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ARK Arkle Resources Plc

0.30
0.025 (9.09%)
Last Updated: 11:00:48
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Arkle Resources Plc LSE:ARK London Ordinary Share IE00B2357X72 ORD EUR0.0025 (CDI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.025 9.09% 0.30 0.25 0.35 0.35 0.30 0.30 1,250,000 11:00:48
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Lead And Zinc Ores 0 -299k -0.0007 -3.86 1.23M

Arkle Resources PLC Interim Statement for period ended 30 June 2019 (8568N)

27/09/2019 7:00am

UK Regulatory


Arkle Resources (LSE:ARK)
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TIDMARK

RNS Number : 8568N

Arkle Resources PLC

27 September 2019

27 September 2019

Arkle Resources PLC

("Arkle" or the "Company")

Interim Statement for the period ended 30 June 2019

Arkle Resources PLC (LON: ARK), formerly Connemara Mining Company plc, the Irish gold and zinc exploration and development company, is pleased to provide an interim report and unaudited financial statements for the six months ended 30 June 2019.

Chairman's Statement

World stock markets are at or near all-time highs. Gold and zinc prices are high. World economies are growing and unemployment is low. Gold and Zinc mines have finite lives and without active exploration shortfalls in output will occur. Yet all of this good news is not reflected in the share prices of mining exploration ventures.

Arkle, formerly Connemara Mining, is an active explorer in Ireland with four ongoing projects;

   -      Zinc in Stonepark, Limerick 
   -      Zinc in Oldcastle, Meath 
   -      Gold in Mine River, Wicklow / Wexford 
   -      Gold in Inishowen, Donegal 

The two zinc projects are joint ventured, Stonepark with Group Eleven a Toronto based explorer. Arkle holds a 23.44% participating interest, Oldcastle is joint ventured with Teck Resources a world leading base metal producer. Arkle holds a 25% participating interest in this project.

Stonepark remains the flagship project with over 150 holes drilled to date and an independent Inferred Resource of 5.1 million tons. Stonepark lies adjacent to the very big (45.1m tons) zinc deposit at Pallas Green.

Group Eleven, our partner, believes that there is a highly prospective geological structure running across the southern part of both the Stonepark and Pallas Green discoveries. Drilling conducted during the year was inconclusive but one hole, at Kilteely, produced good results. Additional drilling is required. Arkle has the right to participate in all agreed expenditure up to 23.44% or it can elect to dilute depending on the proposed programme.

The zinc price, in excess of US$2,000 is very profitable for Irish zinc miners. This makes the Stonepark discovery an attractive asset and some external interest has been shown. We do not believe that the value of Stonepark is reflected in the Arkle price.

The Oldcastle block of five licences has attractive geology for base metal discoveries. We joint ventured the blocks with Teck in 2012 who hold substantial ground in the Midlands of Ireland. Teck have spent sufficient sums to earn into a 75% stake in the block. Further spending will require Arkle to participate or dilute. Results over the years, including recent drilling have found trace zinc mineralisation, but nothing exciting. Teck are reviewing the latest data.

Gold at US$1,500 an oz should make gold exploration an attractive proposition. Development of the large gold deposit in Tyrone, owned by Dalradian, moves forward at a glacial pace. A decision to begin development would be a major boost for the sector.

Arkle sought to replicate the Tyrone gold discoveries on ground with similar geology at the Inishowen project in Donegal. Very strong commercial grade results were found in the Meeneragh area but not elsewhere. Using a fresh set of eyes, we have reviewed our database and completed fieldwork leading to the identification of a new target area between Meeneragh and the former silver-lead mine at Glentogher. We will refine the analysis and do some more work before drilling.

The rivers running through Wexford / Wicklow have been known to contain gold for hundreds of years. However, finding the source has proven elusive. At Mine River, we hold a significant block of ground but our focus has been on the area around Tombreen. There is a lot of scope for expansion. In recent months we have sampled some of the ground on a tighter grid using an innovative and cost-effective technique. The results are encouraging. More work needs to be done to identify further drill targets. Some outside interest is being shown in the results.

Where do we go from here? We will continue to refine drill targets in Mine River and in Inishowen. We are in active discussions with our partner in Stonepark, Group Eleven, on how to proceed. A number of exciting options exist. The coming months will be busy and I hope will enhance shareholder value.

John Teeling

Chairman

26 September 2019

Enquiries:

 
 Arkle Resources PLC 
 John Teeling, Chairman             +353 (0) 1 833 2833 
 Patrick Cullen, CEO                +353 (0) 87 272 1748 
                                    +44 (0) 755 237 8208 
 
 
 SP Angel Corporate Finance 
  LLP 
 Matthew Johnson/Jamie Spotswood    +44 (0) 203 470 0470 
 
 
 First Equity Limited 
 Jason Robertson                    +44 (0) 207 374 2212 
 
 Blytheweigh                        +44 (0) 207 138 3204 
 Julia Tilley                       +44 (0) 781 506 8387 
 Jane Lenton                        +44 (0) 742 756 1762 
 
 Teneo 
 Luke Hogg                          +353 (0) 1 661 4055 
 Alan Tyrrell                       +353 (0) 1 661 4055 
 
 
 
                                     Arkle Resources PLC 
                              Financial Information (Unaudited) 
 
                                                            Six Months Ended      Year Ended 
                                                            30 June     30 June       31 Dec 
                                                                 19          18           18 
                                                          unaudited   unaudited      Audited 
 Condensed Consolidated Statement of Comprehensive 
  Income                                                    EUR'000     EUR'000      EUR'000 
 
 Continuing Operations 
 Administrative expenses                                      (170)       (160)        (337) 
                                                         ----------  ----------  ----------- 
 
 OPERATING LOSS                                               (170)       (160)        (337) 
 Investment revenue                                               0           0            0 
                                                         ----------  ----------  ----------- 
 
 LOSS BEFORE TAXATION                                         (170)       (160)        (337) 
 Income tax expense                                               0           0            0 
 
 LOSS FOR THE PERIOD AND TOTAL COMPREHENSIVE 
  INCOME                                                      (170)       (160)        (337) 
                                                         ==========  ==========  =========== 
 
 LOSS PER SHARE - basic and 
  diluted                                                   (0.14c)     (0.15c)      (0.31c) 
                                                         ==========  ==========  =========== 
 
 
 
 
 Condensed Consolidated Balance                             30 June     30 June       31 Dec 
  Sheet                                                          19          18           18 
                                                          unaudited   unaudited      Audited 
                                                            EUR'000     EUR'000      EUR'000 
 NON-CURRENT ASSETS 
 Intangible Assets                                            3,362       3,218        3,314 
                                                         ----------  ----------  ----------- 
 
 CURRENT ASSETS 
 Other receivables                                               15          44           24 
 Cash and cash equivalents                                      147         366          106 
                                                         ----------  ----------  ----------- 
                                                                162         410          130 
                                                         ----------  ----------  ----------- 
 
 TOTAL ASSETS                                                 3,524       3,628        3,444 
                                                         ----------  ----------  ----------- 
 
 LIABILITIES 
 CURRENT LIABILITIES 
 Trade and other payables                                     (130)       (172)        (137) 
                                                         ----------  ----------  ----------- 
 NET CURRENT LIABILITIES                                         32         238          (7) 
 
 NET ASSETS                                                   3,394       3,456        3,307 
                                                         ==========  ==========  =========== 
 
 EQUITY 
 Share Capital                                                1,323       1,139        1,139 
 Share Premium                                                6,209       6,077        6,136 
 Share based remuneration 
  reserve                                                        32           4           32 
 Reserves                                                   (4,170)     (3,764)      (4,000) 
 
 TOTAL EQUITY                                                 3,394       3,456        3,307 
                                                         ==========  ==========  =========== 
 
 
 
 
 
 
 Condensed Consolidated Statement of Changes 
  in Shareholders Equity 
 
                                    Called-up                 Share 
                                        Share     Share       Based    Retained 
                                      Capital   Premium    Reserves     Deficit        Total 
                                      EUR'000   EUR'000     EUR'000     EUR'000      EUR'000 
 
 As at 1 January 2018                     874     5,163           4     (3,604)        2,438 
 Issue of shares                          265       973           0                    1,238 
 Share issue expenses                       0      (59)           0                     (59) 
 Loss for the period                                                      (160)        (160) 
 As at 30 June 2018                     1,139     6,077           4     (3,764)        3,456 
                                   ----------  --------  ----------  ----------  ----------- 
 
 Share issue expenses                       0        59           0        (59)            0 
 Share options issued                                            28                       28 
 Loss for the period                                                      (177)        (177) 
 As at 31 December 2018                 1,139     6,136          32     (4,000)        3,307 
                                   ----------  --------  ----------  ----------  ----------- 
 
 Issue of shares                          184        73           0                      257 
 Loss for the period                                                      (170)        (170) 
 As at 30 June 2019                     1,323     6,209          32     (4,170)        3,394 
                                   ==========  ========  ==========  ==========  =========== 
 
 
                                                            Six Months Ended      Year Ended 
                                                            30 June     30 June       31 Dec 
                                                                 19          18           18 
 Condensed Consolidated Cash 
  Flow                                                    unaudited   unaudited      Audited 
                                                            EUR'000     EUR'000      EUR'000 
 CASH FLOW FROM OPERATING ACTIVITIES 
 Loss for the year                                            (170)       (160)        (337) 
 Share options issued                                             0           0           14 
 Exchange movements                                               0         (2)            2 
                                                         ----------  ----------  ----------- 
                                                              (170)       (162)        (321) 
 
 Movements in working capital                                    12       (247)        (260) 
                                                         ----------  ----------  ----------- 
 CASH USED BY OPERATIONS                                      (158)       (409)        (581) 
 NET CASH USED IN OPERATING 
  ACTIVITIES                                                  (158)       (409)        (581) 
                                                         ----------  ----------  ----------- 
 
 CASH FLOW FROM INVESTING 
  ACTIVITIES 
 Payments for exploration and evaluation                       (48)       (306)        (389) 
                                                         ----------  ----------  ----------- 
 NET CASH USED IN INVESTING 
  ACTIVITIES                                                   (48)       (306)        (389) 
                                                         ----------  ----------  ----------- 
 
 CASH FLOW FROM FINANCING ACTIVITIES 
 Issue of shares                                                257       1,015        1,015 
 Share issue expenses                                          (10)        (59)         (59) 
                                                         ----------  ----------  ----------- 
 NET CASH GENERATED FROM FINANCING 
  ACTIVITIES                                                    247         956          956 
                                                         ----------  ----------  ----------- 
 
 NET INCREASE/(DECREASE) IN CASH AND CASH 
  EQUIVALENTS                                                    41         241         (14) 
 
 Cash and Cash Equivalents at beginning 
  of the period                                                 106         123          122 
 
 Effects of exchange rate changes on cash 
  held in foreign currencies                                      0           2          (2) 
 CASH AND CASH EQUIVALENTS AT 
  OF THE PERIOD                                                 147         366          106 
                                                         ==========  ==========  =========== 
 

Notes:

   1.            INFORMATION 

The financial information for the six months ended 30 June 2019 and the comparative amounts for the six months ended 30 June 2018 are unaudited.

The interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union. The interim financial statements have been prepared applying the accounting policies and methods of computation used in the preparation of the published consolidated financial statements for the year ended 31 December 2018.

The interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the audited consolidated financial statements of the Group for the year ended 31 December 2018, which are available on the Company's website www.arkleresources.com

The interim financial statements have not been audited or reviewed by the auditors of the Group pursuant to the Auditing Practices board guidance on Review of Interim Financial Information.

   2.            No dividend is proposed in respect of the period. 
   3.            LOSS PER SHARE 
 
                                                    30 June         30 June          31 Dec 
                                                         19              18              18 
                                                        EUR             EUR             EUR 
 Loss per share - Basic and Diluted                 (0.14c)         (0.15c)         (0.31c) 
                                             ==============  ==============  ============== 
 
 Basic loss per share 
                           The earnings and weighted average number of ordinary shares used 
                                 in the calculation of basic loss per share are as follows: 
                                                    EUR'000         EUR'000         EUR'000 
 Loss for the year attributable to 
  equity holders of the parent                        (170)           (160)           (337) 
                                             ==============  ==============  ============== 
 
 Weighted average number of ordinary 
  shares for the purpose of basic earnings 
  per share                                     125,707,757     105,419,004     109,774,178 
                                             ==============  ==============  ============== 
 
 
 
 

Basic and diluted loss per share are the same as the effect of the outstanding share options is anti-dilutive.

   4.            INTANGIBLE ASSETS 
 
                                       30 June 19   30 June 18   31 Dec 18 
 Exploration and evaluation assets:       EUR'000      EUR'000     EUR'000 
 Cost at 1 January                          3,314        2,912       2,912 
 Additions                                     48          306         402 
                                      -----------  -----------  ---------- 
 Closing Balance                            3,362        3,218       3,314 
                                      ===========  ===========  ========== 
 
 

The above represents expenditure on projects in Ireland.

In 2012 the Group entered into an agreement with Teck Ireland Limited ("Teck"), a subsidiary of Teck Resources Limited, which gives Teck the option of earning a 75% interest in licences held by the Group in Cavan/Meath. Teck have to spend EUR1.35 million on the licences by 2018 in order to earn the option to acquire 75% interest. As per the agreement the licences have been transferred into a new company, Oldcastle Zinc Limited. As at 31 December 2018 Teck had completed EUR1,460,797 worth of expenditure. As per the agreement upon Teck completing EUR550,000 worth of expenditure 343,500 ordinary shares in Oldcastle Zinc Limited were to be issued to Teck. The shares were issued on 20 February 2015 giving Teck a 51% interest in the company. On completion of a further EUR400,000 worth of expenditure 269,360 ordinary shares in Oldcastle Zinc Limited were to be issued to Teck. The shares were issued on 22 December 2018 giving Teck a total 65% interest in the company. 377,140 shares are due to be issued to Teck to give it a total interest of 75% in the company.

In 2007 the Group entered into an agreement with Teck Cominco which gave Teck Cominco the option to earn a 75% interest in a number of other licences held by the Group. Teck Cominco had to spend CAD$3m to earn the interest. During 2012 the relevant licences were transferred to a new company, TILZ Minerals Limited, which at 31 December 2018 was owned 23.44% (2017: 23.44%) by Limerick Zinc Limited and 76.56% (2017: 76.56%) by Group Eleven Resources Corp.

On 13 September 2017 the board of Arkle Resources plc were informed that Group Eleven Resources Corp. a private company, has acquired the 76.56% interest held by Teck Ireland in TILZ Minerals. Arkle Resources plc owns the remaining 23.44%.

The Group's share of expenditure on the licences continues to be capitalised as an exploration and evaluation asset. The Group is subject to cash calls from Group Eleven Resources Corp. in respect of the financing of the ongoing exploration and evaluation of these licences. In the event that the Group decides not to meet these cash calls its interest in TILZ Minerals Limited may be diluted accordingly.

The realisation of the intangible assets is dependent on the discovery and successful development of economic reserves which is subject to a number of risks as outlined below. Should this prove unsuccessful the value included in the balance sheet would be written off to the statement of comprehensive income.

The group's activities are subject to a number of significant potential risks including;

- Uncertainties over development and operational risks;

- Compliance with licence obligations;

-Liquidity risks; and

- Going concern risks.

The directors are aware that by its nature there is an inherent uncertainty in such exploration and evaluation expenditure as to the value of the asset. Having reviewed the deferred development expenditure at 30 June 2019, the directors are satisfied that the value of the intangible asset is not less than carrying value.

 
                       30 June 19   30 June 18   31 Dec 18 
 Segmental Analysis       EUR'000      EUR'000     EUR'000 
 Limerick                   1,538        1,538       1,538 
 Oldcastle                    330          330         330 
 Rest of Ireland            1,494        1,350       1,446 
                      -----------  -----------  ---------- 
 Closing Balance            3,362        3,218       3,314 
                      ===========  ===========  ========== 
 
 
   5.            SHARE CAPITAL AND SHARE PREMIUM 
 
                                       30 June    30 June          31 Dec 
                                            19         18              18 
                                       EUR'000    EUR'000         EUR'000 
 Authorised: 
 500,000,000 ordinary shares of 
  EUR0.01 each                           5,000      2,000           5,000 
                                  ============  =========  ============== 
 
 
 Allotted, Called Up and Fully                      Share   Share Premium 
  Paid:                                 Number    Capital         EUR'000 
                                                  EUR'000 
 Balance at 1 January 2018          87,417,618        874           5,163 
 Issued during the period           26,493,975        265             973 
 Share issue expenses                        -          -            (59) 
 Balance at 30 June 2018           113,911,593      1,139           6,077 
 Share issue expenses                        -          -              59 
                                  ------------  ---------  -------------- 
 Balance at 31 December 2018       113,911,593      1,139           6,136 
 Issued during the period           18,400,000        184              73 
 Balance at 30 June 2019           132,311,593      1,323           6,209 
                                  ============  =========  ============== 
 
 

Movement in shares

On 26 February 2018, a total of 21,686,747 shares were issued at a price of 4.15p per share to provide additional working capital and fund development costs. For each share subscribed for, the investors also received one warrant to subscribe for an additional ordinary share at a price of 7p per share for a period of two years.

Should the volume weighted average share price of the Company exceed 20 (twenty) pence for five consecutive trading days the Company has the right to provide a written notice to warrant holders that they have one week to exercise the 7p warrants with a further two weeks thereafter for payment. Any then unexercised warrants could be cancelled by the Company. This acceleration condition is entirely at the volition of the Company should the 20 pence hurdle described above be triggered.

On 26 February 2018, John Teeling and James Finn, directors of Arkle Resources Plc, had their unpaid salaries owed to them totalling GBP199,500 settled via the issue of 4,807,228 new ordinary shares at the placing price of 4.15p. In addition, John Teeling and James Finn were granted 2,698,795 and 2,108,433 warrants respectively to subscribe for ordinary shares on the same terms as the placing warrants.

On 5 March 2019, a total of GBP230,000 was raised at a price of 1.25p per share through the issue of 18,400,000 new ordinary shares. For each share subscribed for, the investors also received one warrant to subscribe for an additional ordinary share at a price of 1.8p per share at any time before 11 September 2020.

   6.    SHARE BASED PAYMENTS - WARRANTS 
 
                                       30 June 19   30 June 18   31 Dec 18 
                                             '000         '000        '000 
 Outstanding at beginning of period        39,431       31,638      31,638 
 Granted during the period                 18,400       27,803      27,803 
 Expired during the period                      -     (20,010)    (20,010) 
                                      -----------  -----------  ---------- 
 Closing Balance                           57,831       39,431      39,431 
                                      ===========  ===========  ========== 
 
 

On 15 August 2017, a total of 11,627,907 shares were issued at a price of 1.72p per share. As part of the placing, for each share subscribed for, the investors also received one warrant to subscribe for an additional ordinary share at a price of 3.4p per share at any time until 15 August 2019.

On 26 February 2018, a total of 26,493,975 shares were issued at a price of 4.15p per share. As part of the placing, for each share subscribed for, the investors also received one warrant to subscribe for an additional ordinary share at a price of 7p per share at any time until 8 March 2020. The fair value of those warrants are immaterial as at 31 December 2018.

On 26 February 2018, a total of 1,059,337 warrants with an exercise price of 7p were issued to the broker First Equity Limited for work done on the above placing.

On 20 July 2018, a total of 250,000 warrants with an exercise price of 7p were issued to the broker First Equity Limited for services provided.

On 5 March 2019, a total of 18,400,000 shares were issued at a price of 1.25p per share. As part of the placing, for each share subscribed for, the investors also received one warrant to subscribe for an additional ordinary share at a price of 1.8p per share at any time until 11 September 2020.

   7.    POST BALANCE SHEET EVENTS 

There were no significant post balance sheet events for the period.

8. The Interim Report for the six months to 30 June 2019 was approved by the Directors on 26 September 2019.

   9.   The Interim Report will be available on Arkle Resources PLC's website www.arkleresources.com 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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