RNS Number:3327J
New Millennium Resources NL
28 March 2003
NEW MILLENNIUM RESOURCES NL
("NMR" or the "Company")
INTERIM REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2002
DIRECTORS REPORT
The Board of Directors of New Millennium Resources N.L. present the financial
report of the Company for the half year ended 31 December 2002.
Review of Operations and Activities
In July 2002, as part of preparation for the 2002 drill program, an extensive
ground radiometric survey was carried out. Widespread Nb2O5 results were
returned from several of the anomalies. The most significant of the pyrochlore
occurrences was at Sarfartoq 2, which returned rock chip assays averaging 14.4%
Nb2O5 over 200 metres of strike with a high grade core averaging 28.8% Nb2O5
with values as high as 38% Nb2O5 and 407ppm Ta2O5. Sarfartoq 2.5 returned
significant Nb2O5 results, with rock chip assays running as high as 48% Nb2O5
and 4280 ppm Ta2O5. The close proximity of these deposits augurs well for future
mining operations.
The radiometric survey also showed that niobium mineralization is not just
localized to the Sarfartoq 1 vicinity. At SU25 (which is 2 kilometers away) rock
chip assays ran as high as 16.2% Nb2O5. This further demonstrates that there is
potential for more niobium mineralization in the surrounding area. Consequently,
NMR extended its Sarfartoq license area (originally 104 sq km) by an additional
364 sq km to include more ground with niobium potential. Stream sediments taken
east of the Sarfartoq tenement from the new ground returned significant niobium
and tantalum assays. Follow up exploration work is required to identify the
source of the niobium.
All these new potential sites are priority targets for drill testing during the
coming 2003 field season.
Whilst the 2002 drill program was not as successful as hoped due to some
mechanical problems with the drill rig, the drill rig is now operational and
ready for the 2003 field season. The Company also has a 12-man Weatherhaven Camp
on site.
NMR's Board is confident of proving up additional high grade niobium resources
with a drilling program in 2003.
Diamond bearing kimberlites exist in NMR's Sarfartoq license area. The Danish
Geological Survey has ranked the Sarfartoq area as one of the best diamond
bearing areas in Greenland. Hyperspectral surveys (for identifying outcropping
kimberlites) have been flown over all of NMR's ground. This area is very
prospective for a diamond joint venture.
Capital Raising
To show support for the project and inject additional working capital, the
directors made interest free loans to the Company of $900,000 in July 2002.
These loans were repaid in December 2002 when the directors of the Company
exercised their options over ordinary shares of no par value at an exercise
price of 20 cents. 4,500,000 ordinary shares of no par value were issued as a
result of the exercise of the Directors' options in lieu of cash payment to
redeem the loans.
On the 16th October 2002, the Company raised $753,000 in a private placement of
3,700,000 fully paid shares at 20 cents per share with existing shareholders and
private individuals and by the early conversion of 65,000 options at 20 cents
each by four existing shareholders.
On the 12th November 2002 an agreement was signed with Cornell Capital Partners
Offshore L.P. to fund up to #4,500,000 by way of an equity line of credit,
giving NMR the funds necessary to work towards commercialization of its
Greenland niobium project.
By 31st December 2002, the Company received notice from certain shareholders of
the conversion of in aggregate 299,000 options over fully paid ordinary shares
in the Company at 20 cents each. The new ordinary shares represent 0.49 percent
of the enlarged issued share capital of the Company. The shares raised $59,800
for NMR. Of this, $49,250 was received before 31st December 2002, as reflected
in the accounts. The remaining $10,550 was received after the accounts were
closed.
Departure of Director/New Appointments
On 9 December 2002, John Greeve resigned from the Company as a Director. Dato
Azizi Yom Ahmad, already a Non-Executive Director, was then appointed as the
Finance Director of the Company. In this appointment, Dato Azizi had to
relinquish chairmanship of the Audit Committee, although he remains as a member
of the Committee. Datuk Fung-Chee Lim is the new Chairman of the Audit
Committee.
The Board thanks John Greeve for his contribution to the Company and wishes him
all the best in his future endeavours.
Subsequent Events
NMR has entered negotiations with a joint venture partner with niobium
processing and sales expertise to participate in the Sarfartoq Niobium project.
It is anticipated this will greatly reduce both the upfront capital and
development time requirements of the project, allowing an earlier return to
shareholders.
NMR has also entered into negotiations with another potential joint venture
partner to carry out exploration on areas prospective for diamonds within the
Sarfartoq license area.
David Albert Lloyd Johnston
Chairman
STATEMENT OF FINANCIAL PERFORMANCE FOR THE HALF YEAR ENDED 31 DECEMBER 2002
Half year ended Half year ended
31 December 2002 31 December 2001
$ $
Revenues from ordinary activities 20,626 68,804
Administration (390,503) (315,773)
Exploration expenditure written off (69,153) -
Borrowing costs (9,146) -
Commissions paid (78,764) -
Insurance (31,208) -
Depreciation (32,721) -
Listing costs - (710,729)
Professional consultants - (63,953)
Other expenses from ordinary activities (67,670) (97,861)
____________ ____________
Loss from ordinary activities before income tax expense (658,539) (1,119,512)
Income tax expense relating to ordinary activities - -
____________ ____________
Loss from ordinary activities after income tax expense (658,539) (1,119,512)
=========== ===========
Basic loss per share (cents per share) .012 .02
Diluted loss per share has not been disclosed as the
notional exercise of options over ordinary shares would
not show an inferior view of the basic loss per share
and as such they are not considered dilutive.
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2002
Half year ended Year ended
31 December 30 June
2002 2002
$
$
CURRENT ASSETS
Cash assets 657,027 527,833
Receivables - 60,847
Other 49,261 2,944
___________ ___________
TOTAL CURRENT ASSETS 706,288 591,624
___________ ___________
NON-CURRENT ASSETS
Property, plant and equipment 929,719 928,387
Exploration expenditure 5,099,459 4,370,100
___________ ___________
TOTAL NON-CURRENT ASSSETS 6,029,178 5,298,487
___________ ___________
TOTAL ASSETS 6,735,466 5,890,111
___________ ___________
CURRENT LIABILITIES
Payables 97,455 236,814
Interest-bearing liabilities - 17,947
___________ ___________
TOTAL CURRENT LIABILITIES 97,455 254,761
__________ __________
NON-CURRENT LIABILITIES
Interest-bearing liabilities 266,000 248,053
__________ __________
TOTAL NON-CURRENT LIABILITIES 266,000 248,053
__________ __________
TOTAL LIABILITIES 363,455 502,814
__________ __________
NET ASSETS 6,372,011 5,387,297
__________ __________
EQUITY
Contributed equity 11,171,380 9,528,127
Accumulated losses (4,799,369) (4,140,830)
__________ __________
TOTAL EQUITY 6,372,011 5,387,297
__________ __________
STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2002
Half year ended Half year ended
31 December 2002 31 December 2001
$ $
CASH FLOWS FROM OPERATING
ACTIVITIES
Receipts from customers 2,746 15,181
Payments to suppliers and (720,974) (1,073,770)
employees
Interest received 17,880 53,623
Borrowing costs (9,146) -
___________ __________
Net cash used in operating (709,494) (1,004,966)
activities
___________ __________
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of non-current assets (6,053) (13,253)
Payment for exploration (798,512) (671,553)
expenditure
___________ __________
Net cash used in investing (804,565) (684,806)
activities
___________ __________
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issue of shares 795,095 3,232,298
Proceeds from borrowings 900,000 -
Capital raising costs (51,842) (56,372)
__________ ___________
Net cash used in financing 1,643,253 3,175,926
activities
__________ ___________
Net increase in cash held 129,194 1,486,154
Cash at 1 July 2002 527,833 1,038,108
__________ ___________
Cash at 31 December 2002 657,027 2,524,262
___________ ___________
NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2002
1. Statement of significant accounting policies/Basis of Preparation of the Half
Year Financial Report
The half-year report is a general purpose financial report prepared in
accordance with the requirements of the Corporations Act 2001, Accounting
Standard AASB 1029: "Interim Financial Reporting", the recognition and
measurement requirements of applicable AASB standards, Urgent Issues Group
Consensus Views and other authoritative pronouncements of the Australian
Accounting Standards Board.
It is recommended that this financial report be read in conjunction with the
annual financial report for the year ended 30 June 2002 and any public
announcements made by the company during the half-year in accordance with
continuous disclosure requirements arising under the Corporations Act 2001.
It has been prepared on the basis of historical costs and except where
stated does not take into account changing money values or fair values of
non-current assets.
The accounting policies have been consistently applied by the company and
are consistent with those applied in the 30 June 2002 annual report.
The half-year report does not include full disclosures of the type normally
included in an annual financial report.
2. Dividends
No dividends have been paid or declared during or since the end of the
financial period.
3. Loss per share
Basic loss per share .012 .03
Weighted average number of ordinary shares outstanding during the year used 53,975,831 51 ,508,168
in calculation of basic loss per share
Diluted loss per share has not been disclosed as the notional exercise of
options over ordinary shares would not show an inferior view of the basic
loss per share and as such they are not considered dilutive
4. Copies of Report
Copies of the Interim Report are available from the Company's registered
office.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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