Source - RNS
RNS Number : 1410K
Great Western Mining Corp. plc
06 April 2018
 



Great Western Mining Corporation PLC

("Great Western Mining", "GWM" or the "Company")

 

Final Results for the year ended 31 December 2017

 

Results Highlights

 

·     Loss for year €696,294 (2016: loss of €430,205)

·     Basic and diluted loss per share (cent): 0.001 (2016: 0.001)

·     Net Current Assets at Year End: €2,766,308 (2016: €768,685)

 

Operational Highlights

 

·     M1 Drill Programme Completed

·     M4 Discovery Drill Programme Commenced.

·     M2 Infill Drill Programme Commenced.

·     M2 Sharktooth Zone Drill Programme Permitted and ready to Commence.

 

 

Chief Executive, David Fraser commented:

 

"2017 has been a year of solid progress for Great Western Mining. The M1 drill programme completed early summer yielded encouraging copper grades and discussions are ongoing with Crown Point Gold & Silver LLC regarding further joint drilling. Our ambitious 2017/18 drill programme focusing on infill drilling on part of our M2 2014 Inferred Resource and Sharktooth Zone discovery drilling is now well underway. In addition, the M4 discovery drilling is poised to recommence after a good start in October and November. GWM believes that 2018 will prove to be an important year in the development of the Company's significant project portfolio in Nevada, USA. As always the Company thanks shareholders for their support and patience"

 

ENQUIRIES:

 

Great Western Mining Corporation PLC

David Fraser, Chief Executive


+44 207 933 8795 (via Walbrook)

Davy (Nomad, ESM Adviser & Broker)

John Frain

 


+353 1 679 6363       

                 

                     

Walbrook PR (UK PR and IR)

Paul Cornelius

Nick Rome


+44 020 7933 8795    

 [email protected]

 

 

 

Chairman & Chief Executive's Statement:

 

Dear Shareholder,

 

Enclosed are Great Western Mining Corporation PLC's audited results and annual report for the year ended 31 December 2017. The Group's projects are still at an exploration and appraisal stage and as such do not currently generate revenues. The Group reports a loss for year of €696,294 (2016: €430,205). At the end of the year net current assets totalled €2,766,308 (2016: €768,685).

 

2017 has been a year of excellent progress in the development of the Group's main prospects which are contained within a 73 square kilometre claim area in Mineral County, Nevada.

 

In the first half of the year the Group completed two diamond core drill-holes on the M1 copper-gold prospect as part of a programme conducted by Crown Point Gold & Silver Mining LLC ('Crown Point'), our partner in the Huntoon Mine Area Cooperation Agreement. These were designed to explore an area of gold mineralisation straddling the Group's border with Crown Point's concession. Anomalous gold and copper intersects were found in both holes. Hole no. 2 identified four separate intersects of greater than 0.11% Cu, while Hole no. 1 had a high copper intersect of 0.62% Cu. These results were very encouraging as the new bore holes were located over 1,500 metres from the main copper oxide drill target which has already been identified at M1. These targets are within the 132 M1 claims which lie outside the scope of the Crown Point agreement. Potential drill-hole locations on the border with Crown Point's property are now being considered, to test for further copper mineralisation.

 

GWM is in planning discussions with Crown Point for the establishment of a jointly-operated gold and silver ore crushing and processing facility on Group-owned land at Marietta, Nevada. This would operate as a "Small Miner/Pilot Plant" as defined by the Nevada Department of Environmental Protection (NDEP) Bureau of Mining Regulation and Reclamation (BMRR).  Design of a gravity circuit and flotation mill is the first stage of this process and is expected to be concluded by mid-year.

 

In January 2018 the Group commenced an infill drill programme on the Group's most advanced target, the M2 copper-gold prospect. This programme is the first stage of a much larger forty-two-hole infill programme recommended in the November 2014 JORC (the Australasian Joint Ore Reserves Committee or JORC) Resource Report, produced by independent consulting geologist Donald G Strachan. The aim of the full programme is to upgrade the 2014 Inferred Resource to a Measured & Indicated JORC status, while increasing the overall tonnage suitable for open pit mining. The 2018 programme is targeting an undrilled zone in the centre section of the strike length of the 2014 resource drilling. In addition, the Group has permits to drill up to three relatively deep discovery level diamond core holes at the M2 Sharktooth zone. The aim of these holes is to intercept higher and more consistent copper and gold grades associated with the Sharktooth epithermal plume postulated as the source of the M2 mineralisation, following the 2014 resource drilling and follow up geological mapping and geochemical work undertaken in 2015.

 

The Group is also in the process of evaluating a potential pilot heap leaching plant for the higher-grade core of the 2014 Inferred Resource established at M2.  As part of this process the Group commissioned WT Cohan & Associates of Grand Junction, Colorado ("WTC"), to produce a JORC Compliant Technical Scoping Study on the M2 copper-gold prospect and the results of this study were reported to shareholders in October 2017.  However, in February 2018 WTC informed the Group that software errors had occurred in the resource block model resulting in a possible over-estimate of declared resources.  Shareholders were immediately notified by RNS and we are currently awaiting a revised report from WTC but so far have no reason to conclude that this will affect the overall viability of the proposed leaching project.

 

In October 2017 drilling commenced on the M4 (Target 4) copper-gold prospect. Here the Group is drilling six holes with a permitted option to expand the programme by drilling a further three holes. Three holes were completed in October and November 2017 and the Group has now received approval from the US Forestry Service, regulator for our activities in this area, regarding recommencing the drilling of the remaining three drill holes in April 2018.

 

The Group's 2018 exploration programme will also include further work to define the oxide copper drill target at the M8 prospect, within the EM Group of claims. M8 contains the historic Eastside Mine ("Eastside"), where high grade oxide copper ores were mined from shallow underground workings during the First World War. The Group's 2014 field programme identified one potentially large copper oxide target and a discovery level drill programme is under consideration. In preparation for the anticipated field work later this year, the Group added ten new claims to M8 in December 2017.

 

In June 2017 the Group raised a total of £2,650,000 (€3,008,205) in new share capital before expenses through two placings of new Ordinary Shares. The net proceeds from these placings have been allocated to the 2017/2018 drilling and exploration programmes and to treasury for general working capital purposes.

 

We are grateful for the continuing support of shareholders and look forward to reporting on a successful 2017/18 drill programme later this summer.

 

Brian Hall

David Fraser

Chairman

Chief Executive Officer

 

 

 

Consolidated Income Statement

For the year ended 31 December 2017

 

 

 

 



Notes


2017


2016













Administrative expenses




(707,241)


(430,490)

Finance income


4


            10,947


                  333

Finance costs


5


                       -


(48)

Loss for the year before tax


6


(696,294)


(430,205)








Income tax expense


8


                       -


-

Loss for the financial year




      (696,294)


(430,205)








Loss attributable to:







Equity holders of the Company




(696,294)


(430,205)








Earnings per share from continuing operations







Basic and diluted loss per share (cent)


9


(0.001)


(0.001)

 

 

 

Consolidated Statement of Other Comprehensive Income

For the year ended 31 December 2017

 

 





2017


2016













Loss for the financial year




(696,294)


(430,205)








Other comprehensive income







Items that are or may be reclassified to profit or loss:




(404,604)


          100,497

Currency translation differences




(404,604)


          100,497








Total comprehensive expense for the financial year







attributable to equity holders of the Company




(1,100,898)


(329,708)

 

 

 

Consolidated Statement of Financial Position

For the year ended 31 December 2017

 



Notes


2017


2016






Assets







Non-current assets







Intangible assets


11


      3,424,504


      3,496,297

Total non-current assets




      3,424,504


      3,496,297








Current assets







Trade and other receivables


12


          154,902


          128,848

Cash and cash equivalents


13


      2,678,276


          712,273

Total current assets




      2,833,178


          841,121








Total assets




      6,257,682


      4,337,418















Equity







Capital and reserves







Share capital


15


      2,681,023


      2,660,738

Share premium


15


      8,328,238


      5,173,692

Share based payment reserve


16


          218,200


            44,448

Foreign currency translation reserve




          306,115


          710,719

Retained earnings




(5,342,764)


(4,324,615)

Attributable to owners of the Company




      6,190,812


      4,264,982








Total equity




      6,190,812


4,264,982








Liabilities







Current liabilities







Trade and other payables


14


            66,870


            72,436

Total current liabilities




            66,870


            72,436








Total liabilities




            66,870


            72,436








Total equity and liabilities




      6,257,682


      4,337,418

 

 

 

 

Consolidated Statement of Changes in Equity

For the year ended 31 December 2017

 







Share based


Foreign currency







Share


Share


payment


translation


Retained





capital


premium


reserve


reserve


earnings


Total





















Balance at 1 January 2016


    2,648,238


    4,630,945


                    -


        610,222


(3,794,437)


    4,094,968














Comprehensive income for the year













Loss for the year


                    -


                     -


                     -


                     -


(430,205)


(430,205)

Currency translation differences


                     -


                     -


                     -


       100,497


                     -


       100,497

Total comprehensive income for the year


                    -


                     -


                     -


       100,497


(430,205)


(329,708)



























Transactions with owners, recorded directly in equity













Shares issued


          12,500


       542,747


                     -


                     -


(55,525)


       499,722

Share warrants granted


                     -


                     -


          44,448


                     -


(44,448)


                     -

Share options granted


                     -


                     -


                     -


                     -


                     -


                     -

Total transactions with owners, recorded directly in equity

          12,500


       542,747


          44,448


                     -


(99,973)


         499,722














Balance at 31 December 2016


    2,660,738


    5,173,692


          44,448


       710,719


(4,324,615)


    4,264,982














Balance at 1 January 2017


    2,660,738


    5,173,692


          44,448


       710,719


(4,324,615)


    4,264,982














Comprehensive income for the year













Loss for the year


                     -


                     -


                     -


                     -


(696,294)


(696,294)

Currency translation differences


                     -


                     -


                     -


(404,604)


                     -


(404,604)

Total comprehensive income for the year


                     -


                     -


                     -


(404,604)


(696,294)


(1,100,898)



























Transactions with owners, recorded directly in equity













Shares issued


          20,285


    3,154,546


                     -


                     -


(225,908)


    2,948,923

Share warrants granted


                     -


                     -


          95,947


                     -


(95,947)


                     -

Share options granted


                     -


                     -


          77,805


                     -


                     -


          77,805

Total transactions with owners, recorded directly in equity

          20,285


    3,154,546


       173,752


                     -


(321,855)


    3,026,728














Balance at 31 December 2017


    2,681,023


    8,328,238


       218,200


       306,115


(5,342,764)


    6,190,812

 

 

 

 

Consolidated Statement of Cash Flows

For the year ended 31 December 2017

 



Notes


2017


2016






Cash flows from operating activities







Loss for the year




(696,294)


(430,205)








Adjustments for:







Interest receivable and similar income


4


(10,947)


(333)

Interest payable and similar charges


5


                       -


                    48

Movement in trade and other receivables




(26,054)


            45,452

Movement in trade and other payables




(5,564)


(6,879)

Equity settled share-based payment


15


            77,805


                       -

Net cash flows from operating activities




(661,054)


(391,917)








Cash flow from investing activities







Expenditure on intangible assets


11


(307,480)


(148,268)

Interest received


4


            10,947


                  333

Interest paid


5


                       -


(48)

Net cash from investing activities




(296,533)


(147,983)








Cash flow from financing activities







Proceeds from the issue of new shares


15


      3,008,205


            555,247

Proceeds from the exercise of warrants


15


          166,626


                       -

Commission paid from the issue of new shares


15


(225,908)


(55,525)

Repayment of convertible debt


19


                       -


(15,000)

Net cash from financing activities




      2,948,923


          484,722








Increase/(decrease) in cash and cash equivalents




      1,991,336


(55,178)

Exchange rate adjustment on cash and cash equivalents




(25,333)


              8,070

Cash and cash equivalents at beginning of the year


13


          712,273


          759,381

Cash and cash equivalents at end of the year


13


      2,678,276


          712,273

 

 

 

Notes to the Financial Statements PDF link:

 

http://www.rns-pdf.londonstockexchange.com/rns/1410K_1-2018-4-6.pdf

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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