TIDMPGR TIDMPGW
RNS Number : 0726E
Premier Gold Resources PLC
25 May 2012
Embargoed: 0700hrs 25 May 2012
Premier Gold Resources plc
("Premier Gold" or the "Company")
Preliminary Results for the Eleven Months Ended 31 December
2011
Highlights
-- Completed acquisition of Central Asia Resources
-- Developing the Company's first gold project on Tien Shan gold belt in Kyrgyzstan
-- Four prospects identified
-- Most advanced prospect showing multiple attractive zones of
gold bearing rock with economic grades
-- Further project acquisition strategy underway
-- Loss for the period GBP892,651
-- Cash at year end of GBP919,427
-- Placing post year-end in May 2012 raising GBP350,000 to advance exploration work
Gerry Desler, Chairman, commented,
"Premier Gold has become a fully operational gold exploration
and development company with experienced management and excellent
local partners. We are currently prospect testing at our
Cholokkaindy licence in Kyrgyzstan where our geologists have
identified attractive semi-continuous gold mineralised zones with
economic grades."
Enquiries:
Premier Management Holdings Plc
Gerry Desler, Chairman Tel: +44 (0) 1279 731037
Libertas Capital Corporate Finance Limited
-
Nominated Adviser
Thilo Hoffmann / Sandy Jamieson Tel: +44 (0) 20 7569 9650
Rivington Street Corporate Finance -
Broker
Jon Levinson Tel: +44 (0) 20 7562 3357
M: Communications
Ben Simons / Matthew Neal Tel: +44 (0) 20 7920 2340
Chairman's Statement
Our major focus during the eleven month period leading up to the
end of 2011 was on concluding our first transaction: the
acquisition of Central Asia Resources Limited ("CAR"). This was
successfully concluded post year-end, on 30 March 2012, delivering
the Company's first gold project and transforming it from an
investment company into an operational gold exploration and
development company.
In parallel with this transformation the Company was rebranded
as Premier Gold Resources plc. A new corporate identity and website
www.premiergoldresources.com was established. I hope investors will
find this both functional and informative and I encourage existing
and prospective investors to register to receive news updates from
the Company through our alert service on the new website.
Strategy
Premier Gold's long term strategy is to identify, acquire,
explore and develop gold deposits in Central Asia. Our particular
focus is on Kyrgyzstan which is well known for possessing world
class gold deposits and for being under explored. Kyrgzystan is the
number three gold producer of the Commonwealth of Independent
States ("CIS") countries and it has a well-developed mining
industry with good support services.
Foreign investment in the country is encouraged and gold mining
is a leading industry sector. The Tien Shan gold belt, where our
Cholokkaindy project is located, hosts a number of world-class gold
deposits and producing mines.
One of the the key strengths of Premier Gold is the quality of
its personnel. The team, whilst lean, bears an impressive
cross-section of expertise from geology on-the-ground through to
local political knowledge and corporate finance experience.
Cholokkaindy and Uzunbulak projects
Cholokkaindy is our first gold project. The licensed area covers
2,400 hectares (24km(2) ) and endured extensive research throughout
2011. Work on Cholokkaindy last year was financially supported by
Premier Gold during the period prior to the completion of the
acquisition of Central Asia Resources. The benefits of which
resulted in a highly successful exploration campaign in 2011. Four
significant gold prospects have been identified. The most advanced
of these prospects are Talbaital, where attractive semi-continuous
gold mineralised zones showing economic grades have been
identified, and Jarkonush.
Two periods of sampling in 2010-11, by a specialist Kyrgyz crew,
have built a picture of a significant gold target in Talbaital,
possibly extending southwards to Jarkonush, which will undergo
further detailed exploration in 2012, including drilling. At
Talbaital, the initial trenches pointed at a single structure but
the second sampling programme has demonstrated that it is much
wider, at 400 metres in the central area, than previously thought
and therefore of even greater potential.
The other licence acquired as part of the acquisition of Central
Asia Resources is the Uzunbulak lithium project, also in
Krygyzstan. The project has been assessed by the board as non-core
and will be divested in the near future.
Local management
Premier Gold's joint management committee has been supervising
local experienced professionals and the strength of the local team
has proved invaluable. We are committed to the welfare of all those
working on the project most of whom are Kyrgyz and, as much as
possible, we aim to source Kyrgyz materials and contractors.
Chynarbek Tegizbekov is an executive director of our Kyrgyz
subsidiary and a highly experienced geologist in the region. He has
served in senior geological positions for Kyrgyz mining companies
for over thirty years. Chynarbek is joined by Sagyn Kulzhigitov,
the Chief Geologist of our Kyrgyz subsidiary, with a similar track
record of Kyrgyz exploration.
Among my fellow board members is Dr Reza Tabrizi who has been
involved in project finance in Central Asian natural resources for
eighteen years. He has worked closely with the government ministers
in Azerbaijan, Turkmenistan, Russia and Kyrgyzstan. As the founder
and president of both the Anglo Kyrgyz and Anglo Turkmen societies
he has enhanced political connections and influence in the
region.
Financial results
The Company changed the date of its financial year-end from 31
January to 31 December to align with that of our subsidiary
company. The period under review is therefore an eleven month
period from 1 February to 31 December 2011. Premier Gold was still
an investing company during the period under review, prior to
concluding the acquisition of CAR. As such the Company had no
revenues. The Company recorded a loss before tax of GBP892,651.
During the eleven months Premier Gold not only funded the
reverse takeover of CAR, the costs were approximately GBP360,000,
but also financially supported the ongoing mining operations of CAR
prior to the conclusion of the acquisition. The Company's general
and administrative costs were approximately GBP440,000 as we geared
up to becoming an operational gold exploration and development
company, bringing in additional management and external advisers.
Remaining costs related to the funding of CAR's mining activity
during the period prior to the completion of the acquisition and,
in addition, the Company advanced circa GBP432,952 in loans towards
this activity during the period.
Outlook
In May the Company raised additional funds of GBP350,000,
predominantly with institutional investors, which will be utilised
on an exploration programme on the Cholokkaindy licence which moves
into its second full exploration season this month. The 2012 work
programme will include continued trenching at the Talbaital and
Jarkonush prospects, to further constrain mineralisation. We expect
to drill 1,500m of core on these prospects concentrating on targets
highlighted by analysis of geophysics profiles, lithochemical
sampling and soil geochemistry. Trenching will also extend to cover
the Aksai and Torsai mineralised zones in the east and north east
of the licence.
Whilst the current focus is firmly on Cholokkaindy we are
investigating a number of other licences on the Tien Shan gold belt
as we look to expand our portfolio of Kyrgyz gold projects.
I believe the combined strengths of local geological expertise,
in-country relationships, the diverse skill set of the board and
our timing positions Premier Gold uniquely well to take advantage
of this significant opportunity in a country which is
under-explored but capable of becoming one of the world's leading
gold producers.
Gerry Desler FCA
Chairman
24 May 2012
STATEMENT OF COMPREHENSIVE INCOME
11 Months
ended Year ended
31 December 31 January
2011 2011
GBP GBP
Revenue
Continuing operations - -
Discontinued activities 44,642
-------------- --------------
- 44,642
Cost of sales - (5,453)
-------------- --------------
Gross profit - 39,189
Administrative expenses (931,970) (116,013)
Share based payments 5,034 (3,554,097)
-------------- --------------
Operating loss
Continuing operations (926,936) (3,661,473)
Discontinued activities - 30,552
-------------- --------------
(926,936) (3,630,921)
Debenture loan waived - 1,428,196
Loss on disposal of football
business - (4,146)
-------------- --------------
Loss on ordinary activities
after exceptional items and
before interest (926,936) (2,206,871)
Finance income 34,285 1,958
Finance expense - (786)
-------------- --------------
Loss before income taxation (892,651) (2,205,699)
Income tax expense - (411)
-------------- --------------
Loss for the period and total
comprehensive income (892,651) (2,206,110)
Earnings per share Pence Pence
Basic and diluted earnings
per share
- Continuing operations -
loss per share (0.17) (2.05)
- Discontinued operations
- earnings per share
- 0.81
STATEMENT OF FINANCIAL POSITION
31 December 31 January
2011 2011
GBP GBP
ASSETS
Current assets
Trade and other receivables 727,287 233,229
Cash and cash equivalents 919,427 8,665
------------------ ------------------
Total assets 1,646,714 241,894
------------------ ------------------
LIABILITIES
Current liabilities
Trade and other payables (174,916) (129,602)
------------------ ------------------
Net assets 1,471,798 112,292
EQUITY
Share capital 1,471,207 1,385,640
Share premium account 4,821,530 2,649,906
Other reserves 43,333 43,333
Profit and loss account (4,864,272) (3,966,587)
------------------ ------------------
Total shareholders'
equity 1,471,798 112,292
Approved by the Board and authorised for issue on 24 May
2012
Gerry Desler FCA
Director
STATEMENT OF CHANGES IN EQUITY
Share Share Retained Capital
capital premium earnings redemption Total
GBP GBP GBP reserve GBP
GBP
Balance at 1 February
2010 1,047,180 2,649,906 (5,314,574) 43,333 (1,574,155)
Total comprehensive
income
for the year - - (2,206,110) - (2,206,110)
Issue of shares 116,282 - - - 116,282
Conversion of loan
stock
into ordinary shares 151,744 - - - 151,744
Conversion of
debentures
into ordinary shares 70,434 - - - 70,434
Equity-settled
share-based
payments - - 3,554,097 - 3,554,097
---------------- ---------------- ---------------- ---------------- ----------------
Balance at 31 January
2011 1,385,640 2,649,906 (3,966,587) 43,333 112,292
Total comprehensive
income
for the year - - (892,651) - (892,651)
Issue of shares 85,567 2,263,100 - - 2,348,667
Costs in respect of
shares
issued - (91,476) - - (91,476)
Equity-settled
share-based
payments - - (5,034) - (5,034)
---------------- ---------------- ---------------- ---------------- ----------------
Balance at 31 December
2011 1,471,207 4,821,530 (4,864,272) 43,333 1,471,798
STATEMENT OF CASH FLOWS
11 Months Year ended
ended 31 December 31 January
2011 2011
GBP GBP GBP GBP
Cash flows from operating
activities
Operating loss (926,936) (3,630,921)
Increase in trade
and other receivables (462,689) (105,071)
Increase/(decrease)
in trade and other
payables 45,314 (20,216)
Equity-settled share
based payments (5,034) 3,554,097
Loss on disposal
of football business - (4,146)
-------------- --------------
Net cash used in
operating activities (1,349,345) (206,257)
Investing activities
Finance income 2,916 16
Finance expense - (786)
-------------- --------------
Net cash generated
from/(used in) investing
activities 2,916 (770)
Financing activities
Issue of share capital 2,348,667 116,282
Costs in respect (91,476) -
of share issue
New Convertible Unsecured
loan notes - 151,744
Repayment of debenture
loans - (54,371)
-------------- --------------
Net cash generated
from financing activities 2,257,191 213,655
-------------- --------------
Net increase in cash
in period 910,762 6,628
Cash and cash equivalents
at beginning of the
year 8,665 2,037
-------------- --------------
Cash and cash equivalents
at end of the year 919,427 8,665
Annual Report and Accounts
Copies of the Annual Report and Accounts, together with a notice
of the annual general meeting, are being posted to all shareholders
today and will be available on the Company's website
www.premiergoldresources.com
Annual General Meeting
The annual general meeting of the Company will be held at the
offices of Nabarro LLP, Lacon House, 84 Theobald's Road, London
WC1X 8RW at 10 a.m. on 21 June 2012.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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