TIDMADT1
RNS Number : 4589F
Adriatic Metals PLC
16 July 2021
Adriatic Metals PLC
('Adriatic Metals' or the 'Company')
QUARTERLY ACTIVITIES REPORT
For the 3 months ended 30 June 2021 ("Q2" or "Quarter")
HIGHLIGHTS
-- Vares Silver Project, Bosnia & Herzegovina:
o Urban Planning Permit for the Rupice underground deposit
received.
o Demolition of the historic processing plant surface
infrastructure and geotechnical drilling program to test the
structural integrity of the original concrete pad completed.
o Rupice Exploitation Permit on course to be received during Q3
2021.
o Exploration drilling has re-commenced at Rupice.
o Exploration permit received for the additional 32km2 of
concession area granted to the Company in September 2020 and
initial results were received from an airborne geophysical survey
across this area.
-- Adriatic Foundation established as a charitable trust in
Bosnia & Herzegovina with the objective of supporting the
communities around the Vares Silver Project to create a positive
long-term legacy.
-- Raska Project, Serbia:
o Completed more than 6,500 meters of exploration drilling.
Paul Cronin, Adriatic's Managing Director and CEO commented:
"During the second quarter of 2021, we received the Urban
Planning Permit for the Rupice underground deposit, which is an
important permit and significant step forward in the development of
the Vares Silver Project. This marked the penultimate step in
completing the permitting requirements to commence construction. In
addition, we received an Exploration Licence for 32km(2) of
additional concession areas along the 22km of strike length, which
we look forward to systematically exploring.
One of our key values at Adriatic Metals is to align the Company
with the aspirations of our communities. The establishment of the
Adriatic Foundation shows a strong commitment to those values by
our Board, management and staff. We hope that the Foundation will
draw support from our key partners in-country and global suppliers
to promote development across our communities.
This is a transformational year for the Vares Silver Project and
we look forward to the completion of the Definitive Feasibility
Study within a matter of weeks."
Adriatic Metals PLC (ASX:ADT, LSE:ADT1) is pleased to provide
the following Quarterly Activities Report ("QAR") that summarises
the progress made and reported during the three months ended 30
June 2021 ("Q2" or "Quarter").
1. Vares Silver Project Operations and Corporate Update
On 19 April 2021, the Company provided a Vares Silver Project
Operations and Corporate Update, which included the following
highlights:
-- Demolition of the Old Processing Plant Site nears completion.
A geotechnical drilling program to test the structural integrity of
the original concrete pad has been completed.
-- Exploration drilling has now re-commenced at Rupice.
-- Adriatic Metals Chief Geologist, Phil Fox, hosted a Vares
Project Geology Webinar on Tuesday, 20 April 2021. A recording of
the webinar is available, see link:
https://www.adriaticmetals.com/news/the-vares-project-geology-presentation/
-- The webinar's Vares Project Geology Presentation is available
on the ASX announcements page of the Company's website , see link:
https://www.adriaticmetals.com/investors/asx-announcements/
-- The Company has received several non-binding term sheets for the Vares Project Financing.
-- Appointment of Thomas Horton as Head of Corporate Development & Investor Relations.
-- Appointment of RBC Capital Markets as the Company's Joint
Corporate Broker, effective 30 March 2021.
2. Vares Project Further Permitting Approval
On 4 June 2021, the Company announced that it had received the
Urban Planning Permit ("UPP") for the Rupice underground deposit
("Rupice"), from the Bosnian Federal Ministry of Spatial Planning.
The approval reflects the strong support for the Vares Silver
Project from both Government and local stakeholders, which were
actively engaged throughout the application process.
The Company has since applied to the Federal Ministry of Energy,
Mines and Infrastructure ("FMERI") for the Rupice Exploitation
Permit, which is a technically focussed procedure, representing the
last remaining permit required in order for construction to
commence and gives Eastern Mining, the Company's wholly owned
Bosnian subsidiary, the right to mine and process ore, from Rupice
and Veovaca, in accordance with the Concession Agreement and
Elaborate of Ore Reserves.
3. Vares Project New Concession Area Exploration Permit &
Project-Wide Geophysical Survey Results
On 7 June 2021, the Company announced that it had received the
exploration permit in respect of the 32km(2) extension to the
concession, which had been awarded in September 2020, comprising of
Semizova Ponikva, Brezik and Vares East.
Additionally, the Company advised that the initial results from
the recent heliborne magnetics and radiometric survey covering the
total concession area had been received with data analysis and
interpretation ongoing.
4. Formation of the Adriatic Foundation
On 9 June 2021, the Company announced the incorporation of a
charitable trust registered in the Federation of Bosnia and
Herzegovina, called the Adriatic Foundation (the "Foundation").
Objective of the Foundation
The Foundation has been set up with the objective of supporting
the communities around the Vares Silver Project through initiatives
designed to create a positive long-term legacy, as well as
alignment between the Company and the communities that the
Foundation supports. The initiatives are specifically focussed on
improving education, healthcare and environmental protection
(collectively, the "Foundation Objectives").
Education
The Foundation will support local youth education programmes
with courses and activities to support further education, as well
as developing the broader set of skills required for the job market
and professional development.
Healthcare
The Foundation will promote the awareness of disease prevention
and improve local primary healthcare.
Environment
The Foundation will improve awareness of the importance of
conservation and environmental protection. It will do this by
supporting initiatives focussed on the transition to technologies
and renewable energy resources that reduce pollution, as well as
support projects that address key environmental issues of common
interest.
Management of the Foundation
The Foundation will be managed by a Board of Trustees, who are
representatives of the local communities surrounding the Vares
Silver Project. The Trustees will each have a tenure of 4 years.
The Board of Trustees will meet quarterly to discuss and approve
submitted proposals that meet the Foundation Objectives.
Funding of the Foundation
The Foundation's programme funding will be primarily received
through grants - i.e. non-repayable funding. Adriatic Metals will
provide an initial sum of EUR100,000 to the Foundation, as well as
an ongoing commitment of 0.25% of profits from its operations in
Bosnia & Herzegovina. Sanela Karic, Non-Executive Director of
Adriatic Metals, as referred to in Adriatic Metal's 2020 Annual
Report, has pledged her Directors fees from March to June 2021, and
Paul Cronin, CEO and MD of Adriatic has also pledged to give
250,000 of his personal shares in Adriatic Metals to the
Foundation. The Foundation will seek contributions from other
individuals, companies and institutions to co-fund programmes that
support the Foundations Objectives. To date, the Foundation has
received additional soft commitments of over EUR400,000.
5. Summary of Expenditure
A summary of operating and investing expenditure made by
Adriatic on a consolidated basis during the Quarter in relation to
operating and investing activities reported in the Appendix 5B Cash
Flow Report is as follows:
GBP'000
Exploration & Evaluation (capitalised) 2,546
Exploration & Evaluation (expensed) 708
Staff costs 597
Administration and corporate
costs 684
Property, plant and equipment
acquisitions 25
Interest paid 307
Other - VAT Refunds (35)
Total GBP 4,832
6. Payments to Related Parties
During the Quarter, Adriatic paid an aggregate total of GBP105k
to Directors, or companies controlled by them, comprised of
salaries, fees and reimbursement / recharge of corporate office
facilities & associated services used / provided by the
Company. This is disclosed in Item 6 of the accompanying Appendix
5B Cash Flow Report.
7. Tenement Holdings
In accordance with ASX Listing Rule 5.3.3 please find below the
Company's tenements as at 30 June 2021. The Company holds a 100%
interest in all concession agreements and licences via its wholly
owned subsidiaries, with the exception of the Raska (Suva Ruda)
licence held by Deep Research d.o.o.. The Company does not hold an
equity interest in Deep Research d.o.o. but has an option agreement
pursuant to which it may acquire the entire share capital of Deep
Research d.o.o..
Area
Concession License (km(2) Date
document Registration number holder Concession name ) granted Expiry date
------------------------------ -------------- ---------------------- ---------- ------------------- -------- ------------- ---------------
Concession No.:04-18-21389-1/13 Eastern Veovaca1 1.08 12-Mar-2013 11-Mar-2038
Agreement Mining
d.o.o.
============================== -------------- ---------------------- ---------- ------------------- -------- ------------- ---------------
Veovaca 2 0.91 12-Mar-2013 11-Mar-2038
-------------- ---------------------- ---------- ------------------- -------- ------------- ---------------
Rupice-Jurasevac, 0.83 12-Mar-2013 13-Mar-2038
Brestic
-------------- ---------------------- ---------- ------------------- -------- ------------- ---------------
Annex 3 - No.: Eastern Rupice - Borovica 4.52 14-Nov-2018 13-Nov-2038
Area 04-18-21389-3/18 Mining
Extension d.o.o.
-------------- ---------------------- ---------- ------------------- -------- ------------- ---------------
Veovaca - Orti - 1.32 14-Nov-2018 13-Nov-2038
Seliste - Mekuse
-------------- ---------------------- ---------- ------------------- -------- ------------- ---------------
Annex 5 - No: 04-18-14461-1/20 Eastern Barice- Smajlova 19.45 03-Dec-2020 03-Dec-2050
Area Mining Suma-Macak
Extension d.o.o.
-------------- ---------------------- ---------- ------------------- -------- ------------- ---------------
Droskovac - 2.88 03-Dec-2020 03-Dec-2050
Brezik
-------------- ---------------------- ---------- ------------------- -------- ------------- ---------------
Bosnia and Borovica - 9.91 03-Dec-2020 03-Dec-2050
Herzegovina Semizova Ponikva
============================== -------------- ---------------------- ---------- ------------------- -------- ------------- ---------------
Ras
Metals
Exploration License 310-02-1721/2018-02 d.o.o. Kizevak 1.84 03-Oct-2019 03-Oct-2022
--------------------------------------------- ---------------------- ---------- ------------------- -------- ------------- ---------------
Ras
Metals
Exploration License 310-02-1722/2018-02 d.o.o. Sastavci 1.44 12-Mar-2013 03-Oct-2022
--------------------------------------------- ---------------------- ---------- ------------------- -------- ------------- ---------------
Taor
Exploration License 310-02-1114/2015-02 d.o.o. Kremice 8.54 21-Apr-2016 21-April-2022
--------------------------------------------- ---------------------- ---------- ------------------- -------- ------------- ---------------
Deep
Exploration Research
Serbia License 310-02-00060/2015-02 d.o.o. Raska (Suva Ruda) 87.17 28-Dec-2015 18-Feb-2022
============================== -------------- ---------------------- ---------- ------------------- -------- ------------- ---------------
**S **
For further information please visit www.adriaticmetals.com or
@adriaticmetals visit on Twitter; or contact:
Adriatic Metals PLC
Paul Cronin / Thomas Horton Tel: +44 (0) 7866
913207
Canaccord Genuity Limited (Joint Corporate Broker)
Jeremy Dunlop (Australia) Tel: +61 2 9263 2700
James Asensio (UK) Tel: +44 (0) 207
523 8000
RBC Capital Markets (Joint Corporate Broker)
Marcus Jackson / Jamil Miah Tel: +44 (0) 20 7653
4000
Stifel Nicolaus Europe Limited (Joint Corporate
Broker)
Ashton Clanfield / Callum Stewart Tel: +44 (0) 20 7710
7600
Tavistock Communications Limited
Charles Vivian Tel: +44 (0) 7977
297 903
The Capital Network
Julia Maguire / Lelde Smits Tel: +61 2 8999 3699
ABOUT ADRIATIC METALS
Adriatic Metals PLC (ASX:ADT, LSE:ADT1) is a precious and base
metals developer that is advancing the world-class Vares Silver
Project in Bosnia & Herzegovina, as well as the Raska
Zinc-Silver Project in Serbia.
The Vares Project Pre-Feasibility Study boasts robust economics
of US$1,040 million post-tax NPV(8) , 113% post-tax IRR and a capex
of US$173 million. Adriatic is the only publicly listed mining
company exploring in Bosnia and is leveraging its first-mover
advantage. The Company is well-funded and concurrent with the
advancing Definitive Feasibility Study, continues to explore across
its large, highly prospective 41km(2) concession package.
Adriatic Metals completed the acquisition TSX-listed Tethyan
Resource Corp. in Q4 2020, which contained the Raska Zinc-Silver
Project in southern Serbia. The Company is exploring across its
99km(2) highly prospective concession area, which includes around
the formerly operating Kizevak and Sastavci polymetallic mines.
There have been no material changes to the assumptions
underpinning the forecast financial information derived from the
production target in the 15 October 2020 announcement and these
assumptions continue to apply and have not materially changed.
Adriatic Metals is not aware of any new information or data that
materially affects the information included in the announcement of
the updated Mineral Resource Estimate announced on 1 September 2020
and all material assumptions and technical parameters underpinning
the Mineral Resource Estimate continue to apply and have not
materially changed.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
--------------------------------------------------
ADRIATIC METALS PLC
ABN Quarter ended ("current quarter")
------------ ----------------------------------
624 403 163 30 JUNE 2021
----------------------------------
Consolidated statement of cash (a) Current (b) Year to
flows quarter date (6 months)
GBP'000 GBP'000
1. Cash flows from operating
activities
1.1 Receipts from customers 0 0
1.2 Payments for
(a) exploration & evaluation
(if expensed) (708) (1,199)
(b) development 0 0
(c) production 0 0
(d) staff costs (597) (1,094)
(e) administration and corporate
costs (684) (2,024)
Dividends received (see note
1.3 3) 0 0
1.4 Interest received 0 0
Interest and other costs of
1.5 finance paid (307) (718)
1.6 Income taxes paid 0 0
Government grants and tax
1.7 incentives 0 0
1.8 Other - VAT refund 35 59
------------ -----------------
Net cash from / (used in)
1.9 operating activities (2,261) (4,976)
----- ----------------------------------- ------------ -----------------
2. Cash flows from investing
activities
2.1 Payments to acquire:
(a) entities 0 (1,189)
(b) tenements 0 0
(c) property, plant and equipment (25) (163)
(d) exploration & evaluation
(if capitalised) (2,546) (3,859)
(e) investments 0 0
(f) other non-current assets 0 0
2.2 Proceeds from the disposal
of:
(a) entities 0 0
(b) tenements 0 0
(c) property, plant and equipment 0 0
(d) investments 0 0
(e) other non-current assets 0 0
Cash flows from loans to other
2.3 entities 0 0
Dividends received (see note
2.4 3) 0 0
2.5 Other 0 0
------------ -----------------
Net cash from / (used in)
2.6 investing activities (2,571) (5,211)
----- ----------------------------------- ------------ -----------------
3. Cash flows from financing
activities
Proceeds from issues of equity
securities (excluding convertible
3.1 debt securities) 605 605
Proceeds from issue of convertible
3.2 debt securities 0 0
Proceeds from exercise of
3.3 options and warrants 705 1,191
Transaction costs related
to issues of equity securities
3.4 or convertible debt securities (36) (156)
3.5 Proceeds from borrowings 0 0
3.6 Repayment of borrowings 0 0
Transaction costs related
3.7 to loans and borrowings 0 (143)
3.8 Dividends paid 0 0
Other (Pre-acquisition loan
3.9 to Tethyan) 0 0
------------ -----------------
Net cash from / (used in)
3.10 financing activities 1,274 1,497
----- ----------------------------------- ------------ -----------------
4. Net increase / (decrease)
in cash and cash equivalents
for the period
Cash and cash equivalents
4.1 at beginning of period 24,031 29,249
Net cash from / (used in)
operating activities (item
4.2 1.9 above) (2,261) (4,976)
Net cash from / (used in)
investing activities (item
4.3 2.6 above) (2,571) (5,211)
Net cash from / (used in)
financing activities (item
4.4 3.10 above) 1,274 1,497
Effect of movement in exchange
4.5 rates on cash held 364 278
------------ -----------------
Cash and cash equivalents
4.6 at end of period 20,837 20,837
----- ----------------------------------- ------------ -----------------
5. Reconciliation of cash and (c) Current (d) Previous
cash equivalents quarter quarter
at the end of the quarter GBP'000 GBP'000
(as shown in the consolidated
statement of cash flows) to
the related items in the accounts
5.1 Bank balances 20,837 24,031
5.2 Call deposits 0 0
5.3 Bank overdrafts 0 0
5.4 Other (provide details) 0 0
------------ -------------
Cash and cash equivalents
at end of quarter (should
5.5 equal item 4.6 above) 20,837 24,031
---- ----------------------------------- ------------ -------------
6. Payments to related parties of the entity (e) Current
and their associates quarter
GBP'000
Aggregate amount of payments to related
parties and their associates included in
6.1 item 1 105
-------------
6.2 Aggregate amount of payments to related 0
parties and their associates included in
item 2
------ -------------------------------------------------- -------------
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
7. Financing facilities (f) Total facility (g) Amount drawn
Note: the term "facility' amount at quarter at quarter end
includes all forms of financing end GBP'000
arrangements available to GBP'000
the entity.
Add notes as necessary for
an understanding of the sources
of finance available to the
entity.
7.1 Loan facilities 14,510 14,510
------------------- -----------------
7.2 Credit standby arrangements 0 0
------------------- -----------------
7.3 Other (please specify) 0 0
------------------- -----------------
7.4 Total financing facilities 14,510 14,510
------------------- -----------------
Unused financing facilities available at
7.5 quarter end 0
-----------------
7.6 Include in the box below a description of each facility
above, including the lender, interest rate, maturity date
and whether it is secured or unsecured. If any additional
financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing
details of those facilities as well.
---- -------------------------------------------------------------------------
The loan facilities comprise USD 20 million unsecured convertible
debentures at 8.5% interest and a maturity date of December
2024 issued to Queen's Road Capital Investment Ltd. For further
details see announcement dated 27 October 2020.
8. Estimated cash available for future operating (h) GBP'000
activities
Net cash from / (used in) operating activities
8.1 (Item 1.9) (2,261)
8.2 Capitalised exploration & evaluation (Item (2,546)
2.1(d))
8.3 Total relevant outgoings (Item 8.1 + Item (4,807)
8.2)
8.4 Cash and cash equivalents at quarter end 20,837
(Item 4.6)
8.5 Unused finance facilities available at quarter 0
end (Item 7.5)
8.6 Total available funding (Item 8.4 + Item 20,837
8.5)
Estimated quarters of funding available
8.7 (Item 8.6 divided by Item 8.3) 4.3
---- ----------------------------------------------------
8.8 If Item 8.7 is less than 2 quarters, please provide answers
to the following questions:
1. 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:
-------------------------------------------------------------------
2. 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:
-------------------------------------------------------------------
3. Does the entity expect to be able to continue its operations
and to meet its business objectives and, if so, on what
basis?
-------------------------------------------------------------------
Answer:
-------------------------------------------------------------------
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: 15 July 2021
Authorised by: Audit and Risk Committee
(Name of body or officer authorising release - see note 4)
Notes
1. 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.
2. 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.
3. 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.
4. 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".
5. 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDQQLBFFDLXBBB
(END) Dow Jones Newswires
July 16, 2021 02:32 ET (06:32 GMT)
Adriatic Metals (LSE:ADT1)
Historical Stock Chart
From Feb 2024 to Mar 2024
Adriatic Metals (LSE:ADT1)
Historical Stock Chart
From Mar 2023 to Mar 2024