PANTHERA RESOURCES PLC — Earnings Release 2020

Dec 17, 2020

National Storage Mechanism | Additional information

RNS Number : 9786I

Panthera Resources PLC

17 December 2020

17 December 2020

Panthera Resources PLC

(Panthera or the Company)

Interim Results - Six months ended 30 September 2020

Panthera Resources PLC (AIM: PAT), the gold exploration and development company with key assets in West Africa and India, is pleased to announce its unaudited interim results for the half year ended 30 September 2020.

Highlights

·           Earnings for the reporting period of $2,224,437 or $0.03 per share, a substantial improvement on the previous corresponding period loss of $659,348 or $0.01 per share.  The improvement resulted from the divestment of the Company's interest in the Labola project to Moydow Holdings Limited (Moydow).

·           Entered an agreement with Moydow to spinout our interests in the Labola gold project in south west Burkina Faso and the Kalaka gold project in south west Mali, whilst retaining a significant interest in Moydow.

·           Acquired an interest, via Moydow, in the Paimasa and Dagma projects in Nigeria.

·           Anglo Saxony Mining Limited, in which Panthera retains a 14.2% shareholding, completed a pre-feasibility study of Tellerhäuser Polymetallic Project, in Germany, and was granted a Mining Licence for 50 years.

·           Entered into a new term sheet which extends the partnership with Galaxy Gold Mines Pvt Limited (Galaxy), to 16 December 2020.

·           Continued to pursue the grant of the Prospecting Licence over the Bhukia project through both commercial resolution and the legal proceedings ongoing in the High Court of Rajasthan (Court). 

·           Arranged an equity financing with existing and new investors for £349,390.

·           Appointed a new Managing Director, Mark Bolton effective from 1 April 2020.

Events Post Balance Date

·           Recommenced field programmes in West Africa including at the Bassala, Bido, Kalaka and Paimasa projects.

·           Successfully retained Panthera's interest in the Bido PRM (formerly called Naton) with the support of the Ministry of Mines of Burkina Faso and our joint venture partner.

·           Amended the term sheet which extends the partnership with Galaxy to 30 April 2021.

·           Received cash proceeds of US$190,000 as part consideration pursuant to the agreement with Moydow.

·           Received proceeds of £96,078 from the conversion of 1,438,289 unlisted warrants at £0.0668 per warrant. 

·           The Company has received commitments for the conversion of a further 2,137,990 warrants for £142,818 on or before 15 January 2021.

Mark Bolton, Managing Director of Panthera Resources, commented:

"The year to date has represented a transformational phase for the Company which has culminated in a milestone transaction with Moydow to spin-out key projects and introduce new assets.  Importantly, we have reignited our work programmes focused on developing the inherent value of our West African assets. The outcome of all this assiduous work has provided Panthera with a clear path for high growth and a re-energised base for shareholder and investor  support, from  which we can now proceed into another busy year in 2021.

Furthermore, I am delighted to advise that we will shortly start to see the results of our accelerated activity commenced across a number of projects in recent months.  We have soil sampling  and geophysical programmes underway at Bido and Bassala, to rank drill targets ahead of drilling programmes at each licence in H1 2021. At Paimasa, the drill rods are already turning, and we eagerly await these results in the New Year.  Our most advanced project, Labola, a comprehensive data review is underway  which is anticipated to underpin the reporting of a  maiden mineral resource estimate in 2021.

As we reflect back on the tremendous progress made over the course of the reporting period, I would like to thank our Panthera team for all their hard work and our shareholders for their continued support. I look forward to reporting further progress in the coming year."

Project Activities

Work has recommenced in the field at several projects following an extended hiatus.

Bassala Project (Mali)

A geophysical survey comprising ground magnetics has been completed with the results expected shortly.  In addition, a soil geochemical survey comprising 1,096 samples is currently underway.  This survey will extend the existing sampling to the northeast, west and south. 

This work is designed to firm up targets for drill testing during the first half of 2021.

Kalaka Project (Mali)

A programme of approximately 168 line kilometres of gradient array IP surveying is currently being undertaken.  The programme is designed to test the southern area of the licence, where the majority of known gold anomalism occurs.  The survey includes two large areas of historical artisanal mining activity that have not previously been drill tested, several gold-in-soil geochemical anomalies, gold mineralisation intersected in previous drilling, and structural targets in areas where it is interpreted that soil geochemistry is ineffective.  The survey is anticipated to be completed early in the New Year.

Previous gradient array IP surveying at the large, low grade K1A target has shown a very close correlation between gold mineralisation and chargeability highs with associated low order resistivity highs.  This is interpreted as being due to the sulphidic alteration (pyrite, arsenopyrite) and silicification respectively.  Hence this is considered to be an excellent tool for both pure exploration in areas where soil geochemistry is ineffective as well as for ranking drill targets.

The Kalaka project is currently subject to an offer to purchase from Moydow with completion anticipated to be on or before 31 December 2020.

Bido (Burkina Faso)

The Bido project, previously referred to as the Naton Project and comprising the exact same area as the latter, was granted in October 2020 with the support of the Ministry of Mines of Burkina Faso and our joint venture partner.

Subsequent to the grant of the Licence, a regional gold-in-soil sampling programme has commenced with the south-central area currently being sampled on 200m x 50m spacing.  The results of the sampling programme are anticipated early in 2021.

While conducting a preliminary site visit to plan for the soil sampling programme, it was noted that a "gold-rush" had commenced in the centre of the area proposed for sampling, with several hundred artisanal miners concentrating on an area of about 170m x 170m (Tiekouyou Rush).  The miners are currently obtaining gold from eluvium, quartz veins and altered host rock consisting of dolerite, diorite and metavolcanics. 

In addition, during this recent site visit, an area of quartz veining was identified in the northeast of the planned survey area (Beredo Target).  The zone appears to extend in a north-northeast direction trending from the area of proposed soil sampling.  In light of this, a re-evaluation of the Beredo area, immediately to the north of the proposed sampling area, was undertaken.  It is apparent that numerous rock chip samples have returned significant gold mineralisation, with twenty-eight of sixty samples assaying over 0.5g/t Au (average 4.7g/t Au) with some very high grades returned including 17.3g/t, 11.1g/t, 8.91g/t, 8.38g/t and 8.21g/t Au.  These are generally from quartz veins with evidence of boxworks after sulphides and tourmaline alteration.  Significantly, several of these have not been targeted by artisanal miners to date.

As part of a general re-evaluation of the entire area, the previous drilling undertaken at the Kwademen prospect has also been re-examined.  It is apparent that the previous drilling was very broadly spaced (~200m to 300m line spacing) and perhaps inaccurately located, nevertheless still returned significant gold mineralisation including:

·           16m @ 1.07g/t Au from 69m

·           10.4m @ 2.14g/t Au from 191m

·           23m @ 1.53g/t Au from 143m

·           2.25m @ 7.74g/t Au from 155.8m

·           1.45m @ 16.0g/t Au from 52m

·           1m @ 40.0g/t Au from 90m

It is apparent that this was targeting an area to the west of the main soil anomaly defined by Panthera's previous soil sampling.  This anomaly is also the focus of intense artisanal workings and is thus considered to be an excellent, poorly tested drill target.

The ongoing work programmes aim to define and rank drill targets for a drilling campaign that is expected to commence in the first half of 2021. This is in addition to other potential drill targets which have already been identified at the Bido Project including Somika Hill and Kwademen South.

Labola (Burkina Faso)

During the 2020 calendar year, activities have focused on obtaining and evaluating the extensive historical exploration records.  In this regard, a large database has recently been acquired from Nordgold by Moydow that compliments the previously held data.

This is being combined into a single validated Access database that will comprise over 65,000m drilling plus a large database of soil and rock chips samples.  In addition, excellent regolith mapping, magnetics, EM, IP, Lidar, orthophoto and satellite data has been obtained.

The objective is to complete a gap analysis of the required activities to be undertaken prior to the estimation of a mineral resource to international standards.  Some confirmatory drilling may likely be required during 2021 to fulfil QaQc requirements.

This project has recently been acquired by an associated company, Moydow.

Paimasa (Nigeria)

The Paimasa Project is one of two projects being explored by Panthera's associated company, Moydow.  Paimasa is located within schist belts of interpreted Pan African age within the Archaean/Proterozoic basement of central Nigeria.  The areas of interest contain numerous quartz veins that have been, or are currently being, worked for gold by artisanal miners.

Moydow is currently on site at Paimasa with both a diamond (DD) and a reverse circulation (RC) drill rig and has just started a programme of 300m DD and 1250m RC drilling in 17 drill-holes.  First results are expected early 2021.

Nigeria is considered to be a frontier region for gold exploration and a recent gold discovery by TSX-V listed Thor Explorations Ltd proves that significant gold mineralisation does exist within the Nigerian schist belts.

Bhukia Project (India)

In collaboration with its strategic partner in India, Galaxy, the Company continued its efforts to negotiate an amicable outcome with the Government of Rajasthan (GoR). In parallel, the Company has continued to seek the enforcements of its rights through the High Court of Rajasthan.  Up until Covid-19, the Company had made encouraging progress in its discussions with the GoR. However, with the onset of Covid-19, the Company's momentum stalled while India grapples with the high rates of virus transmission.  In recent weeks, the Courts have resumed, primarily by video. While a new court date has been scheduled for early next year, there is no certainty that the case will be heard, and it may subsequently be rescheduled. The Company will update the market of any material developments in India as they occur. 

In the interim, the Company continues to preserve its interests through the interim stay order in our favour by the Hon'ble High Court of Rajasthan (September 2018). The order restrains the GoR from granting third party rights within the area applied for by the JV under the PL application.

Anglo Saxony Mining Limited

Anglo Saxony Mining Limited (ASM) owns the Tellerhäuser Polymetallic Project (Tellerhäuser) in Germany.  During the half year, ASM completed a pre-feasibility study on a conceptual underground mining operation and processing plant to produce tin and associated metals including zinc, indium, and magnetite.  Furthermore, the Upper Saxony Mining Authority has now granted a 50-year mining licence to ASM for the Rittersgrün field. 

ASM completed a financing for a total £281,000 at 8p per share supported by ASM's shareholders including the Baker Steel Resources Trust.  Panthera holds 9,778,413 million shares in ASM comprising 14.2% of the issued capital in ASM.

The German corporate advisor, Deutsche Gesellschaft für Wertpapieranalyse GmbH (DGWA) has been appointed by ASM to act as their lead financial advisor in Germany.  DGWA has extensive experience in the mining sector, having advised on IPO's on the Frankfurt Stock Exchange and raised funds for numerous mining ventures (predominately in Europe) including European Metals Cinovec Lithium/Tin project nearby in the neighbouring Czech Republic.

Moydow Transaction

In July, Panthera announce the planned spin-out of its interests in the Labola and Kalaka gold projects to Moydow with Panthera retaining a substantial interest in Moydow.  The disposal of Labola was completed in August however the divestment of the Kalaka gold project to Moydow has been delayed and is now anticipated to be completed later in December.

Mowdow has subsequently completed an equity financing of US$1 million to progress its exploration activities in West Africa.  This is in addition to the US$1.5 million equity investment by existing Moydow shareholders comprising cash and drilling services.

Panthera holds a significant ownership interest of 41.7% in Moydow which increases to 46.2% later in December upon completion of the Kalaka divestment.  This also provides Panthera with ongoing participation in any success from the projects held by Moydow in Nigeria, including Dagma and Paimasa.

Funding

Based on current expenditure levels and taking into account the committed funding from Moydow and the warrant exercise due shortly, all funds will be used within the next 6 months. The group's ability to continue as a going concern is dependent upon raising additional capital.

Panthera Resources PLC

Unaudited Interim Financial Information for the period ended 30 September 2020

Set out below are the unaudited result of the group for the six months to 30 September 2020.

Group Statement of comprehensive income
For the six months ended 30 September 2020
					Six months to 30 September 2020	Six months to 30 September 2019
					Unaudited $USD	Unaudited $USD
Continuing operations
Revenue					-	-
Gross profit					-	-
Other Income					13,476	28,697
Exploration costs expensed					(225,415)	(289,934)
Administrative expenses					(348,392)	(397,724)
Loss from operations					(560,331)	(658,961)
Investment revenues					10	607
Loss on sale of assets					(1,072)
Loss before taxation					(561,393)	(658,354)
Taxation					-	-
Other comprehensive income
Items that may be reclassified to profit or loss:
Changes in the fair value of financial assets measured at FVOCI					-	1,316
Gain on sale to non-controlling interest					2,790,000	-
Exchange differences					(4,170)	(2,310)
Loss and total comprehensive income for the period					2,224,437	(659,348)
Total loss for the period attributable to:
- Owners of the Parent Company					(539,832)	(637,744)
- Non-controlling interest					(21,561)	(20,610)
					(561,393)	(658,354)
Total comprehensive income for the period attributable to:
- Owners of the Parent Company					2,245,998	(638,738)
- Non controlling interest					(21,561)	(20,610)
					2,224,437	(659,348)
Earnings per share attributable to the owners of the parent
Comprehensive income (undiluted/diluted)					0.03	(0.01)

Group Statement of financial position
As at 30 September 2020
					30 September 2020	30 September 2019
					Unaudited $USD	Unaudited $USD
Non-current assets
Property, plant and equipment					1,642	4,275
Investments					7,170	6,747
Financial assets at fair value through other comprehensive income					3,408,418	1,760,635
					3,417,230	1,771,657
Current assets
Trade and other receivables					274,450	171,454
Cash and cash equivalents					115,978	381,847
					390,428	553,301
Total assets					3,807,658	2,324,958
Non-current liabilities
Provisions					35,323	42,923
Deferred tax liabilities					-	-
					35,323	42,923
Current liabilities
Provisions					8,704	6,019
Trade and other payables					358,231	185,883
Total liabilities					402,258	234,825
Net assets					3,405,400	2,090,133
Equity
Share capital					1,131,033	1,007,056
Share premium					18,355,853	18,010,161
Capital reorganisation reserve					537,757	537,757
Other reserves					(1,134,888)	(227,875)
Retained earnings					(15,194,579)	(16,991,030)
Total equity attributable to owners of the parent					3,695,176	2,336,069
Non-controlling interest					(289,776)	(245,936)
Total equity					3,405,400	2,090,133

Group Statement of changes of equity
For the six months ended 30 September 2020
	Share Capital	Share premium account	Capital re-organisation reserve	Other reserves	Retained earnings	Total equity	Non-controlling interest	Total
	Unaudited $USD	Unaudited $USD	Unaudited $USD	Unaudited $USD	Unaudited $USD	Unaudited $USD	Unaudited $USD	Unaudited $USD
Balance at 1 April 2019	913,588	17,373,601	537,757	(115,997)	(16,352,292)	2,356,657	(225,326)	2,131,331
Loss for the period					(637,744)	(637,744)	(20,610)	(658,354)
Changes in the fair value of available-for-sale financial assets					1,316	1,316		1,316
Foreign exchange differences realised during the period					(2,310)	(2,310)		(2,310)
Total comprehensive income for the period	-	-	-	-	(638,738)	(638,738)	(20,610)	(659,348)
Share application moneys received	61,450	553,050		-		614,500		614,500
Shares issued in lieu of fees	32,018	83,510				115,528		115,528
Gain on fair value of investment assets				(81,943)		(81,943)		(81,943)
Foreign exchange differences on translation of currency				(29,935)		(29,935)		(29,935)
Total transactions in the period recognised directly in equity	93,468	636,560	-	(111,878)	-	618,150	-	618,150
Balance at 30 September 2019	1,007,056	18,010,161	537,757	(227,875)	(16,991,030)	2,336,069	(245,936)	2,090,133
Balance at 1 April 2020	1,010,308	18,032,309	537,757	(1,111,153)	(17,440,577)	1,028,644	(268,215)	760,429
Loss for the period					(539,832)	(539,832)	(21,561)	(561,393)
Gain on sale to non-controlling interest					2,790,000	2,790,000		2,790,000
Foreign exchange differences realised during the period					(4,170)	(4,170)		(4,170)
Total comprehensive income for the period	-	-	-	-	2,245,998	2,245,998	(21,561)	2,224,437
Issue of shares during period	120,725	323,544
Issue of warrants during period				5,744
Foreign exchange differences on translation of currency				(29,479)	-	(29,479)	-	(29,479)
Total transactions in the period recognised directly in equity	120,725	323,544	-	(23,735)	-	420,534	-	420,534
Balance at 30 September 2020	1,131,033	18,355,853	537,757	(1,134,888)	(15,194,579)	3,695,176	(289,776)	3,405,400

Group Statement of cash flows
For the six months ended 30 September 2020
					Six months to 30 September 2020	Six months to 30 September 2019
					Unaudited $USD	Unaudited $USD
Cash flows from operating activities
Cash used in operations					(480,176)	(606,593)
Income taxes paid					-	-
Net cash outflow from operating activities					(480,176)	(606,593)
Investing activities
Sale/(purchase) of property, plant and equipment					-	(1,308)
Sale/(Purchases) of financial assets at FVOCI					50,000	-
Sale/(Purchase) of Investments					-	-
Net cash generated/(used) in investing activities					50,000	(1,308)
Financing activities
Proceeds from issue of shares					444,269	741,600
Effect of exchange rate movement on cash					4,123	(59,773)
Net cash generated from financing activities					448,392	(801,373)
Net increase in cash and cash equivalents					18,216	(193,472)
Cash and cash equivalents at beginning of period					97,762	188,375
Cash and cash equivalents at end of period					115,978	381,847

NOTES TO THE FINANCIAL STATEMENTS

1.	Basis of preparation
	The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee (IFRS IC) interpretations as adopted by the European Union applicable to companies under IFRS. The Group Financial Statements have been prepared under historic cost convention. The financial statements have been prepared on the historical cost basis, except for the valuation of investments at fair value through profit or loss. The principal accounting policies adopted are set out in the Annual Report 31 March 2020. The functional currency of the Company is British Pounds (£). This is due to the Company being registered in the U.K and being listed on AIM, a London based market. Additionally, a large proportion of its administrative and operative costs are denominated in £. The financial statements are prepared in United States Dollars ($), which is the reporting currency of the Group. Monetary amounts in these financial statements are rounded to the nearest whole dollar. This has been selected to align the Group with accounting policies of other major gold-producing Companies, the majority of whom report in $. As permitted by section 408 of the Companies Act 2006, the Company has not presented its own statement of comprehensive income and related notes. The Company's total comprehensive income for the period was $2,319,604 (2019: $620,148).
2.	Events Subsequent to Reporting Date
	India On 17 December 2020, the Company announced that it had amended the term sheet which extended the partnership with Galaxy Gold Mines Pvt Limited (Galaxy) until 30 April 2021. West Africa - Bido On 6 October 2020, the Company secured its interest in the Bido PRM (formerly Naton PRM) with the support of the Ministry of Mines of Burkina Faso and the Company's joint venture partners. Under the joint venture agreement, the Company is earning an 80% interest in Bido following exploration expenditure of US$1 million on or before July 2022, with joint venture partners holding the remaining 20% interest. The Company has an option to increase its interest to 100% following further exploration expenditure of US$1 million on or before July 2024. The joint venture partners are also entitled to a royalty of 1% of the Net Smelter Return which is capped at $3 million. Sale to Moydow Holdings Limited (Moydow) On 1 September, the Company announced it had completed the divestment of its interest in the Labola gold project to Moydow. At balance date the Company had received 2,500,000 new ordinary shares in Moydow and cash of $50,000. Subsequent to balance date, the Company has received a further $190,000 cash consideration for the transaction. The divestment of Kalaka gold project in Mali to Moydow has been delayed and is now anticipated to be completed by 31 December 2020.  The Company expects to receive the balance consideration for the Moydow transaction, being 500,000 new ordinary shares in Moydow and $110,000 at completion. Warrant Conversions (£0.0668, 16 December 2021) The Company has received $129,000 (GBP 96,078) cash from warrant holders exercising their right to purchase ordinary shares at GBP 0.0668 per share.  In return the Company will issue 1,438,289 ordinary shares to warrant holders. In addition, the Company has received commitments for the conversion of a further 2,137,990 warrants for $192,000 (GBP 142,818) on or before 15 January 2021.

Contacts

Panthera Resources PLC Mark Bolton (Managing Director)	+61 411 220 942 contact@pantheraresources.com
Financial Public Relations Vigo Communications Ltd Simon Woods Chris McMahon	+44 (0)20 7390 0230
Nominated Advisor and Broker RFC Ambrian Rob Adamson Bhavesh Patel Charlie Cryer	+44 (0) 20 3440 6800

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Qualified Person

The technical information contained in this disclosure has been read and approved by Antony Truelove (BSc (Hon), MAusIMM, MAIG), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Antony Truelove is the COO of Panthera Resources PLC.

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.

Forward-looking Statements

This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterised by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes, and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events, or results not to be as anticipated, estimated, or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events, or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly, undue reliance should not be put on such statements due to the inherent uncertainty therein.

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