TIDMHAMA
RNS Number : 7523X
Hamak Gold Limited
27 April 2023
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY IN OR INTO AUSTRALIA, CANADA, JAPAN,
THE REPUBLIC OF SOUTH AFRICA, THE UNITED STATES, ANY TERRITORY OR
POSSESSION THEREOF OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH
JURISDICTION.
27 April 2023
Hamak Gold Limited
("Hamak Gold" the "Group" or the "Company")
Results for the period ended 31 December 2022
Availability of Annual Report
Hamak Gold Limited (LSE: HAMA) is pleased to announce its
audited results for the period ended 31 December 2022.
Copies of the Company's full Annual Report and Financial
Statements for the period ended 31 December 2022 will be made
available on the Company's website at www.hamakgold.com and will be
posted to shareholders along with a Notice of Annual General
Meeting.
About Hamak Gold Limited
Hamak Gold Limited (LSE: HAMA) is a UK listed company focussed
on gold exploration of a portfolio of licences in highly
prospective areas of Liberia, where significant drilling results
have identified a new high-grade gold discovery with the discovery
hole returning 20m @ 7g/t Au near surface.
For further information you are invited to view the company's
website at http://www.hamakgold.com/ or please contact:
Hamak Gold Limited
Amara Kamara +231 (0) 77 005 0005
Nicholas Karl Smithson +44 (0) 77 837 07971
Peterhouse Capital Limited (Broker)
Lucy Williams
Guy Miller +44 (0) 20 7469 0930
Yellow Jersey PR
Sarah Hollins
Annabelle Wills +44 (0) 20 3004 9512
Chairman's Statement
Dear Shareholder,
I am pleased to present the annual report of Hamak Gold Limited
(the "Company" or "Hamak") and its subsidiary (collectively
referred as the 'Group' or 'Hamak Gold') for the period ended 31
December 2022. The Group undertakes gold exploration with a focus
on highly prospective licenses in Liberia, West Africa.
The Company was incorporated on 6 May 2021 under the BVI
Business Companies Act. As at the date of this report, the Group
comprises of the Company and its sole wholly-owned subsidiary,
Hamak Gold Limited Liberia, which was incorporated in Liberia on 27
May 2021.
On 1 March 2022, Hamak was admitted to trading on the Main
Market of the London Stock Exchange ("LSE") in its initial public
offering ("IPO"), simultaneously raising gross proceeds of
GBP955,000 in new capital from institutional and private investors
as well as the Board of Directors.
Strategy
The Group's main mineral exploration focus is on the discovery
of orogenic gold, Archaean and Paleoproterozoic greenstone hosted
gold and shear zone hosted gold type mineralization in
underexplored, yet highly prospective, areas of Liberia.
On 15 February 2022, the Group acquired the Nimba and Gozohn
mineral exploration licences in Liberia, covering 1,752 square
kilometres ("km"), and options over a further five mineral
exploration licences covering an area of 3,213 square km. Post year
end the Company also announced that the option over three of the
five option licences was relinquished.
Our exploration strategy since IPO has been focused on the
Gozohn and Nimba licences where geochemical soil sampling has
identified extensive gold in soil anomalies in both licences.
Follow up of these anomalies by trenching, channel sampling and
rock chip sampling has identified hard rock gold sources to the
soil anomalies. At the Nimba licence, we also conducted an initial
drilling programme, and our first drill hole intersected a highly
significant gold mineralized zone of 20m at 7g/t Au near surface.
Clearly further work is required to trace the mineralized zone
across the associated 3km long geochemical soil anomaly and further
details are provided in the Operational Report.
On the anniversary of the licence and based on the exploration
results, it was decided to relinquish the southern part of the
Gozohn licence in August 2022 and retain the northern part which
hosts the Mt. Koklun greenstone belt and anomaly.
Liberia
Liberia is an emerging gold producing country having attracted
growing exploration interest and expenditure over the last decade.
However, the country remains relatively under-explored, and Liberia
did not experience the gold exploration boom during the 1980s and
1990s that took place in neighbouring West African countries which
has since led to the discovery and subsequent development of many
gold mines, several of which are world class. More recently
large-scale gold mines have been established in the neighbouring
Ivory Coast and our Nimba licence is in relative proximity to the
4-million-ounce Ity gold mine of Endeavour Mining, separated by a
country border but essentially sharing the same prospective
geology. Therefore, we expect our short-term focus will be on the
Nimba licence to establish the scale of our high-grade discovery
there.
Summary
Hamak Gold has had an exciting year. Achieving our IPO and
becoming the first Liberian majority owned exploration resource
company on the LSE is a major achievement, showing what can be done
with the right entrepreneurial spirit, a Board of Directors, a
highly capable geological team and the support of our shareholders.
Furthermore, the Ministry of Mines and Liberian Government have
been very supportive of the Group and the mineral sector as a whole
in Liberia.
Our teams have moved swiftly since our IPO, having already
discovered what we believe to be a new and significant gold deposit
in the Nimba licence. However, there is a lot more work to do to
bring this discovery to account and to pursue additional gold
anomalies in our licences. We believe Liberia has vast potential to
deliver economic gold mines and want Hamak Gold to be at the
forefront of this exploration drive.
I would like to thank the Board of Directors, our management and
staff and of course our shareholders for their continued support.
We look forward to the coming year and believe that through further
successful exploration and discovery, Hamak Gold will continue to
grow and benefit all stakeholders.
Financial Overview
Funding
The Group is funded through investment from its shareholders.
Admission ("Admission") to trading on the Standard List of the LSE
on 1 March 2022 raised gross proceeds of GBP955,000 at 10 pence per
share. In January 2023 the Group raised gross proceeds of
GBP295,750 at 8.75 pence per share to fund ongoing exploration
activities.
Revenue
Being an early-stage exploration Group, the Group generated no
revenue during the period, but is focusing on its exploration
licences in Liberia with a strategy of making significant gold
discoveries in the shortest possible time frame.
Expenditure
During the period, the Group progressed all legal, accounting
and due diligence work related to the IPO which was achieved on 1
March 2022. Expenditure during the period was focused on the
Admission process and, following Admission, the Group has focused
its efforts and expenditure on progressing its exploration
programmes in line with our stated strategy.
Liquidity, cash and cash equivalents
On 31 December 2022, the Group held $12,000 (2021: $1,000) in
funds.
Dividend
The Directors do not intend to declare a dividend in respect of
the period under review.
Amara Kamara
Executive Chairman
27 April 2023
Operations Report
The Group's main mineral exploration focus is the discovery of
orogenic gold, Archaean and Paleoproterozoic greenstone hosted
gold, and shear zone hosted gold type mineralization in
underexplored yet highly prospective areas of Liberia. Being an
exploration business without producing mines, the Group has no
revenue and relies on equity as its major source of funding. If the
Group is successful in its exploration activities, it will seek to
transition into an exploration and development business.
On 15 February 2022, the Group acquired two mineral exploration
licences in Liberia, Nimba and Gozohn, covering 1,752 square km and
also had an option over a further five exploration licences
covering an area of 3,213 square km. Exploration has initially
focused on detailed geochemical soil sampling in the Gozohn and
Nimba licences, with early exploration success being realised
during the year. Based on the exploration results at Gozohn a
relinquishment of part of the licence was made, resulting in the
retention of a 129.6 square km area that will be the focus of
further exploration. Post year end the Company also announced that
the option over three of the five option licences was relinquished.
In the Group's Prospectus, dated 24 February 2022, the Competent
Person ranked the seven mineral exploration licences (MELs)
individually and in accordance with their geological and spatial
relationship with specific geological structures as well as on the
scale of gold mining activity in or near those licences. Often
licences can be grouped according to their prospectivity and
relative proximity to each other. Thus, the following ranking of
the licences was advised by the Competent Person:
Rank No. 1: Cestos shear zone and greenstone belts
-- Nimba Licence
-- Gozohn Licence
Rank No. 2: Dube shear zone and Birimian greenstones
-- River Gee Licence
Rank No. 3: Lofa and Yambesei shear zones and greenstones
-- Fasama
-- Lofa
Rank No. 4: Juazohn shear zone and amphibolites
-- Cestos Licence
-- Sinoe Licence
Post year end, and having conducted a further technical review,
the Company released the options over the River Gee, Lofa and Sinoe
licences. Below is a summary of the exploration work conducted to
date on the Nimba and Gozohn licences.
Nimba Licence
The Nimba licence (MEL 7001518) covers an area of 985.60 square
km and is located approximately 120km to the north-east of the
Gozohn licence and some 25km west of the 4-million-ounce Ity Gold
Mine in neighbouring Cote D'Ivoire (Figure 1).
Figure 1: Location of Nimba and Gozohn Licences
Geochemical Soil Sampling and Results
Initial exploration involved geochemical soil sampling of three
blocks within the licence area, totalling some 3,622 samples. The
results of Block-1 are most significant and are reported in more
detail below.
Sampling Block-1 is located in the south-east of the licence and
was sited over an area that is host to several artisanal digging
sites (Figure 2). A total of 1,124 soil samples were collected from
the block over an area of 3.7km by 3.4km with line and sample
spacing of 250 metres ("m") and 50m respectively.
Figure 2: Location of Sampling Block-1 in Nimba Licence
The soil sampling results exhibit positive anomalies over a 3km
x 1km area within which a number of significant anomalous gold
values in excess of 1 part per million ("ppm") (grammes per tonne
("g/t") are evident at two key locations, surrounded by additional
anomalous values generating coherent anomalies. Anomaly 1
(approximately 700m by 450m) attains a high of 1.54ppm gold whilst
Anomaly 2 (approximately 1,000m by 500m) attained two peaks, each
of 1.20ppm gold (Figure 3). It is not yet established if these
anomalies represent a single contiguous strike of mineralization.
However, it is clear from the results that the gold anomalies
remain open ended to the south-west and north-east.
Importantly the gold in soil values are not constrained within
topographic lows but are located on topographic highs. Active
artisanal gold mining is present down slope from these two strong
gold anomalies.
Figure 3: Nimba Block-1 Au in Soil Results
Trenching and Channel Sampling and Rock Chip Sampling
During the soil sampling, the geological teams identified an
exposed geological unit at Ziatoyah on the southern edge of the
northern soil anomaly, where active artisanal gold mining was being
undertaken. The unit is described as a metadolerite with visible
sulfide mineralization, mainly pyrite, and also visible gold
(Figure 4). Rock chip sampling of this unit returned gold values of
37.3g/t Au and 45.5g/t Au, proving the presence of bedrock gold
associated with the soil sampling anomaly.
Figure 4: Visible Gold in Metadolerite Unit
Based on the positive rock chip sampling results, channel
sampling was undertaken across the metadolerite unit. A total of 43
channel samples over a distance of 66m were collected across this
exposed zone, subdivided into north and south faces which form a
continuous strike length, and were submitted to the ALS Global
laboratory in Ghana for gold fire assay. The results returned gold
mineralization across the entire 66m channel length which is not
closed off in any direction, with sections of significant gold
mineralization returning 55.0m at 0.63 g/t Au and 11.0m at 0.99 g/t
Au, which include better intervals of 14m at 1.98g/t Au and 3m at
3.14g/t Au respectively, and with individual samples returning up
to 8.56g/t Au over 2m splits (Figure 5).
These results are clearly significant in terms of mineralized
width and gold grade and provided the basis to develop drill
targets as the next step towards defining the extent of gold
mineralization with depth, as well as its lateral extent.
Figure 5: Channel Sampling Results across the Ziatoyah
Mineralized Metadolerite Exposure
In addition to the work at Ziatoyah, a further two trenches were
dug and sampled across two priority gold in soil anomalies,
totalling 554m in length. (Figure 3).
Trench-1 was excavated over a distance of 274m and to a depth of
3m. A total of 303 samples were collected and assayed.
Trench-2 was excavated over a distance of 280m and to a depth of
3m. A total of 310 samples were collected and assayed.
In both cases, bedrock was not reached with the overburden being
thicker than expected. However, both trenches show encouraging
broad gold anomalism across the channel samples with increasing
values at the southeast end of each trench (0.27ppm in Trench-1 and
0.31ppm in Trench-2) and therefore consideration will be given to
extending the trenches to the southeast.
Drilling Programme
Following on from the positive channel sampling results at
Ziatoyah the Company decided to immediately undertake a limited
drilling programme to test the depth extension of the mineralized
metadolerite outcrop.
An initial programme of diamond drilling, comprising three holes
for a total of 450m, was completed at Ziatoyah. Drilling of holes
NZ22-001 and 002 was targeted to test the down dip extent of the
Ziatoyah mineralized outcrop that returned rock chip samples of 46
g/t Au and 37 g/t Au as well as below the channel sample results of
14.0m @ 1.98 g/t Au and 3.0m @ 3.14 g/t Au returned from the
sidewalls of an extensive artisanal mining excavation, hole
NZ22-003 was targeted on a soil geochemical anomaly located some
1,250m north of the first two drill holes, associated with Trench
2.
Drilling Results
The first hole drilled (NZ22-001) yielded significant gold
intercepts down hole of 20m at 7g/t Au, including 5m at 22g/t Au
(Table 1). This drill hole confirms the depth extension of the
mineralized metadolerite outcrop. (Figure 6).
Table 1: Significant downhole gold intercepts:
Hole From To Length Estimated Grade
(m) (m) (m) True width (g/t Au)
(m)
-------------- -------- -------- -------- --------------- ------------
NZ22-001 29.0 49.0 20.0 16.0 6.98
including 35.0 40.0 5.0 4.0 21.73
85.0 87.0 2.0 0.8 1.19
NZ22-002 31.0 32.0 1.0 1.0 0.38
NZ22-003 134.0 138.0 4.0 3.5 1.05
Note: Intersections calculated above a 0.3 g/t Au cut-off
with no top cut applied and a maximum internal waste interval
of 2.0m
Figure 6: Section through drillholes NZ22-001 and 002 at
Ziatoyah showing mineralized intercepts
Conclusions
This initial drilling has confirmed the presence of bedrock gold
in the area immediately beneath the positive channel sample results
at Ziatoyah, located to the southern edge of an extensive gold in
soil anomaly previously reported. This, coupled with the presence
of extensive artisanal mining operations in the area, confirms the
potential for economic concentrations of gold mineralization.
Hole NZ22-002 appears to have been drilled parallel to the dip
of the mineralization intersected in hole NZ22-001 and thus failed
to cut the mineralized zone. Further analysis and drilling to test
the relationship between the two drill holes and the positive
surface channel and rock chip results is required.
Hole NZ22-003 was drilled on a separate soil geochemical target
and intersected a narrow zone of similar style mineralization at
depth. It is assumed that this drill hole was not extended
sufficiently far to intersect the main zone of mineralization.
Geology & Mineralization
The host rocks of the mineralisation intersected by drilling are
dominated by Archaean-aged medium grained grey-green mafic
intrusives comprised of plagioclase, amphibole, magnetite and
chlorite with fine-grained crystalline pyrite.
So far initial technical appraisal of the gold mineralization at
Ziatoyah suggests that the gold occurs as free grains within
disseminated crystalline and aggregates of vetiform pyrite
attaining levels of between 1% and 10% of the rock mass which is
dominated by locally carbonatized metadolerites. Microscopic free
gold has been identified at numerous locations within the
mineralized drill core. Local shearing appears to enhance the
sulphide content and may be coincident with minor
endo-skarnification dominated by iron sulphides with free gold,
chlorite, epidote, tremolite and/or actinolite. A programme of
petrological studies is in progress to better define the styles and
associations of the gold mineralization.
Importantly the mineralization seen in the drilling to date is
mineralogically restricted indicating potentially simple
metallurgical process routes. Scoping metallurgical test work will
be undertaken as part of the next step of the assay process.
It is believed that the styles of this gold mineralization bear
certain similarities to that currently being mined at Endeavour
Mining's Ity Mine in neighbouring Cote d'Ivoire, only c.25km to the
north-east of Ziatoyah, though the Company is still working on
establishing the context of the geology and geological model for
the mineralization.
Gozohn Licence
The Gozohn licence (MEL 7002318) covers an area of 766 square km
and is located some 30km south of the high-grade Kokoya Gold mine
operated by MNG Gold. (Figure 1). The licence is host to a number
of structurally controlled greenstone belts similar to those at
Kokoya, with strongly deformed amphibolite, quartzite, schist and
banded ironstone formations which generally occur as topographic
highs. Several of these greenstone ridges are mineralized with gold
as evidenced by active artisanal gold diggings, particularly on the
western slope of Mt. Koklun.
Geochemical Soil Sampling and Results
Geological mapping and sampling initially focussed on the Mt.
Koklun area and 46.5km of baseline and sampling traverse lines were
cut and a total of 1,927 soil samples collected across the whole
area at a sampling interval of 50m with traverse lines spaced 250m
and 500m apart, comprising sample Block-1.
A second sampling block was completed to the south of the Gozohn
licence across similar greenstone belt geology, with a total of 701
samples being collected and assayed. Both blocks are shown in
Figure 7.
Figure 7: Gozohn Sampling Blocks 1 and 2
The results of Block-2 did not yield any significant gold
anomalies, with a weak peak value of 80ppb Au. Furthermore, other
pathfinder minerals, such as arsenic or silver do not indicate any
significant anomalies, with a peak value of 110ppb for silver
almost coincident with the single anomalous gold value.
The geochemical anomaly for combined Cu+Ni+Co is sporadically
coincident across some adjacent soil sample profile lines and shows
some overlay the with interpreted bedrock geology of BIF and
metavolcanite, however the Tertiary-aged Atlantean dyke swarm,
evident within the licence area, also trends on this strike and
such oceanic basalts could also generate equivalent chalcophile
anomalies.
Based on the absence of a coherent anomaly for any of the 51
minerals assayed, no further exploration work is justified within
Block 2; when better prospects exist within the northern part of
the licence.
Figure 8: Gozohn Sampling Block 2 results
The results of Block-1 are most significant and are reported in
more detail below.
Significant gold anomalies were returned over two areas of
Block-1 on the western limb of Mt Koklun, one extending over a
1.5km distance having a roughly northerly strike, another extending
over a 1km distance and having a roughly north westerly strike,
with both anomalies converging in the north (Figure 8). Weaker gold
anomalies were detected on the eastern limb of Mt Koklun which
require further investigation. The anomalies, however, are overall
more subtle than those observed at Nimba which could be due to deep
overburden (estimated at over 15m thick), or a different
mineralogical and genesis of the gold mineralization.
The lack of a typical Birimian-type geochemical halo (Arsenic
etc.) is possibly due to the Gozohn mineralization being more akin
to orogenic gold than the BIF associated Greenstone hosted type
occurrences.
Figure 9: Gozohn Block-1 Results
During the soil sampling campaign, a number of rock chip samples
were collected and assayed. One sample of quartz-rich migmatite
returned a value of 2.56g/t Au and a second rock chip sample from a
nearby location returned 3.5g/t Au. These samples coincide with a
strong gold in soil anomaly and is proximal to active artisanal
mining Figure 8). A number of these quartz veins are observed in
artisanal diggings associated with the soil sampling anomaly.
A soil sampling infill programme, comprising an additional 373
soil samples at 50m sample spacing, was completed and better
defined the already known coherent anomalous area.
Conclusions
After detailed review of the geochemical soil anomalies,
geology, and occurrence of mineralized quartz veins, it is
concluded that the auriferous quartz stringers would seem to have a
primary mineralogy dominated by iron sulphides (Pyrite), native
gold associated with minor Au-tellurides and selenides. Most of the
positive soil geochemistry suggests that the mineralization is
concentrated on the western limb of the Mr. Koklun antiform
suggesting a structural asymmetry due to E to W sinistral
compression. The auriferous quartz veins observed are generally
5-10cms in true thickness; thus, the economic potential will depend
on the grade within the quartz structures being able to carry
barren wall rock and the frequency of the auriferous veins and
further work (including drilling) will be required to determine
this.
Licence Reduction
On the anniversary of the licence, and based on the exploration
results to date, it was decided to relinquish the southern part of
the Gozohn licence and retain the northern part which hosts the Mt.
Koklun greenstone belt and anomaly. The retained area of the Gozohn
licence now covers 129.6 square kms (Figure 10).
Figure 10: Gozohn licence showing the relinquished and retained
areas
Business plan and strategic objectives
The Group's strategic objectives are to be a successful gold
exploration company that through deploying systematic exploration
techniques can lead to the discovery of a significant gold mineral
resource in the short to medium term (2 to 5 years) on its mineral
exploration properties in Liberia. The Group will seek to achieve
these aims through managing its operations safely and sustainably,
with a view to ensuring that, subject to successfully discovering
commercially viable and extractable gold deposits, the Group will
be in an optimal position to create value and generate returns for
Shareholders and significant benefits for all stakeholders
including local communities.
There are a number of risks associated with newly listed
entities at the early exploration stage in the natural resources
sector, especially in West Africa. The Board regularly reviews the
risks to which the Group is exposed and endeavours to mitigate them
as far as possible.
The following summary, which is not exhaustive, outlines some of
the risks and uncertainties the Group may be exposed to:
Political conditions, government regulations, macroeconomic
volatility and regulatory risks
The Company's earnings growth may be constrained by delays or
shutdowns as a result of political, commercial or legal instability
in Liberia. The ability of the Company to generate long-term value
for shareholders could be impacted by these risks.
Changes may occur in local political, fiscal and legal systems,
which might adversely affect the ownership or operation of the
Group's interests including, inter alia, changes in exchange rates,
currency, exchange control regulations changes in government and in
legislative, fiscal and regulatory regimes. The Group's strategy
has been formulated in light of the regulatory environment as at
the latest practicable date prior to the publication of this
Document and what are deemed to be probable future changes (though
due regard should be given to the uncertainty in making predictions
involving political governance risks).
Regional instability due to corruption, bribery and generally
underdeveloped corporate governance policies have the potential to
impact the Group's profitability in Liberia and, as a result, the
Company's share value. These risks could have a materially adverse
effect on the profitability, the ability to finance or, in extreme
cases, the viability of the Group.
Within Liberia, a number of economic and political factors have
contributed to a lack of infrastructure investment. As such, the
country lacks well-developed infrastructure connections, which
could impact the profitability of the Group.
Economic problems in Liberia, including high rates of
unemployment, may lead to a reduction in local, skilled workforce
such that geologists, mining engineers and other technically
qualified and skilled individuals have gone abroad for work.
International investors have moved away from deploying capital to
Liberia, leading to significant underinvestment within its
exploration and mining sector. These factors may create operational
challenges to the Group.
The licences owned are subject to various laws and regulations
relating to the protection of the environment and the Group is also
required to comply with applicable health and safety and other
regulatory standards. Environmental legislation in particular can
comprise numerous regulations which might conflict with one
another, and which cannot be consistently interpreted. Such
regulations typically cover a wide variety of matters including,
without limitation, prevention of waste pollution and protection of
the environment, labour regulations and worker safety. The Group
may also be subject under such regulations to clean-up costs and
liability for toxic or hazardous substances which may exist on or
under any of its properties or which may be produced as a result of
its operations. As a result, although all necessary environmental
consents are in place to enable the extraction of battery metals to
take place, and the Group intends to operate in accordance with
high standards of environmental practice and comply in all material
respects, full compliance with applicable environmental laws and
regulations may not always be ensured.
Any failure to comply with relevant environmental, health and
safety and other regulatory standards may subject the Group to
extensive liability, fines and/or penalties and have an adverse
effect on the business and operations, financial results or
financial position of the Group. Furthermore, the future
introduction or enactment of new laws, guidelines and regulations
could serve to limit or curtail the growth and development of the
Group's business or have an otherwise negative impact on its
operations. Any changes to, and increases in, current regulation or
legal requirements, with the enforcement thereof, may have a
material adverse effect upon the Group in terms of additional
compliance costs.
No operating history
The Group is a newly formed entity with less than one year of
operating history. However, the Board and Management of the Group
have considerable exploration, development and mining experience in
the West Africa region, in particular in Liberia, Sierra Leone and
Guinea. This experience has helped lead the Group to making a
significant new gold discovery in the Nimba exploration licence,
within 9 months of the Company's IPO.
Exploration and development risks
Following the Group's early exploration success in the Nimba
licence, there still remains a high degree of risk as mineral
exploration and development can be highly speculative and as of yet
no mineral resource has been defined. The economics of developing
mineral properties are also affected by many factors including the
cost of operations, variations of the grade of ore mined,
fluctuations in the price of the minerals being mined, fluctuations
in exchange rates, costs of development, infrastructure and
processing equipment and such other factors as government
regulations, including regulations relating to royalties, allowable
production, importing and exporting of minerals and environmental
protection.
In addition, the grade of mineralisation ultimately mined may
differ from that indicated by drilling results and such differences
could be material. As a result of these uncertainties, there can be
no guarantee that mineral exploration and development of any of the
Group's investments will result in profitable commercial
operations.
Liquidity risk
Whilst the directors are confident that the Group will be able
to raise additional funds as and when required and will have
sufficient funds to continue to meet its liabilities as they fall
due for at least 12 months from the date of approval of the
consolidated financial statements there can be no assurance that
such funds as may be required will be raised.
Industry-specific risks
The natural resources sector is inherently tied to the
performance of the global economy and fluctuations in the price of
global commodities. As a result, segments of the natural resources
sectors (or even the sector as a whole) could be affected by
changes in general economic activity levels and other changes which
are beyond the Group's control. The revenues and earnings from
developing its assets will rely on commodity prices, and the Group
will be unable to control the prices for commodities which may
adversely affect the Group's business, results of operations,
financial condition or prospects.
Key performance indicators
Appropriate key performance indicators will be identified in due
course as the business strategy is implemented.
Gender analysis
A split of directors by gender during the year is shown
below:
Male Female
6 Nil
-------
Directors and employees
The Group currently has only male directors and is committed to
promoting gender equality based on relevant skills and experience
as it progresses through its life cycle. The Group currently has
only male directors but is committed to promoting gender equality
based on relevant skills and experience as it progresses through
its life cycle. At the current stage of exploration the Group
sourced individuals with experience not only in the sector but also
in the wider West African and African settings. The Board, however,
is diversified from an ethnicity perspective, originally having
three (now two) directors of African heritage which is appropriate
given the Company is a Liberian majority owned, and Liberian
focussed, entity.
Environment, Social and Corporate Governance (ESG)
As a new Group focused on early-stage exploration, we aim to
conduct our business with honesty, integrity and openness,
respecting human rights and the interests of our shareholders,
employees and local community stakeholders. We aim to provide
timely, regular and reliable information on the business to all our
shareholders and conduct our operations to the highest
standards.
Environment
The Group has in place all necessary environmental permissions
for the Nimba and Gozohn licences which have been the focus of
exploration activity during the year. These permits are issued by
the Environmental Protection Agency (EPA) of Liberia according to
the prevailing laws of the country.
Social
The Group has conducted exploration work in the Gozohn and Nimba
licences during 2022. The Group adheres to the social requirements
within the country of working with local communities at all times,
engaging with them so they are aware of our activities and where
possible recruiting labour from nearby communities.
The Mineral Law of Liberia requires that 2% of exploration
expenditure be invested in education or health facilities in the
exploration licences where the work is conducted. The Group
recently completed the handover of this 2% for the Nimba licence
(over $6,000) to the local communities and has plans to complete
the handover of funds to the Gozohn community during 2023.
Corporate Governance
Being a public Group listed on the LSE Standard Exchange, the
Group adheres to all required Governance rules and has in place the
necessary structure of Board committees to oversee the business of
the Group to ensure adherence to best practice procedures.
Health and Safety
We strive to create a safe and healthy working environment for
the wellbeing of our staff and create a trusting and respectful
environment, where all members of staff are encouraged to feel
responsible for the reputation and performance of the Group. We aim
to establish a diverse and dynamic workforce with team players who
have the experience and knowledge of the business operations and
markets in which we operate. Through maintaining good
communications, members of staff are encouraged to realize the
objectives of the Group and their own potential.
Amara Kamara
Executive Chairman
27 April 2023
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2022
--------------
Period from
Year ended 6 May to
31 December 31 December
2022 2021
Continuing operations Notes $'000 $'000
----------------------------------------------- ------- -------------- --------------
General and administrative expenses 7 3,215 355
Licences and exploration costs written-off 12 516 -
Operating loss 3,731 355
----------------------------------------------- ------- -------------- --------------
Loss before taxation 3,731 355
----------------------------------------------- ------- -------------- --------------
Income tax 9 - -
----------------------------------------------- ------- -------------- --------------
Total loss for the year/period 3,731 355
----------------------------------------------- ------- -------------- --------------
Total comprehensive loss for the year/period
attributable to shareholders from continuing
operations 3,731 355
----------------------------------------------- ------- -------------- --------------
Loss per share:
Basic and diluted earnings per share
(USD) 10 (0.17) (7.10)
----------------------------------------------- ------- -------------- --------------
Consolidated Statement of Financial Position
As at 31 December 2022
Note 2022 2021
$'000 $'000
--------------------------------- ------- -------- -------
Non-current assets
Property, plant and equipment 11 33 -
Intangible assets 12 1,481 -
---------------------------------- ------- -------- -------
Total non-current assets 1,514 -
--------------------------------- ------- -------- -------
Current assets
Trade and other receivables 13 26 1
Cash and cash equivalents 12 1
---------------------------------- ------- -------- -------
Total current assets 38 2
---------------------------------- ------- -------- -------
Total assets 1,552 2
---------------------------------- ------- -------- -------
Equity and Liabilities
Equity attributable to owners
of the parent
Share capital and share premium 16 5,147 -
Share-based payment reserve 17 80 -
Retained earnings (4,086) (355)
---------------------------------- ------- -------- -------
Total equity 1,141 (355)
---------------------------------- ------- -------- -------
Current liabilities
Trade and other payables 14 411 287
Unsecured convertible loan 15 - 70
Total current liabilities 411 357
---------------------------------- ------- -------- -------
Total equity and liabilities 1,552 2
---------------------------------- ------- -------- -------
These financial statements were approved and authorised for
issue by the Board of Directors on 27 April 2023 and were signed on
its behalf by:
Nicholas Karl Smithson
Executive Director
27 April 2023
Consolidated Statement of Changes in Equity
For the year ended 31 December 2022
Share capital
and share Share based Retained Total
premium payment reserve earnings Equity
$'000 $'000 $'000 $'000
--------------------------- ---------------- ------------------ ----------- ---------
Balance at 6 May 2021 - - - -
Loss for the period - - (355) (355)
Total comprehensive
income for the period - - (355) (355)
Balance at 31 December
2021 - - (355) (355)
--------------------------- ---------------- ------------------ ----------- ---------
Loss of for the year - - (3,731) (3,731)
--------------------------- ---------------- ------------------ ----------- ---------
Total comprehensive
income for the period - - (3,731) (3,731)
Transactions with
owners in their capacity
as owners:
Issue of share capital 2,973 - - 2,973
Share issue costs (215) - - (215)
Exercise of share-based
awards 2,389 (2,389) - -
Grant of share-based
awards - 2,469 - 2,469
Balance at 31 December
2022 5,147 80 (4,086) 1,141
--------------------------- ---------------- ------------------ ----------- ---------
Consolidated Statement of Cash Flows
For the year ended 31 December 2022
Period
from 6 May
Year ended to
31 December 31 December
2022 2021
Notes $'000 $'000
---------------------------------------------- ------- -------------- --------------
Cash flows from operating activities
Loss before taxation (3,731) (355)
Adjustments for:
Depreciation 11 8 -
Licences and exploration costs written-off 12 516
Share-based payment charge 17 2,469 -
Directors' fees paid in shares 8 204 -
Unrealised foreign exchange charge (3) -
Net cashflow before changes in working
capital (537) (355)
Movement in payables (21) 285
Movement in receivables (9) (1)
Net cash used in operating activities (567) (69)
---------------------------------------------- ------- -------------- --------------
Cash flows from investing activities
Purchase of property, plant and equipment (41) -
Exploration expenditure (549) -
Net cash used in investing activities (590) -
---------------------------------------------- ------- -------------- --------------
Cash flows from financing activities
Issue of share capital (net of costs) 16 1,170 -
Proceeds from unsecured convertible loan 15 - 70
Net cash generated from financing activities 1,170 70
---------------------------------------------- ------- -------------- --------------
Net change in cash and cash equivalents
during the year/period 13 (1)
Cash at the beginning of year/period (1) -
Cash and cash equivalents at the end
of the year/period 12 (1)
---------------------------------------------- ------- -------------- --------------
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END
FR FLFISSAIDFIV
(END) Dow Jones Newswires
April 27, 2023 10:24 ET (14:24 GMT)
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