ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

GRX Greenx Metals Limited

48.50
0.00 (0.00%)
Last Updated: 08:00:05
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Greenx Metals Limited LSE:GRX London Ordinary Share AU0000198939 ORD 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% 48.50 47.00 50.00 48.50 48.50 48.50 78 08:00:05
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Investors, Nec 5.02M -3.53M -0.0154 -61.04 214.65M

GreenX Metals Limited Quarterly Activities Report March 2022 (7925J)

29/04/2022 7:01am

UK Regulatory


Greenx Metals (LSE:GRX)
Historical Stock Chart


From Mar 2022 to Mar 2024

Click Here for more Greenx Metals Charts.

TIDMGRX

RNS Number : 7925J

GreenX Metals Limited

29 April 2022

GREENX METALS LIMITED

NEWS RELEASE | 29 April 2022

Quarterly Activities Report March 2022

HIGHLIGHTS

-- New copper targets identified at Arctic Rift Copper Project in Greenland (ARC or Project) from ongoing geological analysis.

o Latest analysis identifies new "walk-up" native copper and copper sulphide targets for upcoming field program.

o New priority, walk-up, at-surface target identified along the Knuth Fault which is a Discovery Zone "lookalike" feature.

o Two additional exposures of native copper mineralisation identified from recently unearthed historical documentation at Neergaard Dal.

-- Company is preparing for its maiden exploration program on the ground at ARC which will commence in the June quarter.

-- Completion of Entitlements Issue to fund new and current activities announced concurrently with ARC earn-in. Following interest from investors in the UK and Europe, GreenX raised gross proceeds of A$4.5 million.

-- International arbitration claims against the Republic of Poland under both the Energy Charter Treaty and the Australia-Poland Bilateral Investment Treaty continue at pace.

-- Cash balance at 31 March 2022 of A$5.7 million to fund activities at ARC plus A$9.4 million available to continue pursuing GreenX's dispute against the Republic of Poland.

GreenX Metals Limited (ASX:GRX, LSE:GRX) (GreenX or Company) is is pleased to present its Quarterly Activities Report for the period during and subsequent to 31 March 2022.

ARC PROJECT SUMMARY

In October 2021 , GreenX entered into an Earn-in Agreement (EIA) with Greenfields Exploration Limited (GEX) to acquire an interest of up to 80% in ARC.

ARC is an exploration joint venture between GreenX and GEX. GreenX can earn 80% of ARC by spending A$10 million by October 2026. ARC is targeting large scale copper in multiple settings across a 5,774 km(2) Special Exploration Licence in eastern North Greenland. The area has been historically underexplored yet is prospective for copper, forming part of the newly identified Kiffaanngissuseq metallogenic province.

GreenX and GEX consider the observed geological setting and features of ARC to be indicative of an extensive mineral system capable of hosting world-class copper deposits.

The large scale of the mineral system, widespread copper anomalism, combined with dual mineralising events are analogous to the largest copper systems known worldwide. Accordingly, GreenX considers that ARC has the potential to be a globally significant metallogenic province.

Structural Geology Review

In January 2022, GreenX announced that new copper targets had been identified at ARC following ongoing geological analysis. Latest analysis identifies new "walk-up" native copper and copper sulphide targets for the upcoming field program. A new priority, walk-up, at-surface target was identified along the Knuth Fault which is a Discovery Zone "lookalike" feature. Further, two additional exposures of native copper mineralisation were identified from recently unearthed historical documentation at Neergaard Dal.

A structural review of the currently available datasets of ARC's geology was conducted by specialist consultant Dr Mark Munro(1) and confirmed that the known copper mineralisation including the native copper and Discovery Zone copper sulphides, is associated with reverse faults. Reverse faults are considered to be an important structural control on mineralisation at ARC, with the recent study both extending the known reverse faults with associated mineralisation and identifying new reverse faults.

The review reinforces evidence of a large-scale mineral system and regional fertility related to identified faults and therefore exploration targeting, and efficiency of upcoming field programs can be greatly improved through enhanced geological understanding of ARC.

ARC MAIDEN EXPLORATION PROGRAM

In the June quarter, the Company will commence its maiden exploration programme at ARC. GEX are currently preparing to travel to Greenland to initially complete:

   --    Widespread geochemical sampling. 
   --    Sampling and analysis of the already identified walk-up targets, including the Discovery Zone 
   --    Passive seismic over the Minik Anomaly and 3D induced polarisation (IP) surveys. 

-- High-resolution satellite mapping and the re-analysis of historical samples and magnetic data to create an ARC 3D model.

CORPORATE

Entitlements Issue & Shortfall Offer

Following significant interest from potential new investors in the UK and Europe, the Company completed the Entitlements issue to raise total gross proceeds of A$4.5m.

Financial Position

As at 31 March 2022, GreenX had A$5.7 million cash available plus A$9.4 million available to pursue its dispute against the Republic of Poland.

DISPUTE WITH POLISH GOVERNMENT

The Company's international arbitration claims (Claim) against the Republic of Poland is being prosecuted through an established and enforceable legal framework, with GreenX and Poland agreeing to apply the United Nations Commission on International Trade Law Rules (UNCITRAL) rules to the proceedings.

Both the Australia-Poland Bilateral Investment Treaty (BIT) and Energy Charter Treaty (ECT) claim Tribunals have been constituted, with both Claim's being registered with the Permanent Court of Arbitration in the Hague. The BIT and ECT claim proceedings proceed at pace, with the Company now having filed a Claim for compensation against Poland with the Tribunal in the amount of GBP806 million (A$1.5 billion / PLN 4.2 billion), which includes an assessment of the value of GreenX's lost profits and damages related to both the Jan Karski mine and Debiensko mines, and accrued interest related to any damages. The Claim for damages has been assessed by external quantum experts appointed by GreenX specifically for the purposes of the Claim.

In July 2020, the Company announced it had executed a Litigation Funding Agreement for US$12.3 million with Litigation Capital Management. The facility is currently being drawn down to cover legal, tribunal and external expert costs and defined operating expenses associated with the Claim.

In September 2020, GreenX announced that it had formally commenced with the Claim by serving the Notices of Arbitration against the Republic of Poland.

GreenX's dispute alleges that the Republic of Poland has breached its obligations under the applicable Treaties through its actions to block the development of the Company's Jan Karski and Debiensko mines in Poland which effectively deprives GreenX of the entire value of its investments in Poland.

In February 2019, GreenX formally notified the Polish Government that there exists an investment dispute between GreenX and the Polish Government. GreenX's notification called for prompt negotiations with the Government to amicably resolve the dispute and indicated GreenX's right to submit the dispute to international arbitration in the event of the dispute not being resolved amicably. The Company remains open to resolving the dispute with the Polish Government amicably. However, as of the date of this report, no amicable resolution of the dispute has occurred, since the Polish Government has declined to participate in discussions related to the dispute and accordingly the Company has formerly submitted its Claim as discussed above.

GreenX's investment dispute with the Republic of Poland is not unique, with international media widely reporting that the political environment and investment climate in Poland has deteriorated since the change in Government in 2015. As a result, there are a significant number of International Arbitration claims being brought against Poland in the natural resources and energy sectors with damages claims ranging from US$120 million to over US$1.3 billion and includes Bluegas NRG Holding (Gas), Lumina Copper (Copper) and InvEnergy (wind farms).

Forward Looking Statements

This release may include forward-looking statements. These forward-looking statements are based on GreenX's expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of GreenX, which could cause actual results to differ materially from such statements. GreenX makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.

Competent Persons Statement

The information in this announcement that relates to Exploration Results for ARC is extracted from the ASX announcements dated 6 October 2021 and 22 January 2022. Which are available to view at www.greenxmetals.com.

GreenX confirms that (a) it is not aware of any new information or data that materially affects the information included in the original announcements; (b) all material assumptions and technical parameters underpinning the content in the relevant announcements continue to apply and have not materially changed; and (c) the form and context in which the Competent Person's findings are presented have not been materially modified from the original announcements.

This announcement has been authorised for release by the Company's Chief Executive Officer, Mr Ben Stoikovich.

To view this announcement in full including all figures, please refer to www.greenxmetals.com .

(1) Munro, Mark (2021). "Structural Review of the Arctic Rift Copper Project, Greenland", Munro Geoscience Pty Ltd

APPIX 1: TENEMENT INFORMATION

As at 31 March 2022, the Company has an interest in the following tenements:

 
 Location      Tenement                 Percentage      Status          Tenement Type 
                                         Interest 
------------  -----------------------  -----------  --------------  --------------------- 
 Greenland     Arctic Rift Copper          -(1)         Granted      Exploration Licence 
                Project (Licence 
                No. 2021-07 MEL-S) 
 Jan Karski,   Jan Karski Mine             100       In dispute(2)     Exclusive Right 
  Poland        Plan Area (K-4-5,                                        to apply for 
                K6-7, K-8 and K-9)(2)                                 a mining concession 
 Debiensko,                                                                 Mining 
  Poland       Debiensko 1                 100        Granted(2) 
 Debiensko,    Kaczyce 1                   100          Granted      Mining & Exploration 
  Poland                                                                 (includes gas 
                                                                            rights) 
------------  -----------------------  -----------  --------------  --------------------- 
 

Notes:

(1) In October 2021, the Company announced that it had entered into the EIA with GEX to acquire an interest of up to 80% in ARC. As at the date of this announcement, the Company held no beneficial interest in ARC, other than through the EIA.

(2) GreenX commenced international arbitration claims against the Republic of Poland under both the ECT and the BIT. GreenX alleges that the Republic of Poland has breached its obligations under the Treaties through its actions to block the development of the Company's Jan Karski and Debiensko mines in Poland.

Appendix 2: Related Party Payments

During the quarter ended 31 March 2022, the Company made payments of $212,000 to related parties and their associates. These payments relate to existing remuneration arrangements (director fees, consulting fees and superannuation of ($132,000) and the provision of a serviced office and company secretarial and administration services ($80,000).

Appendix 3: Exploration and Mining Expenditure

During the quarter ended 31 March 2022, the Company made the following payments in relation to exploration activities:

 
 Activity                                           $000 
-------------------------------------------------  ----- 
 Greenland (ARC) 
 Project Management                                  163 
 Geochem and imagery                                   8 
 Other (field supplies, travel, fuel, satellite 
  imagery, etc)                                      248 
-------------------------------------------------  ----- 
 Greenland sub-total as reported in the Appendix 
  5B (item 2.1(d))                                   419 
 
 Poland 
 Legal and permitting related expenditure             91 
 Consultants - technical and Debiensko statutory 
  operations personnel                                87 
 Other                                                79 
-------------------------------------------------  ----- 
 Poland sub-total as reported in the Appendix 
  5B (item 1.2(a))                                   257 
-------------------------------------------------  ----- 
 Total                                               676 
=================================================  ===== 
 

There were no mining or production activities and expenses incurred during the quarter ended 31 March 2022.

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

 
 Name of entity 
----------------------------------------------------- 
 GreenX Metals Limited 
 ABN                Quarter ended ("current quarter") 
---------------    ---------------------------------- 
 23 008 677 852     31 March 2022 
                   ---------------------------------- 
 
 
 Consolidated statement of cash                          Current quarter   Year to date 
  flows 
                                                                  $A'000     (9 months) 
                                                                                 $A'000 
               1.   Cash flows from operating 
                     activities 
 1.1                Receipts from customers                            -              - 
 1.2                Payments for 
                    (a) exploration & evaluation                  (257)*         (781)* 
                    (b) development                                    -              - 
                    (c) production                                     -              - 
                    (d) staff costs                                (175)          (516) 
                    (e) administration and corporate 
                     costs                                         (449)        (1,052) 
 1.3                Dividends received (see note                       -              - 
                     3) 
 1.4                Interest received                                  5             14 
 1.5                Interest and other costs of                        -              - 
                     finance paid 
 1.6                Income taxes paid                                  -              - 
 1.7                Government grants and tax                          -              - 
                     incentives 
                    Other (provide details if 
 1.8                 material) 
                     (a) Business Development                       (17)          (125) 
                     (b) Property rental and gas 
                      sales                                           77            169 
                     (c) Arbitration related expenses              (501)        (1,242) 
                     (d) Receipt of arbitration 
                      funding                                        240          1,178 
                                                        ----------------  ------------- 
                    Net cash from / (used in) 
 1.9                 operating activities                        (1,077)        (2,355) 
-----------------  -----------------------------------  ----------------  ------------- 
 *includes legal and permitting expenditure and payments made 
  to consultants (Debiensko technical statutory operations personnel). 
--------------------------------------------------------------------------------------- 
 2.                      Cash flows from investing 
                          activities 
 2.1                     Payments to acquire or for: 
                    (a) Entities                                       -              - 
                    (b) Tenements                                      -           (30) 
                    (c) property, plant and equipment              (296)          (543) 
                    (d) exploration & evaluation                   (419)          (805) 
                    (e) investments                                    -              - 
                    (f) other non-current assets                       -              - 
 2.2                     Proceeds from the disposal 
                          of: 
                    (a) entities                                       -              - 
                    (b) tenements                                      -              - 
                    (c) property, plant and equipment                 18            278 
                    (d) investments                                    -              - 
                    (e) other non-current assets                       -              - 
 2.3                Cash flows from loans to other                     -              - 
                     entities 
 2.4                Dividends received (see note                       -              - 
                     3) 
 2.5                Other (provide details if 
                     material)                                         -              - 
                                                        ----------------  ------------- 
                    Net cash from / (used in) 
 2.6                 investing activities                          (697)        (1,100) 
-----------------  -----------------------------------  ----------------  ------------- 
 
 3.                 Cash flows from financing 
                     activities 
                    Proceeds from issues of equity 
                     securities (excluding convertible 
 3.1                 debt securities)                              3,552          4,453 
 3.2                Proceeds from issue of convertible 
                     debt securities                                   -              - 
 3.3                Proceeds from exercise of                          -              - 
                     options 
                    Transaction costs related 
                     to issues of equity securities 
 3.4                 or convertible debt securities                 (99)          (122) 
 3.5                Proceeds from borrowings                           -              - 
 3.6                Repayment of borrowings                            -              - 
 3.7                Transaction costs related 
                     to loans and borrowings                           -              - 
 3.8                Dividends paid                                     -              - 
 3.9                Other (provide details if                          -              - 
                     material) 
                                                        ----------------  ------------- 
                    Net cash from / (used in) 
 3.10                financing activities                          3,453          4,331 
-----------------  -----------------------------------  ----------------  ------------- 
 
 4.                 Net increase / (decrease) 
                     in cash and cash equivalents 
                     for the period 
                    Cash and cash equivalents 
 4.1                 at beginning of period                        3,960          4,762 
                    Net cash from / (used in) 
                     operating activities (item 
 4.2                 1.9 above)                                  (1,077)        (2,355) 
                    Net cash from / (used in) 
                     investing activities (item 
 4.3                 2.6 above)                                    (697)        (1,100) 
                    Net cash from / (used in) 
                     financing activities (item 
 4.4                 3.10 above)                                   3,453          4,331 
                    Effect of movement in exchange 
 4.5                 rates on cash held                               35             36 
                                                        ----------------  ------------- 
                    Cash and cash equivalents 
 4.6                 at end of period                              5,674          5,674 
-----------------  -----------------------------------  ----------------  ------------- 
 
 
               5.   Reconciliation of cash and           Current quarter   Previous quarter 
                     cash equivalents                             $A'000             $A'000 
                     at the end of the quarter 
                     (as shown in the consolidated 
                     statement of cash flows) to 
                     the related items in the accounts 
 5.1                Bank balances                                  5,674              3,960 
 5.2                Call deposits                                      -                  - 
 5.3                Bank overdrafts                                    -                  - 
 5.4                Other (provide details)                            -                  - 
                                                        ----------------  ----------------- 
                    Cash and cash equivalents 
                     at end of quarter (should 
 5.5                 equal item 4.6 above)                         5,674              3,960 
-----------------  -----------------------------------  ----------------  ----------------- 
 
 
               6.    Payments to related parties of the entity    Current quarter 
                      and their associates                                 $A'000 
                     Aggregate amount of payments to related 
                      parties and their associates included in 
 6.1                  item 1                                                (212) 
                                                                 ---------------- 
 6.2                 Aggregate amount of payments to related 
                      parties and their associates included in 
                      item 2                                                    - 
                                                                 ---------------- 
 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly 
  activity report must include a description of, and an explanation 
  for, such payments. 
 
 
               7.   Financing facilities                      Total facility 
                     Note: the term "facility'             amount at quarter      Amount drawn 
                     includes all forms of financing                     end    at quarter end 
                     arrangements available to                        $A'000            $A'000 
                     the entity. Add notes as necessary 
                     for an understanding of the 
                     sources of finance available 
                     to the entity. 
 7.1                Loan facilities                                  16,400*             7,020 
                                                         -------------------  ---------------- 
 7.2                Credit standby arrangements                            -                 - 
                                                         -------------------  ---------------- 
 7.3                Other (please specify)                                 -                 - 
                                                         -------------------  ---------------- 
 7.4                Total financing facilities                       16,400*             7,020 
                                                         -------------------  ---------------- 
 
                    Unused financing facilities available at 
 7.5                 quarter end                                                         9,380 
                                                                              ---------------- 
 7.6                Include in the box below a description of each facility 
                     above, including the lender, interest rate, maturity date 
                     and whether it is secured or unsecured. If any additional 
                     financing facilities have been entered into or are proposed 
                     to be entered into after quarter end, include a note providing 
                     details of those facilities as well. 
-----------------  --------------------------------------------------------------------------- 
                    On 30 June 2020, the Company executed a Litigation Funding 
                     Agreement (LFA) for US$12.3 million (*now worth A$16.4 
                     million with the movement of the A$ compared to the $US) 
                     with LCM Funding UK Limited a subsidiary of Litigation 
                     Capital Management Limited (LCM), to pursue damages claims 
                     in relation to the investment dispute between GreenX and 
                     the Polish Government that has arisen out of certain measures 
                     taken by Poland in breach of the Energy Charter Treaty 
                     and the Australia - Poland Bilateral Investment Treaty 
                     (BIT). LCM will provide up to US$12.3million (A$16.4 
                     million), denominated in US$, in limited recourse financing 
                     which is repayable to LCM in the event of a successful 
                     Claim or settlement of the Dispute that results in the 
                     recovery of any monies. If there is no settlement or award, 
                     then LCM is not entitled to any repayment of the financing 
                     facility. In return for providing the financing facility, 
                     LCM shall be entitled to receive repayment of any funds 
                     drawn plus an amount equal to between two and five times 
                     the total of any funds drawn from the funding facility 
                     during the first five years, depending on the time frame 
                     over which funds have remained drawn, and then a 30% interest 
                     rate after the fifth year until receipt of damages payments. 
----------------- 
 
 
               8.    Estimated cash available for future operating                $A'000 
                      activities 
                     Net cash from / (used in) operating activities 
 8.1                  (item 1.9)                                                 (1,077) 
 8.2                 (Payments for exploration & evaluation classified 
                      as investing activities) (item 2.1(d))                       (419) 
 8.3                 Total relevant outgoings (item 8.1 + item                   (1,496) 
                      8.2) 
 8.4                 Cash and cash equivalents at quarter end                      5,674 
                      (item 4.6) 
 8.5                 Unused finance facilities available at quarter                9,380 
                      end (item 7.5) 
                                                                                -------- 
 8.6                 Total available funding (item 8.4 + item                     15,054 
                      8.5) 
                                                                                -------- 
 
 8.7                 Estimated quarters of funding available 
                      (item 8.6 divided by item 8.3)                                 >10 
                                                                                -------- 
  Note: if the entity has reported positive relevant outgoings 
   (ie a net cash inflow) in item 8.3, answer item 8.7 as 
   "N/A". Otherwise, a figure for the estimated quarters 
   of funding available must be included in item 8.7. 
 8.8                 If item 8.7 is less than 2 quarters, please provide answers 
                      to the following questions: 
  8.8.1 Does the entity expect that it will continue to 
   have the current level of net operating cash flows for 
   the time being and, if not, why not? 
 --------------------------------------------------------------------------------------- 
  Answer: Not applicable 
 --------------------------------------------------------------------------------------- 
  8.8.2 Has the entity taken any steps, or does it propose 
   to take any steps, to raise further cash to fund its operations 
   and, if so, what are those steps and how likely does it 
   believe that they will be successful? 
 --------------------------------------------------------------------------------------- 
  Answer: Not applicable 
 --------------------------------------------------------------------------------------- 
  8.8.3 Does the entity expect to be able to continue its 
   operations and to meet its business objectives and, if 
   so, on what basis? 
 --------------------------------------------------------------------------------------- 
  Answer: Not applicable 
 --------------------------------------------------------------------------------------- 
  Note: where item 8.7 is less than 2 quarters, all of questions 
   8.8.1, 8.8.2 and 8.8.3 above must be answered. 
 --------------------------------------------------------------------------------------- 
 

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

   2        This statement gives a true and fair view of the matters disclosed. 
   Date:                29 April 2022 

Authorised by: Company Secretary

(Name of body or officer authorising release - see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

QRTBKLBLLZLXBBQ

(END) Dow Jones Newswires

April 29, 2022 02:01 ET (06:01 GMT)

1 Year Greenx Metals Chart

1 Year Greenx Metals Chart

1 Month Greenx Metals Chart

1 Month Greenx Metals Chart

Your Recent History

Delayed Upgrade Clock