TIDMPALM

RNS Number : 8320M

Panther Metals PLC

24 September 2021

Panther Metals Plc

Half Yearly Financial Report

For the six months ended 30 June 2021

PANTHER METALS PLC

OPERATIONAL AND FINANCIAL REVIEW

FOR THE SIX MONTHSED 30 JUNE 2021

Operational Highlights

Key operational milestones achieved during the six-month period to 30 June 2021.

Canada

-- On 22 February 2021, Panther Metals PLC ("Panther" or "the Company") received the Dotted Lake property airborne geophysics survey data and report. A total of 138 geophysical anomalies were identified by the survey, with high priority anomalies since prioritised for follow-up ground investigation.

-- On 4 May 2021, Panther announced the issue of the Dotted Lake Exploration Permit which allowed Panther Metals (Canada) Limited ("Panther Canada") to embark on plans for reconnaissance diamond drilling, grid soil sampling, ground geophysics and trenching focussed on testing intrusive contact shear-zone hosted gold mineralisation in the vicinity of the north shore of Dotted Lake. Two new exploration permit applications were also lodged for the Big Bear Project, Big Duck Creek and Hays Lake East, target areas.

-- At the Dotted Lake property, the planned soil sampling programme commenced in mid-June and Panther Canada contracted a local firm to construct the Dotted Lake drill rig access trail.

Australia

-- Panther Metals Limited (formerly known as Panther Metals Pty Ltd) ("Panther Australia") completed a soil geochemical sampling programme at the Merolia Gold Project using Kalgoorlie based drilling and survey company Gyro Australia Pty Ltd. An airborne magnetic and radiometric survey was completed across the Merolia Project and at the Annaburroo and Marrakai projects in the Northern Territory.

-- In February 2021, Panther Australia appointed Mr. Ranko Matic and Mr. Daniel Tuffin to its board in Australia and converted the company to a UPC called Panther Metals Limited.

-- On 15 April 2021, the Company announced its intention to pursue a listing of its Australian assets on the Australian Securities Exchange with a pre-IPO seed funding round. The Company will continue to hold a material position in Panther Australia upon the listing.

-- On 10 May 2021 the Company announced the completion of the first stage in the process to pursue a listing of its Australian assets on the Australian Securities Exchange (the "ASX" or "ASX Exchange") with the completion of a pre-IPO seed financing raising AUD$300,000. As a result of the financing, the interest of Panther in its subsidiary, Panther Australia, reduced from 100% to 89.3%.

Corporate and Financial Highlights

-- On 21 April 2021, the Company announced the completion of a private placing for a total of 1,666,666 ordinary shares at a price of 12p raising a total of GBP200,000. The admission of those shares took place on 23 April 2021.

-- On 17 May 2021, the Company announced that it has received notice of exercise of a total of 1,318,331 warrants with an exercise price of 6p per share, raising GBP79,100 for the Company. The admission of those shares took place on 20 May 2021.

Dr Kerim Sener, Chairman, commented:

The first half of 2021 commenced with certain strategic developments associated with the advancement of our Australian portfolio. During the latter part of the previous year, we concluded a transaction on the Merolia Project near Laverton in Western Australia. Recognising the significance of this asset and the enhanced requirements for project development, we quickly made steps towards giving Panther Australia a life of its own. This involved enhancing the board with two additional minerals industry professionals and immediately commencing fieldwork across the project area. The latter activity involved an extensive auger geochemistry programme over a previously unsampled part of the Merolia Project, the result of which was the discovery of the 40 Mile Camp gold anomaly. In addition, an airborne magnetic and radiometric geophysical survey was conducted across the whole project area; the aircraft and survey crew then being sent to the Northern Territory to complete an airborne survey over those assets as well. This set the scene for a successful placing undertaken in late April for GBP200,000 at a price of 12p per share and representing a 20% premium over a previous fundraise in late 2020.

In Canada, early in the year, the Company received the processed data products from its airborne magnetic and electromagnetic geophysical survey over the Dotted Lake Project, which had been undertaken at the very end of 2020. A large number of geophysical anomalies were identified in this survey, several of which were prioritised for follow-up work. A subsequent soil geochemical programme was undertaken across the project to help refine targets identified from the airborne survey. Further planning was undertaken for additional work across both the Big Bear and Dotted Lake projects, pending permits and land access requirements.

Returning to Australia, a decision was made to advance our subsidiary, which had recently been renamed Panther Metals Limited, towards a listing on the ASX. A fundraise was completed for the subsidiary to this end for A$300,000 to help advance additional exploration and corporate development costs, which had the effect of diluting the interests of the Company to about 89%. As part of these developments, further tenement applications were made to the west of the Merolia Project, in an area known as Red Flag, which hosts potential for nickel-cobalt and gold mineralisation.

Towards the end of the period, the Company completed its first JORC Exploration Target of 30Mt-50Mt at 0.6-0.8% nickel and 400-600ppm cobalt on the Coglia deposit, which occurs at the far southern end of the Merolia Project. This identified a stand-out opportunity for the Company in a set of commodities which are receiving increased attention for their use in battery technologies. While the mineralisation identified to date has been determined as lateritic, there is evidence for sulphide mineralisation contained within the underlying ultramafic volcanic rocks, which are yet to be tested systematically.

Consequently, the activities of the Company during the period have been tremendous and we would like to congratulate our teams both in Australia and in Canada for their drive and determination. While travel remains impacted by the ongoing issues associated with COVID-19, we have taken steps to advance the interests of the Company across both Australia and Canada by utilising wholly in-country teams. This will remain a core feature of our overall strategy going forward, as will the concept of spinning-out parts of our project portfolio into country or project specific entities.

Operational Review

Canada

The ongoing COVID-19 pandemic and related restrictions on travel into Ontario continued to impact on exploration staffing, permitting and logistics across the sector. However, with a growing local network of contractors, Panther was able to progress work across the Canadian projects.

On 22 February 2021 Panther Canada announced the receipt of the processed high-resolution Airborne Time Domain Electromagnetic ("TDEM") and Magnetics ("Mag") geophysics survey data and associated maps and report over the Dotted Lake Property on the north limb of the Schreiber-Hemlo greenstone belt in Ontario, Canada. Prospectair Geosurveys, the same company who flew the Big Bear property in June 2020, had conducted the helicopter 818 line-km survey over a series of seven flights between 9th -11th December 2020. A total of 138 geophysical anomalies were identified by the survey, with high priority anomalies since prioritised for follow-up ground investigation.

In early May, the Company received the Dotted Lake Exploration Permit (number PR-20-000376) which has allowed the Company to embark on plans for reconnaissance diamond drilling, grid soil sampling, ground induced polarisation ("IP") geophysics and trenching focussed on testing intrusive contact shear-zone hosted gold mineralisation in the vicinity of the north shore of Dotted Lake. Panther's reconnaissance sampling in historical trenches at this locality has confirmed high-grade gold at surface (announced 5 November 2020) in an area that has never been drill-tested.

The Dotted Lake Exploration Permit allows the below permitted activities to be undertaken over a three-year period between 27 April 2021 and 26 April 2024 on Dotted Lake claim numbers 548354, 548355, 548356, 548357 and 548358, it replaces previous (2018) Dotted Lake Exploration Permit (PR-18-000152) considering the current claim focus and revised drilling plans. Permitted activities consist of:

-- Mechanised drilling. Provision for an initial 8 planned diamond drill collars to step-out along strike of any positive drill intersections.

-- Mechanised stripping. Allowance for a total 2,500m(2) of ground cover stripping to facilitate bedrock mapping and structural interpretation.

-- Pitting and trenching. Covers 7 planned trenches to provide strike cross-sections across the target shear zone.

-- Ground geophysics incorporating the use of a generator. Planned work includes an initial 2.5-line km of ground IP survey across the sheared contact.

-- Construction of access roads and survey line cutting.

-- Permitted fuel storage for drill rig, vehicles, and generators.

At the Big Bear Project, also in May 2021, Panther Canada submitted a further two Exploration Permit Applications which will facilitate reconnaissance drill testing and ground IP geophysics across key prospective targets which have emerged from the results of the airborne TDEM and Mag geophysics survey completed in August 2020 and the Autumn 2020 fieldwork programme.

The Big Duck Creek Permit Application will allow testing of high priority AEM and Mag targets in the 'Big Duck Creek' area to the north and west of Little Bear Lake, in the north of the project area. The requested activities consist:

-- Mechanised drilling. Provision for up to 10 planned priority 1 diamond drill collars with a further proposed 9 drill pad locations preplanned to follow-up on encouraging results.

-- Ground geophysics incorporating the use of a generator. Planned work includes an initial 5-line km of IP survey arranged over 9 planned survey lines.

-- Construction of access roads and survey line cutting.

-- Permitted fuel storage for drill rig, vehicles and generators and construction of a temporary personnel camp.

The Hays Lake East Permit Application area overlies the interpreted northern intrusive contact of the Terrace Bay Batholith, targeting the Joa-Walton gold occurrence and potential eastern extensions to the historical Jedder gold mine. This application focusses on claims Panther acquired last year (announced 13 July 2020) which includes the Jedder mine and mill, which was intermittently worked between 1934-1986, with gold bearing quartz veins by open cuts up to 15m deep site. Historical gold production was not reported but channel sampling of an 87m long section of the Mill Vein in 1984 reportedly yielded values up to 39.50g/t Au & 73.17 g/t Ag over 0.5m.

The Joa-Walton occurrence includes at least three quartz veins (with government assays up to 210g/t Au & 258g/t Ag) which Panther intends to test through three-dimensional geophysical modelling and drilling.

Requested activities in the Hays Lake East Permit Application consist of:

-- Mechanised drilling. Provision for up to 5 planned priority 1 diamond drill collars with a further proposed 4 drill pad locations pre-planned to follow-up on encouraging results.

-- Ground geophysics incorporating the use of a generator. Planned work includes an initial 2.5-line km of IP survey arranged over 5 planned survey lines.

-- Construction of access roads and survey line cutting.

-- Permitted fuel storage for drill rig, vehicles and generators and construction of a temporary personnel camp.

In June 2021, Panther Canada contracted the experienced Thunder Bay based Fladgate Exploration Consulting Corporation ("Fladgate") to commence a soil geochemistry sampling programme over a 1.60km by 0.85km target area coinciding with the Dotted Lake Exploration Permit area.

The soil geochemistry survey is designed to build out and in-fill the westerly strike extensions of high-grade gold mineralisation intersected by historical trenching undertaken by a previous licence holder in 2010 (Tr-10-4) and as confirmed during Panther Canada's reconnaissance sampling (gold up to 18.9g/t Au) announced 5 November 2020. The soil survey will also provide important geochemical coverage of target structures outlined by Panther's airborne geophysical survey. At the same time a separate contract was agreed for the construction of the Dotted Lake drill rig access trail.

Post period end, over the period mid-July to mid-August, the regional government issued a forest fire risk related work-stop safety implementation order, following a long period of hot dry weather. With many uncontrolled forest fires burning throughout the district exploration work must be put on hold, impacting the Dotted Lake drilling access trail construction, and delaying the completion of the soil programme until the end of August.

Also post period end, on 2 August 2021, as detailed in the Outlook section below, Panther announced the acquisition of 1,128 claims, constituting the new Obonga Project.

The COVID-19 pandemic has continued to impact on the Canadian exploration sector and in line with other claim holders in Ontario Panther Canada has been granted and taken the option to apply for 12-month extensions to claim expiry dates. The scheme is now expected to come to an end on 31st October 2021.

Australia

A 5,867 line-km airborne geophysical survey was undertaken over the Merolia Project in Western Australia by Thomson Airborne Pty Ltd. The high-resolution survey involved the collection of magnetic, radiometric and elevation data on a 50m line spacing and at a nominal flight altitude of 35m above ground, utilised a conventional fixed-wing platform. This survey was followed by the collection of 1,715 line-km airborne geophysical data over the Annaburroo and Marrakai gold project areas in the Northern Territory using the same survey parameters as used in Western Australia. Geophysical consultants, Core Geophysics, subsequently undertook the raw data processing and stitched the resultant outputs with other regional datasets. The full suite of derivative geophysical data products is being utilised to guide the exploration targeting process.

An extensive auger drill geochemistry programme was completed within tenement E38/3384 which forms part of the Merolia Project. This programme, which was undertaken by contractors Gyro Drilling Pty Ltd, covered a large part of the south-eastern extension of the Comet Well Gold trend from which significant gold anomalism in soil was previously identified over at least 2.5km of strike. The Comet Well Trend has also yielded over 40 ounces of gold nuggets by prospectors in recent times yet remains undrilled. All samples were submitted for ionic leach analyses, the results of which helped to define the 40 Mile Camp gold anomaly.

An independent historical data review undertaken by consultants to the Panther Australia considered the results of two historical exploration campaigns at Coglia, at the far southern end of the Merolia Project. Twenty reverse circulation ("RC") drill holes, totalling 1,562m delineated a horizon of nickel-cobalt laterite mineralisation from approximately 40m below transported alluvial sediments. A more recent programme involving 48 air-core holes totalling 2,866m also intersected a layer of nickel-cobalt enrichment in lateritic material at a depth of between 40m to 70m. Significant drilling intersections in 18 holes from these two drilling programmes define a broadly north-south trending, approximately 5.5km long, zone of nickel and cobalt enriched laterite from which a JORC Exploration Target of 30Mt-50Mt at 0.6-0.8% nickel and 400-600ppm was established. As the underlying geology consists, in part, of ultramafic rocks which show evidence for nickel sulphide mineralisation from two deeper inclined drill holes, there is additional exploration upside which requires further follow-up.

Financial Review

The Group has reported an unaudited loss for the six months ended 30 June 2021 of GBP97,559 (six months ended 30 June 2020 - loss GBP378,466). The basic and diluted loss per share for the period was 0.17p (six months ended 30 June 2020 - loss 0.79p).

The key performance indicators are set out below:

 
                             At            At           At 
                      30-Jun-21     30-Jun-19    31-Dec-20 
                    (unaudited)   (unaudited)    (audited) 
                            GBP           GBP          GBP 
 
 Net asset value      1,728,043     1,094,566    1,517,916 
 

Outlook

Canada Outlook

Obonga Greenstone Belt Transaction

On 2 August 2021, the Company announced the acquisition of 1,128 claims, constituting an almost exclusive exploration holding over the Obonga Greenstone Belt located approximately 80km north of the Lac Des Iles Mine and 160km north of Thunder Bay in the Canadian Province of Ontario. The acquisition of claims, consolidating Panther Canada's new Obonga Project, results from an agreement with Broken Rock Resources Ltd and Panther Canada's own claim staking strategy which provides the Company with control of an important mineral belt with identified and permitted high prospectivity drill-ready base and precious metal targets.

The acquisition agreement for the 80 claims held by Broken Rock Resources Ltd, together with associated exploration data and permits, entails Panther delivering combined cash and stock consideration together with a right to an additional deferred consideration and a net smelter return ("NSR") royalty. In addition, as part of the agreement, Panther has made an exploration commitment which will be directed towards drilling and associated exploration works and will designate the 1,084 claims it has staked directly into the Obonga Project.

Consideration for the transaction consisted of CAD$50,000 in cash, 228,925 Panther shares credited as fully paid, the right to receive deferred consideration comprising four tranches of CAD$30,000 in cash each payable within 30 days of the annual anniversary of the acquisition agreement, followed by a final payment of CAD$250,000 in cash payable within 30 days of the fifth anniversary of the date of the acquisition agreement and 1.5% NSR royalty (which has provision for Panther to reduce the royalty to 1.0% NSR through a CAD$3,000,000 buy-back). As part of the transaction Panther will also award 500,000 share options with an exercise price of 13p per share and a life of five years.

With Exploration Permits in place for the drilling of two target areas within the Obonga Project, tender processes have been completed. On 20 September 2021, the Company announced that it had confirmed the completion of the required access trail to the planned drill hole location at its 100% owned Dotted Lake property and had engaged Niigaani Drilling to undertake the Company's targeted diamond drilling programme.

Australia Outlook

On 7 September, the Company announced that its Australian subsidiary Panther Metals Limited had appointed Sanlam Private Wealth Pty Ltd and Kerr Allan Financial Ltd as joint lead managers as it moves towards listing on the Australian Securities Exchange. The subsidiary raised a further AUD$300,000 Australian dollars to fund the listing process and as a result of this second round of financing, the interest of Panther Metals PLC in its Australian subsidiary, reduced from 89% to 77%.

Panther Australia is now in the process of preparing its prospectus documentation and an independent geological report, with the assistance of its legal advisors and geological consultants. It is expected that an ASX in principle submission will be made to the Australian Securities Exchange in the near future, which would trigger the initial process of an ASX listing.

Corporate Outlook

The start of 2021 has witnessed several corporate actions by the Company as the business positions itself to exploit the remarkable team and network it has developed. Panther now moves into a period of development that will see a major upturn in work across its entire portfolio of assets.

Post the six-monthly financials, a soil sampling program has already been completed at Dotted Lake and it is with a high level of confidence that the proposed drilling campaigns at Dotted Lake and Wishbone will be conducted in the Autumn.

The remainder of 2021 is an extraordinarily exciting time for the Company. This was recently further supported by the news that Panther Metals Limited's proposed listing in Australia has advanced with the appointment of a broker and a AUD$300,000 fundraise. The Company is already well positioned to implement its strategy of capital growth via discovery, but this position is further enhanced by potentially holding a significant stake in a separate listed vehicle that is well financed and controlled by a very capable team.

On 9 July 2021 the Company announced that it has received notice of exercise of a total of 333,334 warrants with an exercise price of 6p per share, raising GBP20,000 for the Company (admission of 333,334 new Ordinary Shares on 14 July 2021).

On 29 July 2021 the Company announced that it has received notice of exercise of a total of 181,667 warrants with an exercise price of 6p per share, raising GBP10,900 for the Company (admission 181,667 new Ordinary Shares on 3 August 2021).

On 20 August 2021 the Company announced that following its annual compensation review, the Remuneration Committee made recommendations to the Board which have been approved by the Board and as a result the Company has granted a total of 4,600,000 options to Directors and staff members. All the options have a five-year term from date of grant and an exercise price of 15p per share. The options are all subject to the vesting condition of the price of the Company's ordinary shares trading on the London Stock Exchange PLC at a volume weighted average price of 30p per share over any period of 10 trading days during the life of the options.

On 22 September 2021 the Company announced completion of a capital raise for a total of 5,250,000 ordinary shares of no par value (the "Placing Shares"), raising GBP630,000 before expenses, at a price of 12p per Placing Share. Each Placing Share will be issued with a one-for-one warrant attached. The warrants have an exercise price of 18p and a 24-month life. The warrants are subject to an accelerator, shortening the exercise period, if the volume weighted average price of the Company's shares exceeds 30p for five consecutive trading days. It is expected that admission of the Placing Shares will take place at 8.00am on 29 September 2021.

PANTHER METALS PLC

INTERIM MANAGEMENT REPORT

FOR THE SIX MONTHSED 30 JUNE 2021

The Directors are required to provide an Interim Management Report in accordance with the Financial Conduct Authorities ("FCA") Disclosure Guidance and Transparency Rules ("DTR"). The Directors consider the Operational and Financial Review on pages 1 to 6 of this Half Yearly Financial Report provides details of the important events which have occurred during the period and their impact on the financial statements as well as the outlook for the Company for the remaining six months of the year ended 31 December 2021.

The following statement of the Principal Risks and Uncertainties, the Related Party Transactions, the Statement of Directors' Responsibilities and the Operational and Financial Review constitute the Interim Management Report of the Company for the six months ended 30 June 2021.

Principal Risks and Uncertainties

The principal risks and uncertainties of the Company are detailed on pages 16 and 17 of the Company's most recent Annual Report for the year ended 31 December 2020 which can be found on the Company's website at www.panthermetals.co.uk. The principal risks and uncertainties facing the Company remain unchanged from those disclosed in the Annual Report for the year ended 31 December 2020 and the Board are of the opinion that they will continue to remain unchanged for the forthcoming six-month period.

The principal risks and uncertainties facing the Company are as follows:

-- Adverse foreign exchange fluctuations;

-- If the Group is unable to raise additional capital when needed or on suitable terms it could force a delay, reduce or eliminate its exploration development and production plans and efforts; and

-- There are significant risks associated with any discovery and the ability of the Company to then generate any operational cashflows.

The Board has also reviewed emerging risks which may impact the forthcoming six-month period and the main risk facing the Company is the ongoing impact of the COVID-19 pandemic.

Related Party Transactions

There have been no material changes to the related party transactions described in the Annual Report that could have an effect on the financial position or performance of the Company.

On 10 May 2021 the Company announced the completion of the first stage in the process to pursue a listing of its Australian assets on the Australian Securities Exchange (the "ASX" or "ASX Exchange") with the completion of a pre-IPO seed financing raising AUD$300,000. As a result of the financing, the interest of Panther in its subsidiary, Panther Australia, reduced from 100% to 89.3%. In accordance with the requirements of IFRS 10 "Consolidated Financial Statements", as Panther continues to effect control over its subsidiary, it continues to fully consolidate it. The dilution does give rise to a non-controlling interest in respect of the share of net assets of the Australian subsidiary held by the third-party investors.

Going Concern

As at 30 June 2021 the Group had total cash reserves of GBP275,021 (31 December 2020: GBP241,194). The directors are aware of the reliance on fundraising within the next 12 months and having reviewed the Group's working capital forecasts they believe the Group is well placed to manage its business risks successfully providing future fundraisings are successful. The interim financial statements have been prepared on a going concern basis and do not include adjustments that would result if the Group was unable to continue in operation.

The Company successfully raised GBP200,000 through the placing and admission of its shares to the Main Market of the London Stock Exchange on 21 April 2021. On 22 September 2021 the Company announced completion of a capital raise for a total of 5,250,000 ordinary shares of no par value raising GBP630,000 before expenses. As a junior exploration company, the Directors are aware that the Company must go to the marketplace to raise significant funds in the next 12 months to meet its investment and exploration plans and to maintain its listing status.

For and on behalf of the Board of Directors

Darren Hazelwood

Chief Executive Officer

23 September 2021

PANTHER METALS PLC

STATEMENT OF DIRECTORS' RESPONSIBILITY FOR THE HALF YEARLY REPORT

FOR THE SIX MONTHSED 30 JUNE 2021

The Directors confirm to the best of their knowledge:

-- The interim financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the EU;

-- Give a true and fair view of the assets and liabilities, financial position and the loss of the Group

-- The interim report includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the interim financial information, and a description of the principal risks and uncertainties for the remaining six months of the year; and

-- The interim financial information includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules, being information required on related party transactions.

For and on behalf of the Board of Directors

Darren Hazelwood

Chief Executive Officer

23 September 2021

PANTHER METALS PLC

CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHSED 30 JUNE 2021

 
                                               Notes   Period ended  Period ended 
                                                            30 June       30 June 
                                                               2021          2020 
                                                                GBP           GBP 
                                                          Unaudited     Unaudited 
Revenue                                                           -             - 
 
Cost of sales                                                     -             - 
 
 
Gross profit                                                      -             - 
 
Administrative expenses                                   (222,629)     (252,377) 
Share-based payment charge                       5          134,164     (135,806) 
 
Operating loss                                             (88,465)     (388,183) 
 
Finance income                                                    -            57 
 
Loss before taxation                                       (88,465)     (388,126) 
 
Taxation                                                          -             - 
 
Loss for the period                                        (88,465)     (388,126) 
 
 
Other comprehensive income 
Translation of foreign currency transactions                (9,094)         9,660 
 
Total comprehensive loss for the period                    (97,559)     (378,466) 
 
 
 
Loss attributable to: 
Equity holders of the company:    (97,559)   (378,466) 
 
                                  (97,559)   (378,466) 
 
 
 
Basic and diluted loss per share (pence)   2(0.17)p  (0.79)p 
 
 

PANTHER METALS PLC

CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION

FOR THE SIX MONTH PERIODED 30 JUNE 2021

 
                                             As at         As at         As at 
                                           30 June       30 June   31 December 
                                Notes         2021          2020          2020 
                                               GBP           GBP           GBP 
                                         Unaudited     Unaudited       Audited 
 
Non-current assets 
Goodwill                                   553,656       553,656       553,656 
Exploration and evaluation 
 assets                                    913,254       401,577       736,567 
 
 
Total non-current assets                 1,466,910       955,233     1,290,223 
 
Current assets 
Receivables                                 73,931        14,191        93,922 
Cash at bank and in hand                   275,021       261,786       241,194 
 
 
Total current assets                       348,952       275,977       335,116 
 
 
Total assets                             1,815,862     1,231,210     1,625,339 
 
Current liabilities 
Trade and other payables                  (87,819)     (136,644)     (107,423) 
 
 
Total liabilities                         (87,819)     (136,644)     (107,423) 
 
 
Net assets                               1,728,043     1,094,566     1,517,916 
 
Capital and reserves 
Called up share capital          3       4,053,396     2,882,988     3,675,421 
Equity attributable to 
 the parent                      4         142,536             -             - 
Share-based payment reserve      5         164,292       476,682       397,331 
Retained losses                        (2,652,395)   (2,265,104)   (2,554,836) 
 
 
Total equity attributable 
 to equity shareholders                  1,707,829     1,094,566     1,517,916 
 
 
Non-controlling interest         4          20,214             -             - 
 
 
Total equity                             1,728,043     1,094,566     1,517,916 
 
 
 
 

PANTHER METALS PLC

CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS

FOR THE SIX MONTH PERIODED 30 JUNE 2021

 
                                             As at       As at         As at 
                                           30 June     30 June   31 December 
                                 Notes        2021        2020          2020 
                                               GBP         GBP           GBP 
                                         Unaudited   Unaudited       Audited 
Cash flows from operating 
 activities 
Loss for the financial 
 year                                     (97,559)   (378,466)     (668,198) 
 
Adjusted for: 
Interest received                                -        (57)          (64) 
Foreign exchange                             9,094     (9,660)             - 
Grant Income                                     -           -      (10,000) 
Share-based payment charge               (134,164)     135,806       155,747 
(Increase)/decrease in 
 receivables                               (1,860)     (6,146)      (85,877) 
(Decrease)/increase in 
 payables                                 (19,603)   (243,290)     (273,345) 
 
Net cash (used in)/generated 
 from operating activities               (244,092)   (501,813)     (881,737) 
 
Investing activities 
Interest received                                -          57            64 
Cash spent on exploration 
 activities                              (176,687)    (75,786)     (359,570) 
 
Net cash generated from 
 investing activities                    (176,687)    (75,729)     (359,506) 
 
 
Financing activities 
Proceeds from issuing shares      3        200,000     823,000     1,373,000 
Proceeds from exercising 
 warrants                         3         79,100      10,000        93,109 
Proceeds from shares issued 
 by subsidiary                    4        165,506           -             - 
Proceeds received in advance                10,000           -             - 
Grant income received                            -           -        10,000 
 
Net cash generated from 
 financing activities                      454,606     833,000     1,476,109 
 
Net increase in cash and 
 cash equivalents                           33,827     255,458       234,866 
 
Cash and cash equivalents 
 at beginning of period                    241,194       6,328         6,328 
 
Cash and cash equivalents 
 at end of period                          275,021     261,786       241,194 
 
 
 

PANTHER METALS PLC

CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTH PERIODED 30 JUNE 2021

 
Group                                         Equity       Share 
                                        attributable       based                                       Non 
                              Share           to the     payment     Retained       Total      Controlling       Total 
                    Note    capital           parent     reserve       losses      equity         Interest      equity 
                                GBP              GBP         GBP          GBP         GBP              GBP         GBP 
 
Balance at 
 1 January 2020           1,958,071                -     342,793  (1,886,638)     414,226                -     414,226 
 
Loss for the 
 year                             -                -           -    (668,198)   (668,198)                -   (668,198) 
 
Total 
 comprehensive 
 loss for the 
 year                             -                -           -    (668,198)   (668,198)                -   (668,198) 
 
Transactions 
 with owners 
 of the company 
Shares issued       3     1,373,000                -           -            -   1,373,000                -   1,373,000 
Shares issued 
 for services 
 provided           3        90,000                -           -            -      90,000                -      90,000 
Shares issued 
 to acquire 
 exploration 
 and evaluation 
 assets             3        92,910                -           -            -      92,910                -      92,910 
 
                          1,555,910                -           -            -   1,555,910                -   1,555,910 
Other 
transactions 
Placing warrants 
 issued                           -                -     148,989            -     148,989                -     148,989 
Shares issued 
 upon exercise 
 of warrants                161,440                -    (61,572)            -      99,868                -      99,868 
Forfeited 
 options                          -                -    (32,879)            -    (32,879)                -    (32,879) 
 
Balance at 
 31 December 
 2020                     3,675,421                -     397,331  (2,554,836)   1,517,916                -   1,517,916 
 
 
Balance at 
 1 January 2021           3,675,421                -     397,331  (2,554,836)   1,517,916                -   1,517,916 
 
Total 
 comprehensive 
 loss for the 
 period                           -                -           -     (97,559)    (97,559)                -    (97,559) 
 
                                  -                -           -     (97,559)    (97,559)                -    (97,559) 
Transactions 
 with owners 
 of the company                                                             - 
Shares issued 
 by the Company     3       200,000                -           -                  200,000                -     200,000 
Shares issued 
 by subsidiary      4             -          142,536           -            -     142,536           20,214     162,750 
 
                            200,000          142,536           -            -     342,536           20,214     362,750 
Other 
transactions 
Shares issued 
 upon exercise 
 of warrants        5       177,975                -   (119,464)            -      58,511                -      58,511 
Forfeited 
 options            5             -                -   (113,575)            -   (113,575)                -   (113,575) 
 
                            177,975                -   (233,039)            -    (55,064)                -    (55,064) 
 
 
Balance at 
 30 June 2021             4,053,396          142,536     164,292  (2,652,395)   1,707,829           20,214   1,728,043 
 
 

PANTHER METALS PLC

NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTH PERIODED 30 JUNE 2021

   1          Accounting policies 
   1.1.       Half-yearly report 

This interim financial information for the six months ended 30 June 2021 and 30 June 2020 is unaudited and does not constitute statutory financial statements within the meaning of the Companies Act 1982 (Isle of Man). The Board of Directors approved it on 23 September 2021.

The figures for the year ended 31 December 2020 have been extracted from the statutory financial statements which have been prepared in accordance with International Financial Reporting Standards, as adopted by the European Union, ("IFRS") and which have been reported on by the company's auditor. The auditor's report on those financial statements was unqualified.

The condensed interim financial statements have not been reviewed by the Company's auditors.

   1.2.       Basis of accounting 

The condensed interim financial information has been prepared in accordance with the requirements of IAS 34 "Interim Financial Reporting".

The interim financial information does not include all notes of the type normally included in the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the group as the full financial report.

The financial information has been prepared on the historical cost basis. The accounting policies and methods of computation adopted in the Company's preparation of the condensed interim financial information are consistent with those adopted and disclosed in the financial statements for the year ended 31 December 2020 and those expected to be used for the year ending 31 December 2021.

The Company will report again in full for the year ending 31 December 2021.

   1.3.       Accounting policies 

The accounting policies are unchanged from those used in the last published annual financial statements for the year ended 31 December 2020.

   2          Loss per share 

The basic loss per share for the interim period to 30 June 2021 is 0.17p (2020: - loss 0.79p) and has been calculated by dividing the loss for the period by the weighted average number of ordinary shares in issue of 58,792,331 (2020: 47,896,267).

Shares issued in the period to 30 June 2021 are detailed in note 3.

There are 4,832,223 potentially issuable shares which relate to share options issued to Directors and professional advisers under option (see note 4) and warrants issued as part of various placings of the Company shares. The weighted average number of potential ordinary shares in issue is 73,289,000 (2020: 66,346,425). Due to the losses for the period the diluted loss per share is anti-dilutive and therefore has been kept the same as the basic loss per share of 0.17p per share.

   3          Share capital 
 
                                                   Number of 
                                                new Ordinary       Share 
                                                      shares     Capital 
                                                          No         GBP 
 Allotted, issued and fully paid: 
 As at 1 January 2020                             33,513,302   1,958,071 
 
 Share issue on 9 January 2020                    13,716,666     823,000 
 Share issue to Australian Consultants             1,500,000      90,000 
 Share issue upon exercising Subscription 
  warrants                                           166,667      11,917 
 Share issue on 13 July 2020                       3,846,153     250,000 
 Share issue upon exercising Subscription 
  warrants                                           166,666      11,833 
 Share issue upon exercising Bookrunner 
  warrants                                         1,218,492     137,690 
 Share issue on 9 December 2020                    3,000,000     300,000 
 Share issue to acquire Merolia Gold 
  Project                                            734,473      92,910 
 
 
 As at 31 December 2020                           57,862,419   3,675,421 
 
 
 As at 1 January 2021                             57,862,419   3,675,421 
 
 Placing on 21 April 2021                          1,666,666     200,000 
 Shares issued upon exercising Subscription 
  warrants                                         1,318,331     177,975 
 
 
 As at 30 June 2021                               60,847,416   4,053,396 
 
 
 
 
 
 

On 9 January 2020, the Company raised GBP823,000 (before expenses) following the placing of 13,716,666 Ordinary Shares at a price of 6 pence per share on the Main Market of the London Stock Exchange. A further 1,500,000 Ordinary Shares were issued to Australian consultants in connection with the acquisition of Panther Metals Pty Limited at Admission.

On 19 June 2020 the Company announced that it has received notice of exercise of 166,667 Subscription Warrants to acquire 166,667 shares of no par value at a price of 6p per share for a cash consideration of GBP10,000. The admission of those shares took place on 25 June 2020.

On 13 July 2020, the Company issued 3,846,153 new Ordinary Shares at a price of 6.5 pence per share in connection with a placing raising GBP250,000. The admission of those shares took place on 16 July 2020.

On 12 August 2020 the Company announced that it has received notice of exercise of 166,666 Subscription Warrants to acquire 166,667 shares of no par value at a price of 6p per share for a cash consideration of GBP10,000. The admission of those shares took place on 17 August 2020.

   3          Share capital (continued) 

On 4 November 2020 the Company announced that it has received notice of exercise of 1,218,492 Bookrunner Warrants to acquire 1,218,492 shares of no par value at a price of 6p per share for a cash consideration of GBP64,580. The admission of those shares took place on 10 November 2020.

On 4 December 2020, the Company issued 3,000,000 new Ordinary Shares at 10p per share in connection with a placing raising GBP300,000. The admission of those shares took place on 9 December 2020.

In December 2020, Panther Australia acquired the Merolia Gold Project from White Cliffs Limited, with an AUD$112,500 payment in cash and the issue of 734,473 new Ordinary Shares of 12.65p in the Company, a total value in sterling of GBP155,576, of which GBP92,910 was represented by new Ordinary Shares.

On 21 April 2021, the Company announced the completion of a private placing for a total of 1,666,666 ordinary shares at a price of 12p raising a total of GBP200,000. The admission of those shares took place on 23 April 2021.

On 17 May 2021, the Company announced that it has received notice of exercise of a total of 1,318,331 warrants with an exercise price of 6p per share, raising GBP79,100 for the Company. The admission of those shares took place on 20 May 2021.

.

   4    Issue of shares by a subsidiary 

On 10 May 2021 the Company announced the completion of the first stage in the process to pursue a listing of its Australian assets on the Australian Securities Exchange with the completion of a pre-IPO seed financing raising AUD$300,000. As a result of the financing, the interest of Panther in its subsidiary, Panther Australia, reduced from 100% to 89.3%.

In accordance with the requirements of IFRS 10 "Consolidated Financial Statements", as Panther continues to effect control over its subsidiary, it continues to fully consolidate it. The dilution does give rise to a non-controlling interest in respect of the share of net assets of the Australian subsidiary held by the third-party investors.

   5    Share based payment transactions 

Equity settled share based payments

Options issued, cancelled and outstanding at 30 June 2021

 
 
                              At 1                                                  At    Weighted 
                           January                                             30 June     average 
                              2021                                                2021    exercise 
                             No of                                               No of       price 
                           options     Issued     Forfeited     Exercised      options     (pence) 
 
 
 May 2018                500,000        -        (500,000)         -            -          0.04 
 Bonus options           500,000        -        (500,000)         -            -          0.10 
 Subscription 
  Warrants              1,833,334       -            -        (1,318,331)    515,003       0.06 
 Bookrunner Warrants     265,000        -            -             -         265,000       0.06 
 Placing Warrants       13,716,666      -            -             -        13,716,666     0.12 
 
 
                        16,815,000      -       (1,000,000)   (1,318,331)   14,496,669     0.38 
 
 
 

On 9 March 2018, 20,000,000 share options were awarded to certain directors. The date of was taken as 10 May 2018 being the date the options were approved at the delayed General Meeting. The options were exercisable at 0.2 pence per share and became exercisable six months after their grant. They could be exercised at any time between this date and to the day before the third anniversary of their grant, being 9(th) May 2021.If the option holders exercised 50% or more of their options before the first anniversary of their grant, the holders received, upon exercise of each option, one new bonus option with an exercise price of 0.5 pence each, expiring at the same date as the original options. Following the Share Consolidation, the May 2018 options were rebased to 1,000,000 share options exercisable at 4 pence per share and the bonus options are rebased to 1,000,000 share options at 10 pence per share. 500,000 options were exercised in the period entitling the holders to 500,000 bonus options. The remaining 500,000 bonus options were forfeited. On 9 May 2021 the Company had not received notice of exercise of any of the May 2018 or Bonus options and therefore these 1,000,000 options expired at this date and were forfeited.

On 17 May 2021 the Company announced that it has received notice of exercise of a total of 1,318,331 warrants with an exercise price of 6p per share, raising GBP79,100 for the Company.

   5     Share based payment transactions (continued) 

Options and warrants outstanding and exercisable at the interim period end

 
                        No of options,   Exercise       Weighted 
                            vested and      price        average 
                           exercisable               contractual 
                                                            life     Expiry date 
                                                         (years) 
 Subscription 
  Warrants                     515,003       0.06           1.06    22 July 2022 
 Bookrunner Warrants           265,000       0.06           0.53  9 January 2022 
 Placing Warrants           13,716,666       0.12           0.53  9 January 2022 
 
 

A Black-Scholes model has been used to determine the fair value of the share options and warrants on the date of grant. The model assesses a number of factors in calculating the fair value. These include the market price on the date of grant, the exercise price of the share options, the expected share price volatility of the Company's share price, the expected life of the options, the risk-free rate of interest and the expected level of dividends in future periods.

For those options granted where IFRS 2 "Share-Based Payment" is applicable, the fair values were calculated using the Black-Scholes model. The inputs into the model were as follows:

 
 Date of grant          Risk free   Share price   Expected     Share price 
                             rate    volatility       life   at grant date 
                                                                       GBP 
 May 2018                   1.30%         24.9%    3 years           0.180 
 September 2018             1.24%         31.0%    2 years           0.180 
 Subscription 
  Warrants                  0.53%         33.0%    2 years           0.150 
 Bookrunner Warrants        0.66%         45.0%    2 years           0.075 
 Placing Warrants           0.66%         45.0%    2 years           0.075 
 
 

The total charge/(credit) to the consolidated statement of comprehensive income for the period to 30 June 2021 was a credit of GBP134,164 (2020: charge of GBP135,806). The transactions from exercising share options are shown within the statement of changes in equity.

   6    Subsequent events 

Warrant Exercises

On 9 July 2021 the Company announced that it has received notice of exercise of a total of 333,334 Subscription warrants with an exercise price of 6p per share, raising GBP20,000 for the Company (admission of 333,334 new Ordinary Shares on 14 July 2021).

On 29 July 2021 the Company announced that it has received notice of exercise of a total of 181,667 Subscription warrants with an exercise price of 6p per share, raising GBP10,900 for the Company (admission of 181,667 new Ordinary Shares on 3 August 2021).

Canada- Obonga Greenstone Belt Transaction

On 2 August 2021, the Company announced the acquisition of 1,128 claims, constituting an almost exclusive exploration holding over the Obonga Greenstone Belt located approximately 80km north of the Lac Des Iles Mine and 160km north of Thunder Bay in the Province of Ontario Canada. The acquisition of claims, consolidating Panther Canada's new Obonga Project, results from an agreement with Broken Rock Resources Ltd and Panther's own claim staking strategy which provides the Company with control of an important mineral belt with identified and permitted high prospectivity drill-ready base and precious metal targets.

The acquisition agreement for the 80 claims held by Broken Rock Resources Ltd, together with associated exploration data and permits, entails Panther delivering combined cash and stock consideration together with a right to an additional deferred consideration and a net smelter return ("NSR") royalty. In addition, as part of the agreement, Panther has made an exploration commitment which will be directed towards drilling and associated exploration works and will designate the 1,084 claims it has staked directly into the Obonga Project.

Consideration for the transaction consisted of CAD$50,000 in cash, 228,925 Panther shares credited as fully paid, the right to receive deferred consideration comprising four tranches of CAD$30,000 in cash each payable within 30 days of the annual anniversary of the acquisition agreement, followed by a final payment of CAD$250,000 in cash payable within 30 days of the fifth anniversary of the date of the acquisition agreement and 1.5% NSR royalty (which has provision for Panther to reduce the royalty to 1.0% NSR through a CAD$3,000,000 buy-back). As part of the transaction Panther will also award 500,000 share options with an exercise price of 13p per share and a life of five years.

Issue of Share Options

On 20 August 2021 the Company announced that following its annual compensation review, the Remuneration Committee made recommendations to the Board which were approved by the Board and as a result the Company has granted a total of 4,600,000 options to Directors and staff members. All the options have a five-year term from date of grant and an exercise price of 15p per share. The options are all subject to the vesting condition of the price of the Company's ordinary shares trading on the London Stock Exchange PLC at a volume weighted average price of 30p per share over any period of 10 trading days during the life of the options.

Australia- appointment of brokers and capital raise

On 7 September, the Company announced that its Australian subsidiary Panther Metals Limited had appointed Sanlam Private Wealth Pty Ltd and Kerr Allan Financial Ltd as joint lead managers as it moves towards listing on the Australian Securities Exchange. The subsidiary raised $300,000 Australian dollars to fund the listing process and because of the financing, the interest of the Company in its Australian subsidiary, had reduced from 89% to 77%.

   6          Subsequent events (continued) 

Issue of Equity

On 22 September 2021 the Company announced completion of a capital raise for a total of 5,250,000 ordinary shares of no par value (the "Placing Shares"), raising GBP630,00 before expenses, at a price of 12p per Placing Share. Each Placing Share will be issued with a one-for-one warrant attached. The warrants have an exercise price of 18p and a 24-month life. The warrants are subject to an accelerator, shortening the exercise period, if the volume weighted average price of the Company's shares exceeds 30p for five consecutive trading days. It is expected that admission of the Placing Shares will take place at 8.00am on 29 September 2021.

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September 24, 2021 02:00 ET (06:00 GMT)

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