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RAIDEN RESOURCES LIMITED Interim / Quarterly Report 2020
65675_rns_2020-04-29_78813a76-f7d3-4997-b02b-46140f9d781e.pdf
Interim / Quarterly Report
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RAIDEN QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDED 31 MARCH 2020
HIGHLIGHTS
- Raiden awarded the tender for the BG1 licence by the Ministry of Energy in Bulgaria;
- The Company gave notice of "force majeure" under the Kalabak Option Agreement to QX Metals Corp. in light of the present situation with COVID-19;
- A new gold prospect ("Chal") defined on the Kalabak project in Bulgaria; and
- License approval for the Vuzel project in Bulgaria progressing
Raiden Resources Limited (ASX: RDN) ('Raiden' or 'the Company') is pleased to provide its report on activities and progress made during the March 2020 Quarter:
Exploration Activities in Bulgaria
BG1
During the Quarter the Company received the notification that the Ministry of Energy had awarded Western Tethyan Exploration OED (Bulgarian registered and 100% Raiden owned company), the winner of the tender for BG1 licence. Under the terms of the tender, Raiden will be issued 100% rights to the BG1 project licence.
Subsequent to the Quarter, the Company reported on the review of the historical results on the BG1 project. The review release included an update on the historical drilling work, as well as, the results from field observations from the Company's field visit to the project area. Further information can be sourced from the Company's announcement released on 22nd of April 2020.
QUICK STATS
ASX Code: RDN Shares on Issue: 431.4 million Market Cap: $2.59 million Cash: $0.5m (at 31 March '20)
BOARD & MANAGEMENT
Non- Executive Chairman Mr Michael Davy
Managing Director Mr Dusko Ljubojevic
Non-Executive Directors Mr Martin Pawlitschek
Company Secretary Ms Kyla Garic
ASSET PORTFOLIO
Stara Planina - Serbia (JV with local entity – path to 100% - 46km2 )
Donje Nevlje - Serbia (100% – 74km2 )
Majdanpek West - Serbia (100% - 76km2 )
Zupa - Serbia (100% Raiden – 85km2 )
Pirot - Serbia (Executing Application – 16km2
Bor – Serbia (Partially granted/ pending application - 100% - ~28km2
)
Vuzel - Bulgaria (JV with local entity – path to 100% ~26.5 km2 )
Kalabak - Bulgaria (JV with local entity – path to 75% ~191 km2)
Zlatusha - Bulgaria (JV with local entity – path to 75% ~195 km2)
BG1 – Bulgaria (100% Raiden - 19km2) Significant further ground holding currently under review.
Page 1 of 6
Kalabak
During the Quarter and in response to COVID-19 the Company gave notice of "force majeure" under the Kalabak Option Agreement to QX Metals Corp. The decision was made in light of the present situation with COVID-19 and the declaration of a state of emergency in Bulgaria. The effect of the notice is that the period of time for performance of obligations by all parties to the option agreements is extended by the length of the period of the intervening force majeure. The Company intends to commence with field activities as soon as practical.
A new gold prospect ("Chal") was defined on Kalabak project. The Chal prospect was first recognised with the discovery of an outcropping alteration zone, in an area of gold anomalism defined by the Company's sampling program in 2019. Follow up field observations, followed by an infill soil sampling program and ground magnetics, have resulted in definition of a new geochemical anomaly and associated hydrothermal alteration, which may be indicative of porphyry-related copper-gold mineralisation.
For further information refer to the Company's announcement dated 1st April 2020.
Vuzel
During the quarter the process for permitting approval progressed. As reported subsequently, the Company announced the Vuzel project in Bulgaria, where the Company has executed an earn-in and option to purchase agreement, progressed through the approvals process within the Bulgarian Ministry of Energy ("Ministry").
The Vuzel project hosts a low sulphidation, epithermal gold prospect which is defined by historical high grade channel sampling results and presents the Company with an advanced, high grade gold target, which the Company plans to drill test as soon as final permitting has been completed.
For further information, please refer to the companies release on the 28th of April 2020.
Exploration Activities in Serbia
Majdanpek West and Majdanpek Pojas
During the Quarter the Company received notice from Rio Tinto that they had withdrawn from the Majdanpek West Earn in Joint Venture. The Joint Venture with Rio Tinto covered two licenses (Majdanpek West and Majdanpek Pojas). Rio Tinto completed significant target generation campaign over the two licenses and executed a drilling program in 2019.
Raiden intends to review the data and consider the option of continuing exploration in its own right, or with another strategic partner, after the project receives the extension notice from the Serbian Ministry of mines and Energy.
Other Exploration Activities
Management continued communications with the Serbian Ministry of Mines and Energy in respect to the renewal of exploration Permit for the Donje Nevlje Project. Management will keep the market updated as to the renewal process.
Throughout the quarter and prior to the declaration of state of Emergency in Serbia, the Company was advancing plans to drill test the polymetallic target on the Zupa permit. The Company commenced with land ownership evaluations and access permissions, however this work has ceased on declaration of the state of emergency. The Company will recommence with the work on Zupa as soon as practical.
No work was undertaken on the Tilva Njagra project throughout the quarter.
Tenement Table: ASX Listing Rule 5.3.3
Mining tenement interests held at the end of the quarter and their location
| Tenement reference and location | Nature | Status | Interest |
|---|---|---|---|
| Donje Nevlje–310-02-1547/2015-02 | Direct | Permit extensionrequest pending | 100% |
| Velika Zupa –310-02-1656/2016-02 | Direct | Granted | 100% |
| Zapadni Majdanpek–310-02-1096/2016-02 | Direct | Granted | 100% |
| Majdanpek Pojas–310-02-1510/2016-02 | Direct | Granted | 100% |
| Tilva Njagra Istok –310-02-1584/2016-02 | Direct | Granted | 100% |
Mining tenement interests relinquished during the quarter and their location
Nil
The mining tenement interests acquired during the quarter and their location
Nil
Beneficial percentage interests held in farm-in or farm-out agreements at the end of the quarter
| Tenement reference and location | Nature | Status | Interest |
|---|---|---|---|
| Stara Planina1–310-02-495/2015-02 | Joint Venture | Granted | - |
| Kalabak2–Licence No. 405 | Joint Venture | Granted | - |
| Zlatusha2–Licence No. 486 | Joint Venture | Application | - |
| Vuzel3 | Joint Venture | Application | - |
Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during the quarter
Nil.
1 The Company has an agreement to earn-in up to a 90% interest and an option to purchase up to a 100% interest. At the end of the quarter the Company had earned the right to 25%, this has yet to be converted to a right in the Company.
2 The Company has an agreement to earn-in up to a 75% position within the project.
3 The Company has an agreement to earn-in up to 90% position within the project and an option to purchase 100% of the project.
ASX RELEASE | 30 April 2020
Corporate
During the Quarter 108,550,000 ordinary shares which were previously subject to escrow for a period of 24 months commencing 23 February 2018 were released on 23 February 2020.
The Company lodged the audited interim financial report on for the six months ended 31 December 2019.
The Company has also advanced discussions with potential strategic investors in regard to a number of the Companies projects which may be of interest to the potential investing party. While the Covid-19 situation has impacted on planned site visits, the Company will work with all interested parties to ensure field visits are executed as soon as practical.
The Company continues to review and access further opportunities throughout the region and globally, with the objective of attracting projects which will add value to the Companies current portfolio of projects and generate value for the shareholders.
Summary of Expenditure
As at 31st March 2020, Raiden and its subsidiaries held A$0.5 million in cash reserves. Further details can be found in the Appendix 5B released with this announcement.
Of the total expenditure of the Company during the Quarter, 45.6% of the Company's expenditure was on activities related to the exploration and development of the current projects as detailed in the Cashflow Report (5B) appended to this report. The Company did not incur any expenditure for mining production and development activities during the Quarter.
Payments totalling approximately $104,000 were made to related parties of the Company, being Non-Executive and Managing Director fees. The amount is inclusive of accrued amounts at 31st December 2019 for the Managing Director for the period August 2019 to December 2019 (see section 6.1 of the Accompanying 5B).
This ASX announcement has been authorised for release by the Board of Raiden Resources Limited.
FOR FURTHER INFORMATION PLEASE CONTACT:
DUSKO LJUBOJEVIC
Managing Director
RAIDEN RESOURCES LIMITED
Competent Person's Statement
The information in this announcement that relates to exploration results is based on and fairly represents information and supporting documentation prepared by Mr Martin Pawlitschek, a competent person who is a member of the Australian Institute of Geoscientists (AIG). Mr Martin Pawlitschek employed by Raiden Resources Limited. Mr Martin Pawlitschek has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the JORC Code. Mr Martin Pawlitschek has provided his prior written consent as to the form and context in which the exploration results and the supporting information are presented in this announcement.
Disclaimer:
Forward-looking statements are statements that are not historical facts. Words such as "expect(s)", "feel(s)", "believe(s)", "will", "may", "anticipate(s)", "potential(s)"and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company's prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events
About Raiden Resources
Raiden Resources Limited (ASX: RDN) is an ASX listed copper—gold focused exploration Company focused on the emerging prolific Tethyan metallogenic belt in Eastern Europe, and has established a significant exploration footprint in Serbia and Bulgaria. Over the last 2 years, the Company has secured one of the largest project portfolios, considered prospective for porphyry and epithermal mineralisation in Eastern Europe. The Company has defined over 20 porphyry, epithermal and polymetallic prospects over the course of 2019 and the Directors believe that the Company is well positioned to unlock value from this exploration portfolio and deliver a significant mineral discovery.
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
| 66 009 161 522 | 31 March 2020 |
|---|---|
| ABN | Quarter ended ("current quarter") |
| RAIDEN RESOURCES LIMITED (RDN) | |
| Name of entity |
| Consolidated statement of cash flows | Current quarter$A'000 | Year to date (9months)$A'000 | |
|---|---|---|---|
| 1. | Cash flows from operating activities | ||
| 1.1 | Receipts from customers | - | - |
| 1.2 | Payments for | ||
| (a)exploration & evaluation (if expensed) | - | - | |
| (b)development | (10) | (10) | |
| (c)production | - | - | |
| (d)staff costs | (104) | (140) | |
| (e)administration and corporate costs | (139) | (389) | |
| 1.3 | Dividends received (see note 3) | - | - |
| 1.4 | Interest received | 2 | 14 |
| 1.5 | Interest and other costs of finance paid | - | - |
| 1.6 | Income taxes paid | - | - |
| 1.7 | Government grants and tax incentives | - | - |
| 1.8 | Other (provide details if material) | - | 13 |
| 1.9 | Net cash from / (used in) operatingactivities | (251) | (512) |
| 2. | Cash flows from investing activities | |||
|---|---|---|---|---|
| 2.1 | Payments to acquire: | |||
| (a) | entities | - | - | |
| (b) | tenements | - | - | |
| (c) | property, plant and equipment | - | - | |
| (d) | exploration & evaluation (if capitalised) | (211) | (731) | |
| (e) | investments | - | - | |
| (f) | other non-current assets | - | - |
| Consolidated statement of cash flows | Current quarter$A'000 | Year to date (9months)$A'000 | |
|---|---|---|---|
| 2.2 | Proceeds from the disposal of: | ||
| (a)entities | - | - | |
| (b)tenements | - | - | |
| (c)property, plant and equipment | - | - | |
| (d)investments | - | - | |
| (e)other non-current assets | - | - | |
| 2.3 | Cash flows from loans to other entities | - | - |
| 2.4 | Dividends received (see note 3) | - | - |
| 2.5 | Other (provide details if material) | - | - |
| 2.6 | Net cash from / (used in) investingactivities | (211) | (731) |
| 3. | Cash flows from financing activities | ||
|---|---|---|---|
| 3.1 | Proceeds from issues of equity securities(excluding convertible debt securities) | - | - |
| 3.2 | Proceeds from issue of convertible debtsecurities | - | - |
| 3.3 | Proceeds from exercise of options | - | - |
| 3.4 | Transaction costs related to issues of equitysecurities or convertible debt securities | - | - |
| 3.5 | Proceeds from borrowings | - | - |
| 3.6 | Repayment of borrowings | - | - |
| 3.7 | Transaction costs related to loans andborrowings | - | - |
| 3.8 | Dividends paid | - | - |
| 3.9 | Other (provide details if material) | - | - |
| 3.10 | Net cash from / (used in) financingactivities | - | - |
| 4. | Net increase / (decrease) in cash andcash equivalentsfor the period | ||
|---|---|---|---|
| 4.1 | Cash and cash equivalents at beginning ofperiod | 960 | 1,745 |
| 4.2 | Net cash from / (used in) operatingactivities (item 1.9 above) | (251) | (512) |
| 4.3 | Net cash from / (used in) investing activities(item 2.6 above) | (211) | (731) |
| 4.4 | Net cash from / (used in) financing activities(item 3.10 above) | - | - |
| Consolidated statement of cash flows | Current quarter$A'000 | Year to date (9months)$A'000 | |
|---|---|---|---|
| 4.5 | Effect of movement in exchange rates oncash held | 3 | (1) |
| 4.6 | Cash and cash equivalents at end ofperiod | 501 | 501 |
| 5. | Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts | Current quarter$A'000 | Previous quarter$A'000 |
|---|---|---|---|
| 5.1 | Bank balances | 501 | 960 |
| 5.2 | Call deposits | - | - |
| 5.3 | Bank overdrafts | - | - |
| 5.4 | Other (provide details) | - | - |
| 5.5 | Cash and cash equivalents at end ofquarter (should equal item 4.6 above) | 501 | 960 |
| 6. | Payments to related partiesof the entityand their | |
|---|---|---|
| associates |
| Current quarter$A'000 |
|---|
| 104 |
| - |
6.2 Aggregate amount of payments to related parties and their associates included in item 2
6.1 Aggregate amount of payments to related parties and their
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.
The amounts included in 6.1 include:
associates included in item 1
- payment of $85,750 for the period from August 2019 to February 2020 for the Managing Director salary and
- payments of $18,000 to Non-Executive Directors for director fees.
| 7. | FinancingfacilitiesNote: the term "facility' includes all forms of financingarrangements available to the entity.Add notes as necessary for an understanding of thesources of finance available to the entity. | Total facilityamountat quarterend$A'000 | Amount drawnatquarter end$A'000 |
|---|---|---|---|
| 7.1 | Loan facilities | - | - |
| 7.2 | Credit standby arrangements | - | - |
| 7.3 | Other (please specify) | - | - |
| 7.4 | Total financing facilities | - | - |
| 7.5 | Unused financing facilities available at quarter end- | ||
| 7.6 | Include in the box below a description of each facility above, including the lender, interestrate, maturity date and whether it is secured or unsecured. If any additional financingfacilities have been entered into or are proposed to be entered into after quarter end,include a note providing details of those facilities as well. | ||
| N/A |
| 8. | Estimated cash available for future operating activities | $A'000 |
|---|---|---|
| 8.1 | Net cash from / (used in) operating activities (Item 1.9) | (251) |
| 8.2 | Capitalised exploration & evaluation (Item 2.1(d)) | (211) |
| 8.3 | Total relevant outgoings (Item 8.1 + Item 8.2) | (463) |
| 8.4 | Cash and cash equivalents at quarter end (Item 4.6) | 501 |
| 8.5 | Unused finance facilities available at quarter end (Item 7.5) | - |
| 8.6 | Total available funding (Item 8.4 + Item 8.5) | 501 |
| 8.7 | Estimated quarters of funding available (Item 8.6 divided byItem 8.3) | 1.1 |
8.8 If Item 8.7 is less than 2 quarters, please provide answers to the following questions:
- Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?
Answer: No, as announced on the 1/4/2020, the Company has implemented cost and asset preservation measures since March 2020 due to COVID-19. These measures will remain in place until such time where the Company can re-commence with its field activities. As such, the Company's net cash outflows for the next quarter and preceding quarters, will be significantly reduced to approximately $111k as compared to $463k (Item 8.3), whilst COVID-19 restrictions remain in place.
- Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
Answer: In addition to points above, to ensure the Company has sufficient funding for the interim period, the Company is in advanced discussions with its Board members to provide interim loan facilities of up to an aggregate of $300,000. Any such loan facilities will be entered into on arm's length terms. The Company cautions that these loan facilities have not yet been entered into and there can be no certainty that the loan facilities will be provided. However, on the basis of the discussions to date, the Company anticipates these facilities will be made available. The Company will release an update in accordance with its disclosure obligations upon the execution of any such facilities.
Further and as previously communicated to the markets, the Company continues to engage with strategic investors, who have expressed an interest in the Company's properties and the potential into entering into a strategic partnership, whereby the funding for certain projects would be provided by those investors. A realisation of this would provide the Company with the appropriate funding to advance its projects.
The Company also has the ability to undertake a capital raising by way of a placement of equity securities using the entity's existing placement capacity under listing rules 7.1 and/or 7.1A. The Company currently has the capacity to issue an aggregate of 30,564,619 equity securities under listing rule 7.1 and 41,043,080 equity securities under listing rule 7.1A. Alternatively, the Company may seek to undertake a pro-rata offer to shareholders or a securities purchase plan. Given the Company's historical ability to raise capital and a supportive shareholder base, the Board considers it likely that the Company will be successful in completing this capital raising if required.
- Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
Answer: Yes, as noted in response 1 and 2.
Compliance statement
- 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
- 2 This statement gives a true and fair view of the matters disclosed.
Date: 30.04.2020..................................................................
Authorised by: By the Board.................................................................
Notes
-
- This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
-
- If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
-
- Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
-
- If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee – eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
- If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.