TIDMZNWD

RNS Number : 0345L

Zinnwald Lithium PLC

08 September 2021

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation. With the publication of this announcement, this information is now considered to be in the public domain.

Zinnwald Lithium plc / EPIC: ZNWD.L / Market: AIM / Sector: Mining

8 September 2021

Zinnwald Lithium plc ("Zinnwald Lithium" or the "Company")

Interim Results

Zinnwald Lithium plc, the German focused lithium development company, is pleased to announce its Interim Results for the six-months ended 30 June 2021.

OVERVIEW

-- Positioned to capitalise on unlocking the full potential of the Zinnwald Lithium Project having acquired remaining 50% of Deutsche Lithium GmbH

   --    Identified and implementing key work streams to advance the Project towards production 

o Undertaking test work to ascertain the commercial viability of producing a wider range of lithium compounds

o Value engineering and optimisation of the flow sheet and associated infrastructure leading into an updated feasibility study

o Ongoing permitting work

-- Increased overall resource by over 50% to greater than 1 million tons contained lithium carbonate equivalent ("LCE") having been granted a new exploration licence

-- Undertaking further work on exploration licence areas to further evaluate their potential and how they can enhance the Project

-- Strong market dynamics with lithium carbonate and lithium hydroxide prices almost doubling from levels seen at the beginning of the year

-- Continue to maintain disciplined approach to expenditure and cash management and as such is well funded into 2022, with current cash of EUR2.3m

CHAIRMAN'S STATEMENT

The first half of 2021 has proved an extremely busy period for Zinnwald Lithium Plc (the "Company") which, just before the period end, culminated in the acquisition of the remaining 50% of Deutsche Lithium GmbH ("Deutsche Lithium") for EUR1.5 million cash and 50 million new ordinary shares. By taking full ownership of Deutsche Lithium, we are now in a much stronger position to capitalise on unlocking the full potential of the Zinnwald Lithium Project (the "Project") for the benefit of our shareholders.

Based in south-eastern Germany, the Project has a number of attractive attributes, not least its location in the heart of the European chemical and automotive industries. The European Union has set itself a target of being carbon neutral by 2050, and battery storage, where lithium-ion is a leading technology, is a vital enabling technology for this. The shift towards electric vehicles ("EVs") is gathering momentum and Europe is increasingly seeking to become an important global centre for EV production. As the importance of EV manufacturing grows so too does the importance of a local supply chain. In recognition of this, the EU has designated lithium a critical raw material and is actively seeking to encourage local production.

The economics of the Project have previously been demonstrated and we have identified a number of key work streams which will be required to advance it towards production. We are completing the initial phase of the lithium hydroxide ('LioH') test work which is delivering encouraging initial results showing the potential to produce a high quality, battery grade LioH alongside the already proven ability to produce battery grade lithium fluoride and lithium carbonate. We will update the market further once this work is completed.

Another important development during the period was the granting of the Sadisdorf exploration licence. This licence, located approximately 12 km from the Company's Zinnwald licence area, has an historic JORC resource which adds materially to our existing resources and, together with two other exploration licences held by the Company, has the potential to add significant resource upside to the Project.

In Ireland, the Company has rationalised its licence holdings and has retained only the core prospecting licence related to the brownfield Abbeytown Project. The zinc price has rebounded strongly during the course of 2021 and the Company's objective with regard to Abbeytown remains to find a partner or purchaser for the asset. In Sweden we have relinquished our Brännberg licences as non-core, its value having previously been written off.

We note with interest the Rule 2.7 announcement on 25 August 2021 by our 35.5% shareholder Bacanora Lithium plc ("Bacanora") and Ganfeng International Trading (Shanghai) Limited ("Ganfeng") regarding an Offer for Bacanora by Ganfeng. As noted in this announcement Bacanora intends to make a distribution in specie of the shares held by Bacanora in Zinnwald to Bacanora's shareholders including Ganfeng. Should the conditions for the distribution in specie be met we look forward to working with our potential new shareholders going forward.

Financials

The Company continues to maintain its extremely disciplined approach to expenditure and cash management and as such is well funded into 2022, with cash of EUR2.3m as at the date of this report.

Outlook

As the sole owner of one of Europe's more advanced battery-grade lithium projects, capable of producing a number of downstream battery grade lithium products, we are delighted to now control what we consider to be an extremely strategic asset.

Our focus over the next 12 to 18 months will involve undertaking test work to ascertain the commercial viability of producing a wider range of lithium compounds as well as value engineering and optimisation of the flow sheet and associated infrastructure leading into an updated feasibility study. Work with regard to permitting is also ongoing.

Further discussions with both off-take and financing partners will also take place as we seek to advance the Project. I view the future with a high degree of confidence and would like to thank our shareholders for their continued support.

With plenty of latent demand for lithium, a highly experienced team on the ground in Germany and access to a pool of additional skilled labour we look forward to updating you on our progress.

Jeremy Martin

Non-Executive Chairman

OPERATIONAL REVIEW AND OUTLOOK

Germany

During the first half of 2021, the Company has continued to progress the Project on both a corporate and operational level.

In line with our previously stated corporate strategy, we successfully completed the acquisition of a further 50% of Deutsche Lithium GmbH ("Deutsche Lithium") giving us 100% ownership and full operational control of the Project. The acquisition cost was EUR8.8 million, with the majority of the purchase consideration structured as an issue of new ordinary shares in the Company allowing us to conserve cash resources. New ordinary shares equivalent to 19.6% of our enlarged share capital were issued as part of the transaction and were distributed to a number of parties.

At the Project level during the year to date, we have been busy advancing various workstreams and have completed the initial phase of the lithium hydroxide ("LiOH") testwork. The initial results were highly encouraging and showed the potential to produce a high purity, battery grade product that is low in contaminants. We have also generated LiOH product samples, which we will be sharing with potential off-takers to help them evaluate the product. The ability to produce a high quality, battery-grade LiOH, alongside the Project's already demonstrated ability to produce battery grade lithium fluoride and lithium carbonate, further demonstrates the flexible nature of the Project and its ability to produce high value products to meet demand from battery makers.

Additionally, during the period, Deutsche Lithium was granted a five-year Exploration Licence (the "Sadisdorf Licence") covering approximately 225 hectares ("ha") in the Erzgebirge or Ore Mountains region of Saxony, Germany. This complements two other exploration licences already held by Deutsche Lithium: the Falkenhain licence, covering 295.7 ha and with a term to 31 December 2022; and the Altenberg licence, covering 4,225.3 ha and with a term to 15 February 2024. The Sadisdorf Licence is circa 12km NNE of Zinnwald's key lithium deposit and forms part of the same geological unit that hosts the historic Li-Sn-W deposits at Zinnwald, Falkenhain and Altenberg.

The grant of this licence coupled with the Falkenhain and Altenburg licences represents exciting expansion potential for Zinnwald and, based on the historical resource delineated by previous licence holders, effectively increases our overall resource to greater than 1 million tons contained lithium carbonate equivalent ("LCE"), an increase of over 50%. We will be undertaking further work on all our exploration licence areas to further evaluate their potential and how they can enhance the Project.

Looking forward, the Company is working to advance the permitting status of the Project. Deutsche Lithium obtained its mining licence for Zinnwald in 2017, which is valid until 2047, but comes with the standard requirements to apply for further permits for environmental and construction aspects of the Project. Deutsche Lithium is currently undertaking detailed environmental and community studies to continue to develop the overall Zinnwald sustainability framework. Environmental monitoring programmes are ongoing as well as the permitting process for Zinnwald's mining and mineral processing plant.

In addition, the Company will begin a process of updating the feasibility study, value engineering work and finalisation of the plant locations.

With regard to the exploration licences, the Company has commenced data analytics and archive work with regard to the Sadisdorf licence. With regard to the Falkenhain licence, old drill cores have been prepared for mineral processing test work. Initial tests have indicated similar characteristics to the bulk samples from the Zinnwald licence.

Lithium Market

During the first half of 2021 stronger than expected electric vehicle production and sales volumes and only modest battery raw material supply response resulted in a tightening lithium market situation. As a result, both lithium carbonate and lithium hydroxide prices showed strong recoveries almost doubling from levels seen at the beginning of the year.

As governments and organisations worldwide drive the rapid deployment of new clean energy technologies, the role of critical materials, including metals such as lithium, is becoming more apparent. The EU estimates 18 times more lithium is required by 2030 to support its climate-neutrality scenarios, while at least 24 new lithium battery Gigafactories are planned in Europe with four expected to come online in 2021, bringing Europe's production capacity from its current 30 GWh to 700 GWh by 2028. To keep up with this demand, the EU is focused on encouraging local supply.

Ireland and Sweden

At the time of the reverse takeover transaction in October 2020, the Company placed its Irish and Swedish assets under care and maintenance while seeking either a partner or purchaser for the assets. In Sweden, the Company has now relinquished all of its licences, as these were considered non-core and closed its Filial entity in Sweden. The value of these licences in the Company's accounts had previously been fully written off.

At the Abbeytown project in Ireland, the Company's wholly-owned subsidiary, Erris Zinc Ltd, ("Erris Zinc"), carried out drilling of one diamond core drill hole on PL 3735 to meet minimum expenditure requirements for the biannual review of the permit. The hole, ERAB011, was located 20m to the east of hole ERAB005 drilled in 2018 (4.1m grading 15.63% zinc and lead combined and 90.68g/t silver). ERAB011, ERAB005 and ERAB008 are located on the same drill fence 375m south of the southernmost extent of the old workings and are the furthest south of all the drill holes drilled by Erris.

The aim of drilling the hole was to extend the known mineralisation in hole ERAB005 to the east and determine how wide the mineralised corridor may be. The hole angled at -60deg and drilled to a depth of 211.5m was drilled to target potential mineralisation in the crinoidal limestone 20m from the intersection in ERAB005. The hole intersected alteration including calcite veins and pyrite mineralisation in the Index Bed, Lower Grit and minor localised chalcopyrite mineralisation in the lower mixed beds with a maximum value of 0.7m @ 0.348 % Cu. The copper mineralisation was intersected vertically beneath high-grade lead-zinc mineralisation in hole ERAB005.

The alteration in the crinoidal limestone and Index Bed is consistent with proximal alteration to a mineralised structure. Mineralisation appears to be strongly buffered by the carbonate lithology such that very low values of base metals can occur in the carbonates a very short distance from the conduits which can host high-grade base metals. While the results of this hole (ERAB011) were disappointing, the high-grade mineralisation in hole ERAB005 remains open to the south and the exploration model is such that the best targets will be found where the NNE faults intersect with east-west trending north or south dipping extensional faults. Exploration targets remain untested such as the strong soil targets 900 m along trend from the drilled mineralisation which are associated with a large regional normal fault. These targets warrant further drilling.

In order to minimise ongoing holding costs, Erris Zinc has rationalised its licence holdings in Ireland, retaining just the core licence containing the old Abbeytown mine, which was renewed in August 2019 for a further six years to August 2025. Erris Zinc has now submitted surrender reports to relinquish the other four licences in the surrounding area.

Financial review

Notwithstanding that the Company is a UK plc, admitted to trading on AIM, the Company presents its accounts in its functional currency of Euros, since the majority of exploration expenditure, including that of its subsidiary Deutsche Lithium, is denominated in this currency.

The Group is still at an exploration and development stage and not yet producing minerals, which would generate commercial income. The Group is not expected to report overall profits until it is able to profitably commercialise its Zinnwald Lithium project in Germany or disposes of its historic exploration project in Ireland.

On completion of the acquisition of the initial 50% of Deutsche Lithium in October 2020, this company and asset became the primary focus of the Zinnwald Group. As the Company did not have control of Deutsche Lithium at this initial stage, the holding was accounted for as an investment in a Joint Venture. On 24 June 2021, the Company completed the acquisition of the remaining 50% of Deutsche Lithium and from that date now consolidates the full results of Deutsche Lithium. As part of this step change to full consolidation, the Company revalued its initial shareholding in Deutsche Lithium and recognised a gain of EUR1.03m, together with a Goodwill intangible asset of EUR5.53m.

During the period, the Group made a loss before taxation of EUR0.94m compared with a loss of EUR0.41m for the period ended 30 June 2020. This is primarily due to a project impairment charge of EUR1.55m for Abbeytown together with the revaluation gain of EUR1.03m on the original investment in Deutsche Lithium. Administrative costs remained substantively unchanged at EUR0.36m, which primarily relates to the costs related to being a public listed company, including the costs of non-executive directors, brokers, nominated adviser and other advisers.

The Total Net Assets of the Group increased to EUR16.77m at 30 June 2021 from EUR3.45m at 30 June 2020, primarily due to the consolidation of Deutsche Lithium's net assets of EUR8.30m and the Goodwill intangible asset of EUR5.53m, offset by the full impairment of the Ireland and Sweden exploration assets.

The closing cash balance for the Group at the period end was EUR2.91m which is greater than the EUR1.27m at the end of the same period in the prior year, due primarily to the funds raised at the time of the initial acquisition of the shareholding in Deutsche Lithium, offset by ongoing development expenditure and the EUR1.5m cash payment to acquire the balance of the shares in Deutsche Lithium. As at the date of this report, the Group's cash balance is EUR2.3m.

On behalf of the board

Cherif Rifaat

Director and CFO

7 September 2021

 
Interim Condensed Consolidated Statement 
 of Comprehensive Income 
                                                                                   30 June     30 June 
                                                                                      2021        2020 
                                                                                 Unaudited   Unaudited 
                                                                       Notes           EUR         EUR 
 
Revenue                                                                                  -           - 
Cost of sales                                                                     (13,797)      (40,695) 
 
 
 
Gross (loss)/profit                                                               (13,797)    (40,695) 
 
Ireland and Sweden exploration 
 project impairment                                                    6       (1,549,875)             - 
Administrative expenses                                                          (357,579)     (368,074) 
 
 
 
Operating loss                                                           4     (1,921,251)   (408,769) 
 
Finance income                                                                         422           - 
Share of results of joint ventures                                       5        (52,911)           - 
Revaluation gain on original 
 joint venture holding                                                   9       1,038,252           - 
 
 
 
Loss before taxation                                                             (935,488)   (408,769) 
 
Tax on (loss)/profit                                                                     -             - 
 
 
 
Loss for the financial period                                                    (935,488)   (408,769) 
 
Other comprehensive income                                                               -           - 
 
 
 
Total comprehensive income for the 
 period                                                                          (935,488)   (408,769) 
 
 
 
Earnings per share from continuing operations 
 attributable to the owners of the parent company 
 
Basic and diluted (cents per share) 7 (0.44) (1.31) 
 
The income statement has been prepared on the basis that all operations 
 are continuing operations. 
 
 
 
Interim Condensed Consolidated Statement of Financial Position 
 
                                                              30 June 2021   30 June 2020   31 December 
                                                                 Unaudited      Unaudited          2020 
                                                                                                Audited 
                                                    Notes              EUR            EUR           EUR 
 
Non-current assets 
Investments in joint 
 venture                                              9                  -              -     3,852,083 
Intangible assets                                     8          8,303,034      2,140,610     1,546,111 
Goodwill                                              8          5,531,474              -             - 
Property, plant and 
 equipment                                           10             46,974              -         3,662 
 
 
 
                                                                13,881,482      2,140,610     5,401,856 
 
 
 
Current assets 
Trade and other receivables                          11            122,137         51,330       170,926 
Cash and cash equivalents                              12        2,908,955      1,271,251     4,846,527 
 
 
 
                                                                 3,031,092      1,322,581     5,017,453 
 
 
 
Total assets                                                    16,912,574      3,463,191    10,419,309 
 
 
 
Current liabilities 
 
Trade and other payables                             13            143,974         12,476        58,833 
 
 
 
                                                                   143,974         12,476        58,833 
 
 
 
Net current assets                                               2,887,118      1,310,105     4,958,620 
 
 
 
Total liabilities                                                  143,974         12,476        58,833 
 
 
 
Net assets                                                      16,768,600      3,450,715    10,360,476 
 
 
 
Equity 
Share capital                                        15          2,867,979        437,480     2,278,155 
Share premium                                                   14,112,654      4,431,671     7,362,699 
Other reserves                                                     818,654        811,077       814,821 
Retained earnings                                              (1,030,687)    (2,229,513)      (95,199) 
 
 
 
Total equity                                                    16,768,600      3,450,715    10,360,476 
 
 
 
 
 
 
 
 
 
 
Interim Condensed Consolidated Statement of Changes in Equity 
                               Share capital  Share premium  Other reserves      Retained        Total 
                                                                                 earnings 
                                         EUR            EUR             EUR           EUR          EUR 
 
Balance at 1 January 
 2021                              2,278,155      7,362,699         814,821      (95,199)   10,360,476 
 
 
 
Six months ended 30 
 June 2021: 
Loss and total other 
 comprehensive income 
 for the period                            -              -               -     (935,488)    (935,488) 
 
 
 
Total comprehensive income 
 for the period                            -              -               -     (935,488)    (935,488) 
 
 
 
Issue of share capital    589,824  6,749,955  --7,339,779 
Credit to equity for 
  equity settled 
 
 
  share-based payments    --3,833  -3,833 
 share-based payments 
 
 
 
Total transactions 
  with owners          589,824  6,749,955  3,833  -7,343,612 
 directly in equity 
 
 
 
Balance at 30 June 2021            2,867,979     14,112,654         818,654   (1,030,687)   16,768,600 
 
 
 
 
 
 
 
 
                               Share capital  Share premium  Other reserves      Retained        Total 
                                                                                 earnings 
                                         EUR            EUR             EUR           EUR          EUR 
 
Balance at 1 January 
 2020                                351,133      4,151,045         811,077   (1,820,744)    3,492,511 
 
 
 
Six months ended 30 
 June 2020: 
Loss and total other 
 comprehensive income 
 for the period                            -              -               -     (408,769)    (408,769) 
 
 
 
Total comprehensive income 
 for the period                            -              -               -     (408,769)    (408,769) 
 
 
Issue of share capital    86,347  280,626  --366,973 
 
 
 
Balance at 30 June 2020              437,480      4,431,671         811,077   (2,229,513)    3,450,715 
 
 
 
 
 
Interim Condensed Consolidated Statement 
 of Cash Flows 
 
                                                              30 June               30 June 
                                                                 2021                  2020 
                                                            Unaudited             Unaudited 
                                      Notes          EUR          EUR        EUR        EUR 
 
Cash flows from operating activities 
 
Cash (used in)/generated 
 from operations                       16                   (390,310)             (363,352) 
 
 
 
Net cash (used in)/generated 
 from operating activities                                  (390,310)             (363,352) 
 
Cash flows from investing 
 activities 
Investments in Joint Venture                   (735,800)                       - 
Exploration expenditure in Ireland 
 and Sweden                                      (3,764)               (138,276) 
Purchase of remaining share of 
 Deutsche Lithium                            (1,500,000)                       - 
Cash acquired on acquisition 
 of Deutsche Lithium                             486,213                       - 
Interest received                                    422                       - 
 
 
 
Net cash used in investing 
 activities                                               (1,752,929)             (138,276) 
 
Cash flows from financing activities 
Proceeds from issue of shares                     58,717                 366,973 
 
 
 
Net cash generated from 
 financing activities                                          58,717               366,973 
 
 
 
Net decrease in cash and cash 
 equivalents                                              (2,084,522)             (134,655) 
 
Cash and cash equivalents at 
 beginning of period                                        4,846,528             1,497,276 
Effect of foreign exchange 
 rates                                                        146,949              (91,370) 
 
 
 
Cash and cash equivalents at 
 end of period                                              2,908,955             1,271,251 
 
 
 
 
 
            Notes to the Interim Condensed Consolidated Financial Statement 
 
1           Accounting policies 
 
            Company information 
            Zinnwald Lithium Plc (the "Company") is a public limited company 
             which is admitted to trading on the AIM Market of the London 
             Stock Exchange and is domiciled and incorporated in England and 
             Wales. The registered office address is 29-31 Castle Street, 
             High Wycombe, Buckinghamshire, United Kingdom, HP13 6RU. 
 
             The Group consists of Zinnwald Lithium Plc and its wholly owned 
             subsidiaries, Deutsche Lithium GmbH in Germany, Deutsche Lithium 
             Holdings Ltd (formerly Erris Resources (Exploration) Ltd) in 
             the UK, and Erris Zinc Limited in Ireland. 
 
1.1         Basis of preparation 
            These unaudited interim condensed consolidated financial statements 
             have been prepared under the historical cost convention and in 
             accordance with the AIM Rules for Companies. As permitted, the 
             Company has chosen not to adopt IAS 34 "Interim Financial Statements" 
             in preparing this interim financial information. The unaudited 
             interim condensed financial statements should be read in conjunction 
             with the annual report and financial statements for the year 
             ended 31 December 2020, which have been prepared in accordance 
             with International Financial Reporting Standards (IFRS) as adopted 
             by the European Union. 
 
             The unaudited interim condensed consolidated financial statements 
             do not constitute statutory financial statements within the meaning 
             of the Companies Act 2006. They have been prepared on a going 
             concern basis in accordance with the recognition and measurement 
             criteria of UK adopted international accounting standards. Statutory 
             financial statements for the year ended 31 December 2020 were 
             approved by the Board of Directors on 25 February 2021 and delivered 
             to the Registrar of Companies. The report of the auditor on those 
             financial statements was unqualified. 
 
             The same accounting policies, presentation and methods of computation 
             are followed in these unaudited interim condensed financial statements 
             as were applied in the preparation of the audited financial statements 
             for the year ended 31 December 2020. 
 
            The financial statements are prepared in euros, which is the 
             functional currency of the company and the group's presentation 
             currency, since the majority of exploration expenditure is denominated 
             in this currency. Monetary amounts in these financial statements 
             are rounded to the nearest EUR. 
 
 
 
1.2         Basis of consolidation 
            The consolidated financial statements incorporate those of Zinnwald 
             Lithium Plc and all of its subsidiaries (ie entities that the 
             Group controls when the Group is exposed to, or has rights to, 
             variable returns from its involvement with the entity and has 
             the ability to affect those returns through its power over the 
             entity). 
 
         In regard to its shareholding in Deutsche Lithium, for the period 
         from 1(st) January 2021 to 24(th) June 2021, the Board concluded 
         that whilst it had significant influence over Deutsche Lithium (50% 
         shareholding, 1 of the 2 co-managing directors and a casting vote 
         on operational matters), it did not have control over that company 
         and consequently the investment was accounted for using equity accounting 
         rather than consolidated. On conclusion of the acquisition of the 
         remaining 50% of Deutsche Lithium on 24(th) June 2021, the Company 
         now consolidates the full results of Deutsche Lithium. 
            All intra-group transactions, balances and unrealised gains on 
             transactions between Group companies are eliminated on consolidation. 
             Unrealised losses are also eliminated unless the transaction 
             provides evidence of an impairment of the asset transferred. 
 
             Subsidiaries are fully consolidated from the date on which control 
             is transferred to the Group. They are deconsolidated from the 
             date on which control ceases. 
 
 
1.3    Going concern 
        At the time of approving these financial statements, the Directors 
        have a reasonable expectation that the Company has adequate resources 
        to continue in operational existence for the foreseeable future. 
        The Company had a cash balance of EUR2.9m at the period end and 
        keeps a tight control over all expenditure. Thus, the Directors 
        continue to adopt the going concern basis of accounting in preparing 
        the financial statements. 
 
        The Directors have reviewed the ongoing situation with COVID-19 
        and do not consider its effects to have a material impact on 
        the Group's and Company's going concern. 
1.4  Intangible fixed assets other than goodwill 
     Capitalised Exploration and Evaluation costs 
 
     Capitalised Exploration and Evaluation Costs consist of direct costs, 
      licence payments and fixed salary/consultant costs, capitalised in 
      accordance with IFRS 6 "Exploration for and Evaluation of Mineral 
      Resources". The Group recognises expenditure in Exploration and Evaluation 
      assets when it determines that those assets will be successful in 
      finding specific mineral assets. Exploration and Evaluation assets 
      are initially measured at cost. Exploration and Evaluation Costs 
      are assessed for impairment when facts and circumstances suggest 
      that the carrying amount of an asset may exceed its recoverable amount. 
      Any impairment is recognised directly in profit or loss. 
1.5  Property, plant and equipment 
      Property, plant and equipment are initially measured at cost and 
      subsequently measured at cost, net of depreciation and any impairment 
      losses. 
 
      Depreciation is recognised so as to write off the cost or valuation 
      of assets less their residual values over their useful lives on the 
      following bases: 
      Plant and equipment            25% on cost 
      Fixtures and fittings          25% on cost 
      Computers                      25% on cost 
 
      The gain or loss arising on the disposal of an asset is determined 
       as the difference between the sale proceeds and the carrying 
       value of the asset and is recognised in the income statement. 
1.6  Impairment of non-current assets 
     At each reporting period end date, the Directors review the carrying 
      amounts of its tangible and intangible assets to determine whether 
      there is any indication that those assets have suffered an impairment 
      loss. If any such indication exists, the recoverable amount of the 
      asset is estimated in order to determine the extent of the impairment 
      loss (if any). Where it is not possible to estimate the recoverable 
      amount of an individual asset, the Directors estimate the recoverable 
      amount of the cash-generating unit to which the asset belongs. 
 
      Intangible assets not yet ready to use and not yet subject to amortisation 
      are reviewed for impairment whenever events or circumstances indicate 
      that the carrying value may not be recoverable. Recoverable amount 
      is the higher of fair value less costs to sell and value in use. 
      In assessing value in use, the estimated future cash flows are discounted 
      to their present value using a pre-tax discount rate that reflects 
      current market assessments of the time value of money and the risks 
      specific to the asset for which the estimates of future cash flows 
      have not been adjusted. 
 
      If the recoverable amount of an asset (or cash-generating unit) is 
      estimated to be less than its carrying amount, the carrying amount 
      of the asset (or cash-generating unit) is reduced to its recoverable 
      amount. An impairment loss is recognised immediately in profit or 
      loss, unless the relevant asset is carried at a revalued amount, 
      in which case the impairment loss is treated as a revaluation decrease. 
 
 
 
 
 
1.7  Joint Arrangements 
     Up to 24(th) June 2021, the Group's core activities in relation 
      to the Zinnwald Lithium project were conducted through joint arrangements 
      in which two or more parties have joint control. A joint arrangement 
      is classified as either a joint operation or a joint venture, depending 
      on the rights and obligations of the parties to the arrangement. 
 
      Joint operations arise when the Group has a direct ownership interest 
      in jointly controlled assets and obligations for liabilities. The 
      Group does not currently hold this type of arrangement. 
 
      Joint ventures arise when the Group has rights to the net assets 
      of the arrangement. For these arrangements, the Group used equity 
      accounting and recognises initial and subsequent investments at 
      cost, adjusting for the Group's share of the joint venture's income 
      or loss, dividends received and other comprehensive income thereafter. 
      When the Group's share of losses in a joint venture equals or exceeds 
      its interest in a joint venture it does not recognise further losses. 
      The transactions between the Group and the joint venture are assessed 
      for recognition in accordance with IFRS. 
 
      No gain on acquisition, comprising the excess of the Group's share 
      of the net fair value of the investee's identifiable assets and 
      liabilities over the cost of investment, was recognised in profit 
      or loss. The net fair value of the identifiable assets and liabilities 
      were adjusted to equal cost. 
 
      Joint ventures are tested for impairment whenever objective evidence 
      indicates that the carrying amount of the investment may not be 
      recoverable under the equity method of accounting. The impairment 
      amount is measured as the difference between the carrying amount 
      of the investment and the higher of its fair value less costs of 
      disposal and its value in use. Impairment losses are reversed in 
      subsequent periods if the amount of the loss decreases and the decrease 
      can be related objectively to an event occurring after the impairment 
      was recognised. 
2    Judgements and key sources of estimation uncertainty 
 
      In the application of the accounting policies, the Directors are 
      required to make judgements, estimates and assumptions about the 
      carrying amount of assets and liabilities that are not readily apparent 
      from other sources. The estimates and associated assumptions are 
      based on historical experience and other factors that are considered 
      to be relevant. Actual results may differ from these estimates. 
 
      The estimates and underlying assumptions are reviewed on an ongoing 
      basis. Revisions to accounting estimates are recognised in the period 
      in which the estimate is revised where the revision affects only 
      that period, or in the period of the revision and future periods 
      where the revision affects both current and future periods. 
 
      Critical judgements 
      The following judgements and estimates have had the most significant 
      effect on amounts recognised in the financial statements. 
 
      Joint venture investment 
      The Group applied IFRS 11 to all joint arrangements and classified 
      them as either joint operations or joint ventures, depending on 
      the contractual rights and obligations of each investor. The Group 
      held 50% of the voting rights of its joint arrangement with SolarWorld 
      AG. The Group determined itself to have joint control over this 
      arrangement as under the contractual agreements, unanimous consent 
      is required from all parties to the agreements for certain key strategic, 
      operating, investing and financing policies. The Group's joint arrangement 
      was structured through a limited liability entity, Deutsche Lithium 
      GmbH, and provided the Group and SolarWorld AG (parties to the joint 
      venture agreement) with rights to the net assets of Deutsche Lithium 
      under the arrangements. Therefore, this arrangement was classified 
      as a joint venture up to 24 June 2021 when the Company acquired 
      the remaining 50% of Deutsche Lithium and thereafter consolidated 
      its full results. 
 
      The investment was assessed at each reporting period date for impairment. 
      An impairment is recognised if there is objective evidence that 
      events after the recognition of the investment have had an impact 
      on the estimated future cash flows which can be reliably estimated. 
      In addition, the assessment as to whether economically recoverable 
      reserves exist is itself an estimation process. Under IFRS 3, on 
      acquisition of the additional stake in the joint venture, the Company 
      remeasured the fair value of its original investment in the joint 
      venture and recognised a gain. 
 
 
 
    Impairment of Capitalised Exploration Costs 
    Excluding the newly acquired exploration assets of Deutsche Lithium, 
    other Group capitalised exploration costs had a carrying value as 
    at 31 December 2020 of EUR1,546,111. Ordinarily, Management tests 
    annually whether capitalised exploration costs have a carrying value 
    in accordance with the accounting policy stated in note 1.4. Due 
    to the acquisition of the remaining shareholding in Deutsche Lithium 
    and the Company's now sole focus on the Zinnwald Lithium project, 
    the Directors elected to undertake a full review of non-core assets 
    as part of the Interim accounts review. Each exploration project 
    is subject to a review either by a consultant or an appropriately 
    experienced Director to determine if the exploration results returned 
    to date warrant further exploration expenditure and have the potential 
    to result in an economic discovery. This review takes into consideration 
    long-term metal prices, anticipated resource volumes and grades, 
    permitting and infrastructure as well as the likelihood of on-going 
    funding from joint venture partners. In the event that a project 
    does not represent an economic exploration target and results indicate 
    that there is no additional upside, or that future funding from 
    joint venture partners is unlikely, a decision will be made to discontinue 
    exploration. 
 
    In Ireland, five licences were originally granted for six years 
    in 2013 and in Q3 2019, the Group extended these licences for a 
    further six years. The exploration work identified excellent mineralisation 
    in its drill holes and the metallurgical review has shown a good 
    quality concentrate can be produced. However, in 2021, the Group 
    elected to relinquish the four non-core licences but undertook the 
    required further exploration work to maintain the core licence area 
    (PL 3735) at Abbeytown and expects that this spend meets the requirement 
    to maintain this licence in good standing through to Q3 2022. Whilst 
    the current Zinc market is relatively subdued and Zinnwald is no 
    longer focussed on Ireland, the Company still intends to find a 
    JV Partner for PL 3735. Accordingly, the Board has concluded that 
    an impairment charge should be made in the 2021 interim accounts 
    in regard to capitalised costs from the Irish licences, which has 
    resulted in an impairment of EUR1,547,986. 
 
    In 2021 in Sweden, the Company has been unable to find a joint venture 
    partner to further develop its licences and has elected to cease 
    all operations, close its Filial branch and relinquish all licences. 
    In 2020, the Company fully impaired its Swedish assets and the Board 
    have recommended a further impairment charge of EUR1,889 for expenditure 
    made in 2021. 
 
 
3   Segmental reporting 
 
    The Group operates principally in the UK and Germany with largely 
     dormant subsidiary activities in Ireland and Sweden. Activities 
     in the UK include the Head Office and corporate and administrative 
     costs, whilst the activities in Germany relate to the work done 
     by Deutsche Lithium on the Group's primary asset of the Zinnwald 
     Lithium Project. The reports used by the Board and Management 
     are based on these geographical segments. As noted earlier, the 
     results of Germany were reported as an Investment in Joint Venture 
     for the period to 24 June 2021, and from thereon will be reported 
     on a fully consolidated basis. 
 
                                          Ireland    Sweden      Germany          UK         Total 
                                             2021      2021         2021        2021          2021 
                                              EUR       EUR          EUR         EUR           EUR 
 
    Revenues                                    -         -            -           -             - 
 Cost of sales and administrative 
  expenses                                (3,818)   (1,513)            -   (514,642)     (519,973) 
 Gain/loss on foreign exchange                 10         1            -     148,586       148,597 
 Project impairment                   (1,547,986)   (1,889)            -           -   (1,549,875) 
 
 
 
 Profit/(loss) from operations 
  per reportable segment              (1,551,794)   (3,401)            -   (362,224)   (1,921,251) 
 
 
 
 Reportable segment assets                 16,887     2,145   14,395,408   2,498,134    16,912,574 
 Reportable segment liabilities                 -         -       41,122     102,852       143,974 
 
                                          Ireland    Sweden       Others          UK         Total 
                                             2020      2020         2020        2020          2020 
                                              EUR       EUR          EUR         EUR           EUR 
 
    Revenues                                    -         -            -           -             - 
 Cost of sales and administrative 
  expenses                               (30,981)         -      (9,714)   (276,704)     (310,399) 
 Gain/loss on foreign exchange            (3,240)      (41)            -    (88,089)      (91,370) 
 
 
 
 Profit/(loss) from operations 
  per reportable segment                 (34,221)      (41)      (9,714)   (364,793)     (408,769) 
 
 
 
 Reportable segment assets              2,007,946   126,675       34,037   1,294,533     3,463,191 
 Reportable segment liabilities             4,671         -            -       7,805        12,476 
 
 
 
4           Operating (loss)/profit 
                                                                2021                                         2020 
                                                                 EUR                                          EUR 
            Operating (loss)/profit for the period is stated after 
            charging: 
 
            Exchange gains/losses                            148,597                                     (91,370) 
            Ireland and Sweden exploration projects 
             impairment                                    1,549,875                                            - 
            Share-based payments                               3,833                                            - 
            Operating lease charges                           11,891                                       19,121 
            Exploration costs expensed                         5,331                                       40,695 
 
 
5          Share of results in Joint Venture 
                                                                2021                                         2020 
                                                                 EUR                                          EUR 
 
            Share of Loss in Joint Venture for the period 
             to 24 June 2021                                (52,911)                                            - 
 
 
6          Impairments 
 
           Impairment tests have been carried out where appropriate and the 
           following impairment losses have been recognised in profit or 
           loss: 
                                                                2021                                         2020 
                                                                 EUR                                          EUR 
 
            In respect of: 
            Intangible assets                              1,549,875                                            - 
 
 
 
 
 
 
7   Earnings per share                                                           2021         2020 
                                                                               Number       Number 
 
   Weighted average number of ordinary shares 
   for basic earnings per share                                           213,439,290   31,098,212 
 
    Effect of dilutive potential ordinary shares: 
 - Weighted average number outstanding share 
  options                                                                   2,700,000    3,150,000 
 
 
 
 Weighted average number of ordinary shares 
  for diluted earnings per share                                          216,139,290   34,248,212 
 
 
 
    Earnings                                                                      EUR          EUR 
    Continuing operations 
 Loss for the period from continuing operations                             (935,488)    (408,769) 
 
 
 
 Earnings for basic and diluted earnings per 
  share attributable to equity shareholders 
  of the company                                                            (935,488)    (408,769) 
 
 
 
    Earnings per share for continuing operations 
    Basic and diluted earnings per share (cents) 
 
 Basic earnings per share                                                      (0.44)       (1.31) 
 
 
 
 Diluted earnings per share                                                    (0.44)       (1.31) 
 
 
 
 There is no difference between the basic and diluted earnings 
  per share for the period ended 30 June 2021 and 2020 as the effect 
  of the exercise of options would be to decrease the loss per 
  share. 
 
 
 
 
8               Intangible fixed assets 
 
                                         Germany      Ireland &    Goodwill         Total 
                                     Exploration         Sweden 
                                             and    Exploration 
                                      Evaluation            and 
                                           costs     Evaluation 
                                                          costs 
                                             EUR            EUR         EUR           EUR 
                Cost 
                At 1 January 2021              -      2,138,576           -     2,138,576 
                Additions on 
                 consolidation         8,303,034          3,764   5,531,474    13,838,272 
 
 
 
                At 30 June 2021      8,303,034        2,142,340   5,531,474    15,976,848 
 
 
 
                Amortisation and impairment 
      At 1 January 2021   -(592,465)  -(592,465) 
      Charge for 
       the period                              -    (1,549,875)           -   (1,549,875) 
 
 
       At 30 June 2021                         -    (2,142,340)           -   (2,142,340) 
 
 
 
                Carrying amount 
                At 30 June 2021        8,303,034              -   5,531,474    13,834,508 
 
 
 
 
                Intangible assets comprise capitalised exploration and evaluation 
                 costs (direct costs, licence fees and fixed salary / consultant 
                 costs) for the Zinnwald Lithium Project, Ireland Zinc Project and 
                 the Sweden Gold Projects. 
9               Business combination 
                                                                    30 June   31 December 
                                                                       2021          2020 
                                                                        EUR           EUR 
 
      Investments in joint 
       ventures                                                           -     3,852,083 
 
 
 
                                                                          -     3,852,083 
 
 
 
      Investments in subsidiaries are recorded at cost, which is the fair 
       value of the consideration paid. 
 
 
 
 
 
 
 
          9.1 Initial Investment in Deutsche Lithium 
 
          On 29 October 2020, the Company completed the acquisition of a 50% 
          shareholding in Deutsche Lithium Gmbh ("Deutsche Lithium") from Bacanora 
          Lithium Plc ("Bacanora") via a reverse takeover. Bacanora contributed 
          its share in Deutsche Lithium and EUR1.35m in cash in exchange for 
          90,619,170 new shares in the Company at a price of 5p per share and 
          a 2% Net Profits Royalty. The Company thereafter took over the obligations 
          due under the Deutsche Lithium Joint Venture Agreement and made all 
          payments due monthly from October 2020 to June 2021. 
 
          The Company held one of the two managing director positions and a 
          50% shareholding in Deutsche Lithium, but only had a casting vote 
          on purely operational development matters. Therefore, the Directors 
          concluded that the Company only had significant influence over Deutsche 
          Lithium and not control. 
 
          The Company followed the requirements of IAS 28 in applying the equity 
          method and increased or decreased the investment by recognising its 
          share of the profit or loss and other comprehensive income from Deutsche 
          Lithium. 
 
          The table below shows the movements in the equity accounted investment: 
           Value of 50% share in Deutsche Lithium acquired from 
            Bacanora on 29 October 2020                              EUR 3,685,662 
           Funds provided under the terms of the Joint Venture 
            Agreement                                                  EUR 165,000 
           Additional committed funds for further testwork              EUR 34,000 
           Share of Deutsche Lithium Loss for the period November 
            to December 2020                                          (EUR 32,579) 
                                                                    -------------- 
           Carrying Value as at 31 December 2020                     EUR 3,852,083 
           Funds provided under the terms of the Joint Venture 
            Agreement                                                   EUR330,000 
           Additional committed funds for further testwork              EUR389,800 
           Additional review work                                        EUR16,000 
           Share of Deutsche Lithium Loss for the period January 
            to June 2021                                               (EUR52,911) 
                                                                    -------------- 
           Carrying Value as at 24 June 2021                          EUR4,534,972 
 

9.2 Remeasurement of fair value of initial holding in Deutsche Lithium

Under IFRS 3, on acquisition of the controlling stake, the Company remeasured the fair value of its original investment in Deutsche Lithium. In terms of calculating that revaluation and any resulting gain or loss, the Directors noted that both transactions were conducted on an arms-length basis with unconnected third-parties. The Directors considered that there was a significant control premium in acquiring the second 50% of Deutsche Lithium and used an estimate of 30% in its calculations of the revaluation of the fair value of the initial shareholding.

 
                                                         Control premium (30%) of 
    Value of second acquisition       EUR 8,781,062       Net Value                          EUR 2,388,525 
                                                         Fair Value of original 
    Less: Cash in company             (EUR 486,213)       investment                         EUR 5,573,224 
    Less: Free Carry eliminated       (EUR 333,100)      Cash                                  EUR 486,213 
                                  ----------------- 
    Net Value of second 
     acquisition                      EUR 7,961,749      Release of obligation                 EUR 333,100 
                                                                                         ----------------- 
                                                         Value of second Acquisition         EUR 8,781,062 
 
                                                         Carrying Value at 24 June 
                                                          2021                               EUR 4,534,972 
                                                         Gain recognised on revaluation      EUR 1,038,252 
 
 
 
 
            9.3 Accounting for acquisition of remaining 50% of Deutsche Lithium 
 
            On 24 June 2021, the Company completed the acquisition of SolarWorld 
            AG's 50% shareholding in Deutsche Lithium by the payment of EUR1.5m 
            in cash and the issuance of 49,999,996 new shares in the Company. 
            These new shares were valued at the closing price on 21 June 2021 
            of 12.5p, as all legal agreements became legally binding on completion 
            on the morning of 22 June 2021, conditional solely on admission 
            of the new shares on 24 June 2021. These 49,999,996 new shares were 
            valued at 12.5p per share and an exchange rate of EUR1.16497, equating 
            to a total value of EUR8,781,062 including the cash element. 
 
            On 24 June 2021, by virtue of acquiring the remaining 50% of Deutsche 
            Lithium it did not own, the Company became the owner of 100% of 
            Deutsche Lithium and the Joint Venture Agreement that covered its 
            management was automatically terminated. This transaction is categorised 
            as a 'step acquisition' under IFRS 3 whereby the Company now has 
            a 100% owned subsidiary. Management has concluded that the acquisition 
            is one of a business rather than an asset and accordingly, Deutsche 
            Lithium moves from being equity accounted as a Joint Venture to 
            being fully consolidated as a subsidiary undertaking. 
 
            On consolidation as at 24 June 2021, a calculation was required 
            under normal acquisition rules to calculate the goodwill arising 
            at the date of acquisition, but taking into consideration the 50% 
            already owned at that date. The previously held 50% investment in 
            Deutsche Lithium at Fair Value is derecognised and replaced with 
            the assets and liabilities of Deutsche Lithium, so that going forward 
            it is consolidated in full as normal as a subsidiary undertaking. 
            The Directors have concluded that there should be no adjustment 
            to the carrying value of Deutsche Lithium's Net Assets. The Directors 
            undertook a detailed review of Deutsche Lithium's balance sheet 
            at the time of the Company's acquisition of the remaining 50% of 
            Deutsche Lithium it did not own and concluded that no adjustments 
            were required. Since that date, Deutsche Lithium has continued with 
            the same accounting policies, which are in accordance with those 
            of the Company. 
             Fair Value of consideration given to acquire 
              the controlling interest 
              Cash of EUR1.5m                                      EUR 1,500,000 
              49,999,996 new shares                                EUR 7,281,062 
                                                                ---------------- 
              Total                                                EUR 8,781,062 
             Fair value of 50% investment in Deutsche 
              Lithium as at 24 June 2021                           EUR 5,573,224 
                                                                ---------------- 
              Total Consideration                                 EUR 14,354,286 
             Fair value of net assets acquired in Deutsche 
              Lithium as at 24 June 2021                         (EUR 8,822,812) 
                                                                ---------------- 
             Goodwill                                              EUR 5,531,474 
 
 
            9.4 Commitments under the Deutsche Lithium JV Agreement 
 
            The Company signed a Deed of Adherence to abide by the terms of 
            the Joint Venture Agreement. The only outstanding financial commitment 
            was the 2nd Amendment entered into by Bacanora in February 2020 
            by which it committed to fund Deutsche Lithium with EUR1.35m in 
            monthly instalments over two years. At the date of completion of 
            the initial acquisition of 50% of Deutsche Lithium by the Company, 
            the amount outstanding was EUR0.935m, as at 31 December 2020 it 
            was EUR0.770m and as at 24 June 2021 it was EUR440,000. On completion 
            of the acquisition of the remaining 50% of Deutsche Lithium, the 
            Joint Venture Agreement was formally terminated and the Company 
            shall henceforth fund the operations at Deutsche Lithium as a normal 
            subsidiary undertaking. 
 
 
10      Property, plant and equipment 
                                                 Plant and    Land, land          Total 
                                                 machinery,        rights 
                                           office equipment   & buildings 
                                                        etc 
                                                        EUR           EUR            EUR 
         Cost 
         At 1 January 2021                           14,769             -         14,769 
         Additions - on acquisition 
          of subsidiary                              33,983         9,817         43,800 
 
 
 
         At 30 June 2021                             48,752         9,817         58,569 
 
 
 
         Depreciation and impairment 
         At 1 January 2021    11,107  -11,107 
         Charge                                         488             -            488 
 
 
         At 30 June 2021                             11,595             -         11,595 
 
 
 
         Carrying amount 
         At 30 June 2021                             37,157         9,817         46,974 
       11    Trade and other receivables 
                                                                30 June       31 December 
                                                                   2021              2020 
              Amounts falling due within one year:                  EUR               EUR 
         Other receivables                                       82,783           133,459 
         Prepayments and accrued income                          39,354            37,467 
 
 
         At 30 June 2021                                        122,137           170,296 
 
12       Cash and cash equivalents 
                                                                           30 June             31 December 
                                                                              2021                    2020 
                                                                                            EUR        EUR 
         Cash and cash equivalents                                                    2,422,742  4,846,527 
         Cash acquired on acquisition of subsidiary                                     486,213          - 
 
 
         At 30 June 2021                                                              2,908,955  4,846,527 
 
 
 

Security held over cash

Under the terms of the Deed of Adherence with Bacanora Lithium Plc, entered into on 29 October 2020, Bacanora held a secured charge over a cash amount equal to the amount outstanding under the Deutsche Lithium JV Agreement. As at 31 December 2020, this secured amount was EUR770,000. On completion of the acquisition of the remaining 50% of Deutsche Lithium and the termination of the Joint Venture Agreement, the Company has commenced the process of removing this secured charge.

 
13    Trade and other payables 
         30 June  31 December 
             2021         2020 
      Amounts falling due within one year:  EUR  EUR 
      Trade payables   140,845  14,108 
      Accruals and deferred income   3,129  44,725 
 
 
         At 30 June 2021                                    143,974            58,833 
 
14    Subsidiaries 
 
      Details of the company's subsidiaries at 30 June 2021 are as follows: 
 
                                                                                           % Held 
 
      Name of undertaking           Registered         Nature of business   Class of       Direct  Indirect 
                                     office                                  shares held 
 
 Deutsche Lithium Holdings 
  Ltd                          United Kingdom     Holding              Ordinary            100.00         - 
 Erris Zinc Ltd                Ireland            Exploration          Ordinary            100.00         - 
                                                  Exploration and 
 Deutsche Lithium GmbH         Germany             Development         Ordinary            100.00         - 
 
 
       The registered office address of Deutsche Lithium Holdings Ltd (formerly 
        Erris Resources (Exploration) Ltd) is 29-31 Castle Street, High Wycombe, 
        Bucks, HP13 6RU. 
 
        The registered office address of Erris Zinc Ltd is The Bungalow, Newport 
        Road, Castlebar, Co Mayo, F23 YF24. 
 
        The registered office address of Deutsche Holdings GmbH is Am St. Niclas 
        Schacht 13, Freiberg, Germany, 09599. 
 
 
 
 
15   Share capital 
                                                                  30 June 2021   31 December 
                                                                                        2020 
     Ordinary share capital                                                EUR           EUR 
     Issued and fully paid 
 255,105,953 ordinary shares of 1p each 
  (2020: 204,455,957)                                                2,867,979     2,278,155 
 
 
 
                                                                     2,867,979     2,278,155 
 
 
     The Group's share capital is issued in GBP but is converted into 
      the functional currency of the Group (Euros) at the date of issue 
      of the shares. 
 
     Reconciliation of movements during the period: 
                                                                      Ordinary      Ordinary 
                                                                        Number           EUR 
     Ordinary shares of 1p each 
 At 1 January 2021                                                 204,455,957     2,278,155 
 Issue of fully paid shares (share options 
  exercised)                                                           650,000         7,339 
 Issue of fully paid shares (consideration 
  for shares in subsidiary)                                         49,999,996       582,485 
 
 
 
 At 30 June 2021                                                   255,105,953     2,867,979 
 
 
16   Cash (used in)/generated from group operations 
                                                                          2021          2020 
                                                                           EUR           EUR 
 
 (Loss)/profit for the period after tax                              (935,488)     (408,769) 
 
     Adjustments for: 
 Investment income                                                       (422)             - 
 Depreciation and impairment of property, plant 
  and equipment                                                            488             - 
 Ireland and Sweden exploration project impairment                   1,549,875             - 
 Revaluation gain on original joint venture 
  holding                                                          (1,038,252)             - 
 Share of loss of Joint Venture                                         52,911             - 
 Equity-settled share-based payment expense                              3,833             - 
 Foreign exchange                                                    (146,949)        91,370 
 
     Movements in working capital: 
 Decrease/(Increase) in trade and other receivables                     79,674      (16,032) 
 Increase/(Decrease) in trade and other payables                        44,020      (29,921) 
 
 
 
 Cash (used in)/generated from operations                            (390,310)     (363,352) 
 
 
 
 
 
 
17   Events after the reporting date 
 
       On 25 August 2021, Bacanora published a Rule 2.7 announcement regarding 
        the recommended cash offer by Ganfeng International Trading (Shanghai) 
        Ltd ("Ganfeng") for the entire issued and to be issued share capital 
        of Bacanora, other than that which Ganfeng already owns (the "Offer"). 
        As part of this Offer, the independent directors of Bacanora intend 
        to make a distribution in specie of the shares held by Bacanora in 
        Zinnwald to Bacanora's shareholders, including Ganfeng, subject to 
        the Offer becoming or being declared unconditional in all respects. 
        In the event that the Offer and distribution of shares complete, 
        Bacanora will cease to be a shareholder in Zinnwald and the Relationship 
        Agreement will automatically terminate. 
 
        On 12 August 2021, the Company issued 500,000 new ordinary shares 
        in accordance with the exercise of Options originally granted at 
        the time of the Company's original IPO in 2017. As a result of this 
        share issuance, the Company has 255,603,953 ordinary shares in issue 
        as at the date of this report. 
 
 
18   Approval of interim condensed consolidated financial statements 
     These interim condensed financial statements were approved by 
      the Board of Directors on 7 September 2021. 
 

*S*

For further information vis it www.zinnwaldlithium.com or contact:

 
 Anton du Plessis           Zinnwald Lithium plc       info@zinnwaldlithium.com 
                            Allenby Capital Limited    +44 (0) 20 3328 
 David Hart/Liz Kirchner     Nominated Adviser          5656 
                           -------------------------  ---------------------------- 
                            Turner Pope Investments 
                             (TPI) Ltd                 +44 (0) 20 3657 
 James Pope/Andy Thacker     Broker                     0050 
                           -------------------------  ---------------------------- 
 Isabel de Salis/Oonagh     St Brides Partners Ltd     info@stbridespartners.co.uk 
  Reidy                      Financial PR 
                           -------------------------  ---------------------------- 
 

Notes

Zinnwald Lithium plc (EPIC: ZNWD.L) is an AIM quoted, German focused lithium development company focussed on becoming an important supplier to Europe's fast-growing battery sector. The Company owns 100% of the Zinnwald Lithium Project in Germany, a late-stage development project with attractive economics and approved mining licence. The Project is located in the heart of Europe's chemical and automotive industries and has the potential to be one of Europe's most advanced battery grade lithium projects.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR QDLFBFKLLBBK

(END) Dow Jones Newswires

September 08, 2021 02:00 ET (06:00 GMT)

Zinnwald Lithium (LSE:ZNWD)
Gráfica de Acción Histórica
De Nov 2021 a Dic 2021 Haga Click aquí para más Gráficas Zinnwald Lithium.
Zinnwald Lithium (LSE:ZNWD)
Gráfica de Acción Histórica
De Dic 2020 a Dic 2021 Haga Click aquí para más Gráficas Zinnwald Lithium.