TIDMFCR
RNS Number : 9979H
Ferrum Crescent Ltd
16 March 2018
16 March 2018
Ferrum Crescent Limited
("FCR", the "Company" or the "Group")(ASX, AIM, JSE: FCR)
Results for the Half-Year Ended 31 December 2017
FCR, the European lead-zinc explorer, announces its unaudited
results for the half-year ended 31 December 2017.
The Company's full half-year report, with images, can be found
at the link below:
http://www.rns-pdf.londonstockexchange.com/rns/9979H_-2018-3-16.pdf
For further information on the Company, please visit
www.fcrexploration.com or www.ferrumcrescent.com or contact:
Ferrum Crescent Limited
Daniel Smith, Non-Executive Director and Company Secretary
(Australia)
T: +61 8 9486 4036
Laurence Read, Executive Director (UK) T: + 44 (0)20 3289
9923
Strand Hanson Limited (Nominated Adviser)
Rory Murphy / Matthew Chandler
T: +44 (0)20 7409 3494
Peterhouse Corporate Finance Limited (Broker)
Lucy Williams / Duncan Vasey / Heena Karani
T: +44 (0)20 7469 0930
Bravura Capital (Pty) Ltd (JSE Sponsor)
Melanie De Nysschen
T (direct): +27 11 459 5052
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014.
Review and results of operations
Operating Results
During the half-year 1 July 2017 to 31 December 2017, the Group
recorded a net loss after tax of AUD 712,548 (1 July 2016 to 31
December 2016: net loss of AUD 688,661).
Spanish lead-zinc portfolio
The Company announced in July 2017 that the 1,046.9 metres
exploration drill programme at its wholly owned Toral Project,
located in the province of León, Spain, to determine the presence
of near surface mineralisation had returned core containing visible
lead-zinc from every one of the 6 drill holes completed. The Assays
from the holes were sent to laboratories, where the results
confirmed the presence of lead-zinc anomalies at the intersections
in all 6 holes in September 2017.
The results of the key intersections encountered (all widths
given along the core) are as below:
-- Hole TOR17009 1 metre grading at 1.22%Pb, 9.77%Zn (10.99% combined Pb/Zn);
-- Hole TOR17012 3 metres grading at 0.64%Pb, 6.46%Zn (7.10% combined Pb/Zn);
-- Hole TOR17012 1 metre grading at 0.67%Pb, 16.10%Zn (16.77% combined Pb/Zn);
-- Hole TOR17013 1 metre grading at 6.51%Pb, 6.50%Zn (13.01% combined Pb/Zn); and
-- Hole TOR 17013 3 metres grading at 6.03%Pb, 5.49%Zn (11.52% combined Pb/Zn).
The tables below contain the Toral Project Drilling Results:
Hole Hole Depth Dip Azimuth Grid East North RL EPM
ID Type (m)
Toral
TOR17008 DDR 108.5 -45 211.5 ETRS89 680958.59 4710012.46 468.44 15.199
Toral
TOR17009 DDR 235.3 -45 196.7 ETRS89 680982.73 4710058.36 456.25 15.199
Toral
TOR17010 DDR 120.0 -45 197.5 ETRS89 680936.14 4710048.76 441.60 15.199
Toral
TOR17011 DDR 83.2 -45 208.0 ETRS89 680867.59 4710054.13 416.54 15.199
Toral
TOR17012 DDR 259.0 -50 28.0 ETRS89 680716.93 4709924.96 416.54 15.199
Toral
TOR17013 DDR 240.9 -50 190.2 ETRS89 681038.30 4710093.19 458.07 15.199
Table 1(1) : Drill-hole information
Table 2: Significant Intercepts(1)
Drillhole from to length Pb % Zn % Pb+Zn
(m) %
TOR17009 140.35 141.35 1.0 1.22 9.77 10.99
TOR17009 141.35 142.35 1.0 3.26 1.45 4.71
TOR17009 140.35 142.35 2.0 2.24 5.61 7.85
continuous anomaly
TOR17009 134.35 144.35 10.0 zone of Pb+Zn >0.05%
TOR17012 176.3 177.3 1.0 0.67 16.10 16.77
TOR17012 177.3 178.3 1.0 0.54 1.33 1.87
TOR17012 178.3 179.3 1.0 0.72 1.95 2.66
TOR17012 176.3 179.3 3.0 0.64 6.46 7.10
continuous anomaly
TOR17012 175.3 185.3 10.0 zone of Pb+Zn >0.05%
(1) The above tables can be viewed in the Company's market
announcement of 7 September 2017
In October 2017, the Company announced a revised exploration
strategy for the Toral project. The new strategy is led by newly
appointed Executive Director - Myles Campion, and Executive
Director - Laurence Read. Working directly with the independent
resource consultancy, Addison Mining Services Limited (AMS), by
December 2017, the Company completed data location checks, data
collection and analytical review procedures, including check
sampling for the purpose of verification and validation of the
project's new database for use in the preparation of a JORC 2012
compliant resource estimation. Quality control data assessment and
check sample analytical results were still pending at the end of
the period.
During the site audit, AMS conducted review, observation and
discussion on geological setting, structural architecture and
controls on mineralisation. Work was underway during December 2017
for the development of a new deposit model, based on FCR's views at
the time on controls and mechanisms of mineral deposition
incorporating the identification and interpretation of thrust
repeat and parallel mineralisation zone development.
Data Verification
Following the review of mineralised intersections and associated
multi-element data, and the previous 2013 NI43-101 resource model
at Toral, the presence of precious metals has been identified as
being part of the mineralised system, typical of a carbonate
hosted, structurally controlled Pb-Zn deposit of this nature.
Silver grades have been historically recorded but at the period
end, had not been verified through normal Quality Assurance/Quality
Control procedures. Accordingly, the Company, in association with
AMS, undertook further data verification and analysis in order to
verify the silver (Ag) grades present within the Toral system. FCR
intended to incorporate the silver data sets into the JORC (2012)
resource estimate following agreement with AMS. If the silver data
could be verified and is of sufficient certainty to be reported on
under JORC (2012), then the resource could be expanded and
remodelled with completion expected in early 2018.
The Company announced on the 22 November 2017 that following a
formal application to the Director General of Mines in the Province
of León, the exploration licence in respect to Toral had been
renewed for a further 3 year term to November 2020.
The Moonlight project - South Africa
During June 2017, the Company entered into a legally binding
agreement for the sale of Batavia Ltd ("Batavia"), its wholly-owned
Mauritian subsidiary which was the investment holding company for
all the Group's South African Assets, including the Moonlight iron
ore project in Limpopo Province, northern South Africa (the
"Moonlight Project"), to NPSPL Africa Holdings Limited and its BEE
partner, Ngwenya Capital (Pty) Limited. The Board had decided to
terminate all activities and expenditures in South Africa due to
the depressed iron ore market and the project's high capital cost
and infrastructure requirements.
Competent person's statement
The information above that relates to Exploration Results is
based on information compiled by Mr Juki Laurikko who is a Member
of the European Federation of Geologists which is a Recognised
Professional Organisation for the purposes of the 2012 JORC Code.
Mr Laurikko is a Technical Consultant to the Company, and has
sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Mr Laurikko consents to the inclusion in this
announcement of the matters based on his information in the form
and context in which they appear. Mr Laurikko has also reviewed and
approved the technical information in his capacity as a qualified
person under the AIM Rules.
Corporate
On 8 September 2017, the Company announced that it had
conditionally raised in aggregate, GBP193,304 (approximately
AU$321,590) before expenses through a placement via Peterhouse
Corporate Finance Limited, as agent to the Company, of 214,782,526
new ordinary shares of no par value each in the capital of the
Company at a price of 0.09 pence per new ordinary share. The
placement was completed on 14 September 2017.
On 26 September 2017, the Company announced that Mr Justin
Tooth, Executive Chairman has resigned from the Board of Directors
of the Company with immediate effect, in order to pursue his other
business interests. Additionally, Mr Laurence Read, previously a
Non-executive Director, become an Executive Director.
Following a comprehensive operational review subsequent to the
Board changes in September 2017, the Company announced that the
Board believed it is possible to pursue a strategy to build value
at the Toral lead-zinc asset for a cost lower than originally
planned, and therefore, the full A$2.7million which the Board
originally envisaged would be required to be raised in a placing,
may not be required. As a result, the Board decided to withdraw
Resolution 1, seeking shareholder approval to raise up to
A$2.7million by way of private placement, from the upcoming general
meeting held on 18 October 2017.
On 17 October 2017 the Company announced the appointment of Mr
Myles Campion as an Executive Director. Mr Campion has a
comprehensive background in all technical and financial facets of
the resources sector, specialising internationally in resource
evaluation and project assessment. This follows a 10-year career as
an exploration and mine site geologist in Australia covering base
metals and gold. He holds a BSc (Hons) in Geology from University
of Wales College, Cardiff and an MSc (MinEx) from the Royal School
of Mines in London, and also holds a Graduate Diploma of Business
(Finance). Mr Campion's financial experience ranges from Australian
and UK equities research through to project and debt financing in
London, covering the entire spectrum of mining companies with an
extensive knowledge of the global resources market covering the
three main bourses, the Toronto Stock Exchange, AIM and the ASX.
This knowledge was applied effectively as a Fund Manager at Oceanic
Asset Management, where he successfully managed the Australian
Natural Resources Fund, an Open Ended Investment Company (OEIC)
traded in London.
At a General Meeting held on 18 October 2017, shareholders
approved resolution 2 relating to the ratification of a previous
capital raising.
On 2 November 2017, the Company announced that it had raised
GBP185,250 before expenses through a placement via Beaufort
Securities of 370,499,858 new ordinary shares of no par value each
in the capital of the Company at a price of 0.05 pence per new
ordinary share together with the issue of 185,249,929 options (the
"Placing Options") exercisable at a price of 0.075 pence per new
ordinary share for a period of thirty months from the date of
issue. In addition to the abovementioned issue of 185,249,929
Placing Options, the Company had agreed to issue a further
50,000,000 options to Beaufort Securities Limited, exercisable at a
price of 0.075 pence per new ordinary share, for a period of thirty
months from their date of issue (the "Broker Options"). The issue
of both the Placing Options and the Broker Options is subject to
shareholder approval at a General Meeting of the Company.
Events subsequent to reporting date
On 12 January 2018, the Company announced the appointment of Mr
Colin Bird as a Non-Executive Director and Chairman of the Company.
Mr Bird is a chartered mining engineer with extensive
multi-commodity mine management experience in Africa, Europe, Latin
America and the Middle East. Mr Bird's operational and corporate
experience, includes the development of the Jubilee Metals Group
production portfolio, concentrating on Platinum Group Metals in
South Africa, in addition to the successful sale of Kiwara plc.
Kiwara plc was sold to First Quantum Minerals (TSX: FM) for US$260
million in November 2009, whilst its project was undertaking infill
drilling at the Kalumbila copper-nickel deposit in north-western
Zambia.
On 16 January 2018, the Company announced the resignation of Mr
Grant Button as Company Secretary and the appointment of Mr Daniel
Smith as a Non-Executive Director and Company Secretary. Mr Smith
is a member of the Australian Institute of Company Directors and
the Governance Institute of Australia and has over 10 years'
primary and secondary capital markets expertise. As a director of
Minerva Corporate, he has advised on, and been involved in, over a
dozen IPOs, RTOs and capital raisings on both the ASX and NSX. His
key focus is on corporate governance and compliance, commercial due
diligence and transaction structuring, as well as ongoing investor
and stakeholder engagement. Mr Smith is also currently Company
Secretary for Taruga Gold Limited and Love Group Global Limited,
both listed on the ASX. He holds a BA in International Relations
from Curtin University, Western Australia.
The Company advised the change of its Australian Principal and
Registered office address, as well as its mailing and contact
details on 23 January 2018.
On 1 February 2018 the Company announced the resignation of Mr
Grant Button as a Non-Executive Director.
On 30 January 2018 and 6 February 2018, the Company released to
the market a Maiden Inferred Mineral Resource estimate completed in
accordance with JORC (2012) in respect of the Toral Project, Spain.
A new block model combined with an initial digital geological model
has increased the level of understanding of the mineralogical and
geological controls at Toral, and the Company is therefore
confident of being able to enhance and potentially expand the
resource going forwards, subject to undertaking additional drilling
and exploration activities.
Maiden JORC Resource, Toral Project
The Inferred source for the Toral Pb-Zn-Ag mineralisation
located on the Toral property has been estimated at various
cut-offs (see Table 3 below). The Company reviewed the new model
with AMS, and concluded that a 4% cut-off was appropriate utilising
estimated mining parameters typical for similar types of projects
and mineralogy, and a historical three-year trailing average for
metal prices.
Zn Price Used: US$ 2,400/t US$c/lb1.09
Pb Price Used: US$ 2,400/t US$c/lb0.91
Ag Price Used: US$ 17/oz
The maiden resource successfully identified potentially economic
mineralisation ranging from surface to approximately 1,100m below
surface. The block model currently extends for a strike length of
3,300m and is still open to the east long strike and also at depth
where it has not yet been closed off.
Cut Tonnes Density Zn_Eq Zn Zn Pb Ag Zn Pb Ag Troy
Off (Millions) (Pb)% Eq % % g/t Tonnes Tonnes Oz (Millions)
Zn (PbAg)% (1000's) (1000's)
Eq
(PbAg)%
--------- ------------ -------- ------- ---------- ---- ---- ----- ---------- ---------- ---------------
6.0 9 2.65 8.8 9.5 5.0 4.3 31 470 400 9
--------- ------------ -------- ------- ---------- ---- ---- ----- ---------- ---------- ---------------
5.0 12 2.57 7.8 8.4 4.6 3.7 28 580 470 11
--------- ------------ -------- ------- ---------- ---- ---- ----- ---------- ---------- ---------------
4.0 16 2.52 6.9 7.5 4.0 3.3 25 670 540 13
--------- ------------ -------- ------- ---------- ---- ---- ----- ---------- ---------- ---------------
3.0 20 2.50 6.2 6.7 3.7 2.9 23 750 600 15
--------- ------------ -------- ------- ---------- ---- ---- ----- ---------- ---------- ---------------
Table 3: Summary of Inferred mineral resources for the Toral
property reported at a 4.0% Zn equivalent
The Company announced on 9 February 2018 the expiry of 2,000,000
unlisted options exercisable at GBP0.0075 and 3,000,000 unlisted
options exercisable at GBP0.002 on or before 2 February 2018, which
had lapsed unexercised.
On 6 March 2018, the Company announced that Peterhouse Corporate
Finance Limited is now sole broker to the Company, pursuant to the
AIM Rules, following an announcement made on 2 March 2018 regarding
Beaufort Securities Limited ("BSL") and Beaufort Asset Clearing
Services Limited ("BACSL") being placed into administration and
that the Financial Conduct Authority (the "FCA") has imposed
requirements on BSL and BACSL to cease all regulatory activity. BSL
was a joint broker to the Company, however due to the requirements
imposed by the FCA, BSL will no longer be able to provide broking
services to the Company.
Competent Persons Statement
The Toral maiden resource estimate was prepared by Mr. J.N.
Hogg, MSc. MAIG Principal Geologist for AMS, who is an independent
Competent Person within the meaning of the JORC (2012) code. The
maiden resource estimate was aided by Mr R. J. Siddle, MSc, MAIG
under the guidance of the competent person. Mr. Hogg has reviewed
and verified the technical information that forms the basis of and
has been used in the preparation of the current mineral resource
estimate and this news release, including all analytical data,
diamond drill hole logs, QA/QC data, density measurements, and
sampling, diamond drilling and analytical techniques. Mr Hogg
consents to the inclusion in the report of the matters based on the
information, in the form and context in which it appears.
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
6 months 6 months
to to
31 December 31 December
2017 2016
AUD AUD
------------------------------------------- ------------- -------------
Revenue from continuing operations
Revenue 8 11,409
Other Income 71,294 184,378
71,302 195,787
Fair value gain on financial
instrument - 102,523
Exploration expenditure (180,019) (174,645)
Foreign exchange gain 25,787 64,165
Share based payments - (7,733)
Other expenses (629,618) (766,235)
Impairment of minority interest
obligation - (102,523)
Loss before income tax (712,548) (688,661)
Income tax (expense)/benefit - -
------------- -------------
Net loss after income tax (712,548) (688,661)
------------- -------------
Other comprehensive income
Items that may be reclassified
subsequently to profit or
loss:
Net exchange gain / (loss) on translation
of foreign operation 71,813 (141,136)
Other comprehensive (loss)
for the period, net of tax 71,813 (141,136)
Total comprehensive (loss)
for the period (640,735) (829,797)
============= =============
Net (loss) for the period
is attributable to shareholders
of the Company: (712,548) (688,661)
------------- -------------
(712,548) (688,661)
============= =============
Total comprehensive (loss)
for the period attributable
to shareholders of the Company: (640,735) (828,797)
------------- -------------
(640,735) (829,797)
============= =============
(Loss) per share attributable to the ordinary equity
holders of the Company
Cents per Cents per
Loss per share share share
- basic (loss) per share (0.026) (0.05)
- diluted (loss) per share (0.026) (0.05)
Consolidated Statement of Financial Position
As at 31 December 2017
31 December 30 June
2017 2017
AUD AUD
----------------------------- ------------- -------------
Current Assets
Cash and cash equivalents 364,404 503,891
Trade and other receivables 101,000 96,147
Other current financial
assets - 14,344
Total Current Assets 465,404 614,382
------------- -------------
Non-current Assets
Plant and equipment 19,758 21,865
Capitalised Exploration 1,262,066 1,180,488
Total Non-current Assets 1,281,824 1,202,353
------------- -------------
Total Assets 1,747,228 1,816,735
============= =============
Current Liabilities
Trade and other payables 221,466 242,804
Provisions - 3,538
Total Current Liabilities 221,466 246,342
------------- -------------
Total Liabilities 221,466 246,342
============= =============
NET ASSETS 1,525,762 1,570,393
============= =============
Equity
Contributed equity 36,527,836 35,931,732
Reserves 2,194,138 2,122,325
Accumulated losses (37,196,212) (36,483,664)
------------- -------------
TOTAL EQUITY 1,525,762 1,570,393
============= =============
Consolidated Statement of Changes in Equity
For the half-year from 1 July 2017 to 31 December 2017
Employee
Share Foreign
Contributed Accumulated Incentive Option Exchange Equity Total
Equity Losses Reserve Reserve Reserve Reserve Equity
AUD AUD AUD AUD AUD AUD AUD
--------------- ------------ ------------- ---------- ------------------ ---------- --------------- ----------------
At 1 July 2016 33,049,490 (24,424,297) 491,577 1,548,840 179,121 (10,126,072) 718,659
------------ ------------- ---------- ------------------ ---------- --------------- ----------------
(Loss) for the
period - (688,661) - - - (688,661)
Other
comprehensive
income (net
of tax) - - - - (141,136) - (141,136)
Total
comprehensive
loss (net of
tax) - (688,661) - - (141,136) - (829,797)
Transaction
with owners
in their
capacity as
owners'
Options issued
under
employee
option plan - - - 7,733 - - 7,733
Options issued
as part
of purchase
of Goldquest
Iberica - - - 49,173 - - 49,173
Shares issued
net of
transaction
costs 2,562,467 - - - - - 2,562,467
------------ ------------- ---------- ------------------ ---------- --------------- ----------------
At 31 December
2016 35,611,957 (25,112,958) 491,577 1,605,746 37,985 (10,126,072) 2,508,235
============ ============= ========== ================== ========== =============== ================
At 1 July 2017 35,931,732 (36,483,664) 491,577 1,609,070 21,678 - 1,570,393
------------ ------------- ---------- ------------------ ---------- --------------- ----------------
(Loss) for the
period - (712,548) - - - - (712,548)
Other
comprehensive
income (net
of tax) - - - - 71,813 - 71,813
Total
comprehensive
loss (net of
tax) - (712,548) - - 71,813 - (640,735)
Transaction
with owners
in their
capacity as
owners'
Shares issued
net of
transaction
costs 596,104 - - - - - 596,104
At 31 December
2017 36,527,836 (37,196,212) 491,577 1,609,070 93,491 - 1,525,762
============ ============= ========== ================== ========== =============== ================
Consolidated Statement of Cash Flows
For the period 1 July 2017 to 31 December 2017
6 months 6 months
to 31 December to 31 December
2017 2016
AUD AUD
---------------------------------- ---------------- ----------------
Cash flows from operating
activities
Interest received 8 2,305
Payments to suppliers and
employees (598,894) (852,709)
Payment for exploration and
evaluation costs (122,484) (179,456)
Receipts from customers - 9,104
Net cash flows used in operating
activities (721,370) (1,020,756)
---------------- ----------------
Cash flows from investing
activities
Payments for plant and equipment (22,186) (444)
Payment for acquisition of
Goldquest assets - (937,157)
Net cash flows from / (used
in) investing activities (22,186) (937,601)
---------------- ----------------
Cash flows from financing
activities
Proceeds from issue of shares 638,777 2,833,467
Costs of capital raising (42,672) (271,000)
Net cash flows from financing
activities 596,105 2,562,467
---------------- ----------------
Net increase / (decrease)
in cash and cash equivalents (147,452) 604,110
Cash and cash equivalents
at beginning of period 503,891 743,264
Effect of foreign exchange
on cash and cash equivalents 7,965 (62,887)
---------------- ----------------
Cash and cash equivalents
at end of period 364,404 1,284,487
================ ================
This information is provided by RNS
The company news service from the London Stock Exchange
END
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