TIDMCGO
RNS Number : 0866U
Contango Holdings PLC
31 March 2021
Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural
Resources
31 March 2021
Contango Holdings Plc
('Contango' or the 'Company')
Interim Results
Contango Holdings Plc, the London listed natural resource
development company, announces its results for the six-month period
ended 30 November 2020.
CHAIRMAN'S STATEMENT
The period under review bore witness to the most significant
advances in Contango's development since incorporation as the
Company shifted from being an investment company to an operational
natural resource development company with two high quality assets -
both with near term production potential.
As shareholders will be aware, Contango completed the
long-awaited acquisition of the Lubu Coal Project in Zimbabwe
('Lubu') during the period. The completion of this acquisition, and
the Company's subsequent readmission to trading on standard segment
of the official list and the LSE on 18 June 2020, were the
catalysts for a period of rapid growth and corporate development as
Contango simultaneously advanced Lubu towards commercial production
and expanded its portfolio of resource interests.
Lubu exhibited the most important characteristics of a
favourable investment as defined by the Contango board, namely it
is a low capex and low opex project with potential for near term
production. Lubu benefits from de-risked development with total
historical spend in excess $20 million and over 100 holes and
12,000m of drilling completed and total resource in excess of 1
billion tonnes of coal - which Contango was fortunate enough to
acquire for an implied value of GBP6.4 million.
COVID-19 restrictions internationally have frustratingly delayed
scheduled site visits by prospective off-take partners from a
number of countries, however, the team in Zimbabwe have ensured
that Lubu is ready to commence commercial production following the
finalisation of formal off-take negotiations. A key development in
this process was announced post period end in March 2021, with the
confirmation that Contango is in discussions with the Zimbabwean
subsidiary of a major Chinese industrial company and one the
world's largest stainless-steel producers.
This potential offtake partner, which already has a sizeable
footprint in Zimbabwe, is in the process of constructing a number
of coke batteries in the Hwange region of Zimbabwe where Lubu is
located, with the aim of being ready for production by the end of
April 2021. The synergies between Lubu and the potential offtake
partner are clear, and the Contango team are enthusiastic about an
upcoming site visit by the offtake partner, planned for
mid-April.
Contango delivered a further landmark development towards the
end of the period with the acquisition of the Garalo Gold Project
in Mali ('Garalo'). Garalo, which was acquired for $1 million, is
an advanced discovery and had, at that point, a non-independent
resource of 320,000 ounces of gold at an average grade of 1.5g/t
across three dominant structural trends. The Company's original
objective at Garalo was to establish a small operation targeting
initial production of circa 10,000oz of gold per annum through an
oxide plant.
Work conducted post period end has re-shaped our strategy at
Garalo, and based on the NI 43-101 Independent Technical Report
delivered in March 2021, we now understand that Garalo is capable
of a much larger operation. This report confirms and expands on the
information received in December 2020, and highlights the potential
for up to 2Moz, a 525% increase on the original non-independent
resource of 320k that was envisaged on acquisition. This is clearly
a tremendous result for Contango shareholders, and we believe there
is still room for improvement over and above the 2Moz threshold as,
in addition to G1 and G3 targets (the basis for 2Moz), numerous
other clusters of anomalous zones with potential for gold discovery
have been identified.
This information, together with the acquisition of the
contiguous 100km(2) Ntiela Gold Project in March 2021, has prompted
the re-evaluation of our longer-term plans at Garalo with a view to
establishing a larger processing hub in this region, capable of
supporting multiple open pit operations. Our current focus remains
on delivering cashflow within an expedited timeframe and the team
in Mali are currently planning an accelerated development schedule
targeting first gold in Q4 2021 in conjunction with expansion
drilling.
Financial Review
Funding
During the period the Company was funded through cash raised
from the IPO and a further GBP1.8m (before expenses) was raised
through an oversubscribed placing of 36,000,000 new ordinary shares
of GBP0.01 each at a price of 5 pence per placing share in October
2020 in conjunction with the acquisition of the Garalo Gold
Project.
Revenue
The Company generated no revenue during the year as it was
focussing on assets that will ultimately generate revenue for the
Company.
Expenditure
The Company has low ongoing overheads and devoted its cash
resources to transaction costs and the development of Lubu and
Garalo towards commercial production.
However, during the period the company incurred significant
one-off costs related to the readmission in June 2020 of GBP417,642
as disclosed in note 3. These included legal, accountancy and other
professional services costs. Also, the Company incurred a
GBP100,000 non-cash charge by way of a share based bonus paid to
the original directors of Contango prior to readmission in lieu of
their efforts to conclude the transaction.
Liquidity, cash and cash equivalents
As of 30 November 2020, the Company held GBP1,145,301 (2019:
GBP10,430).
Outlook
Contango's model of focussing on near term production through
low capex and low opex projects is expected to bear fruit for
shareholders during 2021. The demand for coking coal in Southern
Africa remains buoyant and the conversations that we have had over
recent months, and perhaps more importantly, in recent weeks in
relation to the aforementioned potential offtake partner looking to
be ready to commence production from its coke batteries by the end
of April, are particularly promising.
Separate to the aforementioned potential sizeable offtake, the
Company entered into two Letters of Intention ('LOI') during the
period. Upon conversion of these LOIs for 32,000 tonnes per month
of coking coal into formal offtake contracts, the Board believe
that this could be translated to earnings of circa $1m per month.
Coupled with an initial phase of production from Garalo in Q4 2021,
at an initial level of 30,000oz per annum, the Board believes that
an additional EBIT figure of in excess of $1m per month is
realistic. This would clearly be a significant result for Contango
shareholders and testament to the value of the Board's strategy of
prioritising assets with the potential for rapid returns.
I would like to thank our shareholders, and the Contango team
here, in Zimbabwe and Mali, for their support during the rest of
2021 as we look to deliver on our strategic objectives and move
into commercial production in Zimbabwe and Mali.
Roy Pitchford
31 March 2021
CEO REPORT
Contango's primary objectives during the year were to advance
the Lubu Coal Project in Zimbabwe and the Garalo Gold Project in
Mali towards production. Post period end, in March 2021, the
Company acquired the Ntiela Gold Project, which is contiguous to
Garalo.
Lubu Coal Project ('Lubu')
Contango has a 70% interest in Lubu, with the remaining 30% held
by supportive local partners.
Previous owners have expended more than $20m on Lubu, which has
enabled a sizeable resource in excess of 1.3 billion tonnes to be
identified under NI 43-101 standard. Contango will initially focus
on producing metallurgical coal from Block B2, where extensive work
has also been undertaken to define the specific properties of the
coal, which in turn has enabled offtake conversations to commence.
The coal seams within Block B2 are from surface down to a maximum
depth of 47m, ensuring operating costs are kept at very attractive
levels. Contango is focussed on achieving the production of
metallurgical coal products and sales to international industrial
consumers in the Southern Africa region.
The Board has focussed on developing markets for its semi soft
coking coal and 28MJ/kg CV coal which is known to be in demand by
industrial users in the Southern Africa region. The Company may
develop a relatively material operation without recourse to the
full-scale mining given that the terms of the Special Grant area
does not stipulate a maximum threshold of production under the
trial mining licence and bulk licence.
As announced in March 2021, the Company has elected to cease
mining operations at Lubu and discussions with a potential partner
relating to a long-term offtake have progressed, which is expected
to be in April 2021. This will ensure any potential development is
optimised and the Company's resources are deployed
appropriately.
The discussions relate to a potential long-term offtake for
coking coal with the Zimbabwean subsidiary of a major Chinese
industrial company and one the world's largest stainless-steel
producers. The potential offtake partner has a sizeable footprint
in Zimbabwe and is planning to construct a US$1bn carbon steel
plant in the country, with capacity of 2 million tonnes of steel
per annum. In addition, the Potential Offtake Partner is currently
in the process of constructing a number of coke batteries in the
Hwange region of Zimbabwe with the aim of being ready for
production by the end of April 2021.
The Company intends to open a trial pit and a bulk sample will
be sent to the potential offtake partner so that it can conduct a
burn test. Further updates will be provided following the site
visit which is scheduled in mid-April 2021.
Garalo Gold Project and Ntiela Gold Project in Mali ('Garalo'
and 'Ntiela')
In October 2020 Contango acquired Garalo, an advanced gold
discovery with a non-independent resource of 320,000oz gold. Garalo
is located in the Sikasso region of southern Mali, 200km south-east
of the capital Bamako and close to the Guinea border. Garalo
consists of an exploration licence for gold and associated minerals
covering a surface area of 62.50 km(2) which is valid for two years
and is renewable for another term of two years.
The permit is surrounded by a number of multi-million ounce gold
deposits and the region is home to some of the world's leading gold
miners, including IAMGOLD, Barrick, B2 Gold, Endeavour Mining and
Hummingbird Resources, which has helped to establish Mali as the
third largest gold producer in Africa.
The Company Birima Gold Resources Consulting ('BRG Consult'), an
international mineral exploration consulting company with
significant experience in West Africa, ranging from grassroots to
mine-site exploration and mineral deposit expansion to prepare an
Independent Technical Report to NI 43-101 standards and this was
published post-period end in March 2021 (the 'Report').
The Report summarised historic and more recent technical
information on Garalo and concludes that the main structure that
controls the gold mineralisation at the Garalo G1 and G3 Targets is
a north-south-striking, shallowly-west-dipping shear zone system
forming pull-apart similar to the nearby 2.8Moz Kalana Gold
Deposit.
This new model for the gold formation at Garalo suggests that
the gold mineralisation is hosted in a system of parallel dilation
fracture networks within shear zones. These fracture networks are
under-explored and may contain a gold potential of up to 2Moz. The
Report found that Garalo has high potential to host economic gold
mineralisation, which can be delineated via Reverse Circulation
(RC), Diamond (DD) and Rotary Air Blast (RAB) drilling
programmes.
The Report also concluded that historic exploration works
completed between 2001 and 2008 were professionally managed and
procedures were consistent with generally accepted industry best
practices. Consequently, the exploration data from soil
geochemistry sampling, ground geophysical survey, trenches and
drilling were assessed to be sufficiently reliable to confidently
allow interpretation of the gold mineralisation in the Garalo
property, enabling the outline of an extensive drilling programme
over existing gold deposits and in areas with potential for new
discovery to be drawn. Exploration works performed in the Garalo
permit resulted in the discovery of the Garalo G1 and G3 gold
deposits and numerous other clusters of anomalous zones with
potential for gold discovery, some of which have offered additional
high-grade potential.
In March 2021, the Company acquired the neighbouring Ntiela
licence, which borders the western boundary of the Garalo permit.
The prospectivity of Ntiela has been established from work
programmes conducted by the previous operator which included soil
and termite mound sampling and geochemistry, regolith mapping and
extensive trenching. Existing data from soil geochemistry studies
on Ntiela also suggests a strong correlation with the data the
Company has been collecting at the G3 target on Garalo, pointing to
the potential for high-grade gold mineralisation on the Ntiela
licence. This work has been supplemented by drone surveys conducted
by Contango geologists, which supported the potential for the
extension of at least two target zones from Garalo to Ntiela.
Exploration campaigns are expected to commence in Q2 2021 in
order to better define the geological structures and resource
expansion potential at Garalo and Ntiela however the Board's
priority focus remains on near term cash flow. As reported
previously, the Contango team are accelerating the development of a
30,000oz per annum heap leach operation from the shallow oxides
given the high margins and low capex for its development. However,
given the significant findings in the Report, in due course the
Company will undertake further drilling programmes on both Garalo
and Ntiela, designed to realise and optimise the asset's full
potential, as the Company looks to establish a large standalone
gold mine with multiple open pit operations across both permit
areas.
Carl Esprey
31 March 2021
**S**
For further information, please visit
www.contango-holdings-plc.co.uk or contact:
Contango Holdings plc E: info@contango-holdings-plc.co.uk
Chief Executive Officer
Carl Esprey
Brandon Hill Capital Limited T: +44 (0)20 3463 5000
Financial Adviser & Broker
Jonathan Evans
St Brides Partners Ltd T: +44 (0)20 7236 1177
Financial PR & Investor Relations
Susie Geliher / Cosima Akerman
FINANCIAL STATEMENTS
Condensed Consolidated Statements of Comprehensive Income
For the six months ended 30 November 2020
Unaudited Audited
Six Months Year to
ended 31 May
30 November 2020
2020
Notes GBP GBP
Administrative fees and
other expenses 3 (1,129,659) (258,027)
-------------- ----------
Operating loss (1,129,659) (258,027)
Finance revenue - -
Finance expense - -
-------------- ----------
Loss before tax (1,129,659) (258,027)
Income tax - -
Loss for the period and
total comprehensive loss
for the period (1,129,659) (258,027)
-------------- ----------
Loss attributable to owners
of the parent company (1,108,611) (258,027)
Loss attributable to non-controlling (21,048) -
interests
-------------- ----------
(1,129,659) (258,027)
-------------- ----------
Basic and diluted loss
per Ordinary Share (pence) 4 (0.92) (0.60)
Condensed Consolidated Statements of Financial Position
For the six months ended 30 November 2020
Unaudited as
at Audited
30 November as at
Notes 2020 31 May 2020
GBP GBP
Non-current assets
Intangible assets 6 10,898,698 -
Investments 62,260 -
Property, plant and equipment 44 -
------------- -------------
Total non-current assets 10,961,002 -
Current assets
Other receivables 585,538 403,163
Cash and cash equivalents 1,145,301 10,430
Total current assets 1,730,839 413,593
Total assets 12,691,841 413,593
------------- -------------
Current liabilities
Trade and other payables 833,860 435,173
------------- -------------
Total current liabilities 833,860 435,173
Net assets/(liabilities) 11,857,981 (21,580)
------------- -------------
Equity
Share capital 5 2,396,333 429,500
Share premium 5 8,198,148 368,978
Warrant reserve 5 83,533 84,874
Merger reserve 7 3,214,558 -
Retained earnings (2,034,591) (904,932)
------------- -------------
Total equity 11,857,981 (21,580)
------------- -------------
Total equity attributable
to the owners of the
parent company 10,428,061 (21,580)
Non-controlling interests 1,429,920 -
------------- -------------
Total equity 11,857,981 (21,580)
------------- -------------
Condensed Consolidated Statements of Changes in Equity
For the six months ended 30 November 2020
Share Share Warrant Merger Retaining Total
Capital Premium Reserve Reserve Earnings Equity
GBP GBP GBP GBP GBP GBP
---------- ---------- --------- ---------- ------------ ------------
Balance as
at 31 May 2019 429,500 368,978 84,874 - (646,905) 236,447
Loss for the
year (258,027) (258,027)
---------- ---------- --------- ---------- ------------ ------------
Balance as
at 31 May 2020 429,500 368,978 84,874 (904,932) (21,580)
---------- ---------- --------- ---------- ------------ ------------
Issue of shares 1,966,833 7,829,170 9,796,003
Exercising
of warrants (1,341) (1,341)
Merger reserve
arising on
acquisition 3,214,558 3,214,558
Loss for the
six months
to 30 November
2020 (1,129,659) (1,129,659)
---------- ---------- --------- ---------- ------------ ------------
Balance as
at 30 November
2020 2,396,333 8,198,148 83,533 3,214,558 (2,034,591) 11,857,981
---------- ---------- --------- ---------- ------------ ------------
Condensed Consolidated Statements of Cash Flows
For the six months ended 30 November 2020
Unaudited Audited
Six Months Year
ended ended
30 November 31 May
Notes 2020 2020
GBP GBP
Operating activities
Loss after tax (1,129,659) (258,027)
Adjustment for:
Depreciation 67 -
Changes in working capital
(Increase)/decrease in trade
and other receivables (182,375) (371,852)
Increase in trade and other
payables 398,687 359,425
------------- ----------
(Decrease) in Net cash from
operating activities (913,280) (270,454)
------------- ----------
Investing activities
Purchase of subsidiary (6,858,391) -
Purchase of 75% share of (825,748)
mining licence -
Purchase of investment (62,260) -
------------- ----------
(Decrease) in Net cash from (7,746,399)
investing activities -
------------- ----------
Financing activities
Ordinary Shares issued (net
of issue costs) 5 9,794,662 -
------------- ----------
Net cash flows from financing 9,794,662
activities -
Increase/(decrease) in cash
and short-term deposits 1,134,983 (270,454)
Cash and short-term deposits
as at the start of the period 10,430 280,884
Effect of foreign exchange (112)
changes -
------------- ----------
Cash and short-term deposits
at the end of the period 1,145,301 10,430
------------- ----------
Notes to the Condensed Consolidated Financial Statements
For the six months ended 30 November 2020
1 General information
The Company was incorporated in England under the Laws of
England and Wales with registered number 10186111 on 18 May 2016.
All of the Company's Ordinary Shares were admitted to the London
Stock Exchange's Main Market and commenced trading on 1 November
2017. The company was re-registered as a public company under
Companies Act 2006 on 1 June 2017, by the name Contango Holdings
plc.
The Company is listed on the Standard Market of London Stock
Exchange plc.
The unaudited interim consolidated financial statements for the
six months ended 30 November 2020 were approved for issue by the
board on 31 March 2021.
The figures for the six months ended 30 November 2020 are
unaudited and do not constitute full accounts. The comparative
figures for the period ended 31 May 2020 are extracts from the
annual report and do not constitute statutory accounts.
2 Basis of Preparation and Risk Factors
The Company Financial Information has been prepared in
accordance with and comply with IFRS as adopted by the European
Union, International Financial Reporting Interpretations Committee
interpretations and the Companies Act 2006. The financial
statements have been prepared under the historical cost convention
as modified for financial assets carried at fair value.
The financial information of the company is presented in British
Pound Sterling ("GBP").
The accounting policies and methods of calculation adopted are
consistent with those of the financial statements for the year
ended 31 May 2020.
The business and operations of the Company are subject to a
number of risk factors which may be sub-divided into the following
categories:
Exploration and development risks, including but not limited
to:
-- Mineral exploration is speculative and uncertain
-- Verification of historical washability analysis
-- Independent verification of internal resource estimation at Garalo
-- Mining is inherently dangerous and subject to conditions or
events beyond the Company's control, which could have a material
adverse effect on the Company's business
-- The volume and quality of coal recovered may not conform to current expectations
-- The extend and grade of gold mineralisation at Garalo may not
conform to current expectations
Permitting and title risks, including but not limited to:
-- Licence and permits
-- The Company will be subject to a variety of risks associated
with current and any potential future joint ventures, which could
result in a material adverse effect on its future growth, results
of operations and financial position
Political risks, including but not limited to:
-- Political stability
-- Enforcement of foreign judgements
-- Potential legal proceedings or disputes may have a material
adverse effect on the Company's financial performance, cash flow
and results of operations
Financial risks, including but not limited to:
-- Foreign exchange effects
-- Valuation of intangible assets
-- The Company may not be able to obtain additional external
financing on commercially acceptable terms, or at all, to fund the
development of its projects
-- The Company will be subject to taxation in several different
jurisdictions, and adverse changes to the taxation laws of such
jurisdictions could have a material adverse effect on its
profitability
-- The Company's insurance may not cover all potential losses,
liabilities and damage related to its business and certain risks
are uninsured and uninsurable
Commodity prices, including but not limited to:
-- The price of coal may affect the economic viability of ultimate production at Lubu
-- The revenues and financial performance are dependent on the price of coal
-- The price of gold may affect the economic viability of ultimate production at Garalo
Operational risks, including but not limited to:
-- Availability of local facilities
-- Adverse seasonal weather
-- The Company's operational performance will depend on key
management and qualified operating personnel which the Company may
not be able to attract and retain in the future
-- The Company's directors may have interests that conflict with its interests
-- Risk relating to Controlling Shareholders
The Company's comments and mitigating actions against the above
risk categories are as follows:
Exploration and development risks
There can be no assurance that the Company's development
activities will be successful however significant exploratory work
has been conducted to date at Lubu and Garalo which supports the
Board's confidence that a profitable mining operation can be
developed.
Additionally, the phased development route which will be
employed at Lubu seeks to mitigate risks along the development life
cycle of the project.
Permitting and title risks
The Company complies with existing laws and regulations and
ensures that regulatory reporting and compliance in respect of each
permit is achieved. Applications for the award of a permit may be
unsuccessful. Applications for the renewal or extension of any
permit may not result in the renewal or extension taking effect
prior to the expiry of the previous permit. There can be no
assurance as to the nature of the terms of any award, renewal or
extension of any permit.
The Company regularly monitors the good standing of its
permits.
Political risks
The Company maintains an active focus on all regulatory
developments applicable to the Company, in particular in relation
to the local mining codes.
In recent years the political and security situations in
Zimbabwe and Mali have been particularly volatile.
Financial risks
The board regularly reviews expenditures on projects. This
includes updating working capital models, reviewing actual costs
against budgeted costs, and assessing potential impacts on future
funding requirements and performance targets.
Commodity prices
As projects move towards commercial mining the Company will
increasingly review changes in commodity prices so as to ensure
projects remain both technically and economically viable.
Operational risks
Continual and careful planning, both long-term and short-term,
at all stages of activity is vital so as to ensure that work
programmes and costings remain both realistic and achievable.
COVID-19 outbreak
In addition to the foregoing comments and mitigating actions
against the above risk categories the Company has implemented
various protocols in relation to the current COVID-19 outbreak.
Contango places the health and safety of its employees and
contractors as its highest priority. Accordingly, a business
continuity programme has been put in place to protect employees
whilst ensuring the safe operation of the Company.
Having spoken with, amongst others, local government, staff and
contractors, strict protocols have been implemented to reduce the
risk of transmission of COVID-19 at all the Company's
operations.
The situation in respect of COVID-19 is an evolving one and the
Board will continue to review its potential impact on its staff and
the business.
3 Loss before taxation
Loss before income tax is Unaudited Six Audited
stated after charging: Months to Year
ended ended
30 November 2020 31 May 2020
GBP GBP
Directors' remuneration 52,800 72,000
Contango share-based bonus 100,000 -
on IPO
Relisting costs 417,642 -
Ongoing listing costs 80,661 -
Salaries 174,755 -
Consultancy fees 80,695 -
Travel 69,287 -
Office costs 85,186 -
Other 68,633 -
Fee payable to the Company's
auditor for the audit of the
company's annual accounts - 15,250
Fee payable to the Company's
auditor in respect of all
other non-audit services - 5,113
4 Loss per Ordinary Share
The calculation of the basic and diluted loss per Ordinary Share
is based on the following data:
Unaudited Audited
Six Months Year
to to
30 November 31 May
2020 2020
Earnings
Loss from continuing operations
for the period attributable
to the equity holders of the
Company (1,108,611) (258,027)
Number of Ordinary Shares
Weighted average number of
Ordinary Shares for the purpose
of basic and diluted earnings
per Ordinary Share (number) 120,346,178 42,949,987
------------- -----------
Basic and diluted loss per
Ordinary Share (pence) (0.92) (0.60)
------------- -----------
There are no potentially dilutive Ordinary Shares in issue.
5. Share capital
Number of Share Capital Share Premium Warrants Total Share
Ordinary Reserve Capital
Shares issued
and fully
paid
GBP GBP GBP GBP
--------------- -------------- -------------- --------- ------------
As at 31
May 2020 42,949,987 429,500 368,978 84,874 883,352
Share issue 128,849,961 1,288,500 5,134,170 - 6,422,670
Share issue 28,000,000 280,000 1,120,000 - 1,400,000
Share issue 3,333,330 33,333 125,000 - 158,333
Warrant
Exercise 500,000 5,000 10,000 (1,341) 13,659
Share issue 36,000,000 360,000 1,440,000 - 1,800,000
Less issue
costs
--------------- -------------- -------------- --------- ------------
At 30 Nov
2020 239,633,278 2,396,333 8,198,148 83,533 10,678,014
--------------- -------------- -------------- --------- ------------
The Ordinary Shares issued by the Company have par value of 1p
each and each Ordinary Share carries one vote on a poll vote. The
Authorised share capital of the company is GBP5,000,000 ordinary
shares at GBP0.01 per share resulting in 500,000,000 ordinary
shares.
On 18(th) June 2020 Consolidated Growth Holdings were paid for
their 70% shareholding in the Lubu project with the issue of
128,849,961 new shares in Contango Holdings. In the associated
placing 28 million new ordinary shares were issued along with
3,333,330 bonus shares for the Contango directors. This increased
the total number of shares in issue to 203,133,278.
On 5(th) August 500,000 warrants were exercised.
On 22(nd) October Contango announced that it had issued 36
million new ordinary shares in a placing. This increased the total
number of shares in issue to 239,633,278.
6. Intangible Asset
Unaudited As Audited As at
at 31 May
30 November 2020
2020
GBP GBP
Mining rights (Zimbabwe) 9,797,701 -
Mining rights (Mali) 1,100,997 -
10,898,698 -
-------------------- ----------------
The intangible asset represents the mining rights and
technical information acquired when the Company acquired
its 70% shareholding in Monaf Investments (Pty) Ltd on
18(th) June 2020; and its 75% share in the Garalo gold
licence in Mali on 22nd October 2020.
7 Merger reserve
Unaudited As Audited As at
at 31 May
30 November 2020
2020
GBP GBP
Mining rights (Zimbabwe) 2,939,310 -
Mining rights (Mali) 275,248 -
3,214,558 -
-------------------- ----------------
The merger reserve represents the minority interest's
share in mining rights and technical information acquired
when the Company acquired its 70% shareholding in Monaf
Investments (Pty) Ltd on 18(th) June 2020; and its 75%
share in the Garalo gold licence in Mali on 22nd October
2020.
8 Related Party Transactions
Further to the announcement on 22(nd) October 2020 noting the
RAB Capital RP transaction, the board does not believe it
materially affected performance as required to be disclosed in DTR
4.2.7
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