Preliminary Figures
November 30 2005 - 9:32AM
UK Regulatory
RNS Number:9138U
Mincorp Plc
30 November 2005
Mincorp plc
Results for the period ended 31 May 2005
CHAIRMAN'S STATEMENT
The financial period to 31st May 2005, the first of Mincorp's existence, was one
of rapid development.
On 28th January 2005 the Company achieved an important milestone, listing on the
AIM Market of the London Stock Exchange. Prior to Admission Mincorp raised
#60,000 seed capital and the Placing increased the Company's capital by
way of an offer for subscription of 60,000,000 new shares at 1p to fund the
listing, provide funds for acquisitions, and working capital.
In addition a total of 126,201,010 options exercisable at 1p within 5 years have
been granted.
CORPORATE FINANCE AND INVESTMENT
In the Admission Document the Company stated that it would pursue an active
strategy of investment in mining projects within the Philippines.
In order to achieve this objective, we incorporated a new company, Mincorp Asia,
Inc. in which Mincorp Plc holds a 40% equity. Four Filipino directors hold the
balance of the shares. Our chief executive officer, Reginald Hare, is chairman
and president of the company. Under the terms and conditions of a loan/option
agreement between Mincorp Plc and each of the four Filipino directors, our
company or its nominees may acquire at acquisition cost the whole of the
optioned shares within five years from the date of the agreement.
Mincorp Plc has not confined its field activities exclusively to the
Philippines. During the year we formed a wholly owned subsidiary, Procnima
Exploration Pty Ltd in Western Australia, which has acquired a 100% interest in
the New Waverley gold mine on the Norseman Goldfield.
EXPLORATION PROJECTS
The company has two main exploration projects. One is a partly tested nickel
laterite located on Luzon Island in the Philippines. This property has the
potential to develop into a major open pit nickel operation.
The other project is an exploration play in the high grade Norseman goldfield in
Western Australia. Both these projects are dealt with in more detail in the
Report of the Chief Executive Officer.
OUTLOOK
The Directors anticipate that 2005-2006 will be another year of growth and
development and expect to undertake further acquisitions.
At the date of this report the Company has in excess of #200,000 in cash
resources to finance expansion.
CONCLUSION
In the period since Admission Mincorp has advanced towards its objectives and
has increased its range of assets. Wider recognition of its achievements and
ambitions has been slow to catch up with the pace of these developments.
I thank, on your behalf, our nominated adviser, solicitors, accountants, and
other advisers for their hard work and support during the period under review.
Finally, on behalf of the Board, I thank shareholders for the trust and
confidence they have placed in us.
Jo Malins
Chairman
30th November 2005
CHIEF EXECUTIVE OFFICER'S REPORT
I am pleased to present to shareholders a summary of the activities of Mincorp
Plc since we listed on the AIM market on 28th January 2005. This report also
outlines our activities subsequent to the close of the financial year on 31st
May, 2005.
Our main activity has been in the Philippines where Mincorp Asia, Inc was
incorporated as an associated corporation. Mincorp Plc holds a 40% direct
interest in Mincorp Asia, Inc.
MT CADIG NICKEL DEPOSIT, PHILIPPINES
Mincorp Asia entered into an agreement with Bonaventure Mining Corporation to
explore and, if justified, acquire a 100% interest in the Mt Cadig lateritic
nickel deposit. This option agreement was subsequently superseded by the
conditional purchase by Mincorp Asia, Inc of a 100% interest in Bonaventure
Mining Corporation.
The exploration permit application of Bonaventure over an area of approximately
9,462 hectares covers the whole of the Mt Cadig deposit. It is situated on Luzon
Island approximately 250 kilometres east of Metro Manila. No exploration
activity of any kind has been carried out on the property since 1970, when 103
pits were sunk to an average depth of approximately 7 metres. In 1971 a team of
geologists and mining engineers from the Philippines Bureau of Mines carried out
an inspection and study of the pitting programme to verify tonnage and nickel
values reported by the tenement holders. This team concluded that the area
tested contained approximately 83 million metric tons of laterite with nickel
content ranging from 0.8% to 2.0% nickel. The cobalt content is unknown. Based
on the mapped area, the whole deposit should contain at least 120 million tons
of laterite.
The deposit is located on a high level, largely uninhabited forest re-growth
area. A recent investigation has disclosed the presence of a small tribe of
indigenous people. This will delay the granting of the exploration permit by
several weeks. However, we are almost through the process of consultation with
local people and community leaders, who have welcomed the news that work will be
commencing at Mt Cadig in the near future.
The target for the exploration programme, by shallow pitting and boring, is to
outline sufficient ore to justify the erection of a treatment plant to produce
refined nickel and cobalt products. In the event that the deposit contains
smaller quantities of high-grade 'saprolite' ore grading over 2% nickel, it may
be possible to bulk ship high-grade ore to overseas smelters.
Of additional interest is the presence of high-grade sulphides assaying over 2%
Nickel in at least one location at Mt Cadig. This mineralisation is exposed in
bedrock where an active creek has stripped off the weathered mantle below the
laterite plateau. Apart from the possibility of locating an economic sulphide
deposit, these high value indicate a source rock high in nickel. The average
background value for un-weathered bedrock underlying nickel laterite is
approximately 0.2% nickel. The lateritic profile is enriched by concentration of
soluble nickel during the weathering process.
Testing of the Mt Cadig deposit will commence as soon as Bonaventure Mining
Corporation is granted the exploration permit, which is expected by
mid-December, 2005.
World demand for nickel in strong. Since 1950 world consumption of nickel has
increased at an average annual rate of approximately 4%. It is predicted that
demand over the next 10 years will exceed this figure. This is mainly due to the
expansion of the Chinese economy and the growth in stainless steel production in
China. This should help underpin the present price for nickel metal and other
refined nickel products for a number of years into the future.
NEW WAVERLEY GOLD MINE, WESTERN AUSTRALIA
As announced previously, Mincorp Plc purchased a 100% interest, through a wholly
owned subsidiary, Procnima Exploration Pty Ltd, in the New Waverley gold mine at
Norseman, Western Australia, in August, 2005. Total purchase price was #86,000.
Norseman is approximately 200 kilometers south of Kalgoorlie in the Western
Australian goldfields. It is one of the State's oldest gold producing areas. The
first gold was discovered in 1894. Since then the field has been worked
continuously for a production of approximately 6 million ounces of gold.
Full-scale mining operations continue today and several substantial deposits
have recently been discovered.
All the main gold bearing reefs lie within what is termed the "favourable Bed",
which is a series of lava flows. The other structural elements are a series of
northwesterly trending faults seated in dolerite dykes. All economic reefs
junction with these structures, usually on the southern footwall side of the
fault. The amount of displacement on these faults is an indicator of the
strength of the structure and mineralisation. The 800 metre horizontal
displacement on the Princess Royal fault, which is the parent structure of the
Princess Royal and North Royal reefs, is much greater than the average
displacement. These reefs have produced over 1,800,000 ounces of gold from
quartz grading approximately 17 grams/tonne. This is the most important reef
system discovered on the field. It is significant that the parent structure has
a large horizontal displacement.
The New Waverley mine lies several kilometres to the northeast of the Princess
Royal. The Waverley fault runs through Mincorp's Prospecting Licences within the
'favourable bed'. The horizontal displacement on this fault is approximately 600
metres compared with 800 metres for the Princess Royal fault. The structural
pattern at New Waverley is remarkably similar to that found at the Princess
Royal. A shallow open pit has produced several thousand ounces of gold from
veining in the hanging wall of the Waverley fault. However, the footwall side of
the fault is completely untested. The veining may represent the surface
expression of a reef system in the footwall. A deep mantle of soil conceals the
area.
The tenements purchased by the Company consists of three granted Prospecting
Licences and three Prospecting Licence Applications for a total area of 657
hectares. The vendors are entitled to a 6% share of net profit from any future
mining operation.
We intend to test the prospect with a series of diamond drill holes. These will
be drilled through the fault to probe for a hidden reef system in the Waverley
fault footwall. There is also the chance that these drill holes may intersect
additional gold bearing hanging wall veins. Given the current price of gold,
this would allow open pit mining to be resumed.
PROJECT DEVELOPMENT
Apart from the investment in the two properties described above, the company has
investigated manganese, chromite, nickel, gold/copper, magnetite and coal
properties in the Philippines and coal properties in Indonesia.
REGINALD HARE
Chief Executive Officer.
30th November, 2005
Profit and loss account
for the period ended 31st May 2005
Period 27th May
2004 to 31st
May 2005
#
Turnover -
Administrative expenses (37,534)
_______
Operating loss (37,534)
Bank Deposit interest received 4,642
_______
Loss on ordinary activities before taxation (32,892)
Taxation -
Retained loss for the period attributable to
Shareholders of the Company (32,892)
=====
Loss per share - basic pence (0.07)
There are no recognised gains or losses other than the loss for the period.
All the operations are considered to be continuing.
Balance sheet
As at 31st May 2005
31st May 2005
# #
Fixed assets
Intangible fixed assets 46,397
Investments 10,000
_______
56,397
Current assets
Debtors 75,648
Cash at bank 464,452
_______
540,100
Creditors - amounts due within one year (39,109)
_______
Net current assets 500,991
_______
Net assets #557,388
Share capital and reserves
Called-up share capital 120,001
Share premium account 470,279
Profit and loss account (32,892)
_______
Equity shareholders' funds #557,388
=====
Cash flow statement
for the year ended 31st May 2005
Period ended
31st May 2005
#
Net cash outflow from operating activities (74,073)
Returns on Investments
Interest received 4,642
Capital expenditure and investment (56,397)
_______
Cash outflow before financing (125,828)
Financing 590,280
_______
Increase in cash in the period #464,452
=====
The accounts are being posted to shareholders today and copies will be available
from Nabarro Wells & Co. Limited, Saddlers House, Gutter Lane, London EC2V 6HS
This information is provided by RNS
The company news service from the London Stock Exchange
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