TIDMLND
RNS Number : 8981N
Landore Resources Limited
27 September 2023
LANDORE RESOURCES LIMITED
(AIM Ticker : LND.L)
INTERIM RESULTS FOR THE SIX MONTHSED 30 JUNE 2023
London, United Kingdom - 28 September 2023 - Landore Resources
Limited (AIM : LND) ("Landore Resources" or the "Company") is
pleased to announce its unaudited interim results for the six
months ended 30 June 2023.
The Company notes that the interim results also include results
for the three month period ended 30 June 2023, and associated
comparatives, in order to facilitate the Company's planned
forthcoming dual listing on the TSX Venture Exchange ("TSX-V").
Full copies of the Company's unaudited interim results for the
three and six months ended 30 June 2023 (the "Interim Results"),
together with the separate accompanying Management's Discussion and
Analysis ("MD&A"), will shortly be made available to download
on the Company's website at: www.landore.com .
For further information, please contact:
Landore Resources Limited
Claude Lemasson, Chief Executive Officer Tel: +1-807-623-3770
Glenn Featherby, Finance Director
Strand Hanson Limited (Nominated Adviser
and Joint Broker)
James Dance/Matthew Chandler/Robert Collins Tel: 020 74093494
Novum Securities Limited (Joint Broker)
Jon Belliss/Colin Rowbury Tel: 020 73999402
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended by virtue of the Market Abuse
(Amendment) (EU Exit) Regulations 2019.
Key Extracts from the Interim Results and MD&A are set out
below :
General
The following MD&A of Landore Resources Limited (the
"Company", the "Group" or "Landore") should be read in conjunction
with the unaudited condensed interim consolidated financial
statements for the three and six months ended 30 June, 2023 with
comparatives for the three and six month periods ended 30 June,
2022 and the notes thereto. The Company's unaudited condensed
interim consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
("IFRS"). Unless otherwise stated, all amounts discussed herein are
denominated in British Pounds.
Overview
The Company is quoted on AIM with the trading symbol LND.L. The
Company is based in Guernsey in the Channel Islands and its 100 per
cent. owned operating subsidiary, Landore Resources Canada Inc.
("Landore Canada"), is engaged in the exploration and development
of a portfolio of precious and base metal properties in North
America.
Financial Results :
The financial results for the six months to 30 June 2023 show a
loss before income tax of GBP822,251 (30 June 2022: GBP794,385),
and for the three months ended 30 June 2023 a loss of GBP771,560
(30 June 2022: GBP308,022). Exploration costs for the six months
ended 30 June 2023 were GBP242,502 (30 June 2022: GBP398,341), and
for the three months ended 30 June 2023 GBP142,752 (30 June 2022
GBP248,834).
The Company's cash and cash equivalents balance was GBP397,109
at 30 June, 2023 compared to GBP1,235,528 at 31 December, 2022.
Operations Report
The Junior Lake Property :
The Junior Lake property, 100 per cent. owned by Landore Canada,
is located in the province of Ontario, Canada, approximately 235
kilometres north-northeast of Thunder Bay and is host to the BAM
Gold Deposit, the B4-7 Nickel-Copper-Cobalt-PGEs deposit and the
adjacent Alpha PGEs zone. Junior Lake also contains the VW Nickel
deposit and numerous other highly prospective mineral occurrences
including lithium.
BAM Gold Deposit :
Works to-date have brought the BAM Gold Project's In-Situ NI
43-101 compliant resource to 49,231,000 tonnes (t) at 1.0
grams/tonne (g/t) for 1,496,000 ounces of gold (oz Au) including
30,965,000t at 1.0g/t for 1,029,000 ounces gold in the Indicated
Category (February 2022 mineral resource estimate, at a 0.3g/t
cut-off).
On 9 May 2022, Landore announced a positive preliminary economic
assessment ("PEA") which indicated that under certain conditions
the BAM Gold Project generates pre-tax and post-tax NPVs of,
respectively, US$333.6M and US$231.2M and pre-tax and post-tax real
IRRs of 87.4% and 66.7%. The BAM Gold Project has an after-tax
simple pay back of 1.25 years from the start of production or 2.25
years from the start of the project.
Landore Canada's focus for the remainder of 2023 and going
forward is on advancing its highly prospective BAM Gold Project,
targeting a two-million-ounce resource together with completing a
Pre-Feasibility Study, concentrating on:
-- The underground potential at BAM as identified by CUBE in its
May 2022 resource upgrade and presentation.
-- Advancing the existing Inferred resource into an Indicated
Resource together with infilling the exploration targets to the
immediate east and west of the current resource.
-- Commencing a pre-feasibility study to advance the BAM Gold Project towards production.
Gold-Strategic Metals Exploration :
Exploration drilling in 2022 over a distance of 8 kilometres
westwards along strike from the BAM Gold and B4-7 Nickel-
Copper-Cobalt-PGEs Deposits successfully intersected gold and
strategic metals mineralisation in all areas including the highly
prospective Felix-Grassy Pond Prospects located from 1100W to
5000W. Drilling also infilled and extended the Carrot Top zone
located 7 to 8 kilometres west of the BAM Gold Deposit to allow
modelling for resource purposes.
During 2022 a soil-till sampling programme was completed in the
Felix Lake, Lamaune Gold and Carrot Top Ni-Cu-Co- PGEs prospect
areas to build on Landore Canada's extensive dataset of soil
sampling results along the Junior Lake shear zone. Soil sampling
covering 16 kilometres from the Placer Dome Gold prospect in the
west, to east of the BAM Gold Deposit successfully confirmed the
presence of highly anomalous gold occurrences and trends on the
Felix prospect and south of Felix westwards into the Lamaune Gold
area, identifying direct drill targets.
Preparatory work is currently underway to follow up on the
promising drill and soil results with the aim of expanding the BAM
Gold Deposit to the west and east, as well as further delineating
strategic metals trends.
The continued rapid growth of the BAM Gold Deposit together with
the possible future development of the other known gold prospects
along this highly prospective 31 kilometre long Archean greenstone
belt bodes well for the future of the Junior Lake Property
potentially hosting a multi-million ounce gold deposit.
Junior Lake Lithium Prospects :
On 6 March 2023, Landore announced that it had entered into an
option agreement with Green Technology Metals Limited ("GT1") which
provides GT1 with the right to purchase an 80 per cent. interest
(the "Option") in certain tenements which contain Lithium prospects
in return for staged payments over three years to Landore Canada
totalling C$2,500,000 in cash and an additional C$1,500,000 either
in cash or by issuing Landore Canada with new common shares in GT1
(the "Lithium Claim Blocks").
The Lithium Claim Blocks, located in the northern part of the
Junior Lake Property, consist of 10,856 hectares and host a number
of lithium-bearing pegmatites, with three drill-ready prospects
identified from previous exploration activity, the historical
Despard Lithium deposit, the Swole Lake spodumene-bearing pegmatite
and Tape Lake pegmatites, both discovered by Landore Canada. As an
exploration asset, the Lithium Claim Blocks currently generate no
revenues or profits and as at 31 December 2022 and 30 June 2023,
for accounting purposes, had a book value of nil.
The consideration received by the Company pursuant to the Option
agreement will be applied towards the Group's working capital
requirements, specifically the advancement of the BAM Gold Project
to the Pre-Feasibility Stage.
COVID-19 :
The spread of a novel strain of coronavirus ("COVID-19") and
measures taken to contain the spread of the virus caused
significant disruption to Landore Canada's exploration activities
during the first half of 2020. By mid-2020 the Company resumed
Canadian operations, and since then has successfully operated in
accordance with Canadian Government's COVID-19 guidelines.
Social and environmental responsibilities :
The Group believes that a successful project is best achieved
through maintaining close working relationships with First Nations
and other local communities. This social ideology is at the
forefront of the Group's exploration initiatives and the Company
seeks to establish and maintain co-operative relationships with
First Nations communities, hiring local personnel and using local
contractors and suppliers where possible. Careful attention is
given to ensure that all exploration activity is performed in an
environmentally responsible manner and abides by all relevant
mining and environmental acts. Landore Canada takes a conscientious
role towards its operations and is aware of its social
responsibilities and its environmental duties.
28 September 2023
Unaudited Condensed Interim Consolidated Statement of
Comprehensive Income
For the three and six months ended 30 June 2023
Three months ended Six months ended
30 June 30 June
2023 2022 2023 2022
Notes GBP GBP GBP GBP
Exploration costs 6 (142,752) (248,834) (242,502) (398,341)
Administrative expenses (527,331) (499,277) (964,773) (818,316)
Operating loss (670,083) (748,111) (1,207,275) (1,216,657)
Other income 19 - 467,715 451,988 448,779
Loss on disposal of non-current
investments (54,225) - (54,887) -
Loss on non-current investments
measured at fair value 9 (47,252) (27,626) (12,077) (26,507)
Loss before income tax (771,560) (308,022) (822,251) (794,385)
Income tax 5 - - - -
Loss for the period (771,560) (308,022) (822,251) (794,385)
Other comprehensive income
Items that will subsequently
be reclassified to profit
or loss :
Exchange differences on
translating foreign operations 10,620 26,500 (24,678) 58,021
Other comprehensive income/(loss)
for the period net of
tax 10,620 26,500 (24,678) 58,021
Total comprehensive loss
for period (760,940) (281,522) (846,929) (736,364)
Loss attributable to
:
Equity holders of the
Company (771,644) (308,163) (822,610) (794,153)
Non-controlling interests 84 141 359 (232)
Total comprehensive loss
attributable to:
Equity holders of the
Company (761,024) (281,663) (847,288) (736,132)
Non-controlling interests 84 141 359 (232)
Loss per share for losses
attributable to the equity
holders
of the Company during
the period
- Basic and diluted (GBP) 7 (0.007) (0.003) (0.008) (0.007)
The above Unaudited Condensed Interim Consolidated Statement of
Comprehensive Income should be read in conjunction with the
accompanying notes.
Unaudited Condensed Interim Consolidated Statement of Financial
Position
As at 30 June 2023
As at As at
30 June 31 December
2023 2022
Notes GBP GBP
Assets
Non-current assets
Property, plant and equipment 8 59,870 68,432
Investments 9 87,970 169,682
---------------------------------- ----- ------------ ------------
147,840 238,114
Current assets
Trade and other receivables 10 68,331 110,890
Cash and cash equivalents 397,109 1,235,528
---------------------------------- ----- ------------ ------------
465,440 1,346,418
---------------------------------- ----- ------------ ------------
Total assets 613,280 1,584,532
---------------------------------- ----- ------------ ------------
Equity
Capital and reserves attributable
to the Company's
equity holders
Share capital - nil par value 12 51,926,526 51,926,526
Share-based payment reserve 13 570,500 584,266
Accumulated deficit (51,948,655) (51,139,811)
Translation reserve (325,711) (301,033)
Total equity shareholders' funds 222,660 1,069,948
---------------------------------- ----- ------------ ------------
Non-controlling interests (5,339) (5,698)
Total equity 217,321 1,064,250
---------------------------------- ----- ------------ ------------
Liabilities
Current liabilities
Trade and other payables 11 395,959 520,282
395,959 520,282
---------------------------------- ----- ------------ ------------
Total liabilities 395,959 520,282
---------------------------------- ----- ------------ ------------
Total equity and liabilities 613,280 1,584,532
---------------------------------- ----- ------------ ------------
The above Unaudited Condensed Interim Consolidated Statement of
Financial Position should be read in conjunction with the
accompanying notes.
Unaudited Condensed Interim Consolidated Statement of Changes in
Equity
For the six months ended 30 June 2023
Equity shareholders' funds
---------------------------------------------- -------------
Share Non-controlling
capital Share-based Accumulated Translation
nil par interest
value payment deficit reserve Total
GBP GBP GBP GBP GBP GBP
Balance as at 1
January 2022 50,179,599 979,409 (49,692,080) (322,611) (4,901) 1,139,416
------------ ----------- -------------- ----------- ----------------- -------------
Issue of ordinary
share capital - nil
par value (note 12) 909,605 - - - - 909,605
Warrants exercised - (12,529) 12,529 - - -
---------------------- ------------ ----------- -------------- ----------- ----------------- -------------
Total transactions
with owners 909,605 (12,529) 12,529 - - 909,605
---------------------- ------------ ----------- -------------- ----------- ----------------- -------------
Loss for the period - - (794,153) - (232) (794,385)
---------------------- ------------ ----------- -------------- ----------- ----------------- -------------
Exchange difference
from translating
foreign operations - - - 58,021 - 58,021
---------------------- ------------ ----------- -------------- ----------- ----------------- -------------
Total comprehensive
loss for the period - - (794,153) 58,021 (232) (736,364)
Balance as at 30
June 2022 51,089,204 966,880 (50,473,704) (264,590) (5,133) 1,312,657
---------------------- ------------ ----------- -------------- ----------- ----------------- -------------
Balance as at 1
July 2022 51,089,204 966,880 (50,473,704) (264,590) (5,133) 1,312,657
---------------------- ------------ ----------- -------------- ----------- ----------------- -------------
Issue of options
(note 13) - 16,914 - - - 16,914
Issue of ordinary
share capital - nil
par value (note 12) 837,322 - - - - 837,322
Options exercised - (16,727) 16,727 - - -
Options lapsed - (339,382) 339,382 - - -
Warrants exercised - (8,134) 8,134 - - -
Warrants Lapsed - (35,285) 35,285 - - -
Total transactions
with owners 837,322 (382,614) 399,528 - - 854,236
---------------------- ------------ ----------- -------------- ----------- ----------------- -------------
Loss for the year - - (1,065,635) - (565) (1,066,200)
Exchange difference
from translating
foreign operations - - - (36,443) - (36,443)
Total comprehensive
loss for the period - - (1,065,635) (36,443) (565) (1,102,643)
---------------------- ------------ ----------- -------------- ----------- ----------------- -------------
Balance as at 31
December 2022 51,926,526 584,266 (51,139,811) (301,033) (5,698) 1,064,250
---------------------- ------------ ----------- -------------- ----------- ----------------- -------------
Balance as at 1
January 2023 51,926,526 584,266 (51,139,811) (301,033) (5,698) 1,064,250
--------------------- ---------- --------- -------------- ----------- --------- -----------
Warrants lapsed - (13,766) 13,766 - - -
--------------------- ---------- --------- -------------- ----------- --------- -----------
Total transactions
with owners - (13,766) 13,766 - - -
--------------------- ---------- --------- -------------- ----------- --------- -----------
Loss for the period - - (822,610) - 359 (822,251)
--------------------- ---------- --------- -------------- ----------- --------- -----------
Exchange difference
from translating
foreign operations - - - (24,678) - (24,678)
--------------------- ---------- --------- -------------- ----------- --------- -----------
Total comprehensive
loss for the period - - (822,610) (24,678) 359 (846,929)
--------------------- ---------- --------- -------------- ----------- --------- -----------
Balance as at 30
June 2023 51,926,526 570,500 (51,948,655) (325,711) (5,339) 217,321
--------------------- ---------- --------- -------------- ----------- --------- -----------
The above Unaudited Condensed Interim Consolidated Statement of
Changes in Equity should be read in conjunction with the
accompanying notes.
Unaudited Condensed Interim Consolidated Statement of Cash
Flows
For the six months ended 30 June 2023
6 months ended
30 June
2023 2022
Notes GBP GBP
Cash flows from operating activities
Loss for the period (822,251) (794,385)
Loss on disposal of non-current asset 54,887 -
investments
Depreciation of tangible fixed assets 8 6,728 8,371
Foreign exchange loss on non-cash items 856 (25,466)
Non-cash option income - (299,186)
Decrease/(increase) in trade and other
receivables 40,662 (8,406)
(Decrease)/increase in trade and other
payables (116,611) 17,255
Fair value loss on financial assets 9 12,077 26,507
Net cash used in operating activities (823,652) (1,075,310)
Cash flows from investing activities
Proceeds from disposal of non-current 10,896 -
asset investments
Net cash used in investing activities 10,896 -
Cash flows from financing activities
Proceeds from issue of ordinary shares - 909,605
Net cash generated by financing activities - 909,605
Net (decrease)/increase in cash and cash
equivalents (812,756) (165,705)
Cash and cash equivalents at the beginning
of the period 1,235,528 875,658
Exchange (loss)/gain on cash and cash
equivalents (25,663) 30,452
Cash and cash equivalents at the end
of the period 397,109 740,405
The above Unaudited Condensed Interim Consolidated Statement of
Cash Flow should be read in conjunction with the accompanying
notes.
Notes to the Unaudited Condensed Interim Consolidated Financial
Statements
1. General information
The Company was registered in Guernsey, Channel Islands on 16
February 2005 with registered number 42821 under the Companies
(Guernsey) Law, 2008. The Company is quoted on the AIM with the
trading symbol LND.L. The principal activity, mainly in Canada, is
mineral exploration including the identification, acquisition and
development of technically and economically sound mineral projects
either alone or with joint venture partners.
2. Basis of accounting and accounting policies
The unaudited condensed interim consolidated financial
statements have been prepared in accordance with IAS 34, Interim
Financial Reporting ("IAS 34") and do not include all of the
information required in annual financial statements. These
unaudited condensed interim consolidated financial statements
should be read in conjunction with the audited consolidated
financial statements for the year ended 31 December 2022.
The condensed interim consolidated interim financial statements
have not been audited and have been prepared on the historical cost
basis. The principal accounting policies adopted are consistent
with those adopted in the audited annual consolidated financial
statements for the year ended 31 December 2022.
The unaudited condensed interim consolidated financial
statements incorporate the financial statements of the Company and
entities controlled by the Company (its subsidiaries and
collectively the "Group") made up to 30 June 2023.
Changes in accounting policies
New and revised standards that are effective for annual periods
beginning on or after 1 January 2023 have been adopted in these
unaudited condensed interim consolidated financial statements.
During the financial period, the Group has adopted the following
new IFRSs (including amendments thereto), which became effective
for the first time:
Standard Effective date, annual period beginning on or after
IFRS 17 - Insurance Contracts 1 January 2023
----------------------------------------------------
Amendments to IFRS 17 - Insurance Contracts 1 January 2023
and Extension of the Temporary Exemption from Applying IFRS 9
(Amendments to IFRS 4 Insurance Contracts)
----------------------------------------------------
Disclosure of Accounting Policies (Amendments to IAS 1 1 January 2023
Presentation of Financial Statements
and IFRS Practice Statement 2 Making Materiality Judgements)
----------------------------------------------------
Definition of Accounting Estimates (Amendments to IAS 8 1 January 2023
Accounting Policies, Changes in Accounting
Estimates and Errors)
----------------------------------------------------
Deferred Tax related to Assets and Liabilities arising from a 1 January 2023
Single Transaction (Amendments
to IAS 12 Income Taxes)
----------------------------------------------------
Classification of Liabilities as Current or Non-Current: 1 January 2024
amendments to IAS 1
----------------------------------------------------
The Company's management have reviewed the application of the
amendments and have concluded that there is no impact on these
unaudited condensed interim consolidated financial statements.
3. Basis of consolidation
The unaudited condensed interim consolidated financial
statements incorporate the financial statements of the Company and
entities controlled by the Company (its subsidiaries and
collectively the "Group") made up to 30 June 2023. Control is
achieved where the Company is exposed, or has rights, to variable
returns from its involvement with the investee and has the ability
to affect those returns through its power over the investee. The
financial statements of subsidiaries are included in the unaudited
condensed interim consolidated financial statements from the date
that control commences until control ceases.
On acquisition, the assets and liabilities and contingent
liabilities of a subsidiary are measured at their fair values at
the date of acquisition. Any excess of the cost of acquisition over
the fair values of the identifiable net assets acquired is
recognised as goodwill. Any deficiency of the cost of acquisition
below the fair values of the identifiable net assets acquired
(i.e., discount on acquisition) is credited to the Statement of
Comprehensive Income in the period of acquisition.
Where necessary, adjustments are made to the financial
statements of subsidiaries to bring the accounting policies used
into line with those used by the Company. All intra-group
transactions, balances, income and expenses are eliminated on
consolidation.
The Directors consider that the Company exerts control over its
subsidiaries by virtue of its ownership of 100% of the share
capital in each of those companies and therefore 100% of the voting
rights and rights to variable returns from its involvement with
those companies (apart from Lamaune Iron Inc. which is owned
90.2%). The Directors therefore consider that the Company has
control over the companies it identifies as its subsidiaries in
accordance with IFRS 10.
4. Going concern
Note 15 to the unaudited condensed interim consolidated
financial statements includes the Group's objectives, policies and
processes for managing its capital; its financial risk management
objectives; details of its financial instruments; and its exposures
to credit risk and liquidity risk.
Due to the location of the Group's principal assets, it is well
protected from the effects of any potential COVID-19 resurgence on
its operations. Whilst the Group is exposed to any wider economic
implications from any further restrictions, the Board believes that
its interests in a range of precious metals combined with the
drilling progress achieved in 2022 provide a significant hedge to
the potential exposure to any further COVID-19 impacts. The Group's
operations during the period were unaffected by the pandemic which
has now abated.
As at 30 June 2023, the Group had cash balances of GBP397,109.
In addition, the Group is due to receive the following further
sums:
- A cash payment of C$250,000 and a convertible cash payment of
C$500,000 on or before 24 November 2023;
- A cash payment of C$500,000 and a convertible cash payment of
C$750,000 on or before 24 May 2024; and
- Furthermore, a cash payment of C$500,000 is due in March 2024
in relation to the option for the sale of the Lithium Claim
Blocks.
Whilst the Group has reported a comprehensive loss after tax for
the period ended 30 June 2023 amounting to approximately GBP0.85m,
the above mentioned expected further receipts, plus the GBP600,000
(before expenses) via the fundraising announced on 29 June 2023,
together with cash balances held at the period end means that the
Board is satisfied that the Group has sufficient cash to meet its
operational requirements for a period of at least 12 months from
the date of approval of these unaudited condensed interim
consolidated financial statements.
The Group currently has no debt. Future development activities
to continue to grow the Group's resources can be adjusted based on
the Group's ability to raise additional funds as necessary.
The unaudited condensed interim consolidated financial
statements have been prepared on a going concern basis with a
reasonable expectation that the Group has adequate resources to
continue in operational existence for a period of at least 12
months from the date of approval of these unaudited condensed
interim consolidated financial statements.
5. Taxation
The Company is taxed at the company standard rate of 0%.
The Company's subsidiary, Landore Resources Canada Inc., is
subject to Canadian Federal tax. No tax has been provided in the
accounts of Landore Resources Canada Inc. since there were no
taxable profits generated by the company during the year.
Landore Resources Canada Inc. has potential deferred tax assets
of approximately C$17m (31 December 2022: C$17m) which are not
recognised at the end of the period. These deferred tax assets are
in relation to exploration expenditures which are carried forward
to be utilised against future profits.
Landore Resources Canada Inc. also has a subsidiary, Brancote US
Inc. which is subject to taxation in the United States.
6. Mineral properties
Exploration expenditure and mineral properties Accumulated
Net expense Net expense expenditure at
in the three month in the six month 30 June
period to 30 June 2023 period to 30 June 2023 2023
GBP GBP GBP
Junior Lake 135,388 197,657 29,423,835
Miminiska Lake - 716 1,535,047
Frond Lake - - 90,341
Wottam - - 61,558
Lessard - - 709,122
Other, including Swole Lake
and Root Lake 7,364 44,129 146,026
----------------------------- ---------------------- ---------------------- --------------
142,752 242,502 31,965,929
---------------------------- ---------------------- ---------------------- --------------
Accumulated
Net expense Net expense expenditure at
in the three month in the six month 30 June
period to 30 June 2022 period to 30 June 2022 2022
GBP GBP GBP
Junior Lake 240,561 383,523 27,458,707
Miminiska Lake 1,186 1,139 1,534,291
Frond Lake - 1,490 89,949
Wottam - - 61,558
Lessard 505 4,133 709,480
Other, including Swole Lake
and Root Lake 6,582 8,056 98,949
----------------------------- ---------------------- ---------------------- --------------
248,834 398,341 29,952,934
---------------------------- ---------------------- ---------------------- --------------
6.1 Junior Lake
Junior Lake is a nickel, copper, platinum group metals, iron,
gold, and lithium property located north of Thunder Bay in Northern
Ontario, Canada, wholly owned by the Group. The Junior Lake
property also encompasses the Lamaune property block and the Swole
property block.
On 5 March 2023, Landore Resources Canada entered into an
agreement with Green Technology Metals Limited ("GT1") which
provides GT1 with the right to purchase an 80 per cent. interest
(the "Option") in certain tenements which contain Lithium
prospects, located within the Junior Lake Property, (the "Lithium
Claim Blocks"). Under the terms of the Option, GT1 has the right to
purchase an 80 per cent. interest in the Lithium Claim Blocks, in
return for staged payments over three years to Landore Resources
("Staged Payments") totalling C$2,500,000 in cash and an additional
C$1,500,000 either in cash or by issuing Landore Resources with new
common shares in GT1 as set out below:
- Initial cash payment of C$500,000 (within 5 business days of
execution of the option agreement (the "Effective Date"))
(received);
- Cash payment of C$500,000 on or before the date which is 12 months after the Effective Date;
- Cash payment of C$500,000, plus a further C$500,000 payable
either in cash or through the issue of new shares in GT1 to Landore
(at GT1's election) on or before the date which is 24 months after
the Effective Date; and
- Cash payment of C$1,000,000, plus a further C$1,000,000
payable either in cash or through the issue of new shares in GT1 to
Landore Canada (at GT1's election ) on or before the date which is
36 months after the Effective Date.
6.2 Miminiska Lake
Miminiska Lake is a gold exploration project located east of
Pickle Lake in Northern Ontario, Canada. Following the April 2018
conversion of all claims in the province of Ontario, the property
consists of a southern block ("Miminiska Lake"), and a northern
block ("Keezhik Lake"). Both blocks are wholly owned by the Group
(collectively, the "Property"). On 5 May 2021, the Group entered
into an agreement with Lithoquest Resources Inc. ("Lithoquest")
granting Lithoquest the exclusive right and option (the "Option")
to acquire a 100% interest in and to the Property and all of
Landore Resource's rights, licences and permits appurtenant thereto
or held for the specific use and enjoyment thereof, including all
of Landore Resource's interest in the underlying agreements by
paying to Landore Resources the staged sum of C$1,375,000 cash and
an additional sum of C$2,625,000 in cash or in new Lithoquest
common shares (hereinafter referred to as "Convertible Cash"), to
be paid as follows:
i. C$25,000 cash on the execution and delivery of the option agreement (received);
ii. an additional C$100,000 cash within ten business days
following the date (the "Effective Date") of acceptance of the
agreement by the TSX Venture Exchange (the "TSXV") (received);
iii. an additional C$250,000 cash and C$400,000 in Convertible
Cash to be paid within six months of the Effective Date
(received);
iv. an additional C$250,000 cash and C$500,000 in Convertible
Cash to be paid within 12 months of the Effective Date
(received);
v. an additional C$250,000 cash and C$750,000 in Convertible
Cash to be paid within 18 months of the Effective Date; and
vi. an additional C$500,000 cash and C$1,000,000 in Convertible
Cash to be paid within 24 months of the Effective Date.
On 30 November 2022, an amendment agreement was signed with
Storm Exploration Inc. ("Storm") (formerly named Lithoquest
Resources Inc.) to amend the payment schedule, resulting in the
following revised remaining payments:
vii. an additional $250,000 cash and $250,000 in Convertible
Cash to be paid within 19 months of the Effective Date
(received);
viii. an additional C$250,000 cash and C$500,000 in Convertible
Cash to be paid within 25 months of the Effective Date (received);
and
ix. an additional C$500,000 cash and C$500,000 in Convertible
Cash to be paid within 31 months of the Effective Date.
On 31 January 2023, Landore Resources received a further payment
under the Lithoquest Option, comprising of C$251,824 cash and
2,175,939 new common shares in Storm to the value of C$248,176.
In addition, Landore Resources agreed to further amend the terms
of the Option such that Storm could now acquire a 100% interest in
the Property by making staged payments to Landore Resources
totalling C$1,625,000 in cash and an additional C$2,400,000 either
in cash or new common shares in Storm (previously these payments
from inception were to comprise C$1,375,000 in cash and C$2,625,000
in Convertible Cash), with the remaining payments to be made in
accordance with the revised schedule below:
(i) a cash payment of C$250,000 and a Convertible Cash payment
of C$500,000 on or before 24 July 2023; and
(ii) a cash payment of C$500,000 and a Convertible Cash payment
of C$750,000 on or before 24 January 2024.
Storm has exclusive discretion to determine if each tranche of
the Convertible Cash payments is settled in cash or in new Storm
shares.
Following receipt of the remaining Cash payments, Convertible
Cash payments and exercise of the Option by Storm, Landore
Resources shall be entitled to receive a 2% net smelter returns
royalty ("NSR") from the Property. Storm will retain the right to
reduce the NSR to 1% by paying Landore Resources the sum of
C$1,000,000 in cash .
On 5 July 2023, Landore Resources and Storm agreed to a further
variation of four months to the scheduling of each of the remaining
payments due from Storm in respect of the pre-existing option
arrangement as follows:
(i) a cash payment of C$250,000 and a Convertible Cash payment
of C$500,000 on or before 24 November 2023; and
(ii) a cash payment of C$500,000 and a Convertible Cash payment
of C$750,000 on or before 24 May 2024.
6.3 Frond Lake
Frond Lake is a gold property located east of Pickle Lake in
Northern Ontario, Canada. The property is comprised of a number of
patented claims contiguous to the east of the Wottam Property. The
Frond Lake property claims are wholly owned by the Group subject to
a 2% NSR to the original owners of the property.
6.4 Wottam
Wottam is a gold property located east of Pickle Lake in
Northern Ontario, Canada. The property is wholly owned by the Group
and includes a number of claims contiguous between the Miminiska
and Frond properties.
6.5 Lessard
Lessard is a zinc and copper property located north of
Chibougamau in Quebec, Canada. The property is wholly owned by the
Group.
6.6 Swole Lake
Swole Lake is host to nickel, copper, platinum group metals and
lithium occurrences. The Swole Lake mining claim, wholly owned by
the Group, is consolidated into the greater Junior Lake property.
The Swole Lake legacy claim is subject to a 2% NSR royalty to the
original holder of the claim.
Sale of Net Smelter Returns Royalty ("NSR")
On 28 October 2022, the Group entered into an agreement with
Green Technology Metals Limited whereby Landore Resources sold its
3% Net Smelter Royalty ("Root Lake NSR") on the Root Lake Property,
Ontario (the "Root Lake NSR").
In consideration for the sale of the 3% NSR, the Group received
cash proceeds of C$3,000,000.
Purchase of Net Smelter Returns Royalty ("NSR")
On 21 September 2020, the Group entered into a Royalty Purchase
Agreement with Stares Contracting Corp., Stephen Stares, Michael
Stares and James Dawson (the "Agreement"), whereby Landore
Resources acquired one-half of the 2% NSR (the "Lamaune NSR") that
is held on Landore Canada's 90.2% owned Lamaune Lake Property,
Ontario.
In consideration for the purchase of 1% of the Lamaune NSR, the
Group made a cash payment of C$75,000 and issued 227,733 new
ordinary shares in Landore Resources at a price of 19.25 pence per
share, for total consideration of C$149,964.
7. Loss per share
The loss per share is based on the loss for the relevant period
and the weighted number of ordinary shares in issue during the
relevant period.
The potential ordinary shares which arise as a result of the
options in issue are not dilutive under the terms of IAS 33 because
they would not increase the loss per share. Accordingly, there is
no difference between the basic and dilutive loss per share.
The loss per share and diluted loss per share for the periods
concerned were:
Three Months Ended Six Months Ended
30 June 30 June
2023 2022 2023 2022
Loss attributable to:
Equity holders of the Company GBP (771,644) (308,163) (822,610) (794,153)
Weighted average number
of shares 106,553,257 109,585,744 106,553,257 108,209,176
- Basic and diluted GBP (0.007) (0.003) (0.008) (0.007)
------------------------------ ---- ----------- ----------- ----------- -----------
8. Property, plant and equipment
Automotive Computers and Machinery and
equipment office equipment equipment Total
GBP GBP GBP GBP
Cost
At 31 December 2021 196,497 55,208 119,856 371,561
Foreign exchange movements 10,861 3,052 6,625 20,538
--------------------------- ---------- ---------------- ------------- --------
At 31 December 2022 207,358 58,260 126,481 392,099
Foreign exchange movements (5,787) (1,627) (3,530) (10,944)
At 30 June 2023 201,571 56,633 122,951 381,155
Depreciation
At 31 December 2021 127,112 50,032 113,358 290,502
Charge for the period 14,829 1,105 1,389 17,323
Foreign exchange movements 6,841 2,751 6,250 15,842
At 31 December 2022 148,782 53,888 120,997 323,667
Charge for the period 5,758 430 540 6,728
Foreign exchange movements (4,217) (1,509) (3,384) (9,110)
At 30 June 2023 150,323 52,809 118,153 321,285
--------------------------- ---------- ---------------- ------------- --------
Net book value
At 30 June 2023 51,248 3,824 4,798 59,870
--------------------------- ---------- ---------------- ------------- --------
At 31 December 2022 58,576 4,372 5,484 68,432
--------------------------- ---------- ---------------- ------------- --------
9. Non-current asset investments
Investment
in equities
GBP
Cost
At 31 December 2021 287,259
Additions at cost 309,578
Fair value loss (444,719)
Foreign exchange movements 17,564
At 31 December 2022 169,682
Disposals at cost (65,783)
Fair value loss (12,077)
Foreign exchange movements (3,852)
--------------------------- -----------
At 30 June 2023 87,970
--------------------------- -----------
Investments consist of 7,688,009 (31 December 2022: 7,929,009)
common shares of Storm Exploration Inc. (formerly known as
Lithoquest Resources Inc. - a publicly traded company listed on the
TSX Venture Exchange) received pursuant to the Miminiska property
option agreement (see note 6.2).
Company
At 30 June 2023, the Company held interests in the issued share
capital of the following subsidiary undertakings which have all
been included in the consolidated interim financial statements:
Subsidiary Nature of business Country of incorporation
Landore Resources Canada Exploration of precious Canada
Inc. (100%) metals
Brancote US Inc.* (100%) Exploration of precious United States
metals
Lamaune Iron Inc.** Exploration of precious Canada
(90.2%) metals
------------------------ ----------------------- ------------------------
*The entire issued share capital of Brancote US Inc. is held by
Landore Resources Canada Inc.
**90.2% of the issued share capital of Lamaune Iron Inc. is held
by Landore Resources Canada Inc.
10. Trade and other receivables
As at As at 31
30 June December
2023 2022
GBP GBP
Due within one year:
Trade receivables and prepayments 68,331 110,890
68,331 110,890
---------------------------------- -------- ---------
11. Trade and other payables: amounts falling due within one year
As at As at 31
30 June December
2023 2022
GBP GBP
Trade payables 395,959 520,282
--------------- -------- ---------
395,959 520,282
--------------- -------- ---------
12. Share capital
As at 30 As at 31
June December
2023 2022
GBP GBP
Issued and fully paid:
115,346,391 (31 December 2022: 115,346,391) ordinary
shares of nil par value each ranking pari passu 51,926,526 51,926,526
Ordinary
Shares of
nil par value
GBP
Cost
At 31 December 2021 50,179,599
Issued in the period to 30 June 2022 909,605
Issued in the period to 31 December 2022 837,322
Issued in the period to 30 June 2023 -
At 30 June 2023 51,926,526
Movements in the Group's share capital of no par value ordinary
shares during the period were as follows:
Nominal Share
Number value capital
of shares GBP GBP
Balance at 1 January 2022 106,553,257 - 50,179,599
20 January 2022 - Warrant exercise 95,570 - 19,114
4 February 2022 - Warrant exercise 100,000 - 20,000
22 February 2022 - Warrant exercise 175,000 - 35,000
22 March 2022 - Warrant exercise 500,000 - 100,000
28 March 2022 - Warrant exercise 200,000 - 40,000
12 April 2022 - Warrant exercise 500,000 - 100,000
13 April 2022 - Warrant exercise 185,185 - 37,037
26 April 2022 - Warrant exercise 148,148 - 29,630
28 April 2022 - Warrant exercise 435,622 - 87,124
3 May 2022 - Warrant exercise 888,888 - 177,778
10 May 2022 - Warrant exercise 300,000 - 60,000
13 May 2022 - Warrant exercise 83,500 - 16,700
18 May 2022 - Warrant exercise 111,111 - 22,222
6 June 2022 - Warrant exercise 299,999 - 60,000
15 June 2022 - Warrant exercise 125,000 - 25,000
23 June 2022 - Warrant exercise 400,000 - 80,000
5 July 2022 - Warrant exercise 185,185 - 37,037
11 July 2022 - Warrant exercise 1,444,444 - 288,889
13 July 2022 - Warrant exercise 1,308,982 - 261,796
14 July 2022 - Warrant exercise 1,006,500 - 201,300
25 July 2022 - Option exercise 300,000 - 48,300
Balance at 31 December 2022 and 30
June 2023 115,346,391 - 51,926,526
------------------------------------ ----------- ------- ----------
Issue costs of GBPNil (2022: GBPNil) were incurred when issuing
shares.
The total gross cash proceeds received from the shares issued in
the period under review amounted to GBPNil (Year to 31 December
2022: GBP1,746,927).
13. Share-based payment reserve
As at 30 As at 31
June December
2023 2022
GBP GBP
Share options reserve 570,500 570,500
Share options reserve - warrants - 13,766
Total 570,500 584,266
--------------------------------- -------- ---------
13.1 Share options reserve
Number of Number of
Exercise options at (Lapsed or options at
price 1 January exercised)/ 30 June Fair value
granted
Grant date Expiry date GBP 2023 2023 GBP
24 July 2019 24 July 2024 0.161 1,500,000 - 1,500,000 83,637
24 July 2020 23 July 2025 0.24 2,400,000 - 2,400,000 253,501
31 December
1 January 2021 2025 0.31 100,000 - 100,000 4,627
20 July 2021 19 July 2026 0.323 2,200,000 - 2,200,000 211,821
22 July 2022 21 July 2027 0.25 1,150,000 - 1,150,000 16,914
7,350,000 - 7,350,000 570,500
------------------------------- ---------- ------------- -------------- -------------- -------------------------
Number of Number of
Exercise options at (Lapsed or options at
price 1 January exercised)/ 31 December Fair value
granted
Grant date Expiry date GBP 2022 2022 GBP
5 July 2017 5 July 2022 0.638 1,075,000 (1,075,000) - -
22 December 2017 22 December 2022 0.44 250,000 (250,000) - -
24 July 2019 24 July 2024 0.161 1,800,000 (300,000) 1,500,000 83,637
24 July 2020 23 July 2025 0.24 2,400,000 - 2,400,000 253,501
1 January 2021 31 December 2025 0.31 100,000 - 100,000 4,627
20 July 2021 19 July 2026 0.323 2,200,000 - 2,200,000 211,821
22 July 2022 21 July 2027 0.25 - 1,150,000 1,150,000 16,914
----------------- ----------------- ---------- --------------- ---------------- ---------------- ---------------
7,825,000 (475,000) 7,350,000 570,500
----------------------------------- ---------- --------------- ---------------- ---------------- ---------------
No options were exercised during the period (Year to 31 December
2022: 300,000).
No share options lapsed in the period (Year to 31 December 2022:
1,325,000).
All of the above options vested in full on the grant date other
than 2,400,000 options issued in July 2020 which vested in January
2021. 7,350,000 options were exercisable at both 30 June 2023 and
31 December 2022.
The weighted average exercise prices relating to the above
movements in the number of share options are as follows:
2023 2022
GBP GBP
Outstanding at beginning of the period 0.251 0.307
Granted during the period - 0.250
Exercised during the period - 0.161
Lapsed during the period - 0.601
Outstanding at end of the period 0.251 0.251
Exercisable at end of the period 0.251 0.251
Weighted average share price of share options
exercised in year - 0.161
Weighted average remaining contractual life of
share options outstanding 2.48 2.97
at end of the period (years)
The estimated fair value of the options issued during the prior
period was calculated by applying the Black-Scholes pricing
model.
The model inputs were:
Options granted 22 July 2022
Share price at grant date GBP0.18125
Expected volatility 18.49%
Risk-free interest rate 1.704%
Exercise price GBP0.25
Option life 5 years
The expected volatility is wholly based on the historic
volatility of the Company's share price (calculated based on the
average life of the share options).
The movements on the share options reserve are detailed
below:
Six months
to 30 Year
June to 31 December
2023 2022
GBP GBP
Share options reserve as at 1 January 570,500 909,694
Charge in Statement of Comprehensive Income -
options issued - 16,914
Transfer to retained earnings - lapsed and exercised
options - (356,108)
----------------------------------------------------- ---------- ---------------
Share options reserve at period end 570,500 570,500
----------------------------------------------------- ---------- ---------------
13.2 Share options reserve - warrants
Grant date Expiry Exercise Number (Lapsed Number Fair value
date price (GBP) of warrants or exercised)/ of warrants (GBP)
at 1 January granted at 30 June
2023 2023
16 February 16 February
2021 2023 0.45 700,000 (700,000) - -
------------ ------------ ------------ ------------- --------------- ------------ ----------
700,000 (700,000) - -
------------------------- ------------ ------------- --------------- ------------ ----------
Grant date Expiry Exercise Number (Lapsed Number Fair value
date price (GBP) of warrants or exercised)/ of warrants (GBP)
at 1 January granted at 31 December
2022 2022
4 May 2020 4 May 2022 0.2 1,229,705 (1,229,705) - -
14 July 14 July
2020 2022 0.2 19,887,249 (19,887,249) - -
16 February 16 February
2021 2023 0.45 700,000 - 700,000 13,766
------------ ------------ ------------ ------------- --------------- --------------- ----------
21,816,954 (21,116,954) 700,000 13,766
------------------------- ------------ ------------- --------------- --------------- ----------
In consideration of the then broker's services as part of a
February 2021 share placing and subscription, 700,000 warrants were
issued. The warrants were exercisable until February 2023 at
GBP0.45 each.
Costs that were settled by way of the issue of warrants were
directly attributable to the issue of shares and therefore charged
against share premium in accordance with IAS 32.
The weighted average exercise prices relating to the movements
in the number of warrants are as follows:
30
June 31 December
2023 2022
GBP GBP
Outstanding at beginning of the period 0.45 0.208
Granted during the period - -
Exercised during the period - 0.2
Lapsed during the period 0.45 0.2
Outstanding at end of the period - 0.45
Exercisable at end of the period - 0.45
Weighted average share price of warrants exercised
in period - 0.2
Weighted average remaining contractual life of
warrants outstanding
at end of the period (years) - 0.129
The movements on the warrant reserve are detailed below:
Six months
to 30 Year
June to 31 December
2023 2022
GBP GBP
Warrant reserve as at 1 January 13,766 69,715
Share issue costs - -
Transfer to retained earnings - lapsed and exercised
warrants (13,766) (55,949)
Warrant reserve at period end - 13,766
----------------------------------------------------- ---------- ---------------
14. Related party transactions
Helen Green, a Director of the Group, is also a Director of
Saffery Champness Management International Limited ("SCMIL") and
Rysaffe International Services Limited ("Rysaffe"). SCMIL were paid
GBP143,891 (Six months to 30 June 2022: GBP99,821) in the period in
respect of its role in performing administrative duties for the
Group and Rysaffe was paid GBP5,000 (Six months to 30 June 2022:
GBP5,000) in respect of its role as Secretary. An amount of
GBP83,016 (31 December 2022: GBP24,510) was owed to SCMIL at the
period end and the amount owing to Rysaffe was GBPNil (31 December
2022: GBPNil). All transactions are at market value.
Key management includes the Company's directors, officers and
any employees with authority and responsibility for planning,
directing and controlling the activities of an entity, directly or
indirectly.
Compensation awarded to key current and former management
includes the following:
Three months ended 30 June Six months ended 30 June
2023 2022 2023 2022
GBP GBP GBP GBP
Executive Directors:
William Humphries 48,144 45,000 97,644 90,000
Glenn Featherby 26,125 23,750 52,250 47,500
74,269 68,750 149,894 137,500
Non-Executive Directors:
Helen Green 4,125 3,750 8,250 7,500
Huw Salter 4,125 3,750 8,250 7,500
Charles Wilkinson 5,349 5,000 10,849 10,000
------------------------- ------------- ------------- ------------- ------------
13,599 12,500 27,349 25,000
------------------------- ------------- ------------- ------------- ------------
Total 87,868 81,250 177,243 162,500
------------------------- ------------- ------------- ------------- ------------
The Group does not have any single ultimate controlling party.
In addition, the Directors are reimbursed authorised travel
expenses, office costs and sundry items amounting to GBP48,985
(2022: GBP39,242) incurred on the Group's behalf.
In July 2022, William Humphries subscribed for 300,000 shares at
the issue price of GBP0.161 per share.
In July 2022, William Humphries, Glenn Featherby, Charles
Wilkinson, Helen Green, Huw Salter and Michele Tuomi received
500,000, 250,000, 50,000, 50,000, 50,000 and 250,000 share options
respectively, exercisable at GBP0.25 each. William Humphries and
Charles Wilkinson, former Chief Executive Officer and Non-Executive
Chairman, respectively, stepped down from the Board on conclusion
of the Company's Annual General Meeting held on 29 June 2023.
15. Financial instruments/Financial risk management
In the course of its business, the Group is exposed primarily to
liquidity risk. As the Company grows it is expected that capital
management risk, liquidity risk, foreign exchange risk, credit risk
and interest rate risk will also become focuses of the Group's
financial risk management policies.
Capital management risk
The Group's objectives when managing capital are to safeguard
the Group's ability to continue as a going concern in order to
provide returns for shareholders and benefits for other
stakeholders, to provide adequate resources to fund its exploration
activities with a view to providing returns to its investors and to
maintain sufficient financial resources to mitigate against risk
and unforeseen events.
The Company meets its capital needs by equity financing. The
Group sets the amount of capital it requires in proportion to risk.
The Group manages its capital structure and makes adjustments to it
in the light of changes in economic conditions and the risk
characteristics of the underlying assets.
The objectives will be achieved by maintaining and adding value
to existing extraction projects and identifying new exploration
projects, adding value to these projects and ultimately taking them
through to potential future production and cash flow, either with
partners or by the Group's own means.
The Group monitors capital on the basis of the carrying amount
of equity less cash and cash equivalents as presented on the face
of the statement of financial position. Capital for the reporting
periods under review is summarised in the consolidated statement of
changes in equity and at the period end is GBP217,321.
The Group sets the amount of capital in proportion to its
overall financing structure, i.e., equity and financial
liabilities. The Group manages the capital structure and makes
adjustments to it in the light of changes in economic conditions
and the risk characteristics of the underlying assets. In order to
maintain or adjust the capital structure, the Group may adjust the
amount of dividends paid to shareholders in the future, return
capital to shareholders or issue new shares.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to
meet its financial obligations as they fall due. The Group attempts
to accurately forecast the cash flow requirements of its ongoing
operations and ensures that it has sufficient funding in place to
meet these needs. The Group currently uses equity finance as its
main source of funding.
Accounts payable and accrued liabilities are due within the
current operating period.
Foreign currency risk
The Group primarily operates in Canada but reports its financial
results in GBP Sterling. It manages the potential exposure to
fluctuations in the GBP Sterling to Canadian Dollar exchange rate
by holding its main asset, being its cash reserves, in GBP
Sterling. Cash is converted to Canadian Dollars to meet the
expenditure requirements of its Canadian business only when
required. Currently, the Group's net asset position is not
significantly impacted by movements in the exchange rate.
As the Group remains a development phase entity it only has
small and infrequent foreign currency transaction exposures.
In addition, the market for metals is principally denominated in
United States dollars. As the Group has not reached the production
stage it does not currently engage in active hedging to minimise
exchange rate risk, although this will remain under review.
Credit risk
Credit risk is the risk that a counterparty will not meet its
obligations under a financial instrument or customer contract,
leading to a financial loss. The Group is exposed to credit risk
from its financing activities, including deposits with banks and
financial institutions, foreign exchange transactions and other
financial instruments. The Group does not hold collateral as
security.
Credit risk from balances with banks and financial institutions
is managed by the Board. Investments of surplus funds are made only
with approved counterparties and within credit limits assigned to
each counterparty.
Counterparty credit limits are reviewed by the Board on a
regular basis. The limits are set to minimise the concentration of
risks and therefore mitigate financial loss through potential
counterparty failure.
The maximum exposure at the period end was GBP68,331 (31
December 2022: GBP110,890). No financial assets are credit impaired
or past due.
Ongoing global economic uncertainty arising from the economic
climate is being monitored by the Board but is not affecting the
Company at present.
Interest rate risk
The Group has insignificant exposure to interest rate
fluctuations.
Financial instruments
The Group's financial instruments consist of cash, trade and
other receivables, other financial assets and trade and other
payables.
The Group characterises inputs used in determining fair value
using a hierarchy that prioritises inputs depending on the degree
to which they are observable. The fair value hierarchy establishes
three levels to classify the inputs to valuation techniques used to
measure fair value. The three levels of the fair value hierarchy
are as follows:
- Level 1: inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities. Active markets are
those in which transactions occur in sufficient frequency and
volume to provide pricing information on an ongoing basis.
- Level 2: inputs, other than quoted prices, that are
observable, either directly or indirectly. Level 2 valuations are
based on inputs, including quoted forward prices for commodities,
market interest rates, and volatility factors, which can be
observed or corroborated in the marketplace.
- Level 3: inputs are less observable, unavoidable or where the
observable data does not support the majority of the instruments'
fair value.
As at 30 June 2023, there were no changes in levels in
comparison to 31 December 2022. The fair values of financial
instruments are summarised as follows:
As at As at 31
30 June December
2023 2022
GBP GBP
Carrying Carrying
amount amount
and fair and fair
value value
Financial assets
Cash and cash equivalents 397,109 1,235,528
Trade and other receivables 68,331 110,890
Other financial assets 87,970 169,682
Financial liabilities
Trade and other payables 395,959 520,282
Other financial assets are measured at Level 1 inputs of the
fair value hierarchy on a recurring basis.
The c arrying value of trade and other receivables and trade and
other payables approximate their fair value because of the
short-term nature of these instruments. The Group assessed that
there were no indicators of impairment for the financial
assets.
16. Lease commitments
As at 30 June 2023, the Group had no significant lease
commitments (31 December 2022: None).
17. Contractual commitments
As at 30 June 2023, the Group had no significant contractual
obligations (31 December 2022: None).
18. Administrative expenses
Three months ended Six months ended
30 June 30 June
2023 2022 2023 2022
GBP GBP GBP GBP
Administrative expenses 229,793 272,446 488,846 440,608
Directors' fees 87,868 85,000 177,243 162,500
Legal and professional, accountancy
and audit expenses 209,670 141,831 298,684 215,208
Share-based payments expense - - - -
527,331 499,277 964,773 818,316
------------------------------------ --------- --------- -------- --------
19. Other income
Three months ended Six months ended
30 June 30 June
2023 2022 2023 2022
GBP GBP GBP GBP
Option income - 467,715 451,988 448,779
- 467,715 451,988 448,779
-------------- ------- ----------- -------- --------
20. Subsequent events
As announced on 29 June 2023 with closing on 20 July 2023, the
Company raised GBP600,000 before expenses by way of a placing
6,666,667 new ordinary shares of nil par value each in the capital
of the Company (the "Placing Shares") at a price of 9 pence per
share (the "Placing"). The Placing successfully completed upon
admission of the Placing Shares to trading on AIM on 20 July 2023
("Admission").
Every Placing Share has one warrant attached, resulting in the
issue of 6,666,667 warrants, with each warrant having the right to
acquire one new Ordinary Share at an exercise price of 18 pence on
or before the second anniversary of Admission of the Placing
Shares.
The Placing was arranged by Novum Securities Limited ("Novum")
which assumed the role of Joint Broker to the Company. Accordingly,
in connection with the Placing, the Company agreed to issue 400,000
'broker' warrants to Novum, giving them the right to acquire such
number of new ordinary shares at an exercise price of 9 pence per
share for a period of two years from the date of Admission of the
Placing Shares.
Of the 6,666,667 Placing shares, 611,111 shares were subscribed
for by certain Directors. William Humphries acquired 277,778 shares
and Glenn Featherby 333,333 shares. They also received the
associated investor warrants referred to above.
On 29 June 2023, following completion of the Company's Annual
General Meeting ("AGM"), William Humphries and Charles Wilkinson
stepped down from the Board and relinquished their roles as Chief
Executive Officer and Non-Executive Chairman respectively. Huw
Salter, previously Non-Executive Director, assumed the role of
Non-Executive Chairman of the Company also with effect from
conclusion of the AGM.
On 5 July 2023, Storm and Landore Resources agreed a further
amendment to the pre-existing option agreement, details of which
are set out in note 6.2.
On 21 July 2023, Claude Lemasson was appointed as a Director and
the Company's new Chief Executive Officer. On 4 July 2023, upon
joining the Company's management team, Claude was awarded options
over 2,000,000 ordinary shares, exercisable from 4 July 2024 for a
period of four years, at a price of GBP0.0875 each.
On 3 August 2023, the Company's shareholders approved certain
amendments and updates to the Company's existing articles of
incorporation to facilitate such dual listing process on the TSX
Venture Exchange and add certain additional corporate governance
and shareholder protections as required under Canadian securities
laws.
- ENDS -
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END
IR QDLFLXKLXBBQ
(END) Dow Jones Newswires
September 28, 2023 02:00 ET (06:00 GMT)
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