Risk warning: The value of investments and derived income can fall. Investors may get back less than they invested.

Georgian Mining Corporation – Holding in Company

Georgian Mining Corporation was informed on 30 May 2017 that Mr Leo N. S. Berezan had acquired ordinary shares of no par value of the Company (“Ordinary Shares”) on 26 May 2017. Following the acquisition, Mr Berezan held an interest in 6,148,100 Ordinary Shares, representing 5.37% of the issued ordinary share capital of the Company.


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 until the release of this announcement.

For further information please visit www.georgianmining.com  or contact:


Greg Kuenzel Georgian Mining Corporation Company Tel: 020 7907 9327
Ewan Leggat S. P. Angel Corporate Finance LLP Nomad & Broker Tel: 020 3470 0470
Damon Heath Shard Capital Partners LLP Joint Broker Tel: 0207 186 9950
Elisabeth Cowell St Brides Partners Ltd PR Tel: 020 7236 1177


This information is provided by RNS

The company news service from the London Stock Exchange

Eco Atlantic Oil & Gas Ltd – A High Impact Exploration Play

Eco Atlantic is an oil and gas E&P company with a focus on high impact offshore exploration projects in Guyana and Namibia.

One of the group’s core assets is the Orinduik Block in Guyana where it is partnered with highly experienced international operator, Tullow Oil. This acreage is of great significance given that it is adjacent to the Stabroek Block where Exxon has made a raft of exciting discoveries since 2015.

With Eco planning to embark on a major 3D seismic survey with Tullow encompassing the entire Orinduik Block, we are confident that this phase of exploration has the potential to confirm multiple major prospects on the acreage.

To read our full note please click here.

Diversified Gas & Oil Plc – Proposed Acquisition of certain gas and oil assets – update

Diversified Gas & Oil PLC (AIM: DGOC), a US based gas and oil producer, announced on 5 May 2017 that it had entered into a conditional sale and purchase agreement to acquire certain gas and oil assets of Titan Energy, LLC (the “Acquisition”).


The Company stated that the Acquisition will constitute a reverse takeover in accordance with the AIM Rules for Companies and is subject to approval by DGO shareholders. Accordingly, the Company’s ordinary shares were suspended from trading on AIM and will remain suspended until a new AIM admission document has been published.


The Company is pleased to confirm that it has made good progress with regard to completing the financing of the Acquisition and in preparing the information required to be included in the new AIM admission document.  This exercise is now expected to be completed in mid-June 2017.  Upon publication of the new AIM Admission Document the Board expects that trading in the Company’s ordinary shares on AIM will resume, with the only remaining conditionality relating to the closing of the Acquisition being DGO shareholder approval at a General Meeting to be held on or before 30 June 2017.


The Company is also pleased to confirm that the Company’s preliminary results for the year to 31 December 2016 are expected to be announced on 7 June 2017.


The Company will update shareholders with further information as appropriate.


This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.



Diversified Gas & Oil PLC

Rusty Hutson Jr., Chief Executive Officer

Brad Gray, Finance Director



+ 1 (205) 408 0909


Smith & Williamson Corporate Finance Limited

(Nominated Adviser & Joint Broker)

Russell Cook

Katy Birkin


+44 (0)20 7131 4000


Mirabaud Securities LLP (Lead Broker)

Peter Krens

Edward Haig-Thomas


+44 (0)20 3167 7221


Buchanan (Financial Public Relations)

Ben Romney

Chris Judd

Henry Wilson



+44 (0)20 7466 5000



About Diversified Gas & Oil


Diversified Gas & Oil PLC owns and operates gas and oil producing wells in the Appalachian Basin, one of the largest oil and gas fields in the US. The Company was founded in 2001 and has grown rapidly in recent years, capitalising upon opportunities to acquire conventional, low risk gas and oil producing assets. DGO was admitted to trading on AIM in February 2017, raising $50 million from institutional and other investors. In April 2017, the Company acquired a package of 1,300 producing gas and oil wells in the states of Ohio and Pennsylvania. Following this acquisition, DGO currently has total daily production of approximately 30,000 Mcfd and 585 bopd, representing a 14% increase in current gas production and a 23% increase in current oil production since admission.



This information is provided by RNS

The company news service from the London Stock Exchange

Horizonte Minerals Plc – High Grade Drilling Results from the Trial Excavation Site at the Araguaia Nickel Project

31 May 2017 – Horizonte Minerals Plc the nickel development company focused in Brazil, is pleased to announce the complete results of the 30 hole pre-excavation drilling programme on its 100%-owned Araguaia nickel project (‘Araguaia’ or ‘the Project’).


  • High grade nickel intersections include:

o 4.97 metres grading 2.44% Ni

o 8.69 metres grading 2.31% Ni

o 8.62 metres grading 2.19% Ni

o 11.14 metres grading 2.07% Ni

o 11.05 metres grading 2.02% Ni

  • Delivery of a key milestone as part of the Feasibility Study (‘FS’)
  • Trial excavation work underway with the aim of converting Probable Reserve to Proven Reserve, conform resource re-conciliation and overall mining conditions


Horizonte CEO Jeremy Martin said, “I am pleased to report the completion of the diamond drill programme over the trial excavation site, the aim of this work was to define an area with near surface transition and saprolite mineralisation that would be representative of the first five to eight years mine life. The drill results demonstrate this and additionally confirm the high grade nature of the nickel mineralisation that has been drill defined across the project.  The next stage is the trial excavation programme over this area, which is now underway.  The trial excavation programme targets the removal of approximately 20,000 tonnes of ore down to a depth of around 14 metres utilising two 35 tonne excavators and four 35 tonne trucks.  We look forward to providing updates on this work stream, and the rest of the FS as we work to develop Araguaia as the next major ferronickel operation.”


Further Details – Pre-Excavation Drilling Programme

The drilling programme was designed to test the selected site on the Pequizeiro deposit for the Trial Excavation exercise to feed into the ongoing FS.  The key objectives were:


1)   to confirm that the selected site met the minimum criteria of containing 2m of mineralised Transition and 2m of mineralised Saprolite to a total depth below surface of 12m and;

2)   to provide close spaced (5m and 10m) drilling data for the estimation of tonnage and grade into Selected Mining Units (‘SMU’) (5m x 5m x 2m) for reconciliation with the tonnage and grade of the actual SMUs removed in the Trial Excavation


The drilling was completed on a 5m x 5m grid of six east-west rows of 5 holes each.  It comprised a total of 30 holes each drilled to a depth of 20m for a total of 600m of HQ core drilling.


The drilling programme confirmed the first objective of the minimum required intersections of mineralised Transition and Saprolite facies and the detailed sampling and assay of the core has delivered on the second objective of providing the required data for the estimation of the tonnage and grade into the 5m x 5m x 2m SMUs.


The results for the complete 30 hole programme are presented in Table 1 below. These results contain several high grade intersections including 4.97 metres grading 2.44% nickel (hole PCA_DD_1806E), 8.69 metres grading 2.31% nickel (hole PCA_DD_1797E), 8.62 metres grading 2.19% nickel (hole PCA_DD_1814E), 11.14 metres grading 2.07% nickel (hole PCA_DD_1802E) and 11.05 metres grading 2.02% nickel (hole PCA_DD_1793E)


Table 1. Results of Drilling on 5m x 5m Grid on Area Selected for Trial Excavation
Intercepts ≥1% Ni cut-off
Holes PCA_DD_1793E to PCA_DD_1822E
Hole From (m) To (m) Width (m) Ni %
PCA_DD_1793E 8.95 20.00 11.05 2.02
PCA_DD_1794E 7.84 11.26 3.42 1.46
ditto 13.75 20.00 6.25 1.50
PCA_DD_1795E 9.30 20.00 10.70 1.91
PCA_DD_1796E 8.94 20.00 11.06 1.81
PCA_DD_1797E 8.51 17.20 8.69 2.31
ditto 17.80 18.50 0.70 1.06
PCA_DD_1798E 9.44 18.85 9.41 1.89
PCA_DD_1799E 3.21 5.21 2.00 1.18
ditto 8.51 20.00 11.49 1.84
PCA_DD_1800E 9.25 15.64 6.39 1.94
ditto 18.64 20.00 1.36 1.38
PCA_DD_1801E 8.83 11.09 2.26 1.48
ditto 12.13 15.16 3.03 1.77
ditto 16.33 20.00 3.67 1.24
PCA_DD_1802E 8.86 20.00 11.14 2.07
PCA_DD_1803E 8.84 20.00 11.52 1.40
PCA_DD_1804E 7.83 20.00 12.17 1.38
PCA_DD_1805E 6.92 20.00 12.55 1.63
PCA_DD_1806E 6.44 11.41 4.97 2.44
ditto 12.24 20.00 7.76 1.79
PCA_DD_1807E 6.59 20.00 13.41 2.00
PCA_DD_1808E 6.09 20.00 13.91 1.89
PCA_DD_1809E 8.17 20.00 11.83 1.88
PCA_DD_1810E 8.25 20.00 11.75 1.76
PCA_DD_1811E 8.84 12.34 3.50 1.60
ditto 15.84 20.00 4.16 1.12
PCA_DD_1812E 9.30 16.82 7.52 1.58
PCA_DD_1813E 9.47 18.38 8.91 1.99
PCA_DD_1814E 10.04 18.66 8.62 2.19
PCA_DD_1815E 8.18 20.00 11.82 1.65
PCA_DD_1816E 8.81 20.00 11.19 1.95
PCA_DD_1817E 8.40 20.00 11.60 1.82
PCA_DD_1818E 9.31 20.00 10.69 1.53
PCA_DD_1819E 9.76 20.00 10.24 1.57
PCA_DD_1820E 7.74 18.32 10.58 1.53
PCA_DD_1821E 7.16 20.00 12.84 1.57
PCA_DD_1822E 7.83 20.00 12.17 1.74


The compositing of the nickel grades in the individual holes was completed across geological boundaries using a nickel cut-off of 1% with a minimum intercept length of 2.0 metres and a maximum length of internal waste of 2 metres.  All holes were vertical and, as these nickel laterite deposits are essentially flat-lying, all widths given are true widths.  Core recoveries in the mineralised sections met the appropriate standards for this style of mineralisation and were generally >90%.


Horizonte Minerals prepared this news release and David Hall BSc, MSc, Fellow SEG PGeo. a director of the Company and Qualified Person under National Instrument 43-101, reviewed and approved the drillhole technical information.


The Araguaia Nickel Project

Araguaia, which is 100% owned by Horizonte, is located on the eastern margin of the State of Pará, north-eastern Brazil, to the north of the town of Conceição do Araguaia (population of 46,206), south of the main Carajás Mining District.


The Project has good regional infrastructure including a network of Federal highways and roads, with access to low tariff hydro-electric power.  The Carajás Mining District, situated approximately 200km northwest of Araguaia, is host to a number of major iron and copper mines operated by mining major Vale SA.


The PFS released in October 2016 considers open pit mining for the exploitation of nickel laterite to establish the production of run of mine (‘ROM’) from eight open pits to supply a targeted 0.9 million tonnes per annum (‘Mt/a’) of ore to a processing and smelter facility.  This facility will use the proven RKEF process with the product being sold at free on board (‘FOB’) at the selected port of export.


A Base Case of 0.9 Mt/a production throughput was selected because of the Company’s objective to minimise the capital expenditure and overall capital intensity, and to optimise overall cash flow, payback, and the economics of the Project.


This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information visit www.horizonteminerals.com or contact:


Jeremy Martin Horizonte Minerals plc Tel: +44 (0) 20 7763 7157
David Hall Horizonte Minerals plc Tel: +44 (0) 20 7763 7157
Emily Morris

Christopher Raggett

James Thompson

finnCap Ltd (Corporate Broking)

finnCap Ltd (Corporate Finance)

finnCap Ltd (Corporate Finance)

Tel: +44 (0) 20 7220 0500

Tel: +44 (0) 20 7220 0500

Tel: +44 (0) 20 7220 0500

Anthony Adams finnCap Ltd (Corporate Finance) Tel: +44 (0) 20 7220 0500
Damon Heath Shard Capital  (Joint Broker) Tel: +44 (0) 20 7186 9952
Erik Woolgar Shard Capital (Joint Broker) Tel: +44 (0) 20 7186 9952
Lottie Brocklehurst

Elisabeth Cowell

St Brides Partners Ltd (PR)

St Brides Partners Ltd (PR)

Tel: +44 (0) 20 7236 1177

Tel: +44 (0) 20 7236 1177


About Horizonte Minerals:

Horizonte Minerals plc is an AIM and TSX-listed nickel development company focused in Brazil, which wholly owns the advanced Araguaia nickel laterite project located to the south of the Carajás mineral district of northern Brazil.  The Company is developing Araguaia as the next major nickel mine in Brazil, with targeted production by 2019.


The Project has good infrastructure in place including rail, road, water and power.


Horizonte has a strong shareholder structure including Teck Resources Limited 17.9%, Lombard Odier Asset Management (Europe) Limited 14.11%, Richard Griffiths 14.5%, JP Morgan 8.4%, Hargreave Hale 6.84% and Glencore 6.4%


Except for statements of historical fact relating to the Company, certain information contained in this press release constitutes “forward-looking information” under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the potential of the Company’s current or future property mineral projects; the success of exploration and mining activities; cost and timing of future exploration, production and development; the estimation of mineral resources and reserves and the ability of the Company to achieve its goals in respect of growing its mineral resources; and the realization of mineral resource and reserve estimates. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks related to: exploration and mining risks, competition from competitors with greater capital; the Company’s lack of experience with respect to development-stage mining operations; fluctuations in metal prices; uninsured risks; environmental and other regulatory requirements; exploration, mining and other licences; the Company’s future payment obligations; potential disputes with respect to the Company’s title to, and the area of, its mining concessions; the Company’s dependence on its ability to obtain sufficient financing in the future; the Company’s dependence on its relationships with third parties; the Company’s joint ventures; the potential of currency fluctuations and political or economic instability  in countries in which the Company operates; currency exchange fluctuations; the Company’s ability to manage its growth effectively; the trading market for the ordinary shares of the Company; uncertainty with respect to the Company’s plans to continue to develop its operations and new projects; the Company’s dependence on key personnel; possible conflicts of interest of directors and officers of the Company, and various risks associated with the legal and regulatory framework within which the Company operates.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

This information is provided by RNS

The company news service from the London Stock Exchange

Xtract Resources Plc – Notice of Annual General Meeting Proposed Share Consolidation

The Board of Xtract Resources Plc (“Xtract” or the “Company“) announces that the notice of annual general meeting (“Notice“) has been posted to shareholders and will be available from the Company’s website www.xtractresources.com. The AGM will be held at the offices of Fladgate LLP, 16 Great Queen Street, London WC2B 5DG on 22 June 2017 at 12:00 noon for the purpose of considering, and if thought fit, passing the following resolutions of which resolutions 1 to 4 and resolution 6 will be proposed as ordinary resolutions and resolution 5 will be proposed as a special resolution.

Ordinary Business

Resolution 1

To receive and adopt the directors’ report and financial statements for the year ended 31 December 2016, together with the auditors’ report thereon.

Resolution 2

To re-elect Mr. J Silberstein as a director of the Company who retires by rotation and offers himself for re-election.

Resolution 3

To appoint Chapman Davis LLP as auditors of the Company to hold office until the conclusion of the next Annual General Meeting at which accounts are laid before the Company and to authorise the directors to determine their remuneration.

Resolution 4

That for the purposes of section 551 of the Companies Act 2006 (“the Act”), the directors of the Company be and are hereby generally and unconditionally authorised (in substitution for any and all authorities previously conferred upon the directors for the purposes of section 551 of the Act, but without prejudice to any allotments made pursuant to the terms of such authorities) to exercise all powers of the Company to issue and allot or grant equity securities (within the meaning of section 560 of the Act) up to an aggregate nominal amount of £36,903.108 provided that this authority shall expire (unless previously renewed, varied or revoked by the Company in general meeting) at the earlier of the conclusion of the next Annual General Meeting of the Company or 30 June 2018 save that the Company may before such expiry make an offer or agreement, which would or might require equity to be allotted after such expiry and the directors of the Company may allot equity securities in pursuance of such an offer or agreement as if the authority conferred hereby had not expired.

Special Business

Resolution 5

That, subject to and conditional upon the passing of resolution 4 above, the directors of the Company be and hereby empowered pursuant to section 570 of the Companies Act 2006 (“the Act”) to allot equity securities (within the meaning of section 560 of the Act) pursuant to the authority conferred by resolution 4 (in substitution for any and all authorities previously conferred upon the directors for the purposes of section 570 of the Act, but without prejudice to any allotments made pursuant to the terms of such authorities) as if section 561 of the Act did not apply to any such allotment PROVIDED THAT the power conferred by this resolution shall be limited to:

5.1      the allotment of equity securities for cash in connection with an issue or offer of equity securities (including, without limitation, under a rights issue, open offer or similar arrangement) to holders of equity securities in proportion (as nearly as may be practicable) to their respective holdings of equity securities subject only to such exclusions or other arrangements as the directors of the Company may consider necessary or expedient to deal with fractional entitlements or legal or practical problems under laws of any territory, or the requirements of any regulatory body or stock exchange in any territory;

5.2      the allotment of equity securities for cash up to an aggregate nominal value of £2,441.865 in connection with the exercise of options and warrants that have been granted by the Company to subscribe for ordinary shares in the Company; and

5.3      the allotment (otherwise than pursuant to paragraphs 5.1 and 5.2 above) of equity securities for cash up to an aggregate nominal value of £34,461.243;

and the power conferred by this resolution 5 shall expire (unless previously renewed, revoked or varied by the Company in General Meeting), at such time as the general authority conferred on the directors of the Company by resolution 4 above expires, except that the Company may at any time before such expiry make any offer or agreement which would or might require equity securities to be allotted after such expiry and the directors of the Company may allot equity securities in pursuance of such an offer or agreement as if the authority conferred hereby had not expired.

Resolution 6


6.1      every 200 ordinary shares of 0.01 pence each in the capital of the Company in issue at close of business on the date of the Annual General Meeting (“Existing Ordinary Shares”) be consolidated into one ordinary share of 2 pence (“Consolidated Share”), provided that, where such consolidation results in any shareholder being entitled to a fraction of a Consolidated Share, such fraction shall be dealt with by the directors as they see fit pursuant to their powers available to them under article 15.1 of the Company’s articles of association (the “Articles”); and

6.2      each Consolidated Share (together with any fraction of a Consolidated Share) then in issue be sub-divided into one ordinary share of 0.02 pence in the capital of the Company (“New Ordinary Share”) (or fraction thereof) and twenty-two Deferred Shares of 0.09 pence in the capital of the Company (“New Deferred Share”) and that the New Ordinary Shares shall have the same rights and be subject to the same restrictions as the Ordinary Shares that are currently in issue and as set out in the Articles and that the New Deferred Shares shall have the same rights and be subject to the same restrictions of the Deferred Shares of 0.09 pence in the capital of the Company, as set out in the Articles.


Consolidation and subdivision of the existing ordinary shares (“Capital Reorganisation”)

Purpose of the Capital Reorganisation

The Company’s issued ordinary share capital currently consists of 34,461,242,980 ordinary shares of 0.01 pence each (“Existing Ordinary Shares”). The number of shares in issue has resulted from, amongst other things, capital raisings, the settlement of the consideration due to Auroch Exploration (Pty) Ltd in respect of the acquisition of the Manica gold project. The number of shares in issue is considerably higher than the majority of companies on AIM, and the Board believes that this, combined with the current share price of significantly less than 0.1 pence per Existing Ordinary Share (as at 25 May 2017) affects investor perception of the Company and share price volatility. Accordingly, the primary objective of the Capital Reorganisation is to reduce the number of Existing Ordinary Shares to a level which is more in line with other comparable AIM-traded companies with the intention of also creating a higher share price per ordinary share in the capital of the Company. The Directors believe that the Capital Reorganisation should improve the liquidity and marketability of the ordinary shares. The purpose of the sub-division described below is to retain the nominal value per New Ordinary Share similar to the current nominal value (of 0.01 pence) of each of the Existing Ordinary Shares.

Proposed Capital Reorganisation

The proposed Capital Reorganisation will comprise two elements:

  • Consolidation– Every 200 Existing Ordinary Shares will be consolidated into one ordinary share of 2 pence (a “Consolidated Share”).
  • Subdivision– Immediately following the Consolidation, each Consolidated Share will then be sub-divided into one New Ordinary Share of 0.02 pence and twenty-two New Deferred Share of 0.09 pence.

The Capital Reorganisation requires the passing of the resolution in relation to the Capital Reorganisation, being the resolution numbered 6, at the Annual General Meeting. The resolution will be proposed as an ordinary resolution, and is in two parts. If the Resolution is passed, the Capital Reorganisation will become effective immediately following close of business on 22 June 2017 (being the date of the AGM).

In anticipation of the Resolution being passed by the Shareholders, the Company will, immediately prior to the General Meeting, issue such number of additional Existing Ordinary Shares as will result in the total number of Existing Ordinary Shares in issue being exactly divisible by 200. Assuming no other Existing Ordinary Shares are issued between the date of this document and immediately before the Annual General Meeting, this will result in 20 additional Existing Ordinary Shares being issued and will create 172,306,215 Consolidated Shares (subject to any revision to the Company’s issued share capital between the date of this document and close of business on the date of the AGM (the “Record Date”)).

Following the consolidation each Consolidated Share of 2 pence each will be sub-divided into one New Ordinary Share of 0.02 pence and twenty-two New Deferred Shares of 0.09 pence each.

Fractional entitlements

The Consolidation (which is part of the Capital Reorganisation) will give rise to fractional entitlements to a Consolidated Share where any holding is not precisely divisible by 200. On subdivision of any such Consolidated Share which occurs immediately thereafter, the same fractional entitlement will apply to each New Ordinary Share but not a New Deferred Share then arising. As regards the New Ordinary Shares, no certificates regarding fractional entitlements will be issued. Instead any New Ordinary Shares in respect of which there are fractional entitlements will be aggregated and sold in the market for the best price reasonably obtainable on behalf of Shareholders entitled to fractions (the “Fractional Shareholders”).

The Company is required by article 15.1 of the Articles to distribute the proceeds of sale in due proportion to any such Fractional Shareholders. However, Article 15.1 also provides that in the event that the net proceeds of sale amount to £3.00 or less, the Company is not required (because of the disproportionate costs) to distribute such proceeds of sale, which instead shall be retained for the benefit of the Company. Given the current price of the Existing Ordinary Shares, the Company does anticipate that the net proceeds of sale attributable to all Fractional Shareholders will be less than £3.00, and it therefore anticipates that there will be no distribution of any net proceeds of sale.

For the avoidance of doubt, the Company is only responsible for dealing with fractions arising on registered holdings. For Shareholders whose shares are held in the nominee accounts of UK stockbrokers, the effect of the Capital Reorganisation on their individual shareholdings will be administered by the stockbroker or nominee in whose account the relevant shares are held. The effect is expected to be the same as for shareholdings registered in beneficial names, however, it is the stockbroker’s or nominee’s responsibility to deal with fractions arising within their customer accounts, and not the Company’s.

Resulting share capital

Following the subdivision the Consolidated Shares will have been divided into 172,306,215 New Ordinary Shares of 0.02 pence each and 3,790,736,730 New Deferred Shares of 0.09 pence each. There are already 1,547,484,439 Deferred Shares in issue and so following the subdivision there will be a total of 5,338,221,169 Deferred Shares in issue.

Each New Ordinary Share having the same rights as the Ordinary Shares as noted in the Articles including voting, dividend, return of capital and other rights and the New Deferred Shares will have the same rights as the existing Deferred Shares as noted in the Articles which includes, no right to any dividend or to attend speak or vote at any general meeting of the Company and on the return of assets in a winding up of the Company, after the holders of the Ordinary Shares have received the aggregate amount paid up thereon plus £10,000,000 for each such share held by them (the “Deferred Right”), there shall be distributed amongst the holders of the Deferred Shares an amount equal to the nominal value of the Deferred Shares and thereafter any surplus shall be distributed amongst the holders of the Ordinary Shares pro rata to the number of Ordinary Shares held by each of them respectively. Save for the Deferred Right, the holders of the Deferred Shares shall have no interest or right to participate in the assets of the Company.  Statistics relating to the Capital Reorganisation are set out below.

Statistics relating to the Capital Reorganisation

Conversion ratio of Existing Ordinary Shares to Consolidated Shares 200 Existing Ordinary Shares : 1 Consolidated Share
Number of Existing Ordinary Shares in issue at the date of this Notice 34,461,242,980
Number of Existing Ordinary Shares in issue at Record Date 34,461,243,000
Total expected number of New Ordinary Shares in issue following the Capital Reorganisation 172,306,215


This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.



Xtract Resources Plc Colin Bird, Executive Chairman +44 (0) 203 416 6471
Beaumont Cornish (Nominated Adviser) Michael Cornish / Felicity Geidt +44 (0) 207 628 3369
Email: corpfin@b-cornish.co.uk
Beaufort Securities (Broker) Jon Belliss


+44 (0) 207 382 8300


This information is provided by RNS

The company news service from the London Stock Exchange


Xtract Resources Plc – Audited results for the 12 months ended 31 December 2016

The Board of Xtract Resources Plc announces its audited financial results for the 12 months ended 31 December 2016. The 2016 Audited Annual Report and Accounts have been posted to shareholders and is available from the Company’s website www.xtractresources.com


This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.



Xtract Resources Plc Colin Bird, Executive Chairman +44 (0) 203 416 6471
Beaumont Cornish (Nominated Adviser) Michael Cornish / Felicity Geidt +44 (0) 207 628 3369
Email: corpfin@b-cornish.co.uk
Beaufort Securities (Broker) Jon Belliss


+44 (0) 207 382 8300


Financial highlights


  • Administrative and operating expenses of £1.65m (2015: £1.45m)


  • Cash of £0.18m (2015: £3.76m)


  • Net loss of £8.94m (2015: £4.58m)


  • Net assets of £6.56m (2015: £7.55m)


Operational highlights


  • Received final approval from Mozambican mining authority to complete the acquisition of 100% of
  • Manica gold project in Mozambique from Auroch Minerals NL


  • Conditional sale and purchase agreement, to sell the Manica gold project for a cash consideration of
  • US$17.5m laspsed in September 2016


  • Progressed Manica DFS


  • Strategic review of the Chepica mine determined that the fundamentals and risks no longer supported continued investment
  • Board elected not to proceed with the O’Kiep and Carolusberg copper tailings, concluding the recoveries were too low to produce a viable copper concentrate


Corporate highlights


  • Appointment of Colin Bird as Executive Chairman


  • Agreement reached with Auroch Minerals NL regarding US$2.5m deferred acquisition payment


  • Reduction of corporate overheads and further reductions being implemented


  • Raise of equity capital to advance development of projects



Chairman’s Statement


“Dear Shareholder


The year under review has presented many challenges most of which have been met with the Company now on an even keel and moving with a clear direction and focus.


On 26 August 2016 the board elected to review the entire operation and company investment and in so doing requested that I change my appointment from Non-Executive to Executive Chairman. My first task in managing the review was to investigate the Chepica mine performance, its history and its potential. During the detailed review it became apparent that the mine had many fundamental operating issues, mainly focused around variable gold grades, adverse ground conditions and limited flexibility. All of this led to the mine being unable to produce a surplus of income on a monthly basis. The operational team had plans to open new areas, re-equip and improve aspects of the processing plant and increase mine throughput. Our examination clearly accepted the potential benefits of process plant improved performance but we saw no prospects for improving ground conditions increasing production or maintaining a viable gold grade. On this basis the board took the decision to cease further investments in the local company Minera Polar. The result of this decision was to eliminate what was a serious cash drain affecting all aspects of company performance.


Following this decision to eliminate further investment in Chepica, the board looked internally at its overheads and current debt. Again it was apparent that the overheads and activities were not matched which was made even more obvious by the cessation of funding of Chepica.


On 13 September 2016 the Chief Executive Office Jan Nelson abruptly resigned his position for personal reasons. The Company overheads have been reduced from £2.2 million per annum to £0.63 million per annum and are still being reduced to reflect the size of the Company and its assets. The creditor list has been reduced considerably.


The next step was to focus on the real asset, the Manica gold mining asset in Mozambique. On examination this asset was considered to be robust providing many opportunities in the mid-term and thus became our strategic asset. The board made the decision to complete the definitive feasibility study and gave the investing market a promise to complete this by the end of February 2017. This was completed on time and on budget producing a solid high rate of return, mid- scale gold mining open pit project. The underlying fundamentals and details will be outlined later in this report.


In May 2016 the Company had announced an alluvials mining joint venture and on 26 May 2016 announced a potential disposal of the Manica concession for an offer of USD$17.5 million. Both the joint venture and the Manica disposal were to a company known as Mineral Technologies International (“MTI”) and Nexus Capital. During the last quarter of the year many discussions were held with MTI management concerning the completion of the purchase and the implementation of the alluvial agreement. It became apparent that the disposal was unlikely to occur and that the alluvial joint venture agreement in its current form was also flawed in practice. The parties therefore agreed on and it was announced on the 13 February 2017 that MTI and the Company would work together to form liaisons with local contractors thus subcontracting the initial agreement. The decision was taken since there are many capable contractors in the area who had interest in working the Manica alluvials. We considered that his route would mitigate against financial, capital and operating risk and thus agreed to work towards appointing suitable qualified contractors.


I am pleased to say that the alluvials present on the concession have been offered for tender to a number of local contractors and to alluvial mining experienced contractors not currently operating in the region. The evaluation process and contract award are imminent and execution of these contracts in the coming months and years should provide significant cash flows to the Company.


As stated at the commencement of this report the year has not been easy but I am pleased to say that we issue this report in a stable, focused manner with a clear vision on how we will go forward with the company. The Manica project offers many opportunities and these will be exploited. We intend to bring the hard rock open pit into production as soon as is reasonable and are currently discussing various financing and contracting proposals.


Geopolitical tensions and finance market uncertainties lead us to believe that the coming year will enjoy a strong buoyant gold price which the company revenues will benefit from. We also believe that much merger and acquisition activity will take place in the emerging mining company arena and the Board is committed to explore opportunities to restore shareholder value during the coming year.


I would like to thank the remaining management team for their hard work in extremely trying times and our new advisors for their wise council and of course our shareholders for their patience and understanding whilst the company has mitigated all the key threats against initially its survival and secondly its prosperity.


Colin Bird

Executive Chairman

26 May 2017


Consolidated Income Statement



Registered number: 5267047


Note Year ended 31 December 2016


Year ended 31 December 2015
£’000 £’000
Continuing operations

Administrative and operating expenses







Project expenses (246) (147)
Operating loss (1,893) (1,599)
Other gains and (losses) 6 436
Finance (cost)/income 11 (1,998) (177)
Impairment of Intangible assets 14 (2,217)
Impairment of Financial asset available for sale (86)
(Loss)/profit before tax 8 (3,891) (3,289)
(Loss)/profit for the period from continuing operations 8 (3,891) (3,289)
(Loss) for the year from discontinued operation 7 (5,048) (1,286)
(Loss) for the period (8,939) (4,575)


Attributable to:

Equity holders of the parent











Net (loss)/profit per share










Discontinuing (0.05) (0.02)
Basic (pence) 13 (0.08) (0.07)









Discontinuing (0.05) (0.02)
Diluted (pence) 13 (0.08) (0.07)


Consolidated Statement of Comprehensive Income



Year ended 31 December 2016


Year ended 31 December 2015
£’000 £’000

(Loss) for the year



Other comprehensive income:





Items that may be reclassified subsequently to profit and loss

Gains on revaluation of available-for-sale investment taken to equity






Exchange differences on translation of foreign operations 478 167

Other comprehensive income/(loss) for the year






Total comprehensive income/(loss) for the year






Attributable to:

Equity holders of the parent









The notes on pages 23-58 in the Report and Accounts form an integral part of these financial statements

Consolidated and Company Statements of Financial Position





Group Company




As at

31 December



As at 31 December 2015


As at

31 December



As at 31 December 2015


Non-current assets

Intangible assets









Property, plant & equipment 15 1,309
Investment in subsidiary 16 10,341 1,808
Financial assets available for sale 17
10,148 6,301 10,341 1,808
Current assets

Trade and other receivables











Derivative financial instruments 20 352 352
Inventories 19 45
Cash and cash equivalents 181 3,763 172 3,693
727 5,552 810 5,323
Total assets 10,875 11,853 11,131 7,131
Current liabilities

Trade and other payables











Interest bearing 22 1,473 1,473
Other payables 22 1,417 1,417
Amounts due to subsidiaries 22 3,962 8,491
4,317 3,555 8,102 9,027
Net current assets/(liabilities) (3,592) 1,997 (7,293) (3,704)
Non-current liabilities

Other payables








Provisions 23 167
Reclamation and mine closure provision 23 266
Total liabilities 4,317 4,300 8,102 9,027
Net assets/(liabilities) 6,558 7,553 3,049 (1,896)

Share capital











Share premium account 54,439 48,688 54,439 48,688
Warrant reserve 27 613 500 613 500
Share-based payments reserve 27 539 440 539 440
Available-for-sale reserve 25
Foreign currency translation reserve 25 249 (229)
Accumulated losses (52,637) (44,099) (55,897) (53,777)
Equity attributable to equity
holders of the parent 6,558 7,553 3,049 (1,896)
Total equity 6,558 7,553 3,049 (1,896)


The financial statements of Xtract Resources PLC, registered number 5267047, were approved by the Board of Directors and authorised for issue.

It was signed on behalf of the Company by:

Joel Silberstein


26 May 2017


Consolidated Statement of Changes in Equity








Share Capital


Share premium account


Warrant reserve


Share based payments reserve


Available- for-sale reserve


Foreign currency translation reserve £’000 Accumulated losses £’000 Total Equity


As at 1 January 2015 1,776 38,742 205 591 483 (396) (39,802) 1,599

Comprehensive income

Loss for the year (4,575) (4,575)
Forex currency translation
differences 167 167
Revaluation of available-
for-sale investments 17 (483) (483)

Total comprehensive

income for the year (483) 167 (4,575) (4,891)

Issue of shares












Share based payment expense 27 127 127
Expiry of share options (278) 278
Exercise of warrants 23 138 (161)
Issue of warrants 27 (456) 456

As at 31 December 2015

















Comprehensive income

Loss for the year (8,939) (8,939)
Forex currency
translation difference 478 478

Total comprehensive

income for the year 478 (8,939) (8,461)

Issue of shares














Share based payment expense 27 99 99
Expiry of warrants 27 (401) 401
Exercise of warrants
Issue of warrants 27 514 514

As at 31 December 2016

















Statement of Changes in Equity







Share Capital


Share premium account


Warrant reserve


Share based payments reserve


Available- for-sale reserve


Foreign currency translation reserve £’000 Accumulated losses £’000 Total Equity


As at 1 January 2015 1,776 38,742 205 591 483 (50,472) (8,675)

Comprehensive income

Loss for the year (3,583)) (3,583)
Forex currency translation
Revaluation of available-
for-sale investments 17 (483) (483)

Total comprehensive

income for the year (483) (3,583) (4,891)

Issue of shares












Share based payment expense 27 127 127
Expiry of share options (278) 278
Exercise of warrants 23 138 (161)
Issue of warrants 27 (456) 456

As at 31 December 2015
















Comprehensive income

Loss for the year (2,521) (2,521)
Forex currency
translation difference

Total comprehensive

income for the year (2,521) (2,521)

Issue of shares














Share based payment expense 27 99 99
Expiry of warrants 27 (401) 401
Exercise of warrants
Issue of warrants 27 514 514

As at 31 December 2016
















Consolidated and Company Cash Flow Statement



Group Company




Year ended

31 December



Year ended

31 December



Year ended

31 December



Year ended

31 December



Net cash used in operating activities 26 (1,310) (3,963) (3,263) (4,516)
Investing activities

Acquisition of subsidiary undertaking







Acquisition of intangible fixed assets 14 (2,465) (945) (368)
Acquisition of tangible fixed assets 15 (272) (252)
Proceeds from disposal of intangible assets

Proceeds from disposal of available-for-sale investment















Net cash (used in)/from investing activities  













Financing activities

SEDA backed loan













Proceeds on issue of shares 2,298 8,769 2,298 8,769
Land Option payments (112) 8
Loans from directors (5)
Net cash from financing activities 3,532 8,416 3,644 8,413
Net decrease in cash and cash equivalents  












Cash and cash equivalents at beginning of year  








Cash acquired during the year 85
Effect of foreign exchange rate changes 750 (27)
Cash and cash equivalents at end of year 181 3,763 172 3,693
Cash flows from discontinued operations

Net cash used operating activities











Net cash used in investing activities (1,116) (1,197)
Net Cash (used in)/from financing equivalents (112) 8







Significant Non Cash movements


  1. The assets and liabilities of Mistral Resource Development Corporation and its subsidiary undertaking, Explorator Limitada, were acquired in March 2016 by the issue of new Ordinary Shares of 0.01p each, to a value of £2,843k, in addition to total cash consideration of £5,694k of which £1,792k is deferred.


  1. The mineral exploration rights in respect of the O’Kiep and Carolusberg project were acquired during 2015 by the issue of ordinary shares to the value of £1,849k.


  1. During 2015 a total of £100k of the SEDA backed loan was settled through the issue of ordinary shares. The notes on pages 23-58 of the Report and Accounts form an integral part of these financial statements.




Notes to the Financial Statements

Selected notes from the financial statements are set out below without amendment to the note reference. The full notes are contained in the Audited Annual Report and Accounts



  1. General information

Xtract Resources PLC is a Company incorporated in England and Wales under the Companies Act 2006. The address of the registered office is 7/8 Kendrick Mews, South Kensington, London, SW7 3HG. The nature of the Group’s operations and its principal activities are set out in the Strategic Report.


These financial statements are presented in Pound Sterling. Foreign operations are included in accordance with the policies set out in note 3.


The financial information set out in this announcement does not constitute the Group’s statutory financial statements for the years ended 31 December 2016 or 2015 but is derived from those financial statements. Statutory financial statements for 2015 have been delivered to the Registrar of Companies, and those for 2016 will be delivered in due course.

The auditors have reported on the financial statements for the year ended 31 December 2016; their report was unqualified and did not contain statements under section 498 (2) or (3) of the Companies Act 2006 but did include an emphasis of matter in relation to going concern.

While the financial information included in this announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs) as endorsed for use in the European Union, this announcement does not itself contain sufficient information to comply with IFRSs.

The principal accounting policies adopted in the preparation of the financial information in this announcement are set out in the Company’s full financial statements for the year ended 31 December 2016 and are consistent with those adopted in the financial statements for the year ended 31 December 2015.

Directors do not recommend the payment of a dividend (2015: nil).

The Board approved this announcement on 26th May 2017.



  1. Adoption of new and revised Standards

New standards, amendments and interpretations adopted by the Company

New and revised Standards and Interpretations that have been required to be adopted, and are applicable in the current year to the Company, as standards, amendments and interpretations which are effective for the financial year beginning on 1 January 2016 do not have a material effect on the Company financial statements.


New standards, amendments and interpretations not yet adopted

At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been applied in these financial statements, were in issue but not yet effective for the year presented:


–      IFRS 9 in respect of Financial Instruments which will be effective for the accounting periods beginning on or after 1 January 2018.


–      IFRS 15 in respect of Revenue from Contracts with Customers which will be effective for accounting periods beginning on or after 1 January 2018.


–    IFRS 16 in respect of Leases which will be effective for accounting periods beginning on or after 1 January 2019.


There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Company.

  1. Significant accounting policies

Basis of accounting

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) adopted by the European Union. The financial statements have been prepared under the historical cost convention modified for certain items carried at fair value, as stated in the accounting policies. The principal accounting policies adopted are set out below.


Basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and entities controlled by the

Company (its subsidiaries). These consolidated financial statements are made up for the year ended 31 December 2016.


Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.


The results of subsidiaries acquired or disposed of during the period are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated on consolidation.


Going concern

The operations of the Group are currently financed through funds which the Company has raised from shareholders. An operating loss has been reported as the Group’s assets are not currently generating revenues and the Directors anticipate net operating cash outflows for part of the next twelve months from the date of signing these financial statements.


In common with junior mining companies, the Company raises finance for its activities in discrete tranches to finance its activities for limited periods only and further funding will be required from time to time to finance those activities.


The Directors have assessed the working capital requirements for the forthcoming twelve months and have undertaken the following assessment.


As at 31 December 2016, the Group held cash balances of £181k. During February 2017, the Company raised £1,878k through an equity raising and has concluded settlement arrangements with a substantial part of its creditors.


Upon reviewing those cash flow projections for the forthcoming twelve months, the directors consider that the Company may require additional financial resources in the twelve month period from the date of approval of these financial statements to enable the Company to fund its current operations and to meet its commitments.   The Directors would then expect for any additional funds to be raised through equity fund raising.


On 13 February 2017, the Company signed a Collaboration Agreement with Nexus Capital for the exploitation of the alluvial gold deposits at Manica. Discussions are currently being held with a number of 3rd parties to conclude commercial agreements for the exploitation of the alluvials within the concession. The above agreements should result in positive cash flows which would assist in working capital requirements.


The Group’s ability to continue its operations is a critical accounting assumption and as a result the directors have concluded a material uncertainty that casts significant doubt upon the company’s ability to continue as a going concern and that, therefore, the company may be unable to realise its assets and discharge its liabilities in the normal course of business.


Nevertheless, after making enquiries and considering the uncertainties described above, the directors have a reasonable expectation that the company has adequate ability to raise finance to continue in operational existence for the foreseeable future. The Directors therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.


The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that may be necessary if the going concern basis of preparation of the financial statements is not appropriate.


Parent only income statement

Xtract Resources PLC has not presented its own income statement as permitted by section 408 of the Companies Act 2006. The loss for the year ended 31 December 2016 was £2,521k (2015: loss £3,583k).


Business combinations

Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The consideration for each acquisition is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquire. Acquisition-related costs are recognised in profit or loss as incurred.

Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration arrangement, measured at its acquisition-date fair value. Subsequent changes in such fair values are adjusted against the cost of acquisition where they qualify as measurement period adjustments (see below). All other subsequent changes in the fair value of contingent consideration classified as an asset or liability are accounted for in accordance with relevant IFRSs. Changes in the fair value of contingent consideration classified as equity are not recognised.


Where a business combination is achieved in stages, the Group’s previously-held interests in the acquired entity are re- measured to fair value at the acquisition date (i.e. the date the Group attains control) and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of.


The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 (2008) are recognised at their fair value at the acquisition date.


If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see below), or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognised as of that date.


The measurement period is the period from the date of acquisition to the date the Group obtains complete information about facts and circumstances that existed as of the acquisition date and is subject to a maximum of one year.


Foreign currencies

The individual financial statements of each Group Company are maintained in the currency of the primary economic environment in which it operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each Group Company are expressed in Pounds Sterling, which is the functional currency of the Company, and the presentational currency for the consolidated financial statements.


In preparing the financial statements of the individual companies, transactions in currencies other than the entity’s functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.


For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the date of transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in equity.


On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, loss of joint control over a jointly controlled entity that includes a foreign operation, or loss of significant influence over an associate that includes a foreign operation), all of the accumulated exchange differences in respect of that operation attributable to the Group are reclassified to profit or loss.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. The Group has elected to treat goodwill and fair value adjustments arising on acquisitions before the date of transition to IFRSs as Sterling denominated assets and liabilities.



The tax expense represents the sum of the tax currently payable and deferred tax.


Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.


Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.


The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.


Deferred tax is calculated at the tax rates that are expected to apply in the year when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.


Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.


Intangible assets

Land acquisition rights and mine development costs

The costs of land acquisition rights in respect of mining projects and mine development are capitalised as intangible assets. These costs are amortised over the expected life of mine to their residual values using the units-of-production method using estimated proven and probable mineral reserves.


Intangible exploration and evaluation expenditure assets

The costs of exploration properties and leases, which include the cost of acquiring prospective properties and exploration rights, are capitalised as intangible assets. Exploration and evaluation expenditure is capitalised within exploration and evaluation properties until such time that the activities have reached a stage which permits a reasonable assessment of the existence of commercially exploitable reserves when they are transferred to tangible assets. Capitalised exploration and evaluation expenditure is assessed for impairment in accordance with the indicators of impairment as set out in IFRS 6 Exploration for and Evaluation of Mineral Reserves. In circumstances where a property is abandoned, the cumulative capitalised costs relating to the property are written off in the year. Capitalised exploration costs are not amortised.


Property, plant and equipment

Tangible fixed assets represent mining plant and equipment, office and computer equipment and are recorded at cost, net of accumulated depreciation. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost or valuation of each asset on a straight-line basis over its expected useful life, which is calculated on either a fixed period or the expected life of mine using the unit of production method, as appropriate.

The average life in years is estimated as follows:


Office and computer equipment 3-10
Plant and machinery 7-15


Until they are brought into use, fixed assets and equipment to be installed are included within assets under construction and are not depreciated.


The cost of maintenance, repairs and replacement of minor items of tangible fixed assets are charged to the income statement as incurred. Renewals and asset improvements are capitalised. Upon sale or retirement of tangible fixed assets, the cost and related accumulated depreciation are eliminated from the financial statements. Any resulting gains or losses are included in the income statement.


Impairment of tangible and intangible assets excluding goodwill

At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. An intangible asset with an indefinite useful life is tested for impairment annually and whenever there is an indication that the asset may be impaired.


Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.


If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.


Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately, unless the relevant asset is carried at a revalue amount, in which case the reversal of the impairment loss is treated as a revaluation increase.


Financial instruments

Financial assets and financial liabilities are recognised in the Group’s balance sheet when the Group becomes a party to the contractual provisions of the instrument.


Financial assets

All financial assets are recognised and derecognised on a trade date where the purchase or sale of a financial asset is under a contract whose terms require delivery of the financial asset within the timeframe established by the market concerned, and are initially measured at fair value, plus transaction costs, except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value.


Financial assets are classified into the following specified categories: financial assets ‘at fair value through profit or loss’ (FVTPL), ‘held-to-maturity’ investments, ‘available-for-sale’ (AFS) financial assets and ‘loans and receivables’. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.


Available-for-sale financial assets (‘AFS’)

Listed and unlisted equity instruments held by the Group that are traded in an active market are classified as being AFS and are stated at fair value. Gains and losses arising from changes in fair value are recognised in other comprehensive income and accumulated in the investments revaluation reserve with the exception of impairment losses that are recognised directly in profit or loss. Where the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously recognised in the investment revaluation reserve is reclassified to profit or loss. The fair value of investments that are actively traded in organised financial markets is determined by reference to quoted market bid prices at the closure of business on the statement of financial position date. For investments where there is no active market, fair value is determined using valuation techniques. Such techniques include using recent arm’s length market transactions, reference to the current market value, discounted cash flow analysis and option pricing models.


Dividends on AFS equity instruments are recognised in profit or loss when the Group’s right to receive the dividends is established.


The fair value of AFS monetary assets denominated in a foreign currency is determined in the foreign currency and translated at the spot rate at the balance sheet date. Other foreign exchange gains and losses are recognised in other comprehensive income.


Financial assets at fair value through profit or loss

A financial asset is classified in this category if acquired principally for the purpose of selling in the short term. Derivatives are also categorised as held for trading unless they are designated as hedges.


Assets in this category are classified as current assets if expected to be settle within 12 months, otherwise, they are classified as non-current.


Loans and receivables

Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest income is recognised by applying the effective interest rate, except for short- term receivables when the recognition of interest would be immaterial.


Impairment of financial assets

Financial assets, other than those at FVTPL, are assessed for indicators of impairment at each balance sheet date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.


For listed and unlisted equity instruments classified as AFS, a significant or prolonged decline in the fair value of the security below its cost is considered to be objective evidence of impairment.


For all other financial assets objective evidence of impairment could include:


  • significant financial difficulty of the issuer or counterparty; or


  • default or delinquency in interest or principal payments; or


  • it becoming probable that the borrower will enter bankruptcy or financial re-organisation.


For certain categories of financial assets, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the Group’s past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period of 60 days, as well as observable changes in the national or local economic conditions that correlate with default on receivables.


The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss.


When an AFS financial asset is considered to be impaired, cumulative gains or losses previously recognised in other comprehensive income are reclassified to profit or loss in the period.


With the exception of AFS equity instruments, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through the profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.


In respect of AFS equity securities, impairment losses previously recognised in profit or loss are not reversed through profit or loss. Any increase in fair value subsequent to an impairment loss is recognised in other comprehensive income.


De-recognition of financial assets

The Group de-recognises 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 or rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset, and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset, and also recognises a collateralised borrowing for the proceeds received.


Financial Liabilities

Initial recognition

Financial liabilities are recognised initially at fair value and in the case of interest-bearing loans and borrowings, net of direct transactions costs.


Financial liabilities are classified at initial recognition, as financial liabilities at fair value through profit and loss. The group’s financial liabilities include trade and other payables and interest-bearing loans and borrowings.


Financial liabilities at fair value through profit or loss

Financial liabilities at Fair Value through Profit or Loss (“FVTPL”) include financial liabilities held for trading and financial liabilities designated upon initial recognition as at FVTPL.


Financial liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term.


Gains and losses on liabilities held for trading are recognised in the statement of profit or loss and other comprehensive income.


Loans and borrowings and trade and other payables

Interest-bearing loans and borrowings and trade and other payables are measured at amortised cost using the Effective Interest Rate (“EIR”) method. Gains and losses are recognised in the statement of profit and loss and other comprehensive income when the liabilities are derecognised, as well as through the EIR amortisation process.


Amortised cost is calculated by taking into account any discount or premium or costs that are integral part of EIR.



A financial liability is derecognised when the associated obligation is discharged or cancelled.



Inventories consist of gold concentrate (finished product) and ore stockpiles which represent the ore which has been extracted and available for further processing. All inventories are valued at the lower of cost and net realisable value. Costs of concentrate include material, direct mining costs, and cost related to the production processes. Net Realisable value is the estimated future sales price of the product the Company is expected to realise after the product is processed and sold less costs to bring the product to sale. Where inventories have been written down to net realisable value, a new assessment is made in the following period. In instances where there has been change in circumstances which demonstrates an increase in the net realisable value, the amount written down will be reversed.


Share-based payments

Equity-settled share-based payments to certain Directors, employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. The fair value excludes the effect of non-market based vesting conditions. Details regarding the determination of the fair value of equity-settled share-based transactions are set out in note 27.


The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of shares that will eventually vest and adjusted for the effect of non-market-based vesting conditions.


Finance Income

Finance income comprises interest income on funds invested (including available-for-sale financial assets). Interest income is recognised as it accrues in profit or loss, using the effective interest method.


Operating Leases

Operating lease payments are recognised as an operating expense in the income statement on a straight-line basis over the lease term.

Finance Leases

Leases of property, plant and equipment where the group has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease’s commencement at the lower of the fair value of the leased property and the present value of the minimum lease payments.


Each lease payment is allocated between the liability and finance charges. The corresponding rental obligations, net of finance charges, are included in the finance lease obligation. The interest element of the finance cost is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Non-current assets under finance leases are depreciated over the useful life of the asset, under the reasonable expectation that the group will obtain ownership of the leased asset at the end of the lease term.


Reclamation cost and mine closure provision

The Group records a liability and corresponding asset for the present value of the estimated costs of legal and constructive obligations for future site reclamation and closure where the liability is probable and reasonable estimate can be made of the obligation. The estimated present value of the obligation is reassessed on an annual basis or where new material information becomes available. Increases or decreases to the obligation usually arise due to change in legal or regulatory requirements, the extent of environmental remediation required, methods of reclamation, cost estimates, or discount rates. The present value is determined based on current market assessments of the time value of money using discount rates specific to the country in which the reclamation site is located and is determined as the risk- free rate of borrowing approximated by the yield on sovereign debt for that country, with a maturity approximating the end of mine life.


Revenue recognition

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates and sales tax or duty. Revenue from sales of concentrate, is recognised when the significant risks and rewards of ownership have been transferred, which is considered to occur when title passes to the customer. This occurs when the concentrate is physically transferred on the date of shipment. Interest is recognised in profit and loss, using the effective interest rate method.


Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Executive Chairman who is responsible for allocating resources and assessing performance of the operating segments.


Fair value estimation

The table below analyses financial instruments carried at fair value, by valuation method. 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 (that is, as prices) or indirectly (that is, derived from prices) (Level 2); and


  • Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).


The following table presents the Group’s assets that are measured at fair value. The Group does not have any liabilities measured at fair value.


2016 2015
Level 2 Level 3 Total Level 2 Level 3 Total
£000 £000 £000 £000 £000 £000
Available-for-sale financial assets
Financial assets at fair value through
profit or loss
– Derivative financial instruments 352 352
Total assets 352 352


The Group does not hold any financial instruments in Level 1.


(i)      Financial instruments in Level 2

The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available, and rely as little possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. Specific valuation techniques used to value financial instruments include:


  • quoted market prices or dealer quotes for similar instruments; and


  •   the fair value of derivative financial instrument is calculated based on the Company’s quoted market price and a prescribed formula in accordance with the respective equity swap


If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.


(ii)     Financial instruments in Level 3 Specific criteria used to estimate the value financial instruments include:

  • management’s assessment of the applicable market and sector;


  • financial reports and other information supplied the investee’s management; and


  • transactions in the investee’s shares



  1. Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group’s accounting policies, which are described in note 3, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.


The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.


The following are the critical judgements that the Directors have made in the process of applying the Group’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Available for sale investments

The Group reviews the fair value of its unquoted equity instruments at each statement of financial position date. This requires management to make an estimate of the fair value of the unquoted securities in the absence of an active market, which has mainly been established by use of recent arm’s length transactions, as adjusted by a discount, where required. Uncertainty also exists due to the early stage of development of certain of the investments. The fair value of available for sale investments at 31 December 2016 is determined to be £Nil (2015: £Nil). Further details are given in note 17.


Impairment of intangible assets and investments

The assessment of intangible assets for any indications involves judgement. If an indication of impairment, as defined in IFRS 6 or IAS 36 as appropriate, exists, a formal estimate of recoverable amount is performed and an impairment loss recognised to the extent that carrying amount exceeds recoverable amount. Recoverable amount is determined as the higher of fair value less costs to sell and value in use. The calculation of recoverable amount requires an estimation of the value in use of the cash-generating units to which the intangible assets are allocated. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.


Estimates in determining the life of the mines (LOM)

The LOM is determined from development plans based on mine management’s estimates and includes total mineral reserve and a portion of the mineral resource. These plans are updated from time to time and take into consideration the actual current cost of extraction, as well as certain forward projections. These projections are reviewed by the board.


Estimates in determining inventory value

Net realisable value tests are performed at the reporting date and represent the estimated future sales price of the product the entity expects to realise when the product is sold less costs to bring the product to sale. Ore stockpiles are measured by estimating the number of tonnes added and removed from the stockpile and are assessed primarily through surveys and assays.


Share-based payments

The estimation of share-based payment costs requires the selection of an appropriate valuation model and consideration as to the inputs necessary for the valuation model chosen. The Group has made estimates as to the volatility of its own shares, the probable life of options granted and the time of exercise of those options. The model used by the Group is the Black-Scholes model.


Fair value of derivative financial instruments

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The fair value of the equity swaps is calculated using the prescribed formula in the equity swap agreement and the Company’s prevailing market price at the year end.


Equity swaps have a carrying value of £352K (2015: £Nil). The loss on re-measuring to fair value is recognised under finance costs in the Income Statement.


  1. Loss before taxation

Profit / (loss) from continuing operations and discontinued operations for the year has been arrived at after charging the following under administrative and operating expenses:


Year ended 31 December 2016 Year ended 31 December 2015
Note £’000 £’000
Depreciation of property, plant and equipment 15 100 138
Amortisation of intangible fixed assets 14 180 185
Auditors remuneration 9 21 44
Directors remuneration 10 346 323
Share-based payments expense 27 99 127



  1. (Loss) per share

The calculation of the basic and diluted earnings per share is based on the following data:


Year ended 31 December 2016


Year ended 31 December 2015


(Loss) for the purposes of basic and diluted earnings per share (EPS) being:
Net (loss) for the year from continuing operation attributable to equity

holders of the parent

(3,891) (3,289)
Net (loss) for the year from discontinuing operation attributable to equity holders of the parent (5,048) (1,286)


(8,939) (4,575)
Number of shares Number of shares
Weighted average number of ordinary shares for purposes of basic EPS 11,864,152,652 6,474,957,673
Effect of dilutive potential ordinary shares-options and warrants
Weighted average number of ordinary shares for purposes of diluted EPS 11,864,152,652 6,474,957,673

In accordance with IAS 33, the share options and warrants do not have a dilutive impact on earnings per share, which are set out in the consolidated income statement. Details of shares issued since the year end are shown in note 31 to the financial statements.


  1. Trade and other payables


Group Company
As at As at As at As at
31 December 2016 31 December 2015 31 December 2016 31 December 2015
£’000 £’000 £’000 £’000
Trade creditors and accruals 1,427 1,107 1,250 536
Land option instalments 2,448
Amounts due to subsidiaries 3,962 8,491
Other payables 1,417 1,417
SEDA backed loan 1,473 1,473
4,317 3,555 8,102 9,027



Standby Equity Distribution (SEDA)

On 20 May 2015 the Company announced it had drawn down £0.47 million from its existing SEDA with YAGM and had primarily deployed these funds to repay the full outstanding balance of the Loan Agreement. In accordance with the terms of the SEDA, this was extended on 18 November 2014 to 30 November 2016. The Company issued YAGM with 149,253,731 new Ordinary Shares at a price of 0.312p per share.


On 20 July 2016 the Company announced it had drawn £0.67 million from its existing SEDA with YAGM and had primarily deployed these funds to settle a payment to Auroch. The Company issued 1,032,811,415 new Ordinary Shares at a price of 0.065p per share.


On 21 September 2016 Company announced it had drawn £0.75 million from its existing SEDA with YAGM and had primarily deployed these funds for ongoing working capital requirements and repay £200K of the outstanding amounts on the loan note agreement. The Company issued 1,875,000,000 new Ordinary Shares at a price of 0.04p per share.


SEDA Backed Loan

On 12 December 2013, the Company and YAGM entered into a loan note agreement pursuant to which YAGM agreed to issue an unsecured loan of a principal amount of up to US$5 million to the Company. The note carries an interest of 12% per annum and each tranche is repayable in 12 monthly instalments. The Company pays 8% of each drawn tranche as an implementation fee. An initial tranche of US$0.30 million was drawn down by the Company on 12 December 2013 and further tranches of US$0.25 million and US$0.50 million on the 18 November 2014 and 21 November 2014 respectively.


On 10 May 2016 and 23 May 2016 respectively, the Company drew further tranches of US$0.85 million. On 19 July 2016, the Company drew a further tranche of US$0.4 million and the parties agreed to reschedule the monthly instalments with the final repayment due on 1 August 2017. As 31 December 2016 a total of £1,473k (US$1,774k) remained outstanding on the SEDA Backed Loan.


The Company and YAGM may mutually agree to draw down additional tranches and may redeem the loan note plus all interest at any time over the life of the note.


Auroch Minerals

On 1 March 2016, the Company acquired 100% of the shares of Mistral Resource Development Corporation from Auroch Minerals NL. A total of US$2,500k of purchase consideration was deferred and on the 20 July 2016, the parties agreed to schedule of repayments which included payments of $750k and $150k which were paid during August 2016. As at 31 December 2016, a total of £1,417k (US$1,748k) (including interest) remains outstanding. The loan carries an interest of 8% per annum.


Land Option Instalments

The Land Option Instalments represents the staged payments amounts due. On 22 September 2016, the Company advised the Option Holder that it would no longer be making any further option payments. As a result, the Company in a net impairment charge which included a write back £2,763k in relation to the Land Option Instalments.


  1. Events after the balance sheet date

Issue of Equity

On 6 January 2017, the Company announced that it had issued 335,484,611 new Ordinary Shares 0.01p shares at 0.018p per Ordinary Share in settlement of outstanding invoices for services.


Settlement with Auroch Exploration Pty Ltd

On 9 February 2017, the Company announced that it had reached an agreement with Auroch Exploration Pty Ltd (“Auroch”) regarding the outstanding amounts owed by the Company to Auroch in relation to the acquisition of the Manica Gold Project.


The Company and Auroch agreed the terms for the settlement of this debt which, including further accrued but unpaid interest amounted to US$1.75 million (the “Manica Debt”). The settlement of the Manica Debt had been structured as a convertible note agreement for US$0.75 million (“Convertible Loan Note”), a royalty agreement over production at Manica in Auroch’s favour, a loan agreement for the balance of the Manica Debt equal to US$1 million (“Loan Agreement”) and a warrant over 500,000,000 new Xtract ordinary shares. Further details are set out below:


  1. Convertible Loan Note

The Company agreed to issue unsecured Convertible Loan Notes to the total value of US$0.75 million to Auroch (the “Noteholder”). Interest of 10% per annum is payable quarterly in advance.


Any outstanding amount due under the Convertible Loan Note, together with accrued but unpaid interest thereon, is to be repaid on or before 31 December 2017 or, if earlier, a change of control of the Company, sale of the Manica Gold Project or completion of a joint venture. Amounts owed under the Convertible Loan Notes will reduce “pound-for-pound” by the amount of any royalty paid to Auroch under the Royalty Agreement described further below.


In the event of a fundraising by the Company, the Noteholder may require that 15% of the net proceeds of the fundraising may be applied to redeem part of the Convertible Loan Notes.


The Noteholder may, at any time, from the date of execution of the Convertible Loan Note Agreement until 31 December 2017, convert all or any of the Convertible Loan Notes into new fully paid Xtract ordinary shares (“Conversion Shares”) at a conversion price equal to a 15% discount (“Conversion Discount”) to the average volume weighted average price of Xtract ordinary shares (“VWAP”) during the 10 business days prior to the conversion date subject to a floor price of 0.012p per Ordinary Share. In the event of a material breach of the terms of Convertible Loan Note Agreement by the Company which has not been remedied by the Company to the Noteholder’s satisfaction, acting reasonably, the Conversion Discount will increase to 30%.


Following execution of the Convertible Loan Note agreement, a fee of US$0.05 million was payable to Auroch, to be satisfied by the issue of new Xtract ordinary shares (the “Fee Shares”) at an issue price equal to a 15% discount to the VWAP during the 10 business days prior to the issue of the Convertible Loan Notes.


Conversion of Auroch Convertible Loan Notes

On 16 February 2017, the Company announced that it had issued 1,589,623,629 new ordinary shares to Auroch at an issue price of 0.013282p (equal to a 15 per cent. discount to the VWAP during the 10 business days prior to the issue of the Convertible Loan Notes) following receipt of notice from Auroch to convert US$0.2 million of the outstanding Convertible Loan Notes, and in settlement of the Convertible Loan Note arrangement fee due of US$0.05 million and interest payable in advance of US$0.01 million.


On 10 March 2017, the Company announced that it had received a notice from Auroch to convert a further US$0.2 million of the outstanding Convertible Loan Notes. The Company issued 796,812,502 new ordinary shares to Auroch at an issue price of 0.020485p (equal to a 15% discount to the VWAP during the 10 business days prior to the issue of this Conversion Notice).

On 28 March 2017, the Company announced that it had received a notice from Auroch to convert a further US$0.03 million of the outstanding Convertible Loan Notes. The Company issued 134,835,331 new ordinary shares to Auroch at an issue price of 0.016492p (equal to a 15% discount to the VWAP during the 10 business days prior to the issue of this Conversion Notice).


The Company had also repaid the outstanding balance of Convertible Loan Notes amounting to US$0.3 million.


Accordingly, following the conversion and above repayments, there was no further outstanding amount on the Convertible Loan Notes.


  1. Royalty Agreement relating to the Manica Gold Project

To provide security to Auroch, the Company further agreed to enter into the Royalty Agreement over the Manica Gold Project pursuant to which Auroch would be entitled to receive a royalty equal to 3% of gross revenue from commercial operations (including any alluvial gold production), payable by the Company to Auroch. The maximum royalty payment in aggregate is US$1,75 million (the “Maximum Royalty Payment”), being an amount equal to the Manica Debt. Any payments made under the Royalty Agreement shall reduce the amounts due to Auroch under the Convertible Loan Note (described above) and the Loan Agreement (described below). The Royalty Agreement will terminate upon full settlement by the Company of the Manica Debt. The Company agreed not to create any security over or dispose of interest in the Manica Gold Project and, on or following any change of control of the Company, at Auroch’s request the Company will buyout the balance of any payments due under the Royalty Agreement at the then market value (subject always to the Maximum Royalty Payment and any payments made by Xtract to Auroch under the Convertible Loan Note and the Loan Agreement).


  1. Loan Agreement

The Company entered into the unsecured Loan Agreement with Auroch for the balance of the Manica Debt amounting to US$1 million. Under the terms of the Loan Agreement, the Company will repay the Loan Agreement together with interest, which will accrue at a rate of 10% per annum, on or before 31 December 2017. In addition, it was agreed that the Company will endeavour to obtain relevant shareholder authorities on or before 30 June 2017 to authorise the Company to replace the Loan Agreement with a convertible loan note on substantially the same terms as the Convertible Loan Notes. In the event that the Company does not obtain the necessary approvals by 31 December 2017, an accelerated interest rate of 30% per annum will accrue going forward on any outstanding balance of the Loan Agreement. The Company provided customary representations and warranties to Auroch and the Loan Agreement includes standard events of default.


  1. Warrants

The Company agreed to issue 500,000,000 warrants to Auroch at an exercise price of 0.02p per new Xtract ordinary share. The warrants will, unless otherwise exercised, expire on 21 December 2017.


Issue of Equity

On 16 February 2017 the Company announced that it had raised up to £1,878,933 (before expenses) following the conditional placement of 10,156,398,001 new Ordinary Shares of 0.01p each at 0.0185p (“Placing Price”) per new Ordinary Share (the “Placing”).


Under the Placing, the Company conditionally agreed to issue a total of 3,496,940,001 new Ordinary Shares at the Placing price to raise gross proceeds of £646,934, subject to the terms of a placing agreement and Admission of the new Ordinary Shares to trading on AIM (“Tranche 1 Placing Shares”). The Tranche 1 Placing Shares were issued under the Company’s existing share authorities.


A further 6,659,458,000 new Ordinary Shares with gross proceeds of £1,232,000 were to be issued on the same terms (“Tranche 2 Placing Shares”) but conditional on shareholder approval of the necessary increase in authority to issue the Tranche 2 Placing Shares. A General Meeting was convened on 13 March 2017 and the Company received the necessary approval to issue the Trance 2 Placing Shares.

The Company accelerated the settlement of all outstanding payments due to the Company under the existing equity swap agreement previously entered into with YA II EQ Ltd and received gross proceeds of approximately £0.24 million (“the “Swap Proceeds”) which were used to repay an equal amount outstanding to YA under the existing Loan Note Facility. Following this acceleration, the Company terminated the equity swap agreement entered into with.


Definitive Feasibility Study

On 28 February 2017, the Company announced the Definitive Feasibility Study (“DFS”) for the open pit operation of the Company’s Manica Fair Bride Project in Manica in Mozambique and which the results are summarised as follows:

  • After-tax Internal Rate of Return of 41.1% at a gold price of US$ 1,262 per ounce
  • Project life of 7 years with average gold grade of 2.62 g/t producing 215,293 recovered ounces
  • Project payback within 2 years
  • Direct cash cost (“C1”) of US$556 per ounce
  • All-in sustainable cost (including royalties and capital) of US$862 per ounce
  • Total capital expenditure of US$43.68 million
  • The Net Present Value of US$42 million at 8.4% discount rate
  • Significant exploration potential in immediate vicinity
  • A further 992,000 ounces in resource for additional evaluation and future exploitation
  • Considerable exploration potential within the concession and nearby



Reorganisation of Loan Agreement

On 4 April 2017, the Company announced that it had entered into an agreement (the “Supplemental Agreement”) with YA II EQ, Ltd. (the “Investor”) which is supplemental to the SEDA-backed loan note agreement dated 12 December 2013 (“Loan Agreement”).


The Company and the Investor agreed to modify the Loan Agreement and the repayment schedules in respect of the amounts outstanding.


Following the execution of the Supplemental Agreement, the Company made a cash payment to the Investor in the amount of US$0.12 million. The Company was discharged of its obligation to repay US$0.35 million of the amount outstanding under the Loan Agreement by the issuance and allotment to the Investor of 1,513,513,514 new ordinary shares (the “Repayment Shares”) as determined by converting US$0.35 million into GBP at the relevant exchange rate at a share price of 0.0185p per ordinary share, being the same share price to the last placing as announced in February 2017.


The outstanding balance owed under the Loan Agreement, after taking the above repayments into account, amounted to US$1.04 million (the “Balance”).


In respect of US$0.52 million of the Balance, the Company shall make 9 monthly cash payments of principal and interest in accordance with new repayment schedule beginning on 1 July 2017 at a rate US$0.06 million per month for 2017, and on average US$0.06 million per month for 2018, and ending on 1 March 2018.


In respect of the remaining US$0.52 million of the Balance, the Company shall pay such amount on 1 April 2018, plus any accrued and unpaid interest thereon, to the extent that any such amount has not been previously discharged through conversion into new ordinary shares of the Company as described further below.


The Investor may at any time from the date of execution of the Supplemental Agreement until 1 April 2018, convert all or any of the amount then outstanding under the Loan Agreement into new fully paid Xtract ordinary shares (“Conversion Shares”) at a conversion price equal to a 15% discount to the average volume weighted average price of Xtract ordinary shares (“VWAP”) during the 10 business days prior to the conversion date subject to a floor price of 0.012p per ordinary share.


Qualified Person


In accordance with AIM Note for Mining and Oil & Gas Companies, June 2009 (“Guidance Note”), Colin Bird, CC.ENG, FIMMM, South African and UK Certified Mine Manager and Director of Xtract Resources plc, with more than 40 years experience mainly in hard rock mining, is the qualified person as defined in the Guidance Note of the London Stock Exchange, who has reviewed the technical information contained in this press release.


This information is provided by RNS

The company news service from the London Stock Exchange

Canadian Overseas Petroleum Ltd – Common Share Offering


Calgary, Canada, 25 May 2017– Canadian Overseas Petroleum Limited (the “Company“) (TSXV: XOP) (LSE: COPL), is pleased to announce a Common Share offering to raise gross proceeds of £3.25 million (the “Placing“), pursuant to which the Company will issue 650,000,000 new common shares (“Placing Shares“) at a price of 0.5 pence per Placing Share. Management, including Arthur Millholland, President & CEO, representing approximately 3% of the existing share capital of the Company, and certain existing shareholders, plan to participate in the Placing for an amount approximately equal to their proportionate current holdings in the Company.


Full details of the Placing will be included in the Prospectus filed with the UK Listing Authority, which is expected to be published later today and be available on SEDAR and  the Company’s website, http://canoverseas.com (subject to certain access restrictions), shortly thereafter.


The Company intends to use the net proceeds of the Placing to fund the Company’s on-going general and administrative expenses which principally covers a full technical team including geologists, a geophysicist, reservoir engineers, a drilling engineer and in-house Counsel, which are approximately US$385,000 per month, as the Company seeks to progress its projects in West Africa.


The Company’s other financial commitments for the 12 month period, following the date of the Prospectus, include 50% of the costs relating to Shoreline Canadian Overseas Petroleum Development Corporation’s (“ShoreCan“) commitment to invest funds in the form of an interest-free shareholder loan to be used for its 80% owned Essar Nigeria operations. In particular, to cover the near term work programme obligations, including drilling one well under Phase-1 of the OPL 226 Production Sharing Contract.  As previously announced the Company has engaged COFARCO SAS of Paris France and Zeus Capital of London United Kingdom to source the required funds at the project level.


The Placing is subject to customary conditions and the receipt of required regulatory approvals, including the approval of the LSE and the TSX Venture Exchange (the “TSX-V“).   Application has been made for the Placing Shares to be admitted to trading on the Main Market and are expected to be admitted to trading on 12 June 2017.


Mr. Arthur Millholland, President and CEO commented: “The Company is focused on securing project financing for its oil appraisal and development project offshore Nigeria in OPL 226 held through its 50% owned subsidiary ShoreCan’s 80% shareholding in Essar Exploration and Production Limited Nigeria. COPL provides management and technical services to ShoreCan and Essar Nigeria. The net proceeds of the Placing will provide the Company with additional working capital as we look to execute on our business plan.”


“Whilst we were disappointed with the initial drill results from the Liberian Mesurado-1 well drilled in December, we are nearing the end of our re-interpretation of the 2,500 sq. kilometre LB-13 3D seismic data set through the incorporation of the drilling results into an updated seismic interpretation. This involves a reappraisal of the seismic attributes previously interpreted to be possibly associated with hydrocarbons. Specifically, the Company is evaluating whether the false hydrocarbon seismic response at Mesurado-1 is a local or a regional phenomenon. This evaluation is not one which can be accomplished in a short time, but should be completed late Q2 to early Q3 2017. Once this is completed the next steps regarding LB-13 will be determined.”


This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States, nor shall there be any sale of the Units in any jurisdiction in which such offer, solicitation or sale may be unlawful. The Common Shares and Warrants have not been and will not be registered under the 1933 Act or any U.S. state securities laws and may not be offered or sold in the United States absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act and applicable U.S. state securities laws.


Capitalised terms used in the Prospectus shall, unless the context provides otherwise, have the same meaning in this announcement.


About COPL

The Company is an international oil and gas exploration and development company focused in offshore West Africa. The Company holds a 17% working interest in Block LB-13, offshore Liberia, with ExxonMobil the operator holding an 83% working interest. The Company is also actively pursuing opportunities in Nigeria in partnership with Shoreline Energy as part of its strategy to generate stable cash flow from secure offshore assets. The Company and Shoreline, through their jointly held affiliated company, Shoreline Canadian Overseas Petroleum Development Corporation (“ShoreCan”) has acquired 80% of the share capital of Essar Exploration and Production Limited (Nigeria) which holds an attractive oil appraisal and development project in shallow to mid water offshore Nigeria on its 100% holding in OPL 226. Drilling of the first appraisal well is planned to commence in late 2017. ShoreCan is currently waiting for final approval from the Government of Nigeria for the acquisition.


ShoreCan is building a portfolio of exploration and development assets in sub-Saharan Africa. To date, ShoreCan has taken a position in Nigeria. It continues to evaluate a variety of additional assets in Nigeria, and Equatorial Guinea.


The Common Shares are listed under the symbol “XOP” on the TSXV and under the symbol “COPL” on the London Stock Exchange.


Mr. Arthur Millholland, President & CEO

Canadian Overseas Petroleum Limited

Tel: + 1 (403) 262 5441


Cathy Hume

CHF Investor Relations

Tel: +1 (416) 868 1079 ext. 231

Email: cathy@chfir.com


Harriet Jackson/Charles Goodwin

Yellow Jersey PR Limited

Tel: +44 (0) 75 4427 5882

Email: copl@yellowjerseypr.com


Broker: London Stock Exchange

Shore Capital Stockbrokers Limited

Edward Mansfield / Mark Percy

Phone: T: +44 20 7408 4090

This information is provided by RNS

The company news service from the London Stock Exchange

Amryt Pharma Plc – AGM Statement

Amryt, the pharmaceutical company focused on best-in-class treatments for rare and orphan diseases, will hold its Annual General Meeting this morning and Chairman, Harry Stratford, will make the following comment on current trading:


“The Group has made substantial progress since its admission to trading on AIM in April 2016 and this has continued in the new financial year.


“As previously reported on 30 March 2017, sales of Lojuxta are expected to generate revenues of EUR 10.5m on an annualised basis and management is encouraged by ‘real-world’ data results* as it seeks to increase sales of this cholesterol-lowering agent in the treatment of the Homozygous Familial Hypercholesterolaemia (“HoFH”) across its licenced territories.


“The pivotal Phase 3 trial, “EASE”, which is evaluating AP101, the Company’s lead development asset, as a potential treatment for Epidermolysis Bullosa (“EB”), the distressing skin disorder, enrolled its first patient in April and the trial remains on track to be one of the largest studies of its kind in this rare disease.


“The Board continues to view prospects very positively.”


*The study results have been presented in a paper entitled, “Efficacy of Lomitapide in the Treatment of Familial Homozygous Hypercholesterolemia: Results of a Real-World Clinical Experience in Italy“, and published by Advances in Therapy, an international, peer-reviewed journal.





Amryt Pharma plc C/o KTZ Communications
Joe Wiley, CEO

Rory Nealon, CFO/COO

Shore Capital +44 (0) 20 7408 4090
Nomad and Joint Broker
Bidhi Bhoma, Edward Mansfield
Davy +353 (1) 679 6363
ESM Adviser and Joint Broker
John Frain, Anthony Farrell
Stifel +44 (0) 20 7710 7600
Joint Broker
Jonathan Senior, Ben Maddison
KTZ Communications +44 (0) 20 3178 6378
Katie Tzouliadis, Emma Pearson




About Amryt Pharma plc



Amryt Pharma is a specialty pharmaceutical company focused on developing and delivering innovative new treatments to help improve the lives of patients with rare or orphan diseases. The Company is building a diversified portfolio of commercially attractive, best-in-class, proprietary new drugs to help address some of these rare and debilitating illnesses for which there are currently no available treatments.


The Company holds an exclusive licence to sell Lojuxta (lomitapide) for adults, across the EU and other territories including the Middle East, North Africa, Turkey and Israel. Lojuxta is used to treat a rare life-threatening disease called Homozygous Familial Hypercholesterolemia, which impairs the body’s ability to remove LDL cholesterol (“bad” cholesterol) from the blood. This typically results in extremely high blood LDL cholesterol levels leading to aggressive and premature narrowing and blocking of arterial blood vessels.  If left untreated, heart attack or sudden death may occur in childhood or early adulthood.


Amryt’s lead drug candidate, AP101 (Episalvan), is a potential treatment for Epidermolysis Bullosa (“EB”), a rare and distressing genetic skin disorder affecting young children for which there is currently no treatment.  It is currently in Phase 3 clinical trials. The global market opportunity for EB is estimated to be in excess of EUR 1.3 billion.


Amryt’s earlier stage product AP102 is focused on developing novel, next generation somatostatin analogue (“SSA”) peptide medicines for patients with rare neuroendocrine diseases, where there is a high unmet medical need, including acromegaly and Cushing’s disease.


The Company joined AIM and Dublin’s ESM in April 2016 following the reverse takeover of Fastnet Equity PLC.


This information is provided by RNS

The company news service from the London Stock Exchange

Georgian Mining Corporation – Notification of Major Interest in Shares

1. Identity of the issuer or the underlying issuer
of existing shares to which voting rights are
Georgian Mining Corporation

2 Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights X
An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached
An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments
An event changing the breakdown of voting rights
Other (please specify):

3. Full name of person(s) subject to the
notification obligation:

Edale Capital LLP

4. Full name of shareholder(s) 
 (if different from 3.):iv

Edale Europe Absolute Master Fund

5. Date of the transaction and date on
which the threshold is crossed or


6. Date on which issuer notified:


7. Threshold(s) that is/are crossed or
vi, vii

Above 6%



8. Notified details:

A: Voting rights attached to shares viii, ix
Class/type of

if possible using

Situation previous
to the triggering
Resulting situation after the triggering transaction
of shares
Number of voting
% of voting rights x
Direct Direct xi Indirect xii Direct Indirect



4,000,000 4,000,000 4,968,750 4,968,750 6.18%

B: Qualifying Financial Instruments


Resulting situation after the triggering transaction

Type of financial
Conversion Period 
Number of voting
rights that may be
acquired if the
instrument is
exercised/ converted.
% of voting

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments xv, xvi


Resulting situation after the triggering transaction

Type of financial
Exercise price Expiration date xvii Exercise/
Conversion period 
Number of voting rights instrument refers to


% of voting rights xix, xx




Nominal Delta
Total (A+B+C)
Number of voting rights Percentage of voting rights
4,968,750 6.18%


9. Chain of controlled undertakings through which the voting rights and/or the
financial instruments are effectively held, if applicable: 


Proxy Voting:

10. Name of the proxy holder:


11. Number of voting rights proxy holder will cease to hold:


12. Date on which proxy holder will cease to hold voting rights:


13. Additional information:


14. Contact name:

Katie Wright

15. Contact telephone number:

0203 427 3500

This information is provided by RNS

The company news service from the London Stock Exchange

Oversubscribed Placing for Georgian Mining Corp Raising US$7m

Shard Capital acts as joint broker to Georgian Mining Corporation and associated US$7m fundraise at 16p announced 23rd May 2017.

The net proceeds of the Placing will be primarily used to expand the resource development at the Kvemo Bolnisi (KB) copper and gold project in Georgia beyond the existing JORC estimate of 2.22Mt at 0.8% Cu and 0.1 g/t Au as well as to advance regional exploration. The Project is located on the Tethyan Belt, which is host to multiple high grade copper-gold deposits and producing mines in Turkey, Armenia, Serbia and Georgia. The Company believes KB has the potential to host one large epithermal copper/gold deposit and a three-phase resource development programme is underway to reach the Company’s 50Mt exploration target for KB, which is just one of 14 target areas identified within the Company’s 860 sq km licence area.

Shard Capital Corporate Broking offers traditional corporate broking in tandem with an integrated investor relations focused on pro-actively managing the relationship between a corporate client and its shareholders. Shard Capital has worked with Georgian Mining on previous fundraises. This placing was significantly oversubscribed with the roadshow attracting a range of blue chip institutions, wealth managers and retail investors.

Greg Kuenzel, Chief Executive Officer of Georgian Mining, commented:

“Georgian Mining has worked with Shard on a number of previous fundraises as well as this one. Along with their support in the primary raise we are impressed with their secondary market support and investor relations work to help disseminate our story and belief that we are developing a significant gold and copper deposit.”

Georgian Mining’s (GEO.L) share price as at 9 o’clock 25th May – 21.375p

Shard Capital Partners

0207 186 9950

Damon Heath and Erik Woolgar – Corporate Broking
Simon Leathers – Corporate Finance