Conroy Gold & Natural Resources Plc Final Results

 
TIDMCGNR 
 
The information contained within this announcement is deemed by the Company to 
constitute inside information as stipulated under the Market Abuse Regulations 
                          (EU) No. 596/2014 ("MAR"). 
 
                                                               17 November 2016 
 
                     Conroy Gold and Natural Resources plc 
                          ("Conroy" or "the Company") 
 
                 Final Results For The Year Ended 31 May 2016 
 
                       Notice of Annual General Meeting 
 
Conroy (AIM: CGNR; ESM: CGNRI), the Irish based resource company exploring and 
developing gold and other projects in Ireland, is pleased to announce its 
results for the year ended 31 May 2016. 
 
Highlights: 
 
  * New Gold Zones discovered at Clontibret 
  * High Grades and Wide Gold Zones Intersected 
  * Multimillion oz Gold potential targeted at Clay Lake-Clontibret 
  * Fundraises of GBP375,000 in December 2015 and GBP1,015,000 in May 2016 to help 
    fund the advancement of the Company's principal gold opportunities and 
    general working capital purposes 
 
Chairman, Professor Richard Conroy commented: 
 
"I am delighted with the excellent progress in the Company's exploration 
programme at Clay Lake-Clontibret.  The high gold grades, gold continuity and 
wide intersections in the gold mineralisation, which is open at depth and along 
strike, lends further credence to the Company's targeted multimillion ounce 
gold potential at Clay Lake - Clontibret." 
 
Further Information: 
 
Conroy Gold and Natural Resources plc                    Tel: 
                                                         [phone] 
 
Professor Richard Conroy, Chairman 
 
Allenby Capital Limited (Nomad)                          Tel: 
                                                         [phone] 
 
David Hart/James Thomas/Nick Harriss 
 
Hybridan LLP (Broker)                                    Tel: [phone] 
                                                         2341 
 
Claire Louise Noyce/Niall Pearson/William Lynne 
 
IBI Corporate Finance Limited (ESM Adviser)              Tel: 
                                                         [phone] 
 
Ger Heffernan / Jan Fitzell 
 
Lothbury Financial Services                              Tel: 
                                                         [phone] 
 
Michael Padley 
 
Hall Communications                                      Tel: 
                                                         [phone] 
 
Don Hall 
 
CHAIRMAN'S STATEMENT 
 
Dear Shareholder, 
 
I have great pleasure in presenting your Company's Annual Report and 
Consolidated Financial Statements for the financial year ending 31 May 2016. 
 
Excellent infill drilling results were reported at Clontibret during the year. 
New gold zones were discovered together with high grades and wide gold 
intersections.  The adjacent Clay Lake and Clontibret sites were unified as a 
single mining project with an exploration target of 5 million oz. gold.  A 
total of GBP1,390,000 in new equity capital was raised during the year. 
 
CLAY LAKE - CLONTIBRET 
 
A JORC compliant resource of over 0.6 million Au (Gold), using a minimum mining 
width of 2 metres and a cut-off grade of 0.6 g/t Au has already been 
established on 20% of the geochemical target at Clontibret.  The mineralisation 
at Clontibret remains open along strike, at depth and over the remaining 80% of 
the geochemical target area. 
 
The adjacent Clay Lake geochemical target has recently been shown to be 
approximately 3km in length, up to 2km in width and to have a surface area of 
over 200 hectares (c500 acres).  The results of structural studies and wide 
zones of gold mineralisation already reported indicate the potential for high 
tonnage and overall gold content at Clay Lake. 
 
A Scoping Study prepared by independent consultants Tetra Tech Wardrop 
demonstrated that the established resource (on 20% of the Clontibret target 
area only) was technically and financially viable.  A detailed mine development 
plan is in place for this resource using a starter pit which focussed on a high 
grade, densely drilled portion of the resource.   At current gold prices, the 
starter pit alone at Clontibret has an estimated net present value greater than 
US$70m, using an 8% discount rate. 
 
Having established commercial viability of the initial resource, your Company 
has targeted growing the size of the asset through unifying the Clay Lake and 
the Clontibret targets into a single mining project and embarking on a drilling 
programme.   A quantitative risk assessment by consultant geologist Professor 
Garth Earls has established an initial combined exploration target of five 
million oz. of gold across the overall Clay Lake - Clontibret project. 
Further drilling is required to bridge the gap between the existing resource of 
0.6 million oz and the exploration target of five million oz but while there 
can be no certainty that future resource estimates for the project will achieve 
the exploration target, your Company is confident that additional drilling will 
significantly improve the resource. 
 
Gold Lode continuity at Clontibret was confirmed by an independent study by 
structural geologist Dr. Francis Murphy.  The structural study was carried out 
on the stream bedrock in Clontibret.  Eight gold lodes were identified in the 
stream bedrock.  These lodes all corresponded to gold lodes previously 
identified by the drilling programme, thus confirming the continuity of the 
mineralisation. 
 
The confirmation of continuity in the gold lodes, taken in conjunction with 
drilling results and channel sampling results from the old antimony mine 
workings at Clontibret, enhances the Company's understanding of gold 
mineralisation within the Clontibret gold mining project. 
 
The new study complimented your Company's ongoing drilling programme and is a 
further major step forward with our plans for development at your Company's 
Clay Lake - Clontibret gold project. 
 
Excellent drilling results were reported at Clontibret at the south western 
part of your Company's Clay Lake - Clontibret gold property with new gold 
zones, high grade gold and wide intersections observed.  High grades and wide 
intersections included 0.50m at 25.85 g/t gold in one of the already known gold 
zones and 5.75m grading 5.04 g/t gold in one of the newly discovered gold 
zones. 
 
Five new gold zones (lodes) were discovered during the latest drilling, which 
was announced after the year end. Gold intersections were also made in four 
known gold zones in the area, confirming continuity of these lode zones. The 
deposit remains open to depth and in all directions. 
 
The drilling focused on upgrading, at this stage to a depth of 200m, an area 
where previous drilling had indicated the potential for significant widths and 
gold grades. Intercepts drilled included; 
 
  * 5.00m grading 2.87 g/t gold (39m depth; New Lode 'A') 
  * 0.45m grading 3.28 g/t gold (70m depth; New Lode 'C') 
  * 5.75m grading 5.04 g/t gold (82m depth; New Lode 'D') 
  * 2.25m grading 10.47 g/t gold (96m depth Known Lode) including 
 
0.50m grading 25.85 g/t gold 
 
  * 1.25m grading 3.21 g/t gold (157m depth; Known Lode) 
  * 1.25m grading 2.40 g/t gold (187m depth; New Lode 'E') 
 
NEW GOLD ZONES AT GLENISH 
 
In July 2016, we announced four new gold zones were intersected in a drilling 
programme on your Company's Glenish gold target. 
 
The drilling results, together with previous channel sampling in the area which 
had proved 1.3 metres grading 9.4 g/t gold, demonstrated the presence of the 
four new gold zones in a 150 metre wide structural corridor in the western part 
of the Glenish gold target. 
 
The new drilling results included intersections of 2.25 metres grading 2.65 g/t 
gold, at a depth of 18 metres; 2.00 metres grading 1.59 g/t gold at a depth of 
27.75 metres; 2.75 metres grading 1.43 g/t gold at a depth of 36 metres and 
3.00 metres grading 1.76 g/t gold at a depth of 64.25 metres. 
 
The gold mineralisation in bedrock in the drilling area was traced down dip for 
over 70 metres and remains open in all directions. 
 
The Glenish gold target is a large, 147 hectare, gold-in-soil anomaly located 
7.5km southwest of the Company's Clay Lake-Clontibret gold target where the 
Company is targeting a potential of five million ounces of gold. 
 
BASE METAL AND OTHER GOLD TARGETS 
 
Exploration also continued for zinc and other metals on your Company's other 
exploration properties in Ireland as well as for gold in Finland. 
 
FINANCE 
 
The loss after taxation for the year ended 31 May 2016 was EUR292,165 (2015: EUR 
315,314) and the net assets as at 31 May 2016 were EUR17,113,858 (2015: EUR 
15,321,650). 
 
On 14 December 2015 the Company reorganised its share capital by subdividing 
and reclassifying each issued ordinary share of EUR0.01 as one ordinary share of 
EUR0.00001 each and one deferred share of EUR0.00999 each and consolidated the 
reclassified ordinary shares of EUR0.00001 each into shares of EUR0.0001 each. 
 
Following the reorganisation, on 21 December the Company raised GBP375,000 
through the issue of 1,153,845 shares at 32.5p each and on 4 May 2016 a further 
GBP1,015,000 through the issue of 5,486,185 shares at 18.5p. 
 
AUDITORS 
 
I would like to take this opportunity to thank the partners and staff of 
Deloitte for their services to your Company during the course of the financial 
year. 
 
DIRECTORS 
 
It is with deep regret that I report that Henry H. Rennison, Non-Executive 
Director passed away during the year.  His dedication, experience, advice and 
support contributed to a major degree to our Company. 
 
I am very pleased to welcome Professor Garth Earls to our Board.  His knowledge 
and experience will significantly contribute to the Company in his new role as 
Director. 
 
 I would like to express my deep appreciation of support and dedication of all 
the directors, consultants and staff, which has made possible the continued 
progress and success, which your Company has achieved. 
 

FUTURE OUTLOOK 
 
Your Company has continued to make excellent progress in its exploration and 
development programme.  Clay Lake and Clontibret may well contain a total of 
five million ounces whilst at Glenish four new gold zones were discovered, 
making nine in all. The current drill programme has identified high grade and 
wide zones of gold mineralisation, that is open at depth and along strike 
across the target areas.  I look forward to this continuing into 2017. 
 
Professor Richard Conroy 
 
Chairman 
 
16 November 2016 
 
CONSOLIDATED INCOME STATEMENT 
 
FOR YEAR ENDED 31 MAY 2016 
 
                                                                2016          2015 
 
                                                                   EUR             EUR 
 
OPERATING EXPENSES                                         (291,486)     (315,314) 
 
                                                                                 - 
 
Finance income - bank interest                                                   - 
receivable 
 
Finance costs - interest on shareholder                        (679)             - 
loan 
 
 
 
LOSS BEFORE TAXATION                                       (292,165)     (315,314) 
 
Taxation                                                          -             - 
 
 
 
LOSS FOR THE YEAR                                          (292,165)     (315,314) 
 
Loss per ordinary share - basic and                        (EUR0.0479)     (EUR0.0012) 
diluted 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
 
AS AT 31 MAY 2016 
 
                                                                2016           2015 
 
ASSETS                                                             EUR              EUR 
 
Non-current Assets 
 
Intangible assets                                         16,693,602     17,561,838 
 
Property, plant and equipment                                 16,150         17,983 
 
                                                          18,712,752     17,579,821 
 
Current Assets 
 
Trade and other receivables                                   38,334         63,586 
 
Cash and cash equivalents                                    687,708         23,480 
 
                                                             726,042         87,066 
 
Total Assets                                              19,438,794     17,666,887 
 
EQUITY AND LIABILITIES 
 
Capital and Reserves 
 
Called up share capital                                       11,014      4,373,208 
Called up deferred share capital                          10,504,431      6,135,597 
 
Share premium                                             10,649,252      8,855,525 
 
Capital conversion reserve fund                               30,617         30,617 
 
Share based payments reserve                               1,464,030      1,120,009 
 
Retained losses                                          (5,545,486)    (5,193,306) 
 
Total Equity                                              17,116,858     15,321,650 
 
Non-current Liabilities 
Convertible loan                                                                  - 
 
Financial Liabilities                                        135,287        191,022 
 
Total Non-current Liabilities                                135,287        191,022 
 
Current Liabilities 
 
Trade and other payables                                   2,189,649      2,154,215 
 
Total Current Liabilities                                  2,189,649      2,154,215 
 
Total Liabilities                                          2,324,936      2,345,237 
 
Total Equity and Liabilities                              19,438,794     17,666,887 
 
CONSOLIDATED CASH FLOW STATEMENT 
 
FORR THE YEAR ENDED 31 MAY 2016 
 
                                                           2016        2015 
 
                                                              EUR           EUR 
 
Cash flows from operating activities 
 
Cash generated by operations                             41,014     147,396 
 
Net cash generated by operating activities               41,014     147,396 
 
Cash flows from investing activities 
 
Investment in exploration and evaluation              (858,769) (1,459,440) 
 
Payments to acquire property, plant and                       -    (15,673) 
equipment 
 
Net cash used in investing activities                 (858,769) (1,475,113) 
 
Cash flows from financing activities 
 
Issue of share capital                                1,800,369     935,832 
 
Share issue cost                                       (60,015)           - 
 
Interest paid on shareholder loan                         (679)           - 
Amounts repaid to shareholders                        (201,955)           - 
 
Advances from Related Parties                                 -     336,993 
 
Net cash generated from financing                     1,481,983   1,272,825 
activities 
 
Increase/(Decrease) cash and cash                       664,228    (54,892) 
equivalents 
 
Cash and cash equivalents at beginning of                23,480      78,372 
year 
 
Cash and cash equivalents at end of year                687,708      23,480 
 
Notes to the Financial Statements 
 
1. Publication of non-statutory accounts 
 
The financial information set out in this preliminary announcement are 
abbreviated accounts as defined in Section 1119 of the Companies Act 2014. 
 
The financial information for the period ended 31 May 2016 has been extracted 
from the Company's financial statements to that date which have received an 
unqualified auditor's report but have not yet been delivered to the Registrar 
of Companies. 
 
2. Earnings per share 
 
The calculation of the loss per ordinary share of EUR0.0479 (2015 - EUR0.0008) is 
based on the loss for the financial year of EUR292,165 (2015 - EUR315,314) and the 
weighted average number of ordinary shares in issue during the year of 
5,295,110 (2015 - 405,603,539). 
 
Since the Company incurred a loss the effect of share options and warrants 
would be anti-dilutive. 
 
3. Dividends 
 
No dividends were paid or are proposed in respect of the period ended 31 May, 
2016. 
 
4. Copies of Accounts 
 
A copy of the Annual Report and Financial Statements will be available on the 
Company's website www.conroygold.com and will be available from the Company's 
registered office, 9 Merrion Square North, Dublin 2.  It will also be posted to 
shareholders who requested a hard copy. Notice of the Annual General Meeting to 
be held on 9 December 2016 and Proxy Form were sent to shareholders on 16 
November 2016 and are also available on the website. 
 
 
 
END 
 

(END) Dow Jones Newswires

November 17, 2016 02:00 ET (07:00 GMT)