 outlines the share based
payments made in the year.
16. Share Based Payments
Warrants and options outstanding at 31 December 2022 have the
following expiry dates and exercise prices, and were valued using
the Black Scholes model using the assumptions below:
Number
------------------------
Exercise
price
in GBP
Grant date Expiry date per share 2022 2021
------------------ ------------------ ----------- ----------- -----------
30 January 2017 3 March 2022 0.1200 - 1,900,000
------------------ ------------------ ----------- ----------- -----------
22 June 2017 21 July 2022 0.1825 - 3,300,000
------------------ ------------------ ----------- ----------- -----------
30 July 2018 26 July 2023 0.1400 1,000,000 1,000,000
------------------ ------------------ ----------- ----------- -----------
30 July 2018 26 July 2023 0.2000 1,000,000 1,000,000
------------------ ------------------ ----------- ----------- -----------
1 July 2019 30 June 2024 0.0130 3,376,553 3,376,553
------------------ ------------------ ----------- ----------- -----------
12 August 2020 12 August 2022 0.0300 - 9,387,908
------------------ ------------------ ----------- ----------- -----------
1 February 2021 31 January 2025 0.0400 10,500,000 10,500,000
------------------ ------------------ ----------- ----------- -----------
1 February 2021 31 January 2025 0.0550 10,500,000 10,500,000
------------------ ------------------ ----------- ----------- -----------
18 February 2021 22 February 2023 0.0470 14,191,020 14,191,020
------------------ ------------------ ----------- ----------- -----------
20 April 2022 20 April 2026 0.0250 2,500,000 -
------------------ ------------------ ----------- ----------- -----------
20 April 2022 20 April 2026 0.0350 2,500,000 -
------------------ ------------------ ----------- ----------- -----------
20 April 2022 20 April 2026 0.0500 2,500,000 -
------------------ ------------------ ----------- ----------- -----------
28 July 2022 29 July 2024 0.0300 1,600,000 -
------------------ ------------------ ----------- ----------- -----------
49,667,573 55,155,481
------------------------------------- ----------- ----------- -----------
2018 Warrants 2018 Warrants 2019 Warrants
-------------- -------------- --------------
Granted on: 30/07/2018 30/07/2018 1/7/2019
Life (years) 5 years 5 years 5 years
Share price on grant date 9.35p 9.35p 1.05p
Risk free rate 0.75% 0.75% 0.42%
Expected volatility 27.06% 27.06% 40.97%
Expected dividend yield - - -
Exercise price 20p 14p 1.3p
Marketability discount 20% 20% 20%
Total fair value (GBP) 3,575 8,871 8,292
--------------------------- -------------- -------------- --------------
2021 Options 2021 Options 2021 Warrants
------------- ------------- --------------
Granted on: 01/02/2021 01/02/2021 18/02/2021
Life (years) 4 years 4 years 2 years
Share price on grant date 3.45p 3.45p 3.7p
Risk free rate 1.75% 1.75% 1.75%
Expected volatility 98,49% 98,49% 92.17%
Expected dividend yield - - -
Exercise price 4p 5.5p 4.7p
Marketability discount 20% 20% 20%
Total fair value (GBP) 192,016 176,292 181,818
--------------------------- ------------- ------------- --------------
2022 Options 2022 Options 2022 Options
-------------- ------------- -------------
Granted on: 20/04/2022 20/04/2022 20/04/2022
Life (years) 4 years 4 years 4 years
Share price on grant date 1.7p 1.7p 1.7p
Risk free rate 1.75% 1.75% 1.75%
Expected volatility 94.08% 94.08% 94.08%
Expected dividend yield - - -
Exercise price 2.5p 3.5p 5p
Marketability discount 20% 20% 20%
Total fair value (GBP) 20,289 18,149 15,829
--------------------------- -------------- ------------- -------------
2022 Warrants
--------------
Granted on: 28/07/2022
Life (years) 2 years
Share price on grant date 1.125p
Risk free rate 1.75%
Expected volatility 95.86%
Expected dividend yield -
Exercise price 3p
Marketability discount 20%
Total fair value (GBP) 3,953
--------------------------- --------------
The risk free rate of return is based on zero yield government
bonds for a term consistent with the warrant and option life.
Volatility is calculated using an average of the Company's share
price 6 months prior to the granted date.
The movement of options and warrants for the year to 31 December
2022 is shown below:
2022 2021
------------------------- ------------------------
Weighted Weighted
average average
exercise exercise
price price
Number (GBP) Number (GBP)
------------------------------- ------------- ---------- ------------ ----------
As at 1 January 55,155,481 0.06 24,964,461 0.09
Granted 9,100,000 0.04 35,191,020 0.04
Exercised - - - -
Expired (14,587,908) (0.02) (5,000,000) (0.14)
------------------------------- ------------- ---------- ------------ ----------
Outstanding as at 31 December 49,667,573 0.05 55,155,481 0.06
------------------------------- ------------- ---------- ------------ ----------
Exercisable at 31 December 49,667,573 0.05 55,155,481 0.06
------------------------------- ------------- ---------- ------------ ----------
2022 2021
--------------------------------------------------- --------------------------------------------------
Weighted Weighted Weighted Weighted
Weighted average average Weighted average average
Range average remaining remaining average remaining remaining
of exercise exercise life life exercise life life
prices price Number expected contracted price Number expected contracted
(GBP) (GBP) of shares (years) (years) (GBP) of shares (years) (years)
------------- ---------- ----------- ------------ ------------ ---------- ----------- ----------- ------------
0.013-0.2 0.05 49,667,573 3 3 0.06 55,155,481 3 3
------------- ---------- ----------- ------------ ------------ ---------- ----------- ----------- ------------
The total fair value charged to the statement of comprehensive
income for the year ended 31 December 2022 and included in
administrative expenses was GBP58,220 (2021: GBP473,059).
17. Other losses
Group
------------------------
2022 2021
GBP GBP
--------------------------------- ---------- ----------
Impairments of financial assets - (417,138)
Impairment of intangible assets (114,587) -
--------------------------------- ---------- ------------
(114,587) (417,138)
--------------------------------- ---------- ----------
18. Employees
Group
------------------
2022 2021
GBP GBP
-------------------- ------- -------
Salaries and wages 27,030 11,937
Pensions 2,737 1,194
-------------------- ------- -------
29,767 13,131
-------------------- ------- -------
The average monthly number of employees during the year was 1
(2021: 1).
19. Directors' Remuneration
For the year ended 31 December 2022
-------------------------------------------
Short term Post-Employment Share based Total
benefits benefits payment GBP
GBP GBP GBP
------------------------- ----------- ---------------- ------------ --------
Executive Directors
Shaun Bunn 156,250 - 54,267 210,517
Michael Struthers* 57,625 - - 57,625
Gregory Kuenzel 74,000 2,220 - 76,220
Non-executive Directors
Neil O'Brien 30,000 - 30,000
Peter Damouni 22,000 - - 22,000
339,875 2,220 54,267 396,362
------------------------- ----------- ---------------- ------------ --------
*Resigned 8 June 2022
For the year ended 31 December 2021
-------------------------------------------
Short term Post-Employment Share based Total
benefits benefits payment GBP
GBP GBP GBP
------------------------- ----------- ---------------- ------------ --------
Executive Directors
Shaun Bunn 43,750 - - 43,750
Michael Struthers 65,000 - 135,045 200,046
Gregory Kuenzel 68,000 2,040 107,862 177,902
Non-executive Directors
Neil O'Brien 30,000 - 53,931 83,931
Peter Damouni 24,000 44 53,931 77,975
David Ajemian 1,000 14 - 1,014
231,750 2,099 350,769 584,618
------------------------- ----------- ---------------- ------------ --------
20. Earnings per Share
Continuing operations
The calculation of the total basic losses per share of 0.292
pence (2021: loss 0.706 pence) is based on the losses attributable
to equity owners of the group of GBP 1,162,720 (2021: GBP2,340,790
) and on the weighted average number of ordinary shares of
398,508,796 (2021: 331,475,515) in issue during the period.
Discontinued operations
The calculation of the total basic and diluted earnings per
share of nil pence (2021: 0.528 pence) is based on the profit
attributable to equity owners of the group of GBPnil (2021:
GBP1,751,536 ) and on the weighted average number of ordinary
shares of 398,508,796 (2021: 331,475,515) in issue during the
period.
In accordance with IAS 33, basic and diluted earnings per share
are identical in 2022 as the effect of the exercise of share
options or warrants would be to decrease the loss per share as the
entity is loss making, these instruments are anti-dilutive.
21. Commitments
(a) Work programme commitment
The Eclipse Mining Licence has an annual minimum expenditure
commitment of AUD$30,300.
Pitfield/Walton/Stavely - Eclipse has a commitment to spend
AUD$1.4 mill in total across these three licence areas within 3
years of first completion being 6 April 2025
Gindalbie - under the tribute agreement we are obliged to spend
a total of AUD$250,000 between 24th August 2022 and 24th Feb
2024
(b) Royalty agreements
As part of the contractual arrangement with Kibe No.1
Investments Limited the Group has agreed to pay a royalty on
revenue from gold sales arising from gold mines developed by
Noricum Gold AT GmbH and covered by licenses acquired by Kibe No.1
Investments Limited. Under the terms of the Royalty Agreement
between Kibe No.1 Investments Limited and Noricum Gold AT GmbH, the
Group shall pay royalties, based on total ounces of gold sold,
equal to US$1 for every US$250 of the sale price per ounce.
(c) Lease agreements
During the period Eclipse Exploration Pty Ltd, a wholly owned
subsidiary of Empire Metals Limited, entered into a 12 month office
lease of AUD$17,160 per annum. At the year end the commitment
amounted to AUD$3,900. Additionally, Empire entered into a 12 month
office lease of GBP18,000 per annum. The year end commitment
amounted to GBP12,000.
The lease payments in respect of the two leases have been
expensed to the Consolidated Statement of Comprehensive Income in
line with IFRS 16 for commitments spanning less than 12 months from
the year end date.
22. Financial instruments
Financial instruments measured at fair value
The fair value hierarchy of financial instruments measured at
fair value is provided below. The different levels have been
defined as follows:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1),
- Inputs other than quoted prices included within level 1 that
are observable for the asset or liability, either directly or
indirectly (level 2),
- Inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs) (level
3).
Cost may be an appropriate estimation of fair value at the
measurement date only in limited circumstances, such as for a
pre-revenue entity when there is no catalyst for change in fair
value, or the transaction date is relatively close to the
measurement date. The financial asset relates to costs incurred
with the acquisition of an option to invest in a 75% holding of
Eclipse Exploration PTY. Further detail can be found in note
12.
Group
There were no assets held at fair value as at 31 December
2022.
There were no assets held at fair value as at 31 December
2021.
31 December 2022 31 December 2021
------------------------------------- -------------------------- -------------------------
Assets per Statement of Financial At amortised At amortised
Position cost Total cost Total
------------------------------------- ------------- ----------- ------------- ----------
Trade and other receivables
(excluding prepayments) 51,465 51,465 75,717 75,717
Cash and cash equivalents 1,467,769 1,467,769 2,210,371 2,210,371
Total 1,519,234 1,519,234 2,286,088 2,286,088
------------------------------------- ------------- ----------- ------------- ----------
Liabilities per Statement
of Financial Position
------------------------------------- ------------- ----------- ------------- ----------
Trade and other payables (excluding
accruals) 73,720 73,720 88,080 88,080
Total 73,720 73,720 88,080 88,080
------------------------------------- ------------- ----------- ------------- ----------
23. Related Party Transactions
Loans provided by Parent Company
As at 31 December 2022 there were amounts receivable of
GBP10,933 (2021: GBP8,958) from Kibe No.2 Investments Limited. No
interest was charged on the loans.
As at 31 December 2022 there were amounts receivable of
GBP696,186 (2021: GBP694,186) from European Mining Services
Limited.
As at 31 December 2022 there were amounts receivable of
GBP4,376,213 (2021: GBP2,737,475) from Eclipse Exploration Pty
Ltd.
As at 31 December 2022 there were amounts receivable of
GBP145,325 (2021: GBP119,704) from Noricum AT GmbH.
As at 31 December 2022 there were amounts receivable of
GBP51,602 (2021: GBP50,062) from GMC Investments Limited.
Loans provided by Kibe No.2 Investments Limited
As at 31 December 2022 there were amounts receivable of
GBP754,517 (2021: GBP754,517) from Noricum AT GmbH.
All intra-group transactions are eliminated on
consolidation.
Other Transactions
Westend Corporate LLP, an entity in which Gregory Kuenzel is a
partner, was paid a fee of GBP84,040 (2021: GBP69,640) for
accounting and corporate services to the Group. At the year-end
there was an outstanding balance of GBP7,124 (2021: GBP7,053).
Michael Struthers received GBP57,625 (2021: GBP65,000) through
his service company, MS Mining Consulting LDA, as disclosed in Note
19.
24. Ultimate Controlling Party
The Directors believe there to be no ultimate controlling
party.
25. Events after the Reporting Date
On 13 March 2023 the Company completed a placing to raise
GBP1.25 million before expenses by way of a placing of 55,555,554
new ordinary shares of no par value in the capital.
On 23 March 2023 the Company agreed to issue options over a
total of 28,500,00 ordinary shares of no-par value in the capital
to Directors and an employee of the Group.
On 26 April 2023 the Company announced the granting of the
exploration licence for the Walton Copper-Gold-Lithium Project, in
which a 70% interest is held.
On 27 April 2023 the Company received notification from a
warrant holder to exercise warrants over 1,500,000 new ordinary
shares of no par value in the share capital of the Company at a
price of 1.3 pence per share.
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END
FR FRMMTMTIBTJJ
(END) Dow Jones Newswires
June 19, 2023 02:00 ET (06:00 GMT)
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