The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR").
17 November 2016
Conroy
Gold and Natural Resources plc
(“Conroy” or “the Company”)
Final Results For
The Year Ended 31 May 2016
Notice of Annual
General Meeting
Conroy (AIM: CGNR; ESM: CGNRI), the Irish based resource company
exploring and developing gold and other projects in Ireland, is pleased to announce its results
for the year ended 31 May 2016.
Highlights:
- New Gold Zones discovered at Clontibret
- High Grades and Wide Gold Zones Intersected
- Multimillion oz Gold potential targeted at Clay
Lake-Clontibret
- Fundraises of £375,000 in December
2015 and £1,015,000 in May
2016 to help fund the advancement of the Company’s principal
gold opportunities and general working capital purposes
Chairman, Professor Richard Conroy commented:
“I am delighted with the excellent
progress in the Company’s exploration programme at Clay
Lake-Clontibret. The high gold grades, gold continuity and
wide intersections in the gold mineralisation, which is open at
depth and along strike, lends further credence to the Company’s
targeted multimillion ounce gold potential at Clay Lake -
Clontibret.”
Further Information:
Conroy Gold and
Natural Resources plc |
Tel:
+353-1-661-8958 |
Professor Richard
Conroy, Chairman |
|
Allenby Capital
Limited (Nomad) |
Tel:
+44-20-3328-5656 |
David Hart/James
Thomas/Nick Harriss |
|
Hybridan LLP
(Broker) |
Tel:
+44-20-3764 2341 |
Claire Louise
Noyce/Niall Pearson/William Lynne |
|
IBI Corporate
Finance Limited (ESM Adviser) |
Tel:
+353-766-234-800 |
Ger Heffernan / Jan
Fitzell |
|
Lothbury Financial
Services |
Tel:
+44-20-3290-0707 |
Michael
Padley |
|
Hall
Communications |
Tel:
+353-1-660-9377 |
Don Hall |
|
CHAIRMAN’S STATEMENT
Dear Shareholder,
I have great pleasure in presenting your Company’s Annual Report
and Consolidated Financial Statements for the financial year ending
31 May 2016.
Excellent infill drilling results were reported at Clontibret
during the year. New gold zones were discovered together with
high grades and wide gold intersections. The adjacent Clay
Lake and Clontibret sites were unified as a single mining project
with an exploration target of 5 million oz. gold. A total of
£1,390,000 in new equity capital was raised during the year.
CLAY LAKE – CLONTIBRET
A JORC compliant resource of over 0.6 million Au (Gold), using a
minimum mining width of 2 metres and a cut-off grade of 0.6 g/t Au
has already been established on 20% of the geochemical target at
Clontibret. The mineralisation at Clontibret remains open
along strike, at depth and over the remaining 80% of the
geochemical target area.
The adjacent Clay Lake geochemical target has recently been
shown to be approximately 3km in length, up to 2km in width and to
have a surface area of over 200 hectares (c500 acres). The
results of structural studies and wide zones of gold mineralisation
already reported indicate the potential for high tonnage and
overall gold content at Clay Lake.
A Scoping Study prepared by independent consultants Tetra Tech
Wardrop demonstrated that the established resource (on 20% of the
Clontibret target area only) was technically and financially
viable. A detailed mine development plan is in place for this
resource using a starter pit which focussed on a high grade,
densely drilled portion of the resource. At current
gold prices, the starter pit alone at Clontibret has an estimated
net present value greater than US$70m, using an 8% discount rate.
Having established commercial viability of the initial resource,
your Company has targeted growing the size of the asset through
unifying the Clay Lake and the Clontibret targets into a single
mining project and embarking on a drilling programme. A
quantitative risk assessment by consultant geologist Professor
Garth Earls has established an
initial combined exploration target of five million oz. of gold
across the overall Clay Lake - Clontibret project.
Further drilling is required to bridge the gap between the existing
resource of 0.6 million oz and the exploration target of five
million oz but while there can be no certainty that future resource
estimates for the project will achieve the exploration target, your
Company is confident that additional drilling will significantly
improve the resource.
Gold Lode continuity at Clontibret was confirmed by an
independent study by structural geologist Dr. Francis Murphy. The structural study was
carried out on the stream bedrock in Clontibret. Eight gold
lodes were identified in the stream bedrock. These lodes all
corresponded to gold lodes previously identified by the drilling
programme, thus confirming the continuity of the
mineralisation.
The confirmation of continuity in the gold lodes, taken in
conjunction with drilling results and channel sampling results from
the old antimony mine workings at Clontibret, enhances the
Company’s understanding of gold mineralisation within the
Clontibret gold mining project.
The new study complimented your Company’s ongoing drilling
programme and is a further major step forward with our plans for
development at your Company’s Clay Lake - Clontibret gold
project.
Excellent drilling results were reported at Clontibret at the
south western part of your Company’s Clay Lake - Clontibret gold
property with new gold zones, high grade gold and wide
intersections observed. High grades and wide intersections
included 0.50m at 25.85 g/t gold in one of the already known gold
zones and 5.75m grading 5.04 g/t gold in one of the newly
discovered gold zones.
Five new gold zones (lodes) were discovered during the latest
drilling, which was announced after the year end. Gold
intersections were also made in four known gold zones in the area,
confirming continuity of these lode zones. The deposit remains open
to depth and in all directions.
The drilling focused on upgrading, at this stage to a depth of
200m, an area where previous drilling had indicated the potential
for significant widths and gold grades. Intercepts drilled
included;
- 5.00m grading 2.87 g/t gold (39m depth; New Lode ‘A’)
- 0.45m grading 3.28 g/t gold (70m depth; New Lode ‘C’)
- 5.75m grading 5.04 g/t gold (82m depth; New Lode ‘D’)
- 2.25m grading 10.47 g/t gold (96m depth Known Lode)
including
0.50m grading 25.85 g/t gold
- 1.25m grading 3.21 g/t gold (157m depth; Known Lode)
- 1.25m grading 2.40 g/t gold (187m depth; New Lode ‘E’)
NEW GOLD ZONES AT GLENISH
In July 2016, we announced four
new gold zones were intersected in a drilling programme on your
Company’s Glenish gold target.
The drilling results, together with previous channel sampling in
the area which had proved 1.3 metres grading 9.4 g/t gold,
demonstrated the presence of the four new gold zones in a 150 metre
wide structural corridor in the western part of the Glenish gold
target.
The new drilling results included intersections of 2.25 metres
grading 2.65 g/t gold, at a depth of 18 metres; 2.00 metres grading
1.59 g/t gold at a depth of 27.75 metres; 2.75 metres grading 1.43
g/t gold at a depth of 36 metres and 3.00 metres grading 1.76 g/t
gold at a depth of 64.25 metres.
The gold mineralisation in bedrock in the drilling area was
traced down dip for over 70 metres and remains open in all
directions.
The Glenish gold target is a large, 147 hectare, gold-in-soil
anomaly located 7.5km southwest of the Company’s Clay
Lake-Clontibret gold target where the Company is targeting a
potential of five million ounces of gold.
BASE METAL AND OTHER GOLD TARGETS
Exploration also continued for zinc and other metals on your
Company’s other exploration properties in Ireland as well as for gold in Finland.
FINANCE
The loss after taxation for the year ended 31 May 2016 was €292,165 (2015: €315,314) and the
net assets as at 31 May 2016 were
€17,113,858 (2015: €15,321,650).
On 14 December 2015 the Company
reorganised its share capital by subdividing and reclassifying each
issued ordinary share of €0.01 as one ordinary share of €0.00001
each and one deferred share of €0.00999 each and consolidated the
reclassified ordinary shares of €0.00001 each into shares of
€0.0001 each.
Following the reorganisation, on 21 December the Company raised
£375,000 through the issue of 1,153,845 shares at 32.5p each and on
4 May 2016 a further £1,015,000
through the issue of 5,486,185 shares at 18.5p.
AUDITORS
I would like to take this opportunity to thank the partners and
staff of Deloitte for their services to your Company during the
course of the financial year.
DIRECTORS
It is with deep regret that I report that Henry H. Rennison, Non-Executive Director passed
away during the year. His dedication, experience, advice and
support contributed to a major degree to our Company.
I am very pleased to welcome Professor Garth Earls to our Board. His knowledge
and experience will significantly contribute to the Company in his
new role as Director.
I would like to express my deep appreciation of support
and dedication of all the directors, consultants and staff, which
has made possible the continued progress and success, which your
Company has achieved.
FUTURE OUTLOOK
Your Company has continued to make excellent progress in its
exploration and development programme. Clay Lake and
Clontibret may well contain a total of five million ounces whilst
at Glenish four new gold zones were discovered, making nine in all.
The current drill programme has identified high grade and wide
zones of gold mineralisation, that is open at depth and along
strike across the target areas. I look forward to this
continuing into 2017.
Professor Richard Conroy
Chairman
16 November 2016
CONSOLIDATED INCOME STATEMENT
FOR YEAR ENDED 31 MAY 2016
|
|
2016 |
2015 |
|
|
€ |
€ |
|
|
|
|
OPERATING EXPENSES |
|
(291,486) |
(315,314) |
|
|
|
- |
Finance income – bank interest
receivable |
|
|
- |
Finance costs – interest on
shareholder loan |
|
(679) |
- |
|
|
|
|
LOSS BEFORE TAXATION |
|
(292,165) |
(315,314) |
|
|
|
|
Taxation |
|
- |
- |
|
|
|
|
LOSS FOR THE YEAR |
|
(292,165) |
(315,314) |
|
|
|
|
Loss per ordinary share – basic and
diluted |
|
(€0.0479) |
(€0.0012) |
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
AS AT 31 MAY
2016
|
|
2016 |
2015 |
ASSETS |
|
€ |
€ |
Non-current Assets |
|
|
|
Intangible assets |
|
16,693,602 |
17,561,838 |
Property, plant and equipment |
|
16,150 |
17,983 |
|
|
|
|
|
|
18,712,752 |
17,579,821 |
Current Assets |
|
|
|
Trade and other receivables |
|
38,334 |
63,586 |
Cash and cash equivalents |
|
687,708 |
23,480 |
|
|
|
|
|
|
726,042 |
87,066 |
|
|
|
|
Total Assets |
|
19,438,794 |
17,666,887 |
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
Capital and Reserves |
|
|
|
Called up share
capital
Called up deferred share capital |
|
11,014
10,504,431 |
4,373,208
6,135,597 |
Share premium |
|
10,649,252 |
8,855,525 |
Capital conversion reserve fund |
|
30,617 |
30,617 |
Share based payments reserve |
|
1,464,030 |
1,120,009 |
Retained losses |
|
(5,545,486) |
(5,193,306) |
|
|
|
|
Total Equity |
|
17,116,858 |
15,321,650 |
|
|
|
|
Non-current
Liabilities
Convertible loan |
|
|
- |
Financial Liabilities |
|
135,287 |
191,022 |
|
|
|
|
Total Non-current
Liabilities |
|
135,287 |
191,022 |
|
|
|
|
Current Liabilities |
|
|
|
Trade and other payables |
|
2,189,649 |
2,154,215 |
|
|
|
|
Total Current
Liabilities |
|
2,189,649 |
2,154,215 |
|
|
|
|
Total Liabilities |
|
2,324,936 |
2,345,237 |
|
|
|
|
Total Equity and
Liabilities |
|
19,438,794 |
17,666,887 |
CONSOLIDATED CASH FLOW STATEMENT
FORR THE YEAR ENDED 31 MAY 2016
|
|
2016 |
2015 |
|
|
€ |
€ |
|
|
|
|
Cash flows from operating
activities |
|
|
|
Cash generated by operations |
|
41,014 |
147,396 |
|
|
|
|
|
|
|
|
Net cash generated
by operating activities |
|
41,014 |
147,396 |
|
|
|
|
Cash flows from investing
activities |
|
|
|
Investment in exploration and
evaluation |
|
(858,769) |
(1,459,440) |
Payments to acquire property, plant
and equipment |
|
- |
(15,673) |
|
|
|
|
Net cash used in investing
activities |
|
(858,769) |
(1,475,113) |
|
|
|
|
Cash flows from financing
activities |
|
|
|
Issue of share capital |
|
1,800,369 |
935,832 |
Share issue cost |
|
(60,015) |
- |
Interest paid on
shareholder loan
Amounts repaid to shareholders |
|
(679)
(201,955) |
-
- |
Advances from Related Parties |
|
- |
336,993 |
|
|
|
|
Net cash generated from financing
activities |
|
1,481,983 |
1,272,825 |
|
|
|
|
Increase/(Decrease) cash and cash
equivalents |
|
664,228 |
(54,892) |
Cash and cash equivalents at
beginning of year |
|
23,480 |
78,372 |
|
|
|
|
Cash and cash equivalents at end
of year |
|
687,708 |
23,480 |
Notes to the Financial Statements
1. Publication of non-statutory
accounts
The financial information set out in this preliminary
announcement are abbreviated accounts as defined in Section 1119 of
the Companies Act 2014.
The financial information for the period ended 31 May 2016 has been extracted from the Company's
financial statements to that date which have received an
unqualified auditor’s report but have not yet been delivered to the
Registrar of Companies.
2. Earnings per share
The calculation of the loss per ordinary share of €0.0479 (2015
- €0.0008) is based on the loss for the financial year of €292,165
(2015 – €315,314) and the weighted average number of ordinary
shares in issue during the year of 5,295,110 (2015 –
405,603,539).
Since the Company incurred a loss the effect of share options
and warrants would be anti-dilutive.
3. Dividends
No dividends were paid or are proposed in respect of the period
ended 31 May, 2016.
4. Copies of Accounts
A copy of the Annual Report and Financial Statements will be
available on the Company’s website www.conroygold.com and will be
available from the Company's registered office, 9 Merrion Square
North, Dublin 2. It will
also be posted to shareholders who requested a hard copy. Notice of
the Annual General Meeting to be held on 9
December 2016 and Proxy Form were sent to shareholders on
16 November 2016 and are also
available on the website.