leadf
logo-loader
RNS
viewArkle Resources PLC

Arkle Resources PLC - Interim Statement ended 30 June 2020

RNS Number : 2017A
Arkle Resources PLC
28 September 2020
 

28th September 2020

Arkle Resources PLC

 

("Arkle" or the "Company")

 

Interim Statement for the period ended 30 June 2020

 

Highlights

 

-     Drilling ongoing on the Stonepark zinc project

-     Trenching of newly discovered gold anomalies at Mine River to proceed

-     Good results from soil sampling in Donegal. New area identified

-     Corporate interest in the Stonepark zinc project

-     Over £500,000 raised during the period and £600,000 raised in August to fund ongoing exploration and working capital 

 

Chairman's Statement

 

The lifeblood of a mineral exploration company is exploration. Currently we are drilling our zinc discovery in Stonepark, Limerick, completing a tightly spaced soil sampling programme on our Glentogher gold licence in Donegal and preparing to trench our Mine River gold licences in Wicklow after completing an extensive soil sampling programme and analysing the results.

 

Zinc

 

The Irish lockdown cost us four months. It was not possible to get on the ground. It is a tribute to the staff and field crews that they were ready to move once permissions were granted. The drilling at the Stonepark zinc project will produce results within weeks. Two carefully targeted holes, in total 800 metres, are designed to test the continuity of mineralisation around the Stonepark North pod and to extend the Stonepark South pod.

 

The Stonepark project, with a current resource in excess of 5m tonnes, is a joint venture between Arkle (23.44%) and Group Eleven (76.56%) who is the operator. In recent months there has been significant interest in the zinc potential in the Limerick area. Glencore, who own the huge Pallas Green zinc discovery, 45 million tons plus, continue to drill their licences. Pallas Green adjoins our Stonepark licence. In recent weeks Group Eleven have announced a very good drill hole result from their Carrickittle licence, adjacent to the South Eastern border of Arkle's ground. Our successful drill hole in 2019 at Kilteely, on Arkle ground, is close to the border with the Carrickittle licence and shares similar geology to the discovery hole. It is also noteworthy that Glencore have purchased shares and subsequently increased their shareholding in Group Eleven.  

 

Gold

 

Gold has had an outstanding price rise in the past year, touching $2,000 an ounce and remaining around $1,900. This rise has filtered through to the share prices of gold mining shares and onwards to the share prices of many gold prospecting companies. Arkle, with prospective gold ground in Ireland, has not to date, benefitted from rising prices but was able to raise new money for exploration.

 

We are very active on our Wicklow / Wexford gold licences and on our gold ground in Donegal. No one has ever found the source of the extensive gold discovered in Wicklow. It was mined over 200 years ago and has seen numerous explorers spend money in the area. Arkle has a huge database on the ground. There is a swarm of gold bearing veins running down the Wicklow hills. The veins are often narrow, but can be very high grade, in excess of 25gms, per tonne of rock. In recent years we have focused on two areas, Tombreen and Knocknalour. In both areas we found high grade gold. We have drilled between and around the two areas, to date with limited success. Following an extensive 2019 review of our gold database, a tight soil sampling programme was undertaken just south of Carnew. A 5km square area was surveyed using XRF handheld technology taking soil samples every 20 metres along 100 metre spaced grid lines. The results were good, five new anomalies were identified. The next stage of exploration at Mine River is trenching to see the extent of the gold. This work is ready to start once approvals are obtained from the authorities. We are hoping to undertake this before winter closes in.

 

Our Donegal gold sampling has produced good results. We were sampling on a tight grid along a trend where we had previously obtained some good gold grades. We found what we were looking for but were delighted to discover strong gold indicator mineral levels to the southwest on our licence, stretching outside of the sampling area. We are immediately sampling this new area to identify drill targets.

 

Corporate Activity

 

During the past year we have looked at a number of corporate strategies. There has been significant interest in Stonepark but most options require the approval of both parties in the joint venture. The option of selling the Company's subsidiary which owns the Stonepark interest is under consideration.

 

As is to be expected there is interest in our gold assets. Some early stage proposals have been received by the Company but nothing that the board thought valued the potential.

 

During the period, the lack of investor interest in our Irish assets prompted us to look abroad for other opportunities. We have looked at opportunities in Europe, Northern Canada and Africa. We have dropped all, bar some battery metal projects in Africa where we are examining possible licences. However this is at an early stage.

 

Funding and the Future

 

The company raised £502,000 in the period, a further £600,000 was raised in August 2020. This covers expenditures for the next eighteen months.   

 

The board believes that we hold prime gold and zinc exploration ground in Ireland, certainly better than the opportunities presented from abroad. We have a very loyal shareholder base but have not succeeded in spreading our beliefs to the wider investing public. This we will try to do in the immediate future.

 

 

John Teeling

Chairman

25th September 2020

 

 

 

 

 

 

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.

 

 

Enquiries:

 

Arkle Resources PLC

 

John Teeling, Chairman

+353 (0) 1 833 2833

Jim Finn, Finance Director

+353 (0) 1 833 2833

 

 

SP Angel Corporate Finance LLP
Nominated Adviser & Joint Broker

 

Matthew Johnson/Soltan Tagiev

  +44 (0) 203 470 0470

 

 

First Equity Limited

 

Joint Broker

 

Jason Robertson

  +44 (0) 207 374 2212

 

 

Blytheweigh

  +44 (0) 207 138 3204

Megan Ray

 

Rachael Brooks

 

 

 

Teneo

Luke Hogg

Alan Tyrrell

Ross Murphy

 

+353 (0) 1 661 4055

+353 (0) 1 661 4055

+353 (0) 1 661 4055

 

 

 

 

 

 

Arkle Resources plc

Financial Information (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

Year Ended

 

 

 

 

 

30 June 20

 

30 June 19

 

31 Dec 19

 

 

 

 

 

unaudited

 

unaudited

 

audited

Condensed Consolidated Statement of Comprehensive Income

 

€'000

 

€'000

 

€'000

 

 

 

 

 

 

 

 

 

 

Continuing Operations

 

 

 

 

 

 

 

 

 

Administrative expenses

 

 

 

 

(226)

 

(170)

 

(314)

 

 

 

 

 

 

 

 

 

 

OPERATING LOSS

 

 

 

 

(226)

 

(170)

 

(314)

Investment revenue

 

 

 

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

LOSS BEFORE TAXATION

 

 

 

 

(226)

 

(170)

 

(314)

Income tax expense

 

 

 

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

LOSS FOR THE PERIOD AND TOTAL COMPREHENSIVE INCOME

 

(226)

 

(170)

 

(314)

 

 

 

 

 

 

 

 

 

 

LOSS PER SHARE - basic and diluted

 

 

 

 

(0.14c)

 

(0.14c)

 

(0.24c)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheet

 

 

 

 

30 June 20

 

30 June 19

 

31 Dec 19

 

 

 

 

 

unaudited

 

unaudited

 

audited

 

 

 

 

 

€'000

 

€'000

 

€'000

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Intangible Assets

 

 

 

 

3,607

 

3,362

 

3,446

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Other receivables

 

 

 

 

11

 

15

 

4

Cash and cash equivalents

 

 

 

 

252

 

147

 

40

 

 

 

 

 

263

 

162

 

44

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

 

 

3,870

 

3,524

 

3,490

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

Trade and other payables

 

 

 

 

(198)

 

(130)

 

(227)

NET CURRENT LIABILITIES

 

 

 

 

65

 

32

 

(183)

 

 

 

 

 

 

 

 

 

 

NET ASSETS

 

 

 

 

3,672

 

3,394

 

3,263

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

Share Capital - Deferred Shares

 

 

 

 

992

 

-

 

-

Share Capital - Ordinary Shares

 

 

 

 

540

 

1,323

 

1,323

Share Premium

 

 

 

 

6,557

 

6,209

 

6,209

Share based remuneration reserve

 

 

 

 

123

 

32

 

45

Reserves

 

 

 

 

(4,540)

 

(4,170)

 

(4,314)

 

 

 

 

 

 

 

 

 

 

TOTAL EQUITY

 

 

 

 

3,672

 

3,394

 

3,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statement of Changes in Shareholders Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Called-up

 

 

 

Share

 

 

 

 

 

Share

 

Share

 

Based

 

Retained

 

 

 

Capital

Premium

 

Reserves

 

Deficit

 

Total

 

€'000

 

€'000

 

€'000

 

€'000

 

€'000

 

 

 

 

 

 

 

 

 

 

As at 1 January 2019

1,139

 

6,136

 

32

 

(4,000)

 

3,307

Issue of shares

184

 

73

 

-

 

-

 

257

Loss for the period

-

 

-

 

-

 

(170)

 

(170)

As at 30 June 2019

1,323

 

6,209

 

32

 

(4,170)

 

3,394

 

 

 

 

 

 

 

 

 

 

Share options vested

-

 

-

 

13

 

-

 

13

Loss for the period

-

 

-

 

-

 

(144)

 

(144)

As at 31 December 2019

1,323

 

6,209

 

45

 

(4,314)

 

3,263

 

 

 

 

 

 

 

 

 

 

Share options granted

-

 

-

 

78

 

-

 

78

Issue of shares

209

 

348

 

-

 

-

 

557

Loss for the period

-

 

-

 

-

 

(226)

 

(226)

As at 30 June 2020

1,532

 

6,557

 

123

 

(4,540)

 

3,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

Year Ended

 

 

 

 

 

30 June 20

 

30 June 19

 

31 Dec 19

Condensed Consolidated Cash Flow

 

 

 

 

unaudited

 

unaudited

 

audited

 

 

 

 

 

€'000

 

€'000

 

€'000

CASH FLOW FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Loss for the year

 

 

 

 

(226)

 

(170)

 

(314)

Share based payments charge

 

 

 

 

35

 

-

 

7

Fair value of warrants issued

 

 

 

 

-

 

-

 

19

Foreign exchange

 

 

 

 

-

 

-

 

(1)

 

 

 

 

 

(191)

 

(170)

 

(289)

 

 

 

 

 

 

 

 

 

 

Movements in working capital

 

 

 

 

(36)

 

12

 

90

CASH USED BY OPERATIONS

 

 

 

 

(227)

 

(158)

 

(199)

NET CASH USED IN OPERATING ACTIVITIES

 

 

 

 

(227)

 

(158)

 

(199)

 

 

 

 

 

 

 

 

 

 

CASH FLOW FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

Payments for exploration and evaluation

 

 

 

(118)

 

(58)

 

(125)

NET CASH USED IN INVESTING ACTIVITIES

 

 

 

 

(118)

 

(58)

 

(125)

 

 

 

 

 

 

 

 

 

 

CASH FLOW FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Issue of shares

 

 

 

 

557

 

257

 

257

NET CASH GENERATED FROM FINANCING ACTIVITIES

 

 

 

557

 

257

 

257

 

 

 

 

 

 

 

 

 

 

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS

 

212

 

41

 

(67)

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents at beginning of the period

 

 

 

40

 

106

 

106

 

 

 

 

 

 

 

 

 

 

Effects of exchange rate changes on cash held in foreign currencies

 

0

 

0

 

1

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD

 

 

 

252

 

147

 

40

 

 

 

 

 

 

 

 

 

 

Notes:

 

1.            INFORMATION

 

The financial information for the six months ended 30 June 2020 and the comparative amounts for the six months ended 30 June 2019 are unaudited.

The interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union. The interim financial statements have been prepared applying the accounting policies and methods of computation used in the preparation of the published consolidated financial statements for the year ended 31 December 2019.

The interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the audited consolidated financial statements of the Group for the year ended 31 December 2019, which are available on the Company's website www.arkleresources.com   

 

The interim financial statements have not been audited or reviewed by the auditors of the Group pursuant to the Auditing Practices board guidance on Review of Interim Financial Information.

 

 

2.            No dividend is proposed in respect of the period.

 

 

3.            LOSS PER SHARE

 

 

30 June 20

 

30 June 19

 

31 Dec 19

 

 

 

Loss per share - Basic and Diluted

(0.14c)

 

(0.14c)

 

(0.24c)

 

 

 

 

 

 

Basic loss per share

 

 

 

 

 

The earnings and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows:

 

 

€'000

 

€'000

 

€'000

Loss for the year attributable to equity holders of the parent

(226)

 

(170)

 

(314)

 

 

 

 

 

 

Weighted average number of ordinary shares for the purpose of basic earnings per share

 

166,401,091

 

 

125,707,757

 

 

129,085,292

 

 

 

 

 

 

Basic and diluted loss per share are the same as the effect of the outstanding share options is anti-dilutive.

 

 

4.            INTANGIBLE ASSETS

 

 

30 June 20

 

30 June 19

 

31 Dec 19

Exploration and evaluation assets:

€'000

 

€'000

 

€'000

Cost at 1 January

3,446

 

3,314

 

3,314

Additions

161

 

48

 

132

Closing Balance

3,607

 

3,362

 

3,446

 

 

 

 

 

 

 

              

In 2012 the Group entered into an agreement with Teck Ireland Limited ("Teck"), a subsidiary of Teck Resources Limited, which gives Teck the option of earning a 75% interest in licences held by the Group in Cavan/Meath. Teck had to spend €1.35 million on the licences by 2018 in order to earn the option to acquire 75% interest. As per the agreement the licences have been transferred into a new company, Oldcastle Zinc Limited. As at 31 December 2019 Teck had completed €1.35 million worth of expenditure. As per the agreement upon Teck completing €550,000 worth of expenditure 343,500 ordinary shares in Oldcastle Zinc Limited were to be issued to Teck. The shares were issued on 20 February 2015 giving Teck a 51% interest in the company. On completion of a further €400,000 worth of expenditure 269,360 ordinary shares in Oldcastle Zinc Limited were to be issued to Teck. The shares were issued on 22 December 2018 giving Teck a total 65% interest in the company. On 10 December 2019 the balance of 377,140 shares were issued to Teck to give them a total of 75% in the company.

 

In 2007 the Group entered into an agreement with Teck Cominco which gave Teck Cominco the option to earn a 75% interest in a number of other licences held by the Group. Teck Cominco had to spend CAD$3m to earn the interest. During 2012 the relevant licences were transferred to a new company, TILZ Minerals Limited, which at 30 June 2020 was owned 23.44% (2019: 23.44%) by Limerick Zinc Limited (subsidiary of Arkle Resources plc) and 76.56% (2019: 76.56%) by Group Eleven Resources Corp (third party).

 

On 13 September 2017 the board of Arkle Resources plc were informed that Group Eleven Resources Corp. a private company, has acquired the 76.56% interest held by Teck Ireland in TILZ Minerals. Arkle Resources plc owns the remaining 23.44%.

 

The Group's share of expenditure on the licences continues to be capitalised as an exploration and evaluation asset. The Group is subject to cash calls from Group Eleven Resources Corp. in respect of the financing of the ongoing exploration and evaluation of these licences. In the event that the Group decides not to meet these cash calls its interest in TILZ Minerals Limited may be diluted accordingly.

 

The realisation of the intangible assets is dependent on the discovery and successful development of economic reserves which is subject to a number of risks as outlined below. Should this prove unsuccessful the carrying value included in the balance sheet would be written off to the statement of comprehensive income.

 

               The group's activities are subject to a number of significant potential risks including;

 

               - Uncertainties over development and operational risks;

               - Compliance with licence obligations;

               - Ability to raise finance to develop assets;

               - Liquidity risks; and

               - Going concern risks.

 

The directors are aware that by its nature there is an inherent uncertainty in such exploration and evaluation expenditure as to the value of the asset. Having reviewed the carrying value of exploration and evaluation of assets at 30 June 2020, the directors are satisfied that the value of the intangible asset is not less than carrying value.

 

 

 

30 June 20

 

30 June 19

 

31 Dec 19

Segmental Analysis

€'000

 

€'000

 

€'000

Limerick

1,600

 

1,538

 

1,538

Oldcastle

330

 

330

 

330

Rest of Ireland

1,677

 

1,494

 

1,578

Closing Balance

3,607

 

3,362

 

3,446

 

 

 

 

 

 

  

5.            SHARE CAPITAL AND SHARE PREMIUM

 

On 22 April 2020 the Group converted the 132,311,593 existing ordinary shares of 1c each into 132,311,593 ordinary shares of 0.25c each and 132,311,593 deferred shares of 0.75c each. 

 

 

 

 

Number

 

Share Capital

€'000

 

Share Premium

€'000

Allotted, Called Up and Fully Paid:

 

 

 

 

 

 

 

 

 

 

 

Deferred Shares of 0.75c

 

 

 

 

 

132,311,593 deferred shares of 0.75c each

132,311,593

 

992

 

-

 

 

 

 

 

 

Ordinary Shares of 0.25c

 

 

 

 

 

Balance at 1 January 2019

113,911,593

 

1,139

 

6,136

Issued during the period

18,400,000

 

184

 

73

Balance at 30 June 2019

132,311,593

 

1,323

 

6,209

Issued during the period

-

 

-

 

-

Balance at 31 December 2019

132,311,593

 

1,323

 

6,209

Shares subdivided

-

 

(992)

 

-

Issued during the period

83,733,333

 

209

 

-

Balance at 30 June 2020

216,044,926

 

540

 

6,209

                                                                                                                                                                      

              

               Movement in shares

 

               On 5 March 2019, a total of 18,400,000 shares were issued at a price of 1.25p per share to provide additional working capital and fund development costs.  For each share subscribed for, the investors also received one warrant to subscribe for an additional ordinary share at a price of 1.8p per share until 11 September 2020.

 

               On 27 March 2020, a total of 50,400,000 shares were issued at a price of 0.5p per share to provide additional working capital and fund development costs.  For each share subscribed for, the investors also received one warrant to subscribe for an additional ordinary share at a price of 0.5p per share until 27 March 2022.

 

               On 18 May 2020, a total of 33,333,333 shares were issued at a price of 0.75p per share to provide additional working capital and fund development costs. 

 

 

 

6.    SHARE BASED PAYMENTS - OPTIONS

 

 

 

 

30 June 20

 

30 June 19

 

31 Dec 19

 

'000

 

'000

 

'000

Outstanding at beginning of period

2,800

 

2,800

 

2,800

Granted during the period

9,000

 

-

 

-

Expired during the period

-

 

-

 

-

Closing Balance

11,800

 

2,800

 

2,800

 

 

 

 

 

 

 

 

On 18 May 2020 a total of 9,000,000 options were granted to directors with a fair value of €78,192. The fair value was calculated using the Black-Scholes valuation model. These options vest immediately.

 

 

The inputs into the Black-Scholes valuation model were as follows:

 

Weighted average share price at date of grant (in pence)

0.95p

Weighted average exercise price (in pence)

0.95p

Expected volatility

98.95%

Expected life

7 years

Risk free rate

1.1%

Expected dividends

none

 

Expected volatility was determined by management based on their cumulative experience of the movement in share prices over the financial year.

 

The terms of the options granted do not contain any market conditions within the meaning of IFRS 2.

 

The Group capitalised expenses of €43,440 and expensed costs of €34,752 relating to equity-settled share-based payment transactions during the financial year.

 

 

                SHARE BASED PAYMENTS - WARRANTS

 

 

 

30 June 20

 

30 June 19

 

31 Dec 19

 

'000

 

'000

 

'000

Outstanding at beginning of period

46,203

 

39,431

 

39,431

Granted during the period

50,400

 

18,400

 

18,400

Expired during the period

(27,803)

 

-

 

(11,628)

Closing Balance

68,800

 

57,831

 

46,203

 

 

 

 

 

 

 

On 5 March 2019, a total of 18,400,000 shares were issued at a price of 1.25p per share. As part of the placing, for each share subscribed for, the investors also received one warrant to subscribe for an additional ordinary share at a price of 1.8p per share at any time until 11 September 2020.

 

On 27 March 2020, a total of 50,400,000 shares were issued at a price of 0.5p per share to provide additional working capital and fund development costs.  For each share subscribed for, the investors also received one warrant to subscribe for an additional ordinary share at a price of 0.5p per share until 27 March 2022.

 

On 8 March 2020, a total of 27,803,312 warrants at a price of 7p per warrant expired.

 

7.    POST BALANCE SHEET EVENTS

 

On 17 August 2020 the Company announced that it had raised £600,000 via a placing of 75,000,000 new ordinary shares at a price of 0.8p per share. As part of the placing, for each share subscribed for, the investors also received one warrant to subscribe for an additional ordinary share at a price of 1.2p per share at any time over a two year period.

 

 

8.    The Interim Report for the six months to 30 June 2020 was approved by the Directors on 25th September 2020.

 

 

9.    The Interim Report will be available on Arkle Resources PLC's website www.arkleresources.com

 

 

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 [email protected] 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 EELFLBKLEBBK

Quick facts: Arkle Resources PLC

Price: -

Market: AIM
Market Cap: -
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

John Teeling, Chairman of Connemara Mining, talks about the best country in...

John Teeling, Chairman of Connemara Mining, talks about why most zinc miners are doing very well, the best country in the world to find zinc, a very good discovery, extending the deposit to the north, south, east and west, and some of the largest zinc mines in the world. (Oct 2010)

on 11/03/2010

38 min read