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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Arian | LSE:AGQ | London | Ordinary Share | VGG0472G1147 | COM SHS NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.175 | 0.16 | 0.19 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMAGQ
ARIAN SILVER
Trading Symbols
AIM: AGQ
FWB: I3A
27 June 2017
Financial Results for the Year Ended 31 December 2016
Arian Silver Corporation ("Arian Silver" or the "Company") announces the
release of its financial results for the year ended 31 December 2016.
Chairman's and Chief Executive's statement
We are pleased to take this opportunity to reflect on the period from January
2016 and to consider the progress Arian has made across the period, during
which time we positioned the Company to strengthen the balance sheet and
extinguished all loans. We also de-listed from the TSX Venture stock exchange
to reduce our regulatory overheads and better reflect the UK-centricity of our
shareholder base.
Following a full review of our portfolio of silver projects, we were able to
take advantage of an opportunity to divest one of our non-core projects,
Calicanto and realise funds to develop the business. The interest in the
project and successful completion of the disposal illustrates the ability of
the group to realise value from its assets.
Over the period, we undertook a low cost exploration programme over the
Company's silver projects and that work will shape our future exploration plans
for those concessions.
In April 2017, we announced that we have begun to position ourselves to take on
a portfolio of lithium assets, through the acquisition of an option over three
exploration projects in Zacatecas State, Mexico that we believe to have
potential to host lithium. This is an exciting prospect for the Company.
Our preliminary sampling of these projects has evidenced the presence of
lithium deposits and we look ahead to the future exploration and development of
these assets. This move into lithium marks the path for diversification away
from a single commodity, which should make the Company more robust and capable
of withstanding the natural pricing volatility of the markets.
We would like to thank all our shareholders for their continued support look
forward to updating you on our further progress during the second half of 2017.
A J Williams J T Williams
Executive Chairman Chief Executive Officer
Strategy and business model
Arian's objective is to create a portfolio of primarily lithium, silver and
gold exploration projects, principally in Mexico.
The group has operated in Mexico for over ten years during which time it has
established long-term relationships with local government, communities, and key
stakeholders. Arian's geological experts assess and identify projects for
potential mineralisation. Where-ever possible, the projects are acquired on a
low-cost option basis whilst preliminary exploration is undertaken to assess
the merits of further work.
Where preliminary studies evidence sufficient mineralisation, increasingly
comprehensive studies will be undertaken with a view to delineating a compliant
mineral resource estimate in readiness of potential sale of the asset to a
producing mining company, at which time a significant premium over its
acquisition and development cost may be justified.
Financial highlights
As at 31 December 2016, the Company had total assets of US$1.3 million (2015:
US$1.6 million) of which US$0.4 million (2015: US$0.5 million) was cash. The
Company had total liabilities of US$0.1 million (2015: US$0.5 million) of which
US$0.1 million were current liabilities (2015: US$0.5 million).
In the year ended 2016 the Company made an operating loss of US$1.6 million
(2015: US$2.9 million) and a loss per share of US$0.01 (2015: US$0.46).
Overview of operations
In February 2016, the Company entered into a memorandum of understanding with
Tierra Nueva Mining Ltd ("TNM") in relation to the Noche Buena gold and silver
tailings project to evaluate its portfolio of mineral properties in Zacatecas
State, Mexico and in May 2016 the Company negotiated an exclusive option whilst
it undertook due diligence on TNM's tailings project. The metallurgical
testwork undertaken by Resource Development Inc (RDi) of Denver, Colorado, in
the USA, demonstrated that the tailings were highly refractory and included
various gangue minerals that would not only inhibit extraction of the silver
and gold, but also lead to significant penalties levied by any purchasers of
any concentrate produced. Accordingly, the Company did not advance this
project.
During the course of 2016 and into 2017, the Company carried out a high level
exploration programme over its portfolio of silver mining concessions covering
an area of over approximately 1,500 hectares, to develop and direct future
exploration work.
Silver properties
As at 31 December 2016, the Company had 12 fully owned mining concessions split
between four distinct project areas:
San Celso project
The 88 hectare San Celso project is located in the historic mining district of
Pánfilo Natera-Ojocaliente and is surrounded by other concessions to the south
and west. It encompasses two veins: the San Celso and Las Cristinitas veins.
Work carried out during 2016 resulted in the surface extension of these veins
of 800 metres. Samples taken to date have evidenced grades of up to 395g/t Ag,
13,700ppm Pb, and 13,900ppm Zn.
Los Campos project
The Los Campos project comprises four concessions covering an area of
approximately 500 hectares and is located on the south side of the city of
Zacatecas. The property encompasses at least two known veins: the Los Campos
vein and the San Rafael vein, and is easily accessible 15-minutes' drive from
the centre of the City of Zacatecas.
The Los Campos vein system has been developed along a strike distance of 3.3km
and to depths exceeding 100m. Our geological mapping and sampling discovered
additional veins running either parallel or nearly parallel to the Los Campos
vein.
La Africana project
The La Africana project is a strategically located project covering
approximately 15 hectares, 3 kilometres south west of Pánfilo Natera. The
project encompasses a past-producing mine and work carried out on the project
evidences significant zones of high-grade silver mineralisation over
respectable widths.
Calicanto project
On 1 August 2016 the Company announced its Mexican subsidiary, Compañía Minera
Estrella De Plata SA de CV, had executed a binding agreement with Minera Oro
Silver de Mexico SA de CV ("Minera Oro Silver"), a subsidiary of Endeavour
Silver Corporation, to sell the Company's 75 hectare Calicanto Project for
USUS$400,000. The amount due from the sale is shown in the consolidated
statement of financial position as an asset held for sale.
The transaction was completed in 2017, upon execution and ratification of the
assignment agreement in respect of the relevant mineral concessions.
Other silver mining concessions
Arian Silver holds three additional concessions not otherwise grouped into
project groupings, covering almost 900 hectares. These concessions were
acquired in 2006 because of their strategic position to the San Celso project.
These concessions too require further exploratory work to fully assess their
economic potential.
Lithium properties
In early 2017, the Company acquired options over three potential lithium
projects and carried out preliminary exploration which evidenced the presence
of lithium at each of the project areas. Further exploration work is planned to
ascertain the full extent and grade of mineralisation.
Pozo Hondo project
The Pozo Hondo project is the largest of the projects at almost 1,100 hectares
in size and encompasses one salar, the Laguna El Salado.
Columpio project
The Columpio project is almost 400 hectares in size, encompassing two salars,
Laguna Tenango and Laguna La Virgen, approximately 24km from the town of Villa
de Cos.
Abundancia project
The Abundancia project is 150 hectares in size and encompasses the Laguna Noria
del Burro salar, approximately 40km from the town of Villa de Cos.
Future outlook
Confidence was markedly stronger at the end of 2016 than it was at the start of
that year as a result of a successful and well-supported financing. This
financing allowed for the exploration programme over its existing portfolio of
silver projects and initial payment in respect of the option over lithium
assets.
We remain positive about the long term outlook for the silver price and are
committed to ensuring our silver assets are well placed to benefit from any
further increase in the silver price, which has already risen by approximately
10% during the course of 2017.
Our recent move to include lithium within our portfolio of exploration assets
provides our shareholders with exposure to the fast paced growth in demand for
this commodity.
Our immediate focus is on the integration of the lithium assets into our
exploration programme and as we advance that work, we will also continue to
seek out opportunities to expand our portfolio, creating a strong pipeline of
projects ready for sale or exploitation.
Consolidated statement of comprehensive income
For the year ended 31 December 2016
(Tabulated amounts expressed in thousands of US dollars unless otherwise
stated)
As
restated
2016 2015
Continuing operations
Other administrative expenses (1,366) (2,889)
Impairment charge (202) -
Total administrative expenditure (1,568) (2,889)
Operating loss (1,568) (2,889)
Net investment income 20 21
Loss from continuing operations (1,548) (2,868)
Discontinued operations
Loss from discontinued operations - (12,740)
Loss for the year before taxation (1,548) (15,608)
Tax - -
Loss for the year attributable to equity shareholders of (1,548) (15,608)
the parent
Other comprehensive income
that may be recycled to profit or loss
Foreign exchange translation differences recognised (263) 5,306
directly in equity
Other comprehensive income for the year (263) 5,306
Total comprehensive income for the year attributable to (1,811) (10,302)
equity shareholders of the parent
Basic and diluted loss per share (US$/share) (0.01) (0.46)
Basic and diluted loss per share from continuing (0.01) (0.09)
operations (US$/share)
Basic and diluted loss per share from discontinued - (0.37)
operations (US$/share)
Consolidated statement of financial position
As at 31 December 2016
(Tabulated amounts expressed in thousands of US dollars unless otherwise
stated)
As
2016 restated
2015
Assets
Intangible assets 173 812
Property, plant and equipment 7 5
Total non-current assets 180 817
Trade and other receivables 309 311
Cash and cash equivalents 416 474
Total current assets 725 785
Assets held for sale 400 -
Total assets 1,305 1,602
Equity attributable to equity shareholders of the parent
Share capital 52,396 51,781
Warrant reserve 1,333 3,455
Share-based payment reserve 1,417 7,701
Foreign exchange translation reserve 1,828 2,092
Accumulated losses (55,764) (63,955)
Total equity 1,210 1,074
Liabilities
Trade and other payables 95 528
Total current liabilities 95 528
Total liabilities 95 528
Total equity and liabilities 1,305 1,602
The financial statements were approved and authorised for issue by the Board of
Directors on 26 June 2017 and were signed on its behalf by:
A J Williams J T Williams
Executive Chairman Chief Executive Officer
Consolidated statement of cash flows
For the year ended 31 December 2016
(Tabulated amounts expressed in thousands of US dollars unless otherwise
stated)
As
2016 restated
2015
Cash flows from operating activities
Loss before tax from continuing operations (1,548) (2,868)
Loss before tax from discontinued operations - (12,740)
Adjustments for non-cash items:
Depreciation 3 164
Exchange difference (69) 6,797
Net interest receivable (20) (21)
Change in fair value of derivative liability - (7,038)
Proceeds from Quintana for working capital - (650)
Impairment of intangible assets 202 -
Loss on discontinuing operations - 10,563
Equity-settled share-based payment transactions - 18
Decrease/(increase) in trade and other receivables (48) (1,027)
(Decrease)/Increase in trade and other payables (433) 2,227
Increase in inventories - (211)
Cash used in operating activities * (1,913) (4,786)
Cash flows from investing activities
Interest received 1 21
Proceeds from Quintana for working capital 50 650
Cash from discontinued operations - (47)
Purchase of intangible assets (84)
Acquisition of property, plant and equipment (7) (5,726)
Cash used in investing activities (40) (5,102)
Cash flows from financing activities
Proceeds from issue of share capital and warrants 2,157 -
Issue costs (209) -
Proceeds from Base Metal Purchase Agreement - 7,576
Repayment of Base Metal Purchase Agreement - (45)
Cash from financing activities 1,948 7,531
Net increase / (decrease) in cash and cash equivalents (5) (2,357)
Cash and cash equivalents at 1 January 474 2,846
Effect of exchange rate fluctuations on cash held (53) (15)
Cash and cash equivalents at 31 December 416 474
* Discontinued operations contributed US$NIL (2015: (US$4,798,000)) to cash
flows from operating activities.
Consolidated statement of changes in equity
For the year ended 31 December 2016
(Tabulated amounts expressed in thousands of US dollars unless otherwise
stated)
Share Foreign
based exchange As restated As
Share Warrant payment translation Accumulated restated
capital reserve reserve reserve losses Total
Balance: 31 December 2014 51,781 3,455 7,683 (3,214) (48,347) 11,358
Loss for the year - - - - (15,608) (15,608)
Foreign exchange - - - (3,917) - (3,917)
Foreign exchange - - - 9,222 - 9,222
reclassified to
discontinued operations
Total comprehensive - - - 5,305 (15,608) (10,303)
income
Fair value of share - - 18 - - 18
options
Balance: 31 December 2015 51,781 3,455 7,701 2,091 (63,955) 1,073
Loss for the year - - - - (1,548) (1,548)
Foreign exchange - - - (263) - (263)
Total comprehensive - - - (263) (1,548) (1,811)
income
Shares issued for cash 824 - - - - 824
Share issue costs (209) - - - - (209)
Fair value of warrants - 1,333 - - - 1,333
issued
Lapse of share options - - (6,284) - 6,284 -
Cancellation of warrants - (3,455) - - 3,455 -
Balance: 31 December 2016 52,396 1,333 1,417 1,828 (55,764) 1,210
For further information please contact:
Arian Silver Corporation Northland Capital Partners Limited
Jim Williams, CEO Gerry Beaney / David Hignell
David Taylor, Company Secretary Tel: +44 (0)203 861 6625
Tel: +44 (0)20 7887 6599
OR
OR
Beaufort Securities Limited Yellow Jersey PR Limited
Jon Belliss Charles Goodwin / Harriet Jackson
Tel: +44 (0)20 7382 8300 Tel: +44 (0)7747 788 221
Forward-Looking Information
This press release contains certain "forward-looking information". All
statements, other than statements of historical fact that address activities,
events or developments that the Company believes, expects or anticipates will
or may occur in the future are deemed forward-looking information.
This forward-looking information reflects the current expectations or beliefs
of the Company based on information currently available to the Company as well
as certain assumptions. Forward-looking information is subject to a number of
significant risks and uncertainties and other factors that may cause the actual
results of the Company to differ materially from those discussed in the
forward-looking information, and even if such actual results are realised or
substantially realised, there can be no assurance that they will have the
expected consequences to, or effects on the Company. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein. END
(END) Dow Jones Newswires
June 27, 2017 02:00 ET (06:00 GMT)
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