TIDMNRRP
RNS Number : 7258A
North River Resources Plc
30 September 2015
North River Resources plc / Ticker: NRRP / Index: AIM / Sector:
Mining
30 September 2015
North River Resources plc
('North River' or 'the Company')
Interim Results for the six months ended 30 June 2015
North River Resources plc, the AIM quoted resource company
focussed on the Namib Lead-Zinc Project ('Namib Project') in
Namibia, is pleased to provide its unaudited interim results for
the six months ended 30 June 2015.
Highlights:
-- Significant progress made in developing Namib into an
economically robust and operationally efficient mining
operation
-- Strengthened Board through appointments of James Beams to
Chief Executive Officer, and Keith Marshall and Ken Sangster as
Non-Executive Directors to support the project through its next
stage of development
-- Further metallurgical testwork led to an updated process flow sheet
-- Ongoing and proactive engagement with the Namibian Ministry
of Mines, including a Ministerial visit to mine site, in line with
goal to receive Mining Licence
-- Phase One Fundraising launched - focused on providing all
shareholders with an opportunity to participate
CEO's Statement
North River is focused on developing its flagship Namib Lead
Zinc Project in Namibia into an economically robust and
operationally efficient mining operation. Our activities during the
period have been undertaken with this vision firmly in mind. To
this end, we have undertaken supplementary metallurgical studies,
overseen by new, highly qualified members of the Board who were
appointed in January 2015; engaged regularly and proactively with
Namibia's Ministry of Mines to progress our Mining Licence
application; and focused on delivering a financing plan to enable
us to take the project forward to a point of making an investment
decision.
The Namib Project entails re-opening a previously producing mine
and construction of a new plant to process 250,000 tonnes of ore
per annum over an initial 3.5 year mine life and we are confident
that this can be extended considerably by increasing the resource
through drilling. The Namib Project currently has reserves of
585,000 tonnes @ 6.2% zinc, 2.9% lead and 46 g/t silver and total
underground resources of 1,250,000 tonnes @ 6.5% zinc, 2.5% lead
and 43.7 g/t silver. Located 20km inland from Swakopmund in
Namibia, the project is very well situated, with excellent
surrounding infrastructure. Namibia has a well established mining
industry and good access to local mining suppliers and support
services.
I joined North River in January 2015, shortly after the
publication of the Definitive Feasibility Study ('DFS'). At the
same time, North River welcomed Keith Marshall, a mining engineer
who has previously held senior mine leadership roles with Rio Tinto
PLC, and Ken Sangster, a metallurgist with 49 years' experience in
the mining industry, as Non-Executive Directors. These senior
appointments were designed to support the next phase of development
at Namib and we have benefited greatly from their expertise during
our work in the period to refine both the mine plan and the process
flow sheet.
The Board identified where additional technical evaluation work
was required to define a mine plan and processing plant design to a
level of confidence to support a project investment decision.
Supplementary metallurgical testwork was undertaken which
identified the optimised grind size and new reagent regime, and
from this a robust processing methodology was developed which can
operate with consistent results with a wide range of mineral
composition. This significantly strengthens the bankability of the
Namib Project.
With this process now complete, we are now positioned to
undertake initial Front End Engineering & Design ('FEED').
While these additional activities will lead to a stronger and more
robust project they have, together with the fact that the Mining
Licence has not yet been received, led to a revised development
timeframe for the Namib Project.
In light of the revised development timeframe, the Independent
Directors concluded that a number of project milestones required
under the July 2014 Investment Agreement with Greenstone Resources
L.P. ('Greenstone') were no longer achievable before the long-stop
date in that agreement of 4 October 2015. As a result, the Company
and Greenstone agreed in July 2015 to terminate the July 2014
Investment Agreement. Greenstone remains a committed shareholder
and supportive of the Company's revised plans for the Namib
Project.
The Company estimates that a total of US$25 - US$30 million in
funding will be required to bring the Namib Project into
production. In August, we announced an initial near term financing
plan to raise US$4 million ('Phase One Fundraising') to progress
the Namib Project to a construction decision. The Phase One
Financing consists of US$1.2 million of Convertible Loan Notes
issued to Greenstone followed, on 15 September 2015, by the launch
of an Open Offer and Placing for the remaining US$2.8 million. This
was fully underwritten by Greenstone, subject to certain
conditions. This structure provides all our valued shareholders
with an opportunity to participate in the future of our Company's
development, and we look forward to providing shareholders with an
update when this process is complete.
The Phase One Fundraising will enable us to undertake the FEED;
early development of the Namib Project's North decline; sourcing of
plant and equipment; on-going underground development programme
required to establish access for the next phase of resource
expansion drilling; and early stage recruitment of technical and
operational staff. We acquired the first loader in the period after
bringing the underground development activities in-house and are
now focusing on mining development productivity.
Full construction financing ('Phase Two Fundraising') will
follow the receipt of the Mining Licence and completion of the
FEED, with its related updated cost estimates for the Namib
Project.
Our commitment to bringing the Namib Project into production is
clear. During the period we hosted a site visit for the Minister of
Mines and Energy in Namibia, the Honorable Obeth Kandjoze, the
Governor of the Erongo Region, the Honorable Cleophas Mutjavikua
and a large delegation from the Mining Ministry. The visit included
very constructive discussions on the development plans for the
Namib Project.
Financial Review:
North River is reporting a loss before taxation of GBP1,377,787
(30 June 2014: loss of GBP1,726,901). The Company's cash position
at the end of the period was GBP602,093 (30 June 2014:
GBP528,796).
Outlook:
I would like to thank our shareholders for their support and
patience during what has been a period of adjustment for North
River. The Company's goal of bringing the Namib Project into
production in the most economically and operationally efficient way
possible has been further facilitated by our work during the
period. The coming months will see us secure the remaining US$2.8
million of the Phase One Fundraising to support the next steps
towards taking the project into construction.
I would like to reiterate that shareholder engagement is
important to us, and I look forward to holding our next Investor
Call on Thursday 3 November 2015.
James Beams
Chief Executive Officer
30 September 2015
For further information please visit www.northriverresources.com
or contact:
James Beams North River Resources Tel: +44 (0) 20 7025 7047
Plc
Andrew Emmott/ Strand Hanson Limited Tel: +44 (0) 20 7409 3494
Ritchie Balmer
Jonathan Williams/ RFC Ambrian Limited Tel: +44 (0) 20 3440 6800
Kim Eckhof
Elisabeth Cowell/ St Brides Partners Limited Tel: +44 (0) 20 7236 1177
Lottie Brocklehurst
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD FROM 1 JANUARY 2015 TO 30 JUNE 2015
Unaudited Unaudited Audited Year to
Period from 1 Period from 31 December 2014
January to 30 1 January to 30 June
June 2015 2014
Note GBP GBP GBP
CONTINUING
OPERATIONS
Other operating
income - - 189
Exploration and
evaluation
expenditure (692,150) (1,128,187) (2,178,666)
Administrative
expenses (688,554) (601,164) (1,147,659)
--------------- --------------------------------- -------------------
OPERATING LOSS (1,380,704) (1,729,351) (3,326,136)
Interest payable
on short term
borrowings (134) (14) (267)
Interest
receivable on
bank deposits 3,051 2,464 5,926
LOSS BEFORE TAX (1,377,787) (1,726,901) (3,320,477)
Taxation - - -
--------------- --------------------------------- -------------------
LOSS FOR THE
PERIOD (1,377,787) (1,726,901) (3,320,477)
OTHER
COMPREHENSIVE
INCOME:
Exchange
differences on
translating
foreign
operations (8,958) (6,475) (43,570)
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 06:45 ET (10:45 GMT)
--------------- --------------------------------- -------------------
TOTAL
COMPREHENSIVE
LOSS FOR THE
PERIOD (1,386,745) (1,733,376) (3,364,047)
=============== ================================= ===================
Loss per share
Basic and
diluted -
pence per
share 3 (0.07p) (0.13p) (0.22p)
=============== ================================= ===================
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2015
Unaudited Unaudited Audited
30 June 2015 30 June 2014 31 Dec 2014
Note GBP GBP GBP
NON-CURRENT ASSETS
Goodwill 4 7,738,986 7,738,986 7,738,986
Intangible assets 5 62,072 68,377 64,938
Property, plant and equipment 6 198,872 98,844 143,857
Investment in associated company 7 113,182 113,182 113,182
-------------
8,113,112 8,019,389 8,060,963
------------- -------------- -------------
CURRENT ASSETS
Trade and other receivables 286,779 581,072 444,817
Cash and cash equivalents 602,093 528,796 1,904,860
------------- -------------- -------------
888,872 1,109,868 2,349,677
------------- -------------- -------------
TOTAL ASSETS 9,001,984 9,129,257 10, 410,640
CURRENT LIABILITIES
Trade and other payables 305,044 1,064,988 326,955
TOTAL LIABILITIES 305,044 1,064,988 326,955
------------- -------------- -------------
NET ASSETS 8,696,940 8,064,269 10,083,685
============= ============== =============
EQUITY
Share capital 8 3,831,750 2,702,034 3,831,750
Share premium 8 21,258,590 18,738,219 21,258,590
Share-based payments reserve - 466,645 115,645
Translation reserve (155,461) (109,408) (146,503)
Retained losses (16,237,939) (13,733,221) (14,975,797)
------------- -------------- -------------
TOTAL EQUITY 8,696,940 8,064,269 10,083,685
============= ============== =============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD FROM 1 JANUARY 2015 TO 30 JUNE 2015
Share-based
Share Share Retained payment
capital premium losses reserve Translation reserve Total equity
GBP GBP GBP GBP GBP GBP
PERIOD FROM 1 JANUARY 2015 TO 30 JUNE 2015 (UNAUDITED)
At 1 January 2015 3,831,750 21,258,590 (14,975,797) 115,645 (146,503) 10,083,685
Loss for the period - - (1,377,787) - - (1, 377,787)
Other comprehensive
income
Currency translation
losses - - - - (8,958) (8,958)
------------ ----------- ----------------- ---------------------- -------------------- -------------
Total comprehensive loss - - (1, 377,787) - (8,958) (1,386,745)
Shares issued - - - - - -
Share issue expenses - - - - - -
Transfer of expired
share options - - 115,645 (115,645) - -
------------ ----------- ----------------- ---------------------- -------------------- -------------
At 30 June 2015 3,831,750 21,258,590 (16,237,939) - (155,461) 8,696,940
============ =========== ================= ====================== ==================== =============
PERIOD FROM 1 JANUARY 2014 TO 30 JUNE 2014 (UNAUDITED)
At 1 January 2014 2,240,495 17,875,349 (15,984,120) 4,444,445 (102,933) 8,473,236
Loss for the period - - (1,726,901) - - (1,726,901)
Other comprehensive
income
Currency translation
losses - - - - (6,475) (6,475)
------------ ----------- ----------------- ---------------------- ---------------- -------------
Total comprehensive loss - - (1,726,901) - (6,475) (1,733,376)
Shares issued 461,539 938,461 - - - 1,400,000
Share issue expenses - (75,591) - - - (75,591)
Transfer of expired
share options - - 3,977,800 (3,977,800) - -
------------ ----------- ----------------- ---------------------- ---------------- -------------
At 30 June 2014 2,702,034 18,738,219 (13,733,221) 466,645 (109,408) 8,064,269
============ =========== ================= ============ ==================== =============
YEAR ENDED 31 DECEMBER 2014 (AUDITED)
At 1 January
2014 2,240,495 17,875,349 (15,984,120) 4,444,445 (102,933) 8,473,236
Loss for the
period - - (3,320,477) - - (3,320,477)
Other
comprehensive
income
Currency
translation
losses - - - - (43,570) (43,570)
---------- --------------- ----------------- -------------------- ------------------ ---------------------------
Total
comprehensive
loss - - (3,320,477) - (43,570) (3,364,047)
Shares issued 1,591,255 3,458,832 - - - 5,050,087
Share issue
expenses - (75,591) - - - (75,591)
Transfer of
expired share
options - - 4,328,800 (4,328,800) - -
---------- ----------- ------------- ---------------- -------------- ------------------------------
At 31 December
2014 3,831,750 21,258,590 (14,975,797) 115,645 (146,503) 10,083,685
============== =============== ===================== ============ ============== =============
CONSOLIDATED STATEMENT OF CASH FLOWS
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 06:45 ET (10:45 GMT)
FOR THE PERIOD FROM 1 JANUARY 2015 TO 30 JUNE 2015
Unaudited Unaudited Audited
Period from Period from Year to
1 January 2015 to 30 1 January 2014 to 30 31 December 2014
June 2015 June 2014
GBP GBP GBP
Cash flows from operating
activities
Operating loss (1,380,704) (1,729,351) (3,326,136)
Adjustments:
Depreciation and
amortisation charges 34,747 29,084 62,551
(1,345,957) (1,700,267) (3,263,585)
Movements in working
capital
Decrease/(increase) in
receivables 158,038 (423,538) (287,284)
(Decrease)/increase in
payables (21,911) 751,708 13,675
------------------------ ------------------------ ------------------
Net movements in working
capital 136,127 328,170 273,609
Net cash used in
operating activities (1,209,830) (1,372,097) (3,537,194)
------------------------ ------------------------ ------------------
Investing activities
Purchase of intangible
assets - (1,899) -
Purchase of plant and
equipment (94,427) - (77,462)
------------------------ ------------------------ ------------------
Net cash used in
investing activities (94,427) (1,899) (77,462)
------------------------ ------------------------ ------------------
Financing activities
Issued shares - 1,400,000 5,050,087
Issue expenses - (75,591) (75,591)
Interest paid (134) (14) (267)
Interest received 3,051 2,464 5,926
------------------------ ------------------------ ------------------
Net cash from financing
activities 2,917 1,326,859 4,980,155
------------------------ ------------------------ ------------------
(Decrease) / increase in
cash and cash
equivalents (1,301,340) (47,137) 1,365,499
Cash and cash equivalents
at beginning of year 1,904,860 577,551 577,551
Exchange differences (1,427) (1,618) (38,190)
------------------------ ------------------------ ------------------
Cash and cash
equivalents at end of
period 602,093 528,796 1,904,860
======================== ======================== ==================
Cash and cash equivalents comprise cash on hand and bank
balances.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL
INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2015
1. BASIS OF PREPARATION
These half year accounts are prepared in accordance with the
historical cost convention and in accordance with the International
Financial Reporting Standards ("IFRS"), as adopted by the European
Union, including IFRS 6 'Exploration for and Evaluation of Mineral
Resources' and IAS 34 "Interim Financial Reporting".
These half year accounts for the six months ended 30 June 2015
are unaudited and do not constitute statutory accounts as defined
in section 434 of the Companies Act 2006. They have been prepared
using accounting bases and policies consistent with those used in
the preparation of the financial statements of the Company and the
Group for the year ended 31 December 2014 and expected to be
adopted in the financial year ending 31 December 2015.
The half year accounts include unaudited comparative figures for
the half year ended 30 June 2014 and comparatives for the year
ended 31 December 2014 that have been extracted from the audited
financial statements for that year.
The financial statements for the year ended 31 December 2014
have been delivered to the Registrar of Companies and the auditor's
report on those financial statements was unqualified and did not
contain a statement made under Section 498(2) or Section 498(3) of
the Companies Act 2006. The auditors' report included an 'emphasis
of matter' in connection with the Group's going concern and licence
renewal position.
No new IFRS standards, amendments or interpretations became
effective in the six months to the 30 June 2015 which had a
material effect on this consolidated interim financial
information.
The Group's financial risk management objectives and policies
are consistent with those disclosed in the 2014 annual report.
Going concern
The Directors believe that the Group will be able to raise as
required, sufficient cash to enable it to continue its operations,
and continue to meet, as and when they fall due, its planned and
committed exploration and development activities (see note 12) and
liabilities for at least the next twelve months from the date of
approval of these condensed half year accounts. For this reason the
Directors continue to adopt the going concern basis in preparing
the accounts.
Applications for the Namib Lead Mining Licence and the renewal
of several exploration EPLs in the Licence Areas have been made and
are awaiting confirmation. If the Mining Licence is not received or
the EPLs are not renewed then the Directors would have to
reconsider the position of the Group and the resulting ability to
continue operations as planned. The Directors believe that all
outstanding licence confirmations will be received within the
normal time duration for these applications.
2. SEGMENT REPORTING
For the purposes of segmental information, the operations of the
Group are focussed in the United Kingdom, Namibia and Mozambique
and comprise one class of business: the exploration and evaluation
of mineral resources.
The Company acts as a holding company.
The Group's operating loss for the period arose from its
operations in the United Kingdom, Namibia and Mozambique. In
addition, all of the Group's assets are based in the United
Kingdom, Namibia and Mozambique.
Geographical Segment - Group Six months ended 30 June 2015
(UNAUDITED)
United Kingdom Namibia Mozambique Total
GBP GBP GBP GBP
Exploration & evaluation expenditure - (692,150) - (692,150)
Administration expenses (615,429) (73,125) - (688,544)
Interest paid - (134) - (134)
Interest received 650 2,401 - 3,051
(1,377,787)
Loss before taxation (614,779) (763,008) -
=============== ============ =========== ==================
Trade and other receivables 203,715 57,950 25,114 286,779
Cash and cash equivalents 563,613 26,199 12,281 602,093
Accrued expenditure and provisions (195,449) (109,595) - (305,044)
Goodwill - 7,738,986 - 7,738,986
Investment in associate company - - 113,182 113,182
Intangible assets 5,577 - 56,495 62,072
Plant and equipment 975 197,897 - 198,872
--------------- ------------ ----------- ------------------
Net assets 578,431 7,911,437 207,072 8,696,940
=============== ============ =========== ==================
At the end of June 2015, the Group had not yet commenced
commercial production from its exploration sites and therefore had
no turnover for the period.
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 06:45 ET (10:45 GMT)
Geographical Segment - Group Six months ended 30 June 2014
(UNAUDITED)
United Kingdom Namibia Mozambique Total
GBP GBP GBP GBP
Exploration & evaluation expenditure - (1,128,187) - (1,128,187)
Administration expenses (486,771) (114,393) - (601,164)
Interest paid - (14) - (14)
Interest received 963 1,501 - 2,464
Loss before taxation (485,808) (1,241,093) - (1,726,901)
=============== ============== =========== ==============
Trade and other receivables 259,705 296,253 25,114 581,072
Cash and cash equivalents 265,261 251,254 12,281 528,796
Accrued expenditure and provisions (593,219) (471,769) - (1,064,988)
Goodwill - 7,738,986 - 7,738,986
Investment in associate company - - 113,182 113,182
Intangible assets 9,933 1,949 56,495 68,377
Plant and equipment 5,140 93,704 - 98,844
--------------- -------------- ----------- --------------
Net assets (53,180) 7,910,377 207,072 8,064,269
=============== ============== =========== ==============
Geographical Segment - Group Year ended 31 December 2014
(Audited)
United Kingdom
Namibia Mozambique Total
GBP GBP GBP GBP
Other income - 189 - 189
Exploration & evaluation expenditure - (2,178,666) - (2,178,666)
Administration expenses (940,861) (206,798) - (1,147,659)
Interest paid - (267) - (267)
Interest received 1,623 4,303 - 5,926
Loss before taxation (939,238) (2,381,239) - (3,320,477)
=============== ============ ============= =============
Trade and other receivables 217,988 201,715 25,114 444,817
Cash and cash equivalents 1,762,632 129,947 12,281 1,904,860
Accrued expenditure and provisions (220,409) (106,546) - (326,955)
Goodwill - 7,738,986 - 7,738,986
Investment in associate company - - 113,182 113,182
Intangible assets 7,755 688 56,495 64,938
Plant and equipment 2,755 141,102 - 143,857
--------------- ------------ ------------- -------------
Net assets 1,770,721 8,105,892 207,072 10,083,685
=============== ============ ============= =============
3. LOSS PER SHARE
Loss for Weighted Loss per
the period average share
from continuing number
operations of shares Basic -
GBP pence per
share
Six months ended 30 June 2015
(Unaudited) (1,377,787) 1,915,875,310 (0.07) pence
================= ================ =================
Six months ended 30 June 2014
(Unaudited) (1,726,901) 1,302,298,915 (0.13) pence
================= ================ =================
Year ended 31 December 2014
(Audited) (3,320,477) 1,499,075,167 (0.22) pence
================= ================ =================
The diluted loss per share has been calculated using a weighted
average number of shares in issue and to be issued and has been
kept the same as the conversion of share options decreases the
basic loss per share, thus being anti-dilutive.
4. GOODWILL
The Company acquired, on 20 November 2009, the entire issued
share capital in, and the shareholder loans to, West Africa Gold
Exploration (Namibia) (Pty) Ltd ("WAGE") and Namib Lead and Zinc
Mining (Pty) Ltd ("Namib Lead"). The consideration paid by the
Company for these two Namibian entities and the shareholder loans
was satisfied by the allotment of 266,666,667 Ordinary shares of
GBP0.002 each ("Ordinary shares") at a price of 3 pence per
Ordinary share.
Portion Nature of
Name of company Country Holding held business
West Africa Gold Exploration Namibia Ordinary 100% Exploration
(Namibia) (Pty) Ltd shares and mining
Namib Lead and Zinc Mining Namibia Ordinary 100% Exploration
(Pty) Ltd shares and mining
Unaudited Unaudited Audited
At 30 June At 30 June At 30 Dec
2015 2014 2014
GBP GBP GBP
Goodwill 7,738,986 7,738,986 7,738,986
============ ============ ============
Goodwill impairment review
The Directors are of the opinion that the Goodwill acquired in
respect of WAGE and Namib Lead in November 2009 represents the
value of the licence areas held by WAGE and Namib Lead at 30 June
2015. However, this goodwill has been written down by GBP92,782 in
prior years being the value of the Ubib Exclusive Prospecting
Licences (EPL) 3139 which, was relinquished in April 2013.
5. INTANGIBLE ASSETS
Exploration
licences Software Total
GBP GBP GBP
COST
At 31 December 2013 (Audited) 137,605 38,021 175,626
Effects of foreign exchange (3,109) (861) (3,970)
------------ --------- --------
At 30 June 2014 (Unaudited) 134,496 37,160 171,656
Effects of foreign exchange (32) (9) (41)
------------ --------- --------
At 31 December 2014 (Audited) 134,464 37,151 171,615
Effects of foreign exchange (5,159) (1,429) (6,588)
------------ --------- --------
At 30 June 2015 (Unaudited) 129,305 35,722 165,027
============ ========= ========
AMORTISATION
At 31 December 2013 (Audited) 81,110 22,094 103,204
Charge for the period - 3,916 3,916
Effects of foreign exchange (3,109) (732) (3,841)
------------ --------- --------
At 30 June 2014 (Unaudited) 78,001 25,278 103,279
Charge for the period - 3,450 3,450
Effects of foreign exchange (32) (20) (52)
------------ --------- --------
At 31 December 2014 (Audited) 77,969 28,708 106,677
Charge for the period - 2,861 2,861
Effects of foreign exchange (5,159) (1,424) (6,583)
------------ --------- --------
At 30 June 2015 (Unaudited) 72,810 30,145 102,955
============ ========= ========
NET BOOK VALUE
At 30 June 2015 (Unaudited) 56,495 5,577 62,072
============ ========= ========
At 30 June 2014 (Unaudited) 56,495 11,882 68,377
At 31 December 2014 (Audited) 56,495 8,443 64,938
============ ========= ========
6. PROPERTY, PLANT AND EQUIPMENT
Plant Fixtures
& machinery & fittings Motor vehicles Total
GBP GBP GBP GBP
COST
At 31 December 2013 (Audited) 94,511 36,137 179,681 310,329
Additions in the period 567 1,332 - 1,899
Effects of foreign exchange (3,624) (752) (6,887) (11,263)
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 06:45 ET (10:45 GMT)
-------------- ------------- --------------- ---------
At 30 June 2014 (Unaudited) 91,454 36,717 172,794 300,965
Additions in the period 72,761 2,802 - 75,563
Effects of foreign exchange (763) (36) (70) (869)
-------------- ------------- --------------- ---------
At 31 December 2014 (Audited) 163,452 39,483 172,724 375,659
Additions in the period 89,052 5,375 - 94,427
Effects of foreign exchange (10,815) (1,432) (11,430) (23,677)
-------------- ------------- --------------- ---------
At 30 June 2015 (Unaudited) 241,689 43,426 161,294 446,409
============== ============= =============== =========
DEPRECIATION
At 31 December 2013 (Audited) 50,565 24,830 108,093 183,488
Charge for the period 10,528 4,509 10,132 25,169
Effects of foreign exchange (2,046) (576) (3,914) (6,536)
-------------- ------------- --------------- ---------
At 30 June 2014 (Unaudited) 59,047 28,763 114,311 202,121
Charge for the period 14,155 4,567 11,294 30,016
Effects of foreign exchange (157) (28) (150) (335)
-------------- ------------- --------------- ---------
At 31 December 2014 (Audited) 73,045 33,302 125,455 231,802
Charge for the period 19,362 3,113 9,411 31,886
Effects of foreign exchange (5,997) (1,286) (8,868) (16,151)
-------------- ------------- --------------- ---------
At 30 June 2015 (Unaudited) 86,410 35,129 125,998 247,537
============== ============= =============== =========
NET BOOK VALUE
At 30 June 2015 (Unaudited) 155,279 8,297 35,296 198,872
============== ============= =============== =========
At 30 June 2014 (Unaudited) 32,407 7,954 58,483 98,844
At 31 December 2014 (Audited) 90,407 6,181 47,269 143,857
============== ============= =============== =========
7. INVESTMENT IN ASSOCIATED COMPANY
The following entity meets the definition of an associate and
has been equity accounted in the consolidated interim financial
information:
Company Country of Incorporation Group interest at
30 June 13
North River Resources (Murrupula)
Limitada Mozambique 40%
North River Resources (Murrupula) Limitada ('Murrupula') is a
company that was registered in Mozambique on 27 January 2011. The
Group's interest in Murrupula is jointly held by North River
Resources plc and NRR Mozambique Limited. It is also the beneficial
owner of an exploration licence in Mozambique. The licence and
Murrupula are the subject of a Heads of Agreement between Baobab
Resources Limited ("Baobab") and North River Resources plc. Under
this agreement Baobab is entitled to a 60% participation interest
in Murrupula. Boabab have completed the agreed level of exploration
work. Legal control over Murrupula has not yet passed to Baobab,
however, effective control has passed. Accordingly, these
consolidated financial statements have been prepared on the basis
that control has passed and that Murrupula is treated as an
associate as from 1 October 2011.
8. SHARE CAPITAL
Allotted, issued and fully paid:
Unaudited Unaudited Audited
Number Class Nominal At 30 June At 30 June At 31 December
value 2015 2014 2014
GBP GBP GBP
1,915,875,310 Ordinary 0.2p 3,831,750 2,702,034 3,831,750
------------ -------------- ----------------
Detail Number of Ordinary Share Share
Date of issue of issue shares capital premium
GBP GBP
As at 31 December
2013 1,120,247,632 2,240,495 17,875,349
29 January 2014 Drill-for-Equity agreement 29,166,667 58,333 116,667
Placing for feasibility
29 January 2014 study 170,833,333 341,667 683,333
Placing to provide working
21 March 2014 capital 30,769,232 61,539 138,461
Cost of issuing capital
in the period - - (75,591)
-------------- ----------- -----------
As at 30 June 2014 1,351,016,864 2,702,034 18,738,219
Placing to Greenstone
15 July 2014 Resources LP 33,333,333 66,667 133,333
Placing to Greenstone
17 July 2014 Resources LP 270,588,464 541,177 1,082,354
17 November Placing to Greenstone
2014 Resources LP 260,936,649 521,873 1,304,683
As at 31 December 2014 1,915,875,310 3,831,750 21,258,590
- - -
-------------- ----------- --------------
As at 30 June 2015 1,915,875,310 3,831,750 21,258,590
============== =========== ==============
9. SUBSIDIARY ENTITIES
The consolidated interim financial information includes the
following group companies:
Company Country of Holding Nature of business
Incorporation
NRR Energy Minerals Limited United Kingdom 100% Holding company
NRR Mozambique Limited United Kingdom 100% Holding company
West Africa Gold Exploration (Namibia) Namibia 100% Exploration
(Pty) Ltd and mining
Namib Lead and Zinc Mining (Pty) Namibia 100% Exploration
Ltd and mining
North River Resources Namibia (Pty) Namibia 100% Administration
Ltd
North River Resources (Mavuzi) Limitada Mozambique 100% Inactive
NRR Energy Minerals Limited and NRR Mozambique Limited act as
holding companies to associates, joint venture companies and
subsidiaries in Namibia and Mozambique respectively.
10. SHARE-BASED PAYMENTS
Share options outstanding
Unaudited Unaudited Audited
6 months 6 months Year ended
ended ended 31 Dec
30 June 2015 30 June 2014 2014
Opening balance 9,100,000 105,100,000 105,100,000
Expired in the period (9,100,000) (81,000,000) (96,000,000)
----------------- ----------------- ----------------
Closing balance - 24,100,000 9,100,000
================= ================= ================
There are no share options outstanding as at 30 June 2015.
All share options were fully expensed in prior periods.
11. CONTROL
No one party is identified as controlling the Group.
12. EXPLORATION EXPENDITURE COMMITMENTS
Restoration commitments
The Company has no obligations to undertake any rehabilitation
or restoration activity on the licences currently held.
Existing Exploration Licences in Namibia
The Group has a number of exploration licences in Namibia. There
is a commitment to spend GBP1.5 million on these licences through
2015 and into 2016. There is scope in the Mines and Minerals Act
for expenditure to be altered by the Company and still keep the
licences in good standing. The commitments are based on a positive
outcome for all stages of work within the period of tenure of each
licence. It should also be noted that if the project has negative
results in the first 6 months of the licence tenure - then the
project can be terminated without further expenditure.
Existing Exploration Licences in Mozambique
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