TIDMHAMA
RNS Number : 0271O
Hamak Gold Limited
28 September 2023
28 September 2023
Hamak Gold Limited
("Hamak Gold" or the "Company")
Interim Results
Hamak Gold Limited (LSE: HAMA) is pleased to announce its
results for the six-month period ending 30 June 2023 (the
"period").
Highlights
-- GBP 295,750 raised (before costs) for continuation exploration at the Nimba licence
-- Consulting group GeoFocus retained to conduct a detailed
Induced Polarisation ("IP") geophysical survey of the Nimba
licence
-- Some 21-line kilometres of geophysical survey successfully
completed over the high-grade Ziatoyah gold discovery and northern
gold in soil anomaly
-- Structural interpretation and evaluation of geology around the Ziatoyah prospect completed
-- Several priority drill targets selected based on geophysical anomalies and structural targets
Highlights Post Period
-- GBP 350,000 raised (before costs) to fund drilling programme at the Nimba Licence
-- 13 holes drilled for 1000.60m to test geophysical and
structural targets, currently awaiting assays and
interpretation
Karl Smithson, Executive Director of Hamak Gold commented:
"The first half of 2023 has seen the team at Hamak Gold focus on
the promising high-grade Ziatoyah gold discovery in the Nimba
licence, where initial drilling has intersected 20m at 7g/t Au near
surface. These developments have included structural mapping and
the completion and interpretation of a detailed geophysical survey
over the immediate area around the discovery. Several drill targets
were selected based on the results and a 1,000m drill programme was
completed over a number of these in the quarter following the
interim report period.
"We are encouraged by the exploration progress being made to
identify extensions to the high-grade gold mineralization
discovered in the Nimba licence. Further work will continue to
focus on detailed mapping, structural interpretation and
investigations into the extensive 3km x 1km gold in soil anomaly
associated with the gold discovery already made."
For further information you are invited to view the company's
website at www.hamakgold.com or please contact:
Hamak Gold Limited
Amara Kamara +231 (0) 77 005 0005
Karl Smithson +44 (0) 77 837 07971
Peterhouse Capital Limited (Broker)
Lucy Williams
Guy Miller +44 (0) 20 7469 0930
Yellow Jersey PR
Sarah Hollins
Annabelle Wills +44 (0) 20 3004 9512
About Hamak Gold Limited
Hamak Gold Limited (LSE: HAMA) is a UK listed company focussed
on gold exploration of two priority exploration licences in highly
prospective areas of Liberia, where significant drilling results
have identified a new high-grade gold discovery with the discovery
hole returning 20m @ 7g/t Au near surface in the Nimba Licence.
INTERIM MANAGEMENT REPORT
Operating Review
The Company's focus during the period was dedicated to the Nimba
Licence and in particular the high-grade Ziatoyah gold discovery,
where in May 2023, the Company announced high priority drill
targets were identified following the competition of a geophysical
survey.
Licence Holdings
Hamak Gold holds two exploration licences, covering a combined
area of 1,115.20 square kilometres ("km"), Nimba and Gozohn.
Bedrock gold discoveries, associated with extensive gold in soil
anomalies, have been made at both licences. Exploration efforts
during the reporting period focussed on the Nimba licence Ziatoyah
gold discovery.
Nimba Licence
The Nimba Licence (MEL7001518) covers an area of 985.60 square
km and is located approximately 120 km to the north-east of the
Gozohn licence and some 25km west of the 3-million-ounce ("Moz")
Ity Gold Mine in neighbouring Cote D'Ivoire.
Since the Company's IPO in March 2022, detailed soil,
trench/channel and rock chip sampling have been completed with
positive results. In late 2022 this culminated in the discovery of
an outcropping (at surface) gold mineralized metadolerite unit at a
site called Ziatoyah, which was subsequently drilled and returned a
best result of 20m at 7g/t Au near surface under the mineralized
outcrop.
The gold in soil anomaly extends over a 3km by 1km northeast
trending area, where outcrop is limited. Streams that dissect the
anomaly are exploited by artisanal gold miners, suggesting that the
extent of the anomaly may be related to an extensive hard rock gold
deposit.
The gold mineralization intersected at Ziatoyah in the first
drilling programme, and observed in outcrop of the mineralized
metadolerite unit, suggests that the gold occurs as free grains
within disseminated crystalline and aggregates of vetiform pyrite
attaining levels of between 1% and 10% of the rock mass which is
dominated by locally carbonatized metadolerites. Microscopic free
gold has also been identified at numerous points within the
mineralized sections of the drill core.
Based on the high percentage of disseminated sulphides (pyrite)
associated with the gold, the Induced Polarisation (IP) geophysical
technique was considered best suited to define the disseminated
sulphide and gold-bearing mineralized units below surface.
International geophysical consulting group Geo Focus was contracted
to undertake the IP survey during the first quarter of 2023.
A total of 21-line km of survey were run along traverses varying
from 800 metres ("m") to 1,200m with line spacings of 100m and
200m. These lines were chosen to cover the Ziatoyah gold discovery
in the vicinity of the significant drill intersection of 20m at 7
grammes per tonne ("g/t") Au as well as the northern part of the
3km x 1km strong gold in soil anomaly. An initial IP
Orientation/Pilot survey block was surveyed (at 25m and 50m
dipole-dipole spacing) directly over the Ziatoyah discovery outcrop
and Drill Holes 1 and 2 to get the "fingerprint" of the gold
discovery and establish the optimal survey parameters to be applied
and conducted over the wider discovery area and northern soil
anomaly during the IP Follow Up survey.
Processing and interpretation of the geophysical data resulted
in the identification of a number of strong IP chargeability and
resistivity anomalies that can be correlated to the Ziatoyah
discovery and the gold in soil anomalies further to the north.
Structural interpretation based on the detailed multi-element
geochemical assays of the soil sampling, surface outcrop and drill
core was also carried out. A number of drill targets were selected
with the objective of defining extensions of the high-grade
Ziatoyah gold discovery.
Post period end, a 1,000m drill programme was carried out. A
total of 12 angled holes and one vertical hole were drilled, core
logged, structural measurements made, core cut and submitted for
assay. The Company is currently awaiting results which it hopes to
share with the market in the second half of 2023.
Gozohn Licence
The Gozohn licence (MEL 7002318) covers an area of 129.60 square
km and is located some 30 km to the south of the high-grade Kokoya
Gold mine operated by MNG Gold. The licence is host to a number of
structurally controlled greenstone belts similar to those at
Kokoya, with strongly deformed amphibolite, quartzite, schist and
banded ironstone formations which generally occur as topographic
highs.
Previous soil, rock and trench sampling has identified a 1,500m
long gold in soil anomalies with rock chip samples returning grades
of 2.56g/t Au and 3.37 g/t Au, which are interpreted as being
related to gold in quartz veins that permeate the greenstone belt
geology.
No exploration was undertaken on Gozohn during the reporting
period as resources were focussed on Nimba as a priority.
Outlook
The Company anticipates receiving the aforementioned drill assay
results for its Ziatoyah site during the next quarter. These
results will subsequently determine Hamak's next steps in its
efforts to further explore the Ziatoyah gold deposit and wider gold
in soil anomalies, which, subject to funding, may involve a more
extensive drill programme to deliver a maiden gold resource for the
Company.
The principal risks identified for the Company in the
forthcoming reporting period include the scheduled elections in
Liberia in the final quarter of 2023. Whilst recent elections in
the Country have passed relatively peacefully, any serious
disturbance or public disorder could adversely affect the
efficiency and continuity of the exploration activities for a
period of time. In addition, the capital markets for junior
exploration companies remains challenging. The Company will seek to
raise further capital going forward and continuation of the
exploration programme will be contingent on the Company being able
to successfully raise funds.
Responsibility Statement
The Directors confirm that to the best of their knowledge:
(a) the condensed set of financial statements has been prepared
in accordance with IAS 34 'Interim Financial Reporting' as
contained in UK-adopted international accounting standards;
(b) the interim management report includes a fair review of the
information required by DTR 4.2.7R of the Disclosure and
Transparency Rules (indication of important events during the first
six months and description of principal risks and uncertainties for
the remaining six months of the year; and
(c) the interim management report includes a fair review of the
information required by DTR 4.2.8R of the Disclosure and
Transparency Rules (disclosure of related parties' transactions and
changes therein).
Karl Smithson
Executive Director
28 September 2023
Hamak Gold Ltd
INTERIM RESULTS
30 June 2023
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2023
6 months 6 months
ended ended
30 June 30 June 2022
Note 2023 Unaudited Unaudited
Continuing operations $000 $000
----------------------------------- ------- ----------------- ---------------
General and administrative
expenses 261 1,489
Operating Loss 261 1,489
----------------------------------- ------- ----------------- ---------------
Loss before taxation 261 1,489
----------------------------------- ------- ----------------- ---------------
Tax charge - -
Loss after taxation 261 1,489
----------------------------------- ------- ----------------- ---------------
Loss for the period 261 1,489
----------------------------------- ------- ----------------- ---------------
Loss per share from continuing
operations in cents per share:
Basic and diluted 6 (0.006) (0.10)
----------------------------------- ------- ----------------- ---------------
Condensed Consolidated Statement of Financial Position
For the six months ended 30 June 2023
Note 6 months Year ended
ended 31 December
30 June 2022
2023 Unaudited Audited
$000 $000
------------------------------- ------- --------- ----------------- ----------------
Non-current assets
Property, plant and equipment 7 28 33
Intangible assets 8 1,502 1,481
------------------------------- ------- --------- ----------------- ----------------
Total non-current assets 1,530 1,514
------------------------------- ------- --------- ----------------- ----------------
Current assets
Trade and other receivables 17 26
Cash and cash equivalents 9 12 12
------------------------------- ------- --------- ----------------- ----------------
Total current assets 29 38
------------------------------- ------- --------- ----------------- ----------------
Total assets 1,559 1,552
------------------------------- ------- --------- ----------------- ----------------
Equity and Liabilities
Equity attributable to owners
of the parent
Share capital 10 5,691 5,147
Share based payment reserve 10 80
Accumulated deficit (4,237) (4,086)
------------------------------- ------- --------- ----------------- ----------------
Total equity 1,464 1,141
------------------------------- ------- --------- ----------------- ----------------
Current liabilities
Trade and other payables 95 411
Unsecured convertible loan - -
Total current liabilities 95 411
------------------------------- ------- --------- ----------------- ----------------
Total equity and liabilities 1,559 1,552
------------------------------- ------- --------- ----------------- ----------------
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2023
Share
Share based payment Accumulated
capital deficit Total equity
$000 $000 $000 $000
------------------------------------- ---------- ---------------- -------------- -----------------
Balance at 1 January 2022 - - (355) (355)
------------------------------------- ---------- ---------------- -------------- -----------------
Loss for the period - - (1,489) (1,489)
Issue of share capital 2,734 - 2,734
Grant of share-based awards - 1,181 - 1,181
Balance at 30 June 2022 - Unaudited 2,734 1,181 (1,844) 2,071
------------------------------------- ---------- ---------------- -------------- -----------------
Loss for the period - - (2,242) (2,242)
Issue of share capital 239 - - 239
Issue costs (215) - - (215)
Issue of shares on exercise
of share awards 2,389 (3,570) - (1,181)
Grant of share-based awards - 2,469 - 2,469
Balance at 31 December 2022
- Audited 5,147 80 (4,086) 1,141
------------------------------------- ---------- ---------------- -------------- -----------------
Loss for the period - - (261) (261)
Issue of share capital 563 - - 563
Issue costs (19) - - (19)
Share-based awards exercised
or lapsed - (110) 110 -
Share based awards charge - 40 - 40
Balance at 30 June 2023 - Unaudited 5,691 10 (4,237) 1,464
------------------------------------- ---------- ---------------- -------------- -----------------
Unaudited Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2023
6 months 6 months
ended ended
30 June 30 June
2023 Unaudited 2022 Unaudited
$000 $000
------- ---------- ----------------- -----------------
Cash flows from operating activities
Operating loss (261) (1,489)
Adjusted for:
Share based payment charge 40 1,181
Directors' fees paid in shares 111 40
Depreciation and amortisatio n 5 2
Unrealised foreign exchange change 2 6
Net cash flow before changes in working
capital (103) (260)
-------------------------------------------------------------------- ----------------- -----------------
Adjusted for by:
Movement in payables (225) (285)
Movement in receivables 8 -
Net cash flow from operating activities (320) (545)
-------------------------------------------------------------------- ----------------- -----------------
Investing activities
Purchase of property, plant and equipment - (26)
Exploration expenditure (21) (336)
Net cash flow from investing activities (21) (362)
-------------------------------------------------------------------- ----------------- -----------------
Cash flow from financing activities
Issue of share capital (net of costs) 341 1,167
Net cash flow from financing activities 341 1,167
-------------------------------------------------------------------- ----------------- -----------------
Net change in cash and cash equivalents
during the year/period - 260
Cash and cash equivalents at beginning
of the period 12 (2)
-------------------------------------------------------------------- ----------------- -----------------
Cash and cash equivalents at end of
the period 12 258
-------------------------------------------------------------------- ----------------- -----------------
Notes to the condensed consolidated interim financial
information
1. GENERAL INFORMATION
Hamak Gold Ltd ("Company") was incorporated on 6 May 2021 and
was incorporated under the BVI Business Companies Act, 2004 (as
amended) of the British Virgin Islands with Company number 2062435.
The Company is limited by shares. The Company's registered office
is Pasea Estate, P.O. Box 958, Road Town, Tortola, VG1110, BVI.
The Company is a public limited company, which is listed on the
Standard Listing of the London Stock Exchange. Admission was
completed on 1 March 2022. The principal activity of the Company is
mineral exploration.
The Company together with its wholly owned subsidiary Hamak Gold
Limited (Liberia) is referred to as the Group.
2. BASIS OF PREPARATION
The consolidated interim financial statements for the six months
ended 30 June 2023 have been prepared in accordance with the
requirements of IAS 34 "Interim Financial Statements". The interim
financial statements should be read in conjunction with the annual
financial statements for the year ended 31 December 2022, which
have been prepared in accordance with the UK-adopted International
Accounting Standards and as applied in accordance with the
provisions of the applicable law. The report of the auditors on
those financial statements was unqualified.
The interim financial statements of the Group are unaudited
financial statements for the six months ended 30 June 2023 have not
been audited or reviewed by the Group's auditors. The financial
statements have been prepared under the historical cost convention.
The consolidated financial statements are presented in United
States Dollars ($), which is the Group's functional and
presentation currency.
Comparatives
The comparatives presented are for the unaudited 6 months period
ended 30 June 2022 for the Condensed Consolidated Statement of
Comprehensive Income, Condensed Consolidated Statement of Changes
in Equity, Condensed Consolidated Statement of Cash Flows and for
the audited year ended 31 December 2022 for the Condensed
Consolidated Statement of financial Position and Condensed
Consolidated Statement of Changes in Equity.
Going concern
The Company is at an early stage in progressing its exploration
assets and has limited overhead costs. Funds raised from the IPO
and subsequent share placements have been used primarily to fund
exploration work on its licences in Liberia. Subsequent to the IPO
in March 2022, in January 2023 the Company raised GBP295,750 before
expenses by the placement of new shares followed after the end of
the reporting period in July 2023 by a further GBP350,000 before
expenses. Additional plans are in place to raise further working
capital to enable the Company to progress its work programmes.
The Directors have a reasonable expectation that the Company
will be able to raise sufficient funds in order to meet planned
expenditure for at least 12 months from the date of approval of
these interim consolidated financial statements and therefore the
interim consolidated financial statement have been prepared on a
going concern basis.
3. SIGNIFICANT ACCOUNTING POLICIES
In preparing these condensed consolidated financial statements,
the Group's accounting policies were consistent with those applied
to the Group's consolidated financial statements for the year ended
31 December 2022.
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of condensed interim financial statements
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the end of the
reporting period. Estimates and judgements are continually
evaluated based on historical experience and other factors,
including expectations of future events that are believed to be
reasonable under the circumstances. In the future, actual
experience may differ from these estimates and assumptions.
The judgements, estimates and assumptions applied in the
condensed interim financial statements, including the key sources
of estimation uncertainty, were the same as those applied in the
Group's last annual financial statements for the year ended 31
December 2022.
5. BUSINESS AND GEOGRAPHICAL REPORTING
The Group's chief operating decision maker is considered to be
the executive directors (the 'Executive Board'). The Executive
Board evaluates the financial performance of the Group. During the
period the Group had one activity only. The whole of the value of
the Group's net assets was attributable to mineral exploration.
6. LOSS PER SHARE
Basic earnings per share is calculated by dividing the loss
attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the period.
6 months 6 months
ended 30 ended 30
June 2023 June 2022
$000 $000
--------------------------------------- ------------ ------------
Loss from continuing operations
attributable to equity holders
of the company (261) (1,489)
---------------------------------------- ------------ ------------
Weighted average number of ordinary
shares in issue 44,964 14,251
---------------------------------------- ------------ ------------
Basic and fully diluted loss
per share from continuing operations
in cents (0.006) (0.10)
---------------------------------------- ------------ ------------
7. PROPERTY, PLANT AND EQUIPMENT
Plant and
Equipment Total
$000 $000
-------------------------- ----------- --------
Cost
At 1 January 2023 41 41
Additions - -
At 30 June 2023 41 41
-------------------------- ----------- --------
Cost
At 1 January 2022 - -
Additions 41 41
At 31 December 2022 41 41
Accumulated Depreciation
At 1 January 2023 8 8
Depreciation charge 5 5
At 30 June 2023 13 13
-------------------------- ----------- --------
Accumulated Depreciation
At 1 January 2022 - -
Depreciation charge 8 8
At 31 December 2022 8 8
Net book value
-------------------------- ----------- --------
At 30 June 2023 28 28
-------------------------- ----------- --------
At 31 December 2022 33 33
-------------------------- ----------- --------
8. INTANGIBLE ASSETS
Mineral
Properties Licences Total
$000 $000 $000
-------------------------- ------------ ----------- --------
Cost
At 1 January 2023 618 863 1,481
Additions 21 - 21
-------------------------- ------------ ----------- --------
At 30 June 2023 639 863 1,502
-------------------------- ------------ ----------- --------
Cost
At 1 January 2022 - - -
Additions 618 863 1,481
At 31 December 2022 618 863 1,481
Accumulated Amortisation
At 1 January 2023 - - -
Amortisation charge - - -
At 30 June 2023 - - -
Accumulated Amortisation
At 1 January 2022 - - -
Amortisation charge - - -
-------------------------- ------------ ----------- --------
At 31 December 2022 - - -
-------------------------- ------------ ----------- --------
Net book value
-------------------------- ------------ ----------- --------
At 30 June 2023 639 863 1,502
-------------------------- ------------ ----------- --------
At 31 December 2022 618 863 1,481
-------------------------- ------------ ----------- --------
On 1 March 2022, the Group acquired two mineral exploration
licences (MELs), being Nimba and Gozohn and an option to acquire
five other MELs in consideration for $1,355,460.
Following a full review by the Board, certain parts of the
Gozohn licence were relinquished during the period resulting in
$516,000 being part of the licence acquisition and exploration
costs being written off.
9. CASH AND CASH EQUIVALENT
6 months ended Year ended
30 June 2023 31 December
Unaudited 2022
Audited
$000 $000
---------------- --------------- -------------
Cash at bank 12 12
12 12
---------------- --------------- -------------
10. SHARE CAPITAL
Number of
ordinary Share Share premium
shares of capital $000
nil par value $000
--------------------------------------- --------------- ---------- ----------------
Total as at 1 January 2022 50,000 - -
Share issue - licence acquisition 9,283,333 - 1,355
Share issue - placing 9,550,000 - 1,272
Share issue - directors fees 1,230,944 - 148
Share issue - corporate fees 983,000 - 131
Share issue - conversion of
loan notes 666,667 - 67
Share issue - vesting shares 17,940,000 - 2,389
Share issue - costs - - (215)
--------------------------------------- --------------- ---------- ----------------
At 31 December 2022 39,703,944 - 5,147
--------------------------------------- --------------- ---------- ----------------
Share issue - in lieu of services
provide 781,250 - 92
Share issue - placing 3,380,000 - 359
Share issue - directors fee
shares 914,277 - 111
Share issue - exercise of performance
rights 953,107 - -
Share issue - costs - - (19)
Total as at 30 June 2023 45,732,578 - 5,691
--------------------------------------- --------------- ---------- ----------------
For a more detailed description of the share capital movements
for 2022 refer to the audited financial statements for the year
ended 31 December 2023
Placing
In January 2023 the Company raised gross proceeds of GBP295,750
($359,000) issuing 3,380,000 new ordinary shares at GBP0.0875 per
share.
Shares issued for services
In January 2023 the Company issued 781,250 new ordinary shares
at GBP0.10 per share to the directors of Cestos Drilling in lieu of
GBP78,125 payable on completing a 450m drilling programme at
Nimba.
Directors fees
During the period 914,277 new ordinary shares were issued to the
non-executive Directors of the Company at 10p per shares in lieu of
quarterly fees.
Exercise of performance rights
In March 2023 the Group achieved the first drill intersection
showing significant gold mineralisation (as determined by the
Senior Technical Consultant to the Board), triggering the vesting
of 953,107 performance rights. Accordingly, 953,107 new ordinary
shares were issued at NIL cost to directors and others.
Reconciliation of movement of share capital to the movements in
the cashflow statement
Share Share premium
capital $000
$000
--------------------------------------- ----------- ----------------
At 31 December 2022 - 5,147
--------------------------------------- ----------- ----------------
Share capital issued for cash - 341
Share capital issued in settlement of
contractual obligations - 203
Total as at 30 June 2023 - 5,691
--------------------------------------- ----------- ----------------
11. SHARE BASED PAYMENTS
Performance Rights
At 30 June 2023, the Company had outstanding performance rights
to subscribe for ordinary shares as follows:
Weight
average expired
exercise Expiry or
price date At 01/01/203 Issued lapsed At 31/12/2022
Nil 07/07/2032 1,064,924 - (1,064,924) -
Nil 07/07/2032 1,064,924 - (111,817) 953,107
2,129,848 - (1,064,924) 953,107
------------------------ ------------- --------- ------------ --------------
Information on the inputs and fair value calculations relating
to the performance rights are shown in the audited financial
statements for the year ended 31 December 2022
During the period 953,107 performance rights were exercised by
directors and others and 223,634 performance rights lapsed,
relating to Walter McCarthy.
12. RELATED PARTY TRANSACTIONS
During the period certain directors were awarded Ordinary Shares
in the Company. Further details can be found in note 10, Share
Capital.
13. EVENTS AFTER THE REPORTING DATE
In July 2023, the Company raised GBP350,000 before costs from
the placement of 4,000,000 new ordinary shares of no par value at a
price of 8.75 pence per share of which 359,955 were issued in
settlement of third party drilling costs.
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