VANCOUVER, BC, Sept. 22, 2020 /CNW/ - Leading Edge Materials
Corp. ("Leading Edge Materials" or
the "Company") (TSXV: LEM) (Nasdaq First North: LEMSE)
(OTCQB: LEMIF) announces third quarter results for the period
ending July 31, 2020. All references
to dollar amounts in this release are in Canadian dollars.
Highlights During and After the Quarter
During the three months ended July 31,
2020 the Company:
- Announced changes to board of directors and management.
- Received confirmation of a five year extension on the Norra
Karr exploration license.
- Announced the participation of its subsidiary, Woxna Graphite
AB, in the newly launched research project "Graphite and Graphene
as Battery Electrodes" which is part of the Vinnova funded
competence centre Batteries Sweden ("BASE").
- Held its Annual General Meeting with shareholders approving all
proposed agenda points.
Subsequent to July 31, 2020 the
Company:
- Completed a non-brokered private placement for proceeds of
$3,520,000 by issuing 32,000,000
units at a price of $0.11 per unit.
Each unit consists of one common share, and one common share
purchase warrant exercisable into one common share at an exercise
price of $0.20 expiring August 7, 2024.
- Received information that the Bucharest Court of Appeal published a ruling
dismissing the appeal against the Agenţia Natională Pentru Resurse
Minerale ("NAMR") by the competing bidder for the Bihor Sud
Exploration license in Romania as
groundless. Pending the full ruling being served to the parties of
the appeal and a subsequent appeal window, NAMR can reinstate the
adjudication process of the competing bids for the Bihor Sud
Exploration license.
- Granted stock options to directors, officers and consultants to
purchase an aggregate of 3,500,000 common shares of the Company at
an exercise price of $0.155 expiring
August 11, 2023.
- Commenced a preliminary economic assessment study on the Norra
Karr heavy rare earth element project to include the additional
potential of by-product revenues and associated reduced
environmental footprint.
- The European Commission announced an Action Plan on critical
raw materials aimed to develop resilient value chains for European
Union industrial ecosystems, reduce dependency on primary critical
raw materials, strengthen domestic sourcing of raw materials in the
EU and diversify sourcing from third countries and remove
distortions to international trade. The Action Plan includes the
establishment of a European Raw Materials Alliance to be launched
on September 29, 2020.
Three Months Ended July 31,
2020 Compared to Three Months Ended April 30, 2020
During the three months
ended July 31, 2020 ("Q3") the
Company reported a net loss of $442,526 compared to a net loss of $317,422 for the three months ended April 30, 2020 ("Q2"), an increase in loss of
$125,104 primarily attributed to a
foreign exchange gain of $5,324 in Q2
compared to a foreign exchange loss of $33,140 in Q3 and an increase in general
administrative expenses from $337,609
in Q2 to $420,959 in Q3.
Nine Months Ended July 31, 2020
Compared to Nine Months Ended July 31,
2019
During the nine months ended July 31, 2020 (the "2020 period") the Company
reported a net loss of $1,167,252,
compared to a net loss of $1,908,634
for the nine months ended July 31,
2019 (the "2019 period"), a decrease in loss of $741,382. The decrease in loss is primarily
attributed to a $849,703 decrease in
expenses, from $ 1,984,201 during the
2019 period to $1,134,498 during the
2020 period partially offset by a foreign exchange loss of
$64,335 during the 2020 period
compared to a gain of $20,853 during
the 2019 period and cost recoveries of $35,873 recorded in the 2019 period.
Selected Financial Data
The following selected
financial information is derived from the unaudited condensed
consolidated interim financial statements of the Company prepared
in accordance with IFRS.
|
Fiscal
2020
|
Fiscal
2019
|
Fiscal
2018
|
Three Months
Ended
|
July
31,
2020
$
|
April
30,
2020
$
|
January
31,
2020
$
|
October
31,
2019
$
|
July
31,
2019
$
|
April
30,
2019
$
|
January
31,
2019
$
|
October
31,
2018
$
|
Operations
|
|
|
|
|
|
|
|
|
Expenses
|
(420,959)
|
(337,609)
|
(375,930)
|
(409,297)
|
(561,771)
|
(571,749)
|
(850,681)
|
(1,151,305)
|
Other
items
|
(21,567)
|
20,187
|
(31,374)
|
(8,799,476)
|
27,101
|
46,864
|
1,602
|
39,448
|
Comprehensive
loss
|
(442,526)
|
(317,422)
|
(407,304)
|
(9,208,773)
|
(534,670)
|
(524,885)
|
(849,079)
|
(1,111,857)
|
Basic and diluted
loss per
share
|
(0.00)
|
(0.00)
|
(0.00)
|
(0.09)
|
(0.01)
|
(0.01)
|
(0.01)
|
(0.01)
|
Financial
Position
|
|
|
|
|
|
|
|
|
Working
capital
|
3,354,422
|
499,883
|
711,727
|
132,551
|
518,129
|
929,183
|
1,438,895
|
960,707
|
Total
assets
|
27,832,104
|
24,722,718
|
24,803,562
|
24,825,107
|
34,088,219
|
35,359,241
|
35,766,406
|
35,075,446
|
Total non-current
liabilities
|
(7,486,123)
|
7,452,242
|
(7,154,761)
|
(7,701,324)
|
(7,876,382)
|
(8,637,726)
|
(8,515,027)
|
(8,306,212)
|
Financial Condition / Capital Resources
During the
2020 period the Company recorded a net loss of $1,167,252 and, as at July
31, 2020, the Company had an accumulated deficit of
$39,338,983 and working capital of
$3,354,422. The Company is
maintaining its Woxna Graphite Mine on a "production-ready" basis
to minimize costs. The Company anticipates that it has sufficient
funding to meet anticipated levels of corporate administration and
overheads for the ensuing twelve months however, it will need
additional capital to provide working capital and recommence
operations at the Woxna Graphite Mine and/or modernize the plant to
produce value added production, to fund future development of the
Norra Karr Property and complete the tendering process and, if
successful, exploration activities in Romania. There is no assurance such additional
capital will be available to the Company on acceptable terms or at
all. In the longer term the recoverability of the carrying value of
the Company's long-lived assets is dependent upon the Company's
ability to preserve its interest in the underlying mineral property
interests, the discovery of economically recoverable reserves, the
achievement of profitable operations and the ability of the Company
to obtain financing to support its ongoing exploration programs and
mining operations. See also "COVID-19".
On August 7, 2020 the Company
completed a non-brokered private placement and issued 32,000,000
units at a price of $0.11 per unit
for gross proceeds of $3,520,000 of
which $3,286,300 in share
subscriptions had been received at July 31,
2020.
Outlook
The Company's projects are linked to
disruptive high growth industrial applications such as
electromobility, renewable energy and energy storage that underpin
the transition to a sustainable society. Although the COVID-19
crisis is ongoing and has impacted industries during the year,
electric vehicle sales have gained market share and expectations
are for a rebound during the second half of the year and continuing
into the next year. This trend is benefiting from measures taken by
governments to support strategic industries focused around the
green transition of society and developing more resilient regional
industrial ecosystems. This is demonstrated by the newly announced
European action plan on critical raw materials and associated
European Raw Materials Alliance and the proposed action to identify
mining and processing projects and investment needs and related
financing opportunities for critical raw materials in the European
Union. With the recently completed private placement and a
portfolio of four critical raw material projects within the borders
of the European Union, Leading Edge Materials is well-positioned
and will work on developing its projects to support the goals of
the European Commission to achieve a more sustainable and resilient
supply of critical raw materials for European industrial
ecosystems.
COVID-19
During 2020, there was a global outbreak of a
novel coronavirus identified as "COVID-19". On March 11, 2020, the World Health Organization
("WHO") declared a global pandemic. In order to combat the spread
of COVID-19 governments worldwide have enacted emergency measures
including travel bans, legally enforced or self-imposed quarantine
periods, social distancing and business and organization closures.
These measures have caused material disruptions to businesses,
governments and other organizations resulting in an economic
slowdown and increased volatility in national and global equity and
commodity markets. The Company has implemented safety and physical
distancing procedures, including working from home where possible
and ceased all travel, as recommended by the various governments.
The Company will continue to monitor the impact of the COVID-19
outbreak, the duration and impact which is unknown at this time, as
is the efficacy of any intervention. It is not possible to reliably
estimate the length and severity of these developments and the
impact on the financial results and condition of the Company and
its operations in future periods.
Financial Information
The report for the fourth
quarter ending October 31, 2020 is
expected to be published on or about January
27, 2021.
On behalf of the Board of Directors,
Leading Edge
Materials Corp.
Filip Kozlowski, CEO
About Leading Edge Materials
Leading Edge Materials is a Canadian public company focused on
developing a portfolio of critical raw material projects located in
the European Union. Critical raw materials are determined as such
by the European Union based on their economic importance and supply
risk. They are directly linked to high growth technologies such as
lithium-ion batteries and permanent magnets for electric motors and
wind power that underpin the sustainability transition of society.
The portfolio of projects includes the 100% owned Woxna Graphite
mine (Sweden), Norra Karr HREE
project (Sweden), Bergby lithium
project (Sweden) and the 51% owned
Bihor Sud Nickel Cobalt exploration alliance (Romania).
Additional Information
The Company's unaudited condensed consolidated interim financial
statements for the three months ended July
31, 2020 and related management's discussion and analysis
are available on the Company's website at
www.leadingedgematerials.com or under its profile on SEDAR at
www.sedar.com.
The information was submitted for publication through the agency
of the contact person set out above, at September 22, 2020 at 1:30
PM Vancouver time.
Leading Edge Materials is listed on the TSXV under the symbol
"LEM", OTCQB under the symbol "LEMIF" and Nasdaq First North
Stockholm under the symbol "LEMSE". Mangold Fondkommission AB is
the Company's Certified Adviser on Nasdaq First North and may be
contacted via email CA@mangold.se or by phone +46 (0) 8 5030
1550.
Reader Advisory
This news release may contain statements which constitute
"forward-looking information", including statements regarding the
plans, intentions, beliefs and current expectations of the Company,
its directors, or its officers with respect to the future business
activities of the Company. The words "may", "would", "could",
"will", "intend", "plan", "anticipate", "believe", "estimate",
"expect" and similar expressions, as they relate to the Company, or
its management, are intended to identify such forward-looking
statements. Investors are cautioned that any such forward-looking
statements are not guarantees of future business activities and
involve risks and uncertainties, and that the Company's future
business activities may differ materially from those in the
forward-looking statements as a result of various factors,
including, but not limited to, fluctuations in market prices,
successes of the operations of the Company, continued availability
of capital and financing and general economic, market or business
conditions. There can be no assurances that such information will
prove accurate and, therefore, readers are advised to rely on their
own evaluation of such uncertainties. The Company does not assume
any obligation to update any forward-looking information except as
required under the applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accept responsibility for the adequacy or
accuracy of this news release.
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SOURCE Leading Edge Materials