TIDMCOBR
RNS Number : 1390P
Cobra Resources PLC
05 June 2020
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES,
AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER
JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OF SUCH JURISDICTION.
For immediate release
05 June 2020
Cobra Resources plc
("Cobra" or the "Company")
Final Results for the Year Ended 31 December 2019
Cobra, an exploration and mining company announces its results
for the year ended 31 December 2019.
Key Highlights
2019 was a significant year for the Company, achieving its
primary strategic objective of transforming from a cash shell to an
operating business by identifying a precious or base metals project
in either Australia or Africa. This included:
1. Completing the Lady Alice Mines acquisition.
2. Establishing an enviable portfolio with two quality assets,
including an option over a 211,000 oz gold resource, in a secure
and low sovereign risk jurisdiction.
3. Recruiting a management team and Board with deep resource
industry experience to lead the Company's exploration efforts.
4. Articulating a clear exploration plan that aims to maximise
value and de-risk future exploration drilling.
Post-Period End Highlights
-- Successful completion of the Stage 1 soil sampling programme
over Barns, Baggy Green and White Tank prospects, which established
key pathfinder elements to mineralisation.
-- Successful Completion of the Stage 2 soil sampling programme
which identified the presence of pathfinder elements in the
extension to Baggy Green, as well as a strong correlation with
regional structures, and generating 2 new target areas.
-- Application made for ADI funding for 4 new IOCG-style targets
-- Actively planning the Stage 3 soils analysis, in order to
finalise priority targets, in preparation for a drilling programme
during the second half of 2020.
Craig Moulton, Managing Director of Cobra commented:
"Notwithstanding a difficult capital market during 2019 Cobra
managed to attract sufficient funds to commence the staged
exploration programme in South Australia. It is satisfying to see
that this programme is now yielding the results we expected. I am
very excited to see what the planned drilling programme will
deliver for shareholders later this year."
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this news release contain forward-looking
information. These statements address future events and conditions
and, as such, involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the statements.
Such factors include without limitation the completion of planned
expenditures, the ability to complete exploration programs on
schedule and the success of exploration programs. Readers are
cautioned not to place undue reliance on the forward-looking
information, which speak only as of the date of this news
release.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
End
Enquiries:
Craig Moulton +61 (0) 40 6932187
Cobra Resources plc Daniel Maling (UK) +44 (0) 758 003 2520
SI Capital Limited Nick Emerson
(Joint Broker) Sam Lomanto +44 (0) 14 8341 3500
-------------------- ------------------------
Peterhouse Capital Limited Duncan Vasey
(Joint Broker) Lucy Williams +44 (0) 20 7469 0932
-------------------- ------------------------
Chairman's Statement
INTRODUCTION
As its first full year as a publicly listed company, 2019
represents an important milestone for Cobra Resources. It was a
foundation year where the Board worked to build the business in
preparation for its transition to a fully-fledged operating
company, which occurred on the 16 January 2020 when the enlarged
group including the Wudinna Gold project was admitted to a Standard
Listing and to trading on the Main Market of the London Stock
Exchange. Getting the right assets was a significant achievement
and from which we will continue to build a strong and sustainable
business in the years ahead. It has been satisfying to see the
Parent Company acquire rights over a such high quality and advanced
asset such as the Wudinna Gold project; build a strong management
team and establish itself as an operating Group on the Main Market
of the London Stock Exchange.
BACKGROUND
Cobra Resources began life as publicly listed company in July
2018 with the aim of finding suitable precious, base or energy
metals exploration or mining projects in either Australia or
Africa. During 2019 the Board identified several potentially
suitable projects, which were reviewed in detail to evaluate their
strengths, growth potential and likely longer-term value to
shareholders.
Following an extensive due diligence process the Wudinna Gold
project was identified as the most compelling opportunity primarily
due to its technical and commercial merits. This included having an
existing gold resource of over 200,000 ounces with significant
upside potential, being located in a jurisdiction that was stable,
with low sovereign risk, and having the infrastructure and skilled
resources to efficiently explore and grow the project. As a bonus,
the project vendors were not only well renowned explorers but were
committed to the long-term future of the Company, demonstrating
this by their participation in the following fund raise.
We were also fortunate to recruit a new Managing Director during
the year, Craig Moulton. Craig has joined the board, currently as
the sole executive director and has a deep commercial and technical
background in the exploration and mining industry, having worked
for many years in prestigious mining houses including CRA
Exploration, Rio Tinto and Cliffs Natural Resources, as well as
resources commodity market specialists Wood Mackenzie. I am
confident that Craig has the skills and leadership necessary to
drive the Company to success through disciplined technical
exploration and prudent fiscal management.
OPERATIONAL REVIEW
The Company commenced marketing the Lady Alice Mines acquisition
in March 2019, however, volatile equity markets caused at least in
part by the UK BREXIT negotiations, provided significant headwinds
to fund raising activities for junior resource companies generally
at that time. A combination of a change in prospectus format
requirements by the FCA and the summer holidays then further
delayed progress. With sentiment turning significantly more
positive for junior gold explorers towards the latter half of 2019,
the Company was able to complete a fund raise sufficient to
commence initial exploration activities on 16 January 2020.
While the completion of fundraising activities took longer than
anticipated, this time was put to good use, enabling the team to
complete a detailed review of the technical data acquired from
Andromeda Metals, the Joint Venture partner at the Wudinna Gold
project. This included a detailed analysis of the key controls on
mineralisation from existing core, as well as a review of the
geophysical data and some important foundational work on the
geochemistry, all of which has provided an excellent platform for
the exploration work to leverage during 2020.
As a result of the above analysis the Company articulated a
three-stage geochemical sampling programme to be executed in the
first half of 2020. The first stage aimed to calibrate soil
geochemical sampling with known mineralisation, with the aim of
establishing key pathfinder elements that can significantly reduce
exploration risk during the drilling phase. The second and third
phases would then look take these new pathfinders and apply it to
brownfield and greenfield exploration targets respectively, with
the aim of refining priority drilling targets.
With increased confidence in the planned drilling targets, the
Company then planned to raise sufficient funds to progress the
drilling during the second half of 2020.
It is satisfying to be able to report that the Company has
achieved the first two milestones and is on track to complete the
third, honouring its commitments to its investors and the
market.
POST PERIOD EVENTS
On 16 January 2020 the Company announced that its entire issued
share capital of 153,747,138 ordinary shares had been readmitted to
the standard segment of the Official List of the Financial Conduct
Authority and to trading on the main market for listed securities
of the London Stock Exchange plc under the TIDM "COBR".
The Company also announced the appointment of Peterhouse Capital
Limited as joint broker to the Company.
On admission to trading on the main market of the London Stock
Exchange, the Company raised gross cash proceeds of GBP613,330, and
settled GBP90,587 of immediate cash liabilities in shares, by
issuing 61,330,000 Placing Shares; 10,058,224 Initial Consideration
Shares; 6,066,632 First Reimbursement Shares; 5,818,750 Fee Shares
(issued to directors in lieu of fees); and 3,240,000 Ordinary
shares issued to consultants in lieu of cash payments at the
Placing Price of 1p per share.
On 5 March 2020 the Company announced the issue of 1,745,007
ordinary shares. 757,073 shares were issued to the previous
directors of Lady Alice Mines Pty Ltd, pursuant to the acquisition
agreement, 654,600 shares were issued to a former directors of the
Company pursuant to a settlement agreement and 333,334 shares were
issued pursuant to the exercise of 333,334 share warrants at a
price of 2p per share. The shares were admitted to trading on 12
March 2020.
On 29 April 2020 the Company announced the resignation of Rolf
Gerritsen and appointment of Daniel Maling and David Clarke as
non-executive directors.
On 7 May 2020 the Company announced the issue of 30,095,354
ordinary shares pursuant to the completion of a private placement
conducted at 2.25p per share raising gross proceeds of
approximately GBP677,000. The shares were admitted to trading on 15
May 2020.
On 14 May 2020 the Company announced the completion of the Stage
2 soil sampling programme with 654 samples being sent to ALS
laboratories in Adelaide. The programme saw the collection of 104
new samples at the Barns prospect - Southern Extension; Baggy Green
- South; Baggy Green South East; and the Clarke prospect, as well
as 550 re-assays of previous samples. The work programme also
included a regional scale interpretation of the Newcrest
Aeromagnetic data and a mineral component analysis of all Stage 2
soil samples. From these analyses the following results are
evident:
-- A significant number of results with elevated or anomalous
pathfinder elements (Te, W, Bi, Mo) were returned at Baggy Green
North and Grace prospects;
-- The Baggy Green North results provide significantly increased
confidence that the existing resource may extend between 800m to
1.2km to the north, potentially tripling the existing strike
length;
-- The Clarke and Barns projects show highly anomalous gold
values, but less pathfinders due to deeper sand cover or more
extensive calcrete;
-- A regional scale interpretation of aeromagnetic data has
demonstrated a significant relationship between regional scale
structures, pathfinder elements and gold mineralisation, confirming
that gold mineralisation is structurally controlled;
-- Gold mineralisation in structurally hosted orogenic gold
deposits, such as Wudinna, is typically hosted in adjacent
secondary structures or bends, disruptions, or jogs in the major
structure;
-- The structural interpretation has also identified two new
high priority targets where major structures, already associated
with mineralisation, intersect;
-- The Grace prospect has demonstrated highly anomalous level of
Molybdenum, which requires further investigation, but this is a
known association of IOCG (Olympic Dam-style) mineralisation;
and
-- Re-assaying historic RAB drilling will provide a means of
identifying further pathfinder anomalies at Barns - Southern Zone,
Clarke and at Benaud where deeper sand cover (3m+) has prevented
effective sampling.
On 15 May 2020 the Company announced the issue of 1,250,000
ordinary shares pursuant to the exercise of 1,250,000 warrants at
2p per share. The shares were admitted to trading on 21 May
2020.
COVID-19
On 11 March 2020, the World Health Organisation declared the
Coronavirus outbreak to be a pandemic in recognition of its rapid
spread across the globe, with over 200 countries now affected. Many
governments are taking increasingly stringent steps to help contain
or delay the spread of the virus and as a result there is a
significant increase in economic uncertainty.
For the Group's 31 December 2019 financial statements, the
Coronavirus outbreak and the related impacts are considered
non-adjusting events. Consequently, there is no impact on the
recognition and measurement of assets and liabilities. Due to the
uncertainty of the outcome of current events, the Group cannot
reasonably estimate the impact these events will have on the
Group's financial position, results of operations or cash flows in
the future.
CONCLUSION
With the successful completion of our Stage 2 sampling programme
we are expecting a busy period of exploration activity with the
completion of the Stage 3 analysis, finalising priority targets and
then formalisation of our drilling programme during the second half
of 2020.
Finally, on behalf of the board, I would like to thank
shareholders for their continued support and look forward to
creating more value together as we unlock the potential in our
prized Wudinna Gold Project.
Greg Hancock
Chairman
3 June 2020
Consolidated Income Statement
Notes 31 December 31 December
2019 2018
GBP GBP
Revenue - -
Administrative expenses (544,500) (376,860)
IPO expenses (124,400) (196,472)
Operating loss 2 (668,900) (573,332)
Finance income and costs - -
Loss before tax (668,900) (573,332)
Taxation 5 - -
Loss for the year attributable to equity
holders (668,900) (573,332)
=========== ===========
Earnings per ordinary share
Basic and diluted loss per share attributable (GBP0.0099) (GBP0.0195)
to owners of the Parent Company 6
=========== ===========
Consolidated Statement of Comprehensive Income
31 December 31 December
2019 2018
GBP GBP
Loss for the year (668,900) (573,332)
Other Comprehensive income
Items that may subsequently be reclassified
to profit or loss:
* Exchange differences on translation of foreign
operations (1,461) -
Total comprehensive loss attributable
to equity holders of the Parent Company (670,361) (573,332)
=========== ===========
The accompanying notes are an integral
part of these financial statements.
Consolidated Statement of Financial Position
Notes
2019 2018
GBP GBP
Non-current assets
Intangible assets 8 612,242 -
Property, plant and equipment 9 3,428 -
Total non-current assets 615,670 -
----------- ---------
Current assets
Trade and other receivables 10 37,433 28,147
Cash and cash equivalents 11 7,675 328,135
----------- ---------
Total current assets 45,108 356,282
----------- ---------
Non-current liabilities
Deferred consideration 13 (350,066) -
----------- ---------
Current liabilities
Trade and other payables 12 (436,553) (27,248)
Deferred consideration 13 (215,486) -
Total current liabilities (652,039) (27,248)
----------- ---------
Net (liabilities)/assets (341,327) 329,034
=========== =========
Capital and reserves
Share capital 14 672,335 672,335
Share premium account 160,992 160,992
Share based payment reserve 69,038 69,038
Retained losses (1,242,231) (573,332)
Foreign currency reserve (1,461) -
----------- ---------
Total equity (341,327) 329,034
=========== =========
Company Statement of Financial Position
Notes
2019 2018
GBP GBP
Non-current assets
Investment in subsidiary 7 432,260 -
Property, plant and equipment 9 3,428 -
Total non-current assets 435,688 -
----------- ---------
Current assets
Trade and other receivables 10 241,518 28,147
Cash and cash equivalents 11 1,749 328,135
----------- ---------
Total current assets 243,267 356,282
----------- ---------
Non-current liabilities
Deferred consideration 13 (350,066) -
----------- ---------
Current liabilities
Trade and other payables 12 (422,560) (27,248)
Deferred consideration 13 (215,486) -
Total current liabilities (638,046) (27,248)
----------- ---------
Net (liabilities)/assets (309,157) 329,034
=========== =========
Capital and reserves
Share capital 14 672,335 672,335
Share premium account 160,992 160,992
Share based payment reserve 69,038 69,038
Retained losses (1,211,522) (573,332)
Equity shareholders' funds (309,157) 329,034
=========== =========
Consolidated Statement of Changes in Equity
Share Share Share based Retained Foreign Total
capital premium payment losses currency
reserve reserve
GBP GBP GBP GBP GBP GBP
------- -------- ----------- ----------- -------- ---------
Loss for the year - - - (573,332) - (573,332)
Translation differences - - - - - -
------- -------- ----------- ----------- -------- ---------
Comprehensive loss for the period - - - (573,332) - (573,332)
------- -------- ----------- ----------- -------- ---------
Shares issued at incorporation 1 - - - - 1
Shares and warrants issued 672,334 211,167 - - - 883,501
Cost of share issue - (50,175) - - - (50,175)
Share warrant charge - - 69,038 - - 69,038
------- -------- ----------- ----------- -------- ---------
At 31 December 2018 672,335 160,992 69,038 (573,332) - 329,034
------- -------- ----------- ----------- -------- ---------
Loss for the year - - - (668,900) - (668,900)
Translation differences - - - - (1,461) (1,461)
------- -------- ----------- ----------- -------- ---------
Comprehensive loss for the period - - - (668,900) (1,461) (670,361)
------- -------- ----------- ----------- -------- ---------
At 31 December 2019 672,335 160,992 69,038 (1,242,232) (1,461) (341,327)
------- -------- ----------- ----------- -------- ---------
Company Statement of Changes in Equity
Share Share Share based Retained Total
capital premium payment losses
reserve
GBP GBP GBP GBP GBP
Loss for the year - - - (573,332) (573,332)
Translation differences - - - - -
------- -------- ----------- ----------- ---------
Comprehensive loss for the period - - - (573,332) (573,332)
------- -------- ----------- ----------- ---------
Shares issued at incorporation 1 - - - 1
Shares and warrants issued 672,334 211,167 - - 883,501
Cost of share issue - (50,175) - - (50,175)
Share warrant charge - - 69,038 - 69,038
At 31 December 2018 672,335 160,992 69,038 (573,332) 329,034
------- -------- ----------- ----------- ---------
Loss for the year - - - (638,190) (638,190)
Translation differences - - - - -
------- -------- ----------- ----------- ---------
Comprehensive loss for the period - - - (638,190) (638,190)
------- -------- ----------- ----------- ---------
At 31 December 2019 672,335 160,992 69,038 (1,211,522) (309,157)
------- -------- ----------- ----------- ---------
Consolidated Cash Flow Statement
Notes 31 December 31 December
2019 2018
GBP GBP
Cash flows from operating activities
Operating loss (668,900) (573,332)
Shares issued in lieu of fees - 110,002
Depreciation 9 979 -
Foreign exchange 5,950 -
Increase in trade and other receivables 10 (9,286) (28,147)
Increase in trade and other payables 12 313,519 27,248
Share warrant charge - 69,038
Net cash used in operating activities (357,738) (395,191)
----------- -----------
Cash flows from investing activities
Payments for exploration and evaluation activities 8 (5,660) -
Payment for acquisition of subsidiary, net of cash acquired 17 11,645 -
Payments for tangible fixed assets 9 (4,407) -
Net cash used in investing activities 1,578 -
----------- -----------
Cash flows from financing activities
Proceeds from the issue of shares 35,700 773,501
Cost of shares issued - (50,175)
Net cash generated from financing activities 35,700 723,326
----------- -----------
Net (decrease)/increase in cash and cash equivalents (320,460) 328,135
Cash and cash equivalents at beginning of year 328,135 -
Cash and cash equivalents at end of year 11 7,675 328,135
=========== ===========
Company Cash Flow Statement
Notes 31 December 31 December
2019 2018
GBP GBP
Cash flows from operating activities
Operating loss (638,190) (573,332)
Shares issued in lieu of fees - 110,002
Depreciation 9 979 -
Increase in trade and other receivables 10 (4,958) (28,147)
Increase in trade and other payables 12 359,611 27,248
Share warrant charge - 69,038
Net cash used in operating activities (282,558) (395,191)
----------- -----------
Cash flows from investing activities
Payments for tangible fixed assets 9 (4,407) -
Investment in subsidiary 7 (535) -
Net cash used in investing activities (4,942) -
----------- -----------
Cash flows from financing activities
Proceeds from the issue of shares 35,700 773,501
Cost of shares issued - (50,175)
Loan to subsidiary company 10 (74,586)
Net cash (used in)/generated from financing activities (38,886) 723,326
----------- -----------
Net (decrease)/increase in cash and cash equivalents (326,386) 328,135
Cash and cash equivalents at beginning of year 328,135 -
Cash and cash equivalents at end of year 11 1,749 328,135
=========== ===========
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.
END
FR UVVRRRKUNRAR
(END) Dow Jones Newswires
June 05, 2020 07:05 ET (11:05 GMT)
Cobra Resources (LSE:COBR)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Cobra Resources (LSE:COBR)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
