Unaudited Preliminary Results

Released : 16.05.2017 15:03

RNS Number : 3268F
Eurasia Mining PLC
16 May 2017
 

 

 

 

Eurasia Mining plc (AIM: EUA)

("Eurasia" or the "Company")

Unaudited preliminary results

for the year ended 31 December 2016

 

 

Chairman's statement

 

It is my pleasure to report to you this year as a new mining company, and present our unaudited preliminary results for the year ended 31 December 2016. Eurasia has worked for some time towards production and this has now been achieved at our PGM and gold operation at West Kytlim in the Urals. In parallel, we have also made significant progress and had feasibility study and reserves approved by the state at our Monchetundra Project.

 

Firstly, to the mine. We started production initially using Eurasia's own washplant, while the main production unit was being commissioned. Ultimately this was achieved later in the season. And in November 2016 platinum had been produced and indeed the grades of in-situ metal exceeded those in our calculated reserves. We look forward to a full season of production in 2017, with the main washplant operating from the outset. If permitting of a second area at Kluchiki goes to schedule then it is possible a second plant will be established before the end of the field season.

 

Meanwhile at Monchetundra, a major compilation effort, combined with new hydrogeological and metallurgical work, culminated in a feasibility study being lodged in December 2016 as an application for the approval of reserves under the Russian classification system. At the time of writing, this study had been approved and the Company was awaiting the formal registration of these reserves. The next step is the application for a Discovery Certificate and then a production licence for a 25-year term. This will allow us to complete a development plan for the two deposits discovered by our exploration work.

 

Eurasia completed our due diligence work at the Semenovsky tailings project and confirmed robust economics using a straightforward cyanide leach circuit. The Company is evaluating several project finance options for this operation and continue to work with the owner under exclusivity. As with West Kytlim, the Company aims to achieve production without issuing further equity, indeed minimising shareholder dilution has remained a key concern for the board throughout the past year, and through what we hope has been the final year of the recent downturn in the sector.

 

The Company is also pleased to confirm that it anticipates executing a potential loan arrangement with third parties and Dmitry Suschov, a director of the Company, in due course for approximately £1.6m (the "Loan Agreement"), this would repay the existing Sanderson loan arrangement entered into on 21 December 2016 and provide working capital for the Company for the next 12 months. Whilst there can be no guarantee at this stage that the Loan Agreement will complete, the Directors have every confidence that it will, and further announcements will be made in due course as appropriate. 

 

Finally, as also announced separately today, this is my last report to you as Chairman. I will be retiring at this year's AGM on 29 June 2017 at which time it is intended, subject to election, that Christian Schaffalitzky take over as Executive Chairman and acting CEO. I consider that this is an appropriate time to retire. Not only has the Company achieved its aim of becoming a producer of precious metals with the successful commissioning of the plant at West Kytlim but also I have reached and passed the age of 70; an age which I have long believed appropriate for Directors to hand over to younger minds. Before leaving I would like to express my appreciation and admiration of our staff in both London and Russia but most particularly to the field and administrative staff in Russia who have successfully worked through adverse field conditions and repeated and frustrating delays in the approval process without which we could have achieved production four or five years ago. A personal thank you to all of you. Finally, a thank you to our shareholders who have stuck with us through a very long and expensive process and to those senior staff and Directors who have equally shown confidence in the future of Eurasia by foregoing cash and accepting remuneration at par in shares.

 

 

 

 

 

Michael Martineau

 

 

Chairman

 

Enquiries:

Eurasia Mining Plc

Christian Schaffalitzky/Michael de Villiers

+44 (0)207 932 0418

WH Ireland Limited

Katy Mitchell/Nick Prowting

+44 (0)161 832 2174

Beaufort Securities

Elliot Hance

+44 (0)207 382 8300



 

Operations update

 

West Kytlim - Operating Alluvial platinum mine in the Ural Mountains

 

Preparatory work for the first season of mining at West Kytlim began in June and continued through July 2016. The necessary infrastructure for the mine site was constructed, including a tailings water pond, process water pond, field camp and field laboratory for upgrade of metal-bearing concentrates. Meanwhile, a wash-plant, its main component being two vibrating screens in series, was commissioned by Eurasia's mining contractor, 'SKRS Region Metal ('SKRS') and shipped to site for assembly in August 2016. In addition, a second wash-plant, owned by Eurasia and previously used to process a bulk sample was refurbished and commissioned to operate alongside the main plant. Work at site continued into the first week in November, when cold weather conditions began to effect metal recoveries on the sluice and the decision was made to resume operations in the spring of 2017. Ultimately 11kg of platinum were produced and shipped to a refinery in Ekaterinburg during this initial trial mining season. The main washplant has been modified for use in the 2017 season, which has just commenced production. Reserves upgrade drilling work began in April and mining blocks were prepared as we awaited warmer conditions and running water later in spring. Ultimately gravel washing began in the first weeks of May in what promises to be the first full season of mining in our projected 12 year Life of Mine.

 

Background:

Various processing schemes for washing the platinum and gold bearing gravels at West Kytlim were investigated throughout 2016. A full-time Mining Engineer with experience operating on platinum mines in the Ural Mountains joined the company and has proven a key decision maker both on site and off. In alluvial mining, trial mining is often the only way to gain sufficient knowledge about the precise nature of the material to be processed. Of the available options, a vibrating screen offered the best potential of reliable and cost effective gravel washing. A vibrating screen is effective at washing gravel known to contain a significant quantity of flat or platy boulders while simultaneously separating the material by size class. Oversize is 'scalped' off as the material passes through a series of ever finer sieves, and is washed constantly by pressurized jets of water. The screens are contained in two units each 6 meters long by 3 meters wide. Electric powered motors vibrate the screens constantly and the pitch on each screen is such that the material proceeds by gravity through the system.

 

The sub 6mm fraction passes on to a 5-track sluice. Heavy minerals, such as the precious metals platinum and gold, and nuggets formed of precious metal and native iron, collect in mats in the base of the sluice which are emptied when filled. This material is termed a Sluice Concentrate and is delivered directly to the laboratory on site for upgrade to saleable product.

 

On arrival at the laboratory material is initially washed and again screened, the oversize fraction is then checked manually for nuggets while the smaller fraction, suspended in water, passes to a concentration table. This riffled and oscillating surface again uses the greater density of precious metals to separate them from gangue. 

 

Malaya Sosnovka Mine Site

Mining in 2016 commenced at the Malaya Sosnovka Area. Material is excavated and trucked a distance of several hundred meters to the washplant. In excavating the tailings dam and process water pond a previously unknown extension to an orebody was discovered. This material was stockpiled and later processed along with ore from the known ore blocks. In all a total of 22,000m3 of gravels were processed. The vibrating screens had downtime for repairs and the decision was made to modify the washplant for the 2017 mining season. More and larger platy, boulder (>100mm) size material was encountered than had been anticipated and the vibrating screens have now been modified to deal with this material.

 

Grades were higher than anticipated. Mining grade for the season averaged 449 g/m3, 120% of the expected average grade as measured for reserves blocks. A total of 11.3kg raw platinum were produced through the season, with some credits from Palladium, Iridium, Rhodium and Gold. In early November, it became difficult to operate the sluice due to freezing conditions and the decision was made to resume the operations in spring. Credit is due to the professional approach of our contractor in ensuring there were no accidents or injuries to personnel in the 2016 Mining season.



 

 

Exploration and future development of the West Kytlim Reserves and Resources

A key provision of our agreement with the mining contractor is that SKRS pay all third party costs relating to exploration and reserves upgrade drilling. Significant Resources exist within the license area and these will be upgraded to Reserve status ahead of mining.  There is also the potential for the discovery of further ore bodies, and extensions to known ore bodies as mining progresses through the license; and this has been well demonstrated by the discovery of ore bodies during excavations of the tailings dam and process water pond during 2016. SKRS have committed to funding the 5 year exploration program which will upgrade all known resource blocks to reserves ahead of mining. Resource drilling commenced in April of 2016. Samples collected are assayed at the mine site, using the same lab facility described above. Eurasia coordinate this exploration process, and, as holders of the mining right and license are the chief authors of the reserves statements and other reporting to the Ministry for Subsoil use. Current approved reserves stand at 2,283Kg Raw platinum (73,000 oz) with a further 1,856 Kg (60,000 oz) as known resources on the license. In order to maintain their exclusive right to contract mining at West Kytlim, SKRS are obliged to meet the volumes of an agreed mining schedule which includes all reserves and resources over the 12 year Life of Mine. The volumes are such that an additional washplant and associated machinery will need to be deployed every year until 2020 when the mine reaches full capacity.

 

Monchetundra - feasibility study approved at PGM, Nickel and Copper project

2016 was arguably the most important year to date in the 10 year exploration and development phase of this PGM and base metals project on Kola Peninsula, North West Russia. A feasibility report, incorporating a reserves calculation, was filed for government approvals in late December 2016. This report, in seven books with associated appendices; calculations, maps and cross sections, was subject to scrutiny by a panel of experts and was successfully defended by Eurasia and then approved by the state Reserves Commission. The reserves are officially assigned to the state balance when approved by Rosnedra, the Russian Ministry for Subsoil use. An application for issue of a Discovery Certificate has been filed, this permits the holder to apply for a Mining License to develop the project to mining. In addition, An EPC (Engineering, Procurement and Construction) contract was signed with Sinosteel, a major Chinese semi-state conglomerate experienced in large mining projects. This EPC contract is agreed with an associated financing structure providing 85% of the contract value of $176 million.

 

West Nittis and Loipishnune Deposits.

Two open pit PGM-base metal deposits have been identified on the license, located approximately 3km apart. The proposed processing plant would treat ore from both pits and be located to the north of the larger Loipishnune Pit. Three metallurgical samples, two from drill core at West Nittis and one from drill core at Loipishnune were studied as part of the 2016 feasibility report. Excellent recoveries were demonstrated using a gravity floatation scheme. Platinum, Palladium, Gold, Copper and Nickel are recovered to a mixed commodity concentrate which may be refined locally in Monchegorsk or further afield.

 

West Nittis contains narrow and higher grade late stage mineralization dominated by sulphidic veins with surrounding hydrothermal alteration, referred to as 'Hanging Wall' mineralization. Beneath the Hanging Wall zone, further sulphidic mineralization with elevated PGM occurs over wider intervals but of lower grade. Both zones are planned to be extracted at West Nittis. The PGM Mineralization here correlates well with Sulphur, Nickel and Copper mineralization.

At Loipishnune, the ore bodies are sub-vertical and stratiform. Loipishnune is considered low sulphide PGM mineralization, finely disseminated and associated with the thinly layered upper part of a norite intrusion. Two ore bodies, termed upper and lower, have been outlined within the pit. At Loipishnune the Pd:Pt ratio ranges 1.5-2.5, averaging 2.1, and is generally uniform on strike and down dip. The open pit at Loipishnune progresses to 350m, beneath which further reserves may be extracted by underground mining methods.

 

Engineering, Procurement and Construction contract - EPC

Signed in early October of 2016, this contract was the culmination of almost 2 years of discussions, site visits and due diligence exercises by Sinosteel, a Chinese state owned group operating in mining, trading, and the engineering and manufacture of mining and mineral processing equipment. The contract value totals US$176,000,000 with an associated loan covering 85% of the contract value. Financing terms are included in the EPC Contract as a 10 year loan with early repayment permitted, at an indicative interest rate at 6 months LIBOR plus 3.5%. Sinosteel carries the loan on its balance sheet until the plant is commissioned, an incentive for Sinosteel to complete on time and within budget, whereupon the loan is assigned to Eurasia's local subsidiary Terskaya Mining Company. Government approval of reserves was a stated condition of the EPC contract which has now been all but achieved.

 

 

 

Semenovsky Tailings Project - Pre-feasibility gold and silver tailings Project, Bashkiria Russia.

 

Eurasia have been working on this project since late 2015 and hold an exclusive right to acquire up to 67%. Work through 2016 was in a Joint Venture with Metal Tiger who have elected not to participate, thereby increasing Eurasia's potential option from 33 to 67%. Progress has been steady over the course of the 18 months since signing the initial memorandum of understanding. Maiden Reserves were approved at Semenovsky in late August 2016 - Reserves had not previously been approved due to an absence of metallurgical work. 2.99 million tonnes of ore grading 1.18 g/t Gold and 16.44 g/t Silver for 3.5 tonnes of gold and 49.3 tonnes of silver are now approved as Russian standard C2 category reserves.

 

A metallurgical study was undertaken during 2016. Eurasia drilled 5 new drill holes in April 2016, with samples taken at metre intervals and sent to SGS labs in Chita where Gold and Silver assays returned values in line with previous workers' estimates. A suite of bottle roll cyanide tests on unground material were then attempted at various leach times, liquid to solid ratios and cyanide concentrations.

Fine grinding studies were undertaken on composite samples as well as qualitative and quantitative mineralogy.

 

Ultimately the results suggested a recovery of circa 40% using a simple cyanide circuit. The proposed circuit has been modified to replace a Merrill Crowe circuit with a resin column array. In this scenario gold is won from the pregnant leach liquor and loaded to a manufactured resin. This resin is a consumable and may be burned off as waste in a local refinery as part of the gold and silver smelting process. The Company is focused on evaluating several project finance options and strongly favours options which will not involve significant shareholder dilution.

 

 

 

Christian Schaffalitzky

Managing Director

 

 

Strategic report

 

Eurasia Mining Plc ("Eurasia" or the "Company") is a public limited company incorporated and domiciled in Great Britain with its registered office and principal place of business at 2nd Floor, 85-87 Borough High Street, London SE1 1NH. The Company's shares are quoted on AIM, a market operated by the London Stock Exchange Group plc.

 

The principal activities of the Company and its subsidiaries (the "Group") are related to the exploration for and development of platinum group metals (the "PGM"), gold and other minerals.

 

The Group is currently developing two licences - West Kytlim in the Central Urals and Monchetundra on the Kola Peninsula in Russia, while continuing to assess the potential of near to production gold projects in other regions in Russia and other countries of the former Soviet Union.

 

At West Kytlim, the Group made several PGM discoveries of resources suitable for commercial mining and was granted the mining licence in 2015. Pilot mining operations started in were carried out in 2016. Full scale production is due in 2017.

 

On the Kola Peninsula the Group discovered the PGM mineralisation within the Monchetundra area, which was further explored in 2016. Following the exploration work the Group initiated procedure of obtaining the mining licence. As a part of the process feasibility study was approved by the authorities in April 2017.

More details on both projects are in the Operations update.

 

The Group also maintains an active interest in non-core, innovative mining solutions including the Kamushanovsky Uranium Project in Kyrgyzstan.

 

The Company's aim is to deliver value to its shareholders by leveraging the significant experience of its directors and management team to advance our licences and to acquire new projects.

Key performance indicators

At this stage of the Group's business activities the Directors think it appropriate to limit the Key Performance Indicators (KPIs) used to monitor progress in the delivery of the Group's strategic objectives, to assess actual performance against targets and to aid management of the business, other than the monitoring of licences and stages of exploration.

 

The Board monitors relevant KPIs which it considers appropriate for a company at Eurasia's stage of development. The KPIs for the Group are as follows:

Financial KPIs

Shareholder return - the performance of the share price. The Company's shares are quoted on AIM and the shares have traded at 0.43-1.3p (2015: 0.45-2.15p) during the year under review.

Exploration expenditure - funding and development costs. The availability of sufficient cash to facilitate continued investment and funding of exploration programmes and project development is essential. The Group monitors the availability of sufficient cash to fund work. At 31 December 2016 the Group had a cash balance of £154,674 (2015: £104,925) to allow it to continue its core project development, limited to desktop studies. This reserve was insufficient for the Group to carry on and the Group raised additional funds through the loan entered into by the Group in December 2016. Drawdowns made after the year-end are disclosed in the Note 28.

Non financial KPIs

Environment management - the Group has environmental policies in place. Performance against environmental policies is continuously monitored. The Company did minimum required field work in 2016, which would have any environmental impact. The Directors consider that this has served to minimize any negative impact of current exploration activities on the environment.

 

Operational - the number of additional exploration licences and exploration successes. There has been limited exploration activity in the year, and the Directors are encouraged by the prospectivity of the Group's exploration licenses and by the exploration results obtained to date. During the year the Group was granted the mining licence for a platinum mine at West Kytlim area in the Central Urals region in Russia.

 

The Directors consider that performance against all KPIs in 2016 was acceptable.

 

 

Principal risks and uncertainties

 

The risks inherent in an exploration business are kept under constant review by the Board and the Executive Committee. The going concern risk and the key financial risks affecting the Group and the Company are set out respectively in the Directors' report and Notes 2 and 28 to the financial statements and the principal operating risks affecting the Group are detailed below:

Exploration and project development risks

Inherent risks associated with the failure to discover or develop an economically recoverable ore reserve, to conclude a definitive feasibility study, and to obtain the necessary consents and approvals for the conduct of exploration and mining.

The Group engages in close discussion with respective government departments to have better understanding of the requirements and to make sure all requirements are implemented and duly reported to boost the prospects of the grant of permits and licences. The Group made significant progress successfully applying for the mining licence, which minimised the risk of non-granting the licence in future.

Political risk

The Group's assets are located in Russia which is still undergoing a substantial transformation from a centrally controlled command economy to a market-driven economy. In addition, in view of the legal and regulatory regime in Russia and sanctions imposed to certain individuals and companies in Russian over Ukraine in 2014, legal and economic inconsistencies may arise. There has been no impact on the Group's activity but the Group closely monitors all regulatory requirements and changes to the laws, rules and regulation taking steps whenever necessary to comply with regulation.  

Environmental issues

The Group's operations are subject to environmental regulation, including environmental impact assessments and permitting. Russian environmental legislation comprises numerous federal and regional regulations which are not fully harmonised and may not be consistently interpreted. The Group makes assessment of the environmental impact at the time it applies for permits and licences which are subject to such assessment.

There is no immediate risk to the Group's operation arising from environmental issues but the Group monitors environmental regulation, to assess potential impact.

The regulatory environment

The Group's activities are subject to extensive federal and regional laws and regulations governing various matters, including licensing, production, taxes, mine safety, labour standards, occupational health and safety and environmental protections. Amendments to current laws and regulations governing operations and activities of mining companies or more stringent implementation or interpretation of these laws and regulations can have a material adverse impact on the Group and/or delay or prevent the development or expansion of the Group's properties in Russia. The Group closely monitors all regulatory requirements and changes to the laws, rules and regulation taking steps whenever necessary to comply with regulation

 

 

By order of the Board

 

 

 

 

 

M J de Villiers

Company Secretary

 

16 May 2017

 

 

Directors' report

Directors

The Directors who served during the period were:

Michael Martineau - Non-Executive Chairman

Christian Schaffalitzky - Managing Director

Gary FitzGerald - Non-Executive Director

Dmitry Suschov - Non-Executive Director

 

Company Secretary

Michael de Villiers

Directors' interests

Share interests

The Directors of the Company held the following beneficial interests (including interests held by spouses and minor children) in the ordinary shares of the Company:

 


31 Dec 2016

31 Dec 2015


No. of shares

No. of shares

M. Martineau

17,831,403

15,049,185

C. Schaffalitzky

49,696,674

33,134,300

G. FitzGerald

18,608,387

16,909,286

D. Suschov

284,877,066

281,558,049

Total

371,013,530

346,650,820

Share options

No share options were held by the Directors of the Company at 31 December 2016 (31 December 2015 - nil).

No share options were exercised during the 2016 (2015 - nil).

Share capital

 

Issued capital of the Company as at 31 December 2016 was:

 


Number of shares

Nominal value

Fully paid ordinary shares at 0.1 pence

1,509,787,583

1,509,788

Deferred shares 4.9 pence

143,377,203

7,025,483

 

Section 561 of the Companies Act 2006 (the "Act") provides that any shares being issued for cash must in general be issued to all existing shareholders pro-rata to their holding. However, where Directors had a general authority to allot shares, they may be authorised by the Articles or by a special resolution to allot shares pursuant to the authority as if the statutory pre-emption rights did not exist.

 

At the General Meeting, held on 30 June 2016, the Board was given authority for the purposes of section 551 of the Act to allot shares in the Company or grant rights to subscribe for or to convert any security into shares in the Company up to an aggregate nominal amount of £1,000,000, such authority to expire on the date of the next Annual General Meeting.

 

The Board has utilised authority to allot shares as follows:

Date

Transaction

No of shares issued /

warrants granted

Nominal value

£

01 August 2016

Issue of ordinary shares under term of financing arrangements

28,181,818

28,182

20 September 2016

Issue of ordinary shares under term of financing arrangements

1,538,462

1,538

20 September 2016

Issue of ordinary shares by way of placing

20,629,231

20,629

20 September 2016

Issue of ordinary shares in lieu of financing commission

2,153,846

2,154

26 October 2016

Issue of ordinary shares under term of financing arrangements

1,534,465

1,534

18 November 2016

Issue of ordinary shares under term of financing arrangements

4,800,000

4,800

20 December 2016

Issue of ordinary shares under term of financing arrangements

33,581,731

33,582

29 December 2016

Issue of ordinary shares under term of financing arrangements

12,413,793

12,414

03 February 2017

Issue of ordinary shares under term of financing arrangements

15,652,174

15,652

21 February 2017

Issue of ordinary shares under term of financing arrangements

2,727,273

2,727

27 March 2017

Issue of ordinary shares under term of financing arrangements

2,857,173

2,857

26 April 2017

Issue of ordinary shares under term of financing arrangements

1,500,000

1,500





Total


127,569,966

127,569

 

The Board has not utilised authority to purchase the Company's own shares.

 

It will be proposed at the Annual General Meeting as an ordinary resolution to renew the Directors' general authority to issue relevant securities up to an aggregate nominal amount of £1,000,000.

 

It will also be proposed at the Annual General Meeting as a special resolution for the renewal of the Directors' authority to allot relevant securities for cash, without first offering them to shareholders pro rata to their holdings, pursuant to section 561 of the Company Act 2006 up to an aggregate nominal amount of £1,000,000.

 

Risk Management

The Directors consider that assessing and monitoring the inherent risks in the exploration business, as well as other financial risks, is crucial for the success of the Group. Risk assessment is essential in the Group's planning processes. The Board regularly reviews the performance of projects against plans and forecasts. Further detail on management of financial risks which includes foreign currency, interest rate, credit, liquidity and capital risks are set out in note 27 .

 

Going Concern

The Group has incurred a profit of £740,265 for the year ended 31 December 2016 (2015: loss of £1,294,150). The profit of 2016 resulted from the operational currency fluctuations. Foreign exchange profit of £1,864,143 caused mainly by strengthening of Russian Rouble and weakening of British Pound (2015 foreign exchange loss of £1,019,838 due to weakening of the Russian Rouble). Directors have taken measures to preserve cash and secure additional finance.

 

During the year the Group finalised exploration work at Kola and initiated procedure of applying for the mining licence, going forward cash demand to run Kola project will be limited to desktop works aiming to support licence application process. West Kytlim operations are due to restart in 2017, weather permitting. The Group expects sufficient revenues from the mining operations to satisfy funding requirement to run the project company and carry works done towards extending platinum reserve base. The Group has further implemented plans to minimise its cash outflows by reducing its fixed costs and overheads and by subletting part of the office premises. The Directors took personal steps in conserving the Group's cash by taking their remuneration in the Company's shares.

The Directors are confident in the Company's ability to raise new finance from stock markets if this is required during 2017 and the Group has demonstrated a consistent ability to do so.

 

The Directors have concluded that the combination of these circumstances represents a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the annual report and accounts.

 

By order of the Board

 

 

 

M J de Villiers

Company Secretary

 

16 May 2017

 

 

Statement of Directors' responsibilities

 

The Directors are responsible for preparing Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have to prepare the financial statements in accordance with International Financial Reporting Standards as adopted by the European Union (IFRSs). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs and profit or loss of the Company and Group for that period. In preparing these financial statements, the Directors are required to:

 

•               select suitable accounting policies and then apply them consistently;

•               make judgements and accounting estimates that are reasonable and prudent;

•              state whether applicable IFRSs have been followed, subject to any material departures disclosed and explained in the financial statements;

•              prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

 

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and Group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors confirm that so far as each Director is aware: 

 

•               there is no relevant audit information of which the Company's auditor is unaware; and

•              the Directors have taken all steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

 

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Corporate Governance

The Board of Directors

The Directors are responsible for the Group's system of internal control and for reviewing its effectiveness. The risk management process and systems of internal control are designed to manage rather than eliminate the risk of failure to achieve the Company's objectives. Any such system of internal financial control can only provide reasonable but not absolute assurance against material misstatement or loss.

 

Full Board meetings are held quarterly to review Group strategy, direction and financial performance. The executive Directors meet regularly to review operational reports from all the Group's areas of operations. The process is used to identify major business risks and evaluate their financial implications and ensure an appropriate control environment. Certain control over expenditure is delegated to on site project managers subject to Board control by means of monthly budgetary reports. Internal financial control procedures include:-

 

•               preparation and regular review of operating budgets and forecasts

•               prior approval of all capital expenditure

•               review and debate of treasury policy

•               unrestricted access of non-executive Directors to all members of senior management.

 

The Board, in conjunction with members of the Audit Committee, has reviewed the effectiveness of the system of internal control for the period from 1st January 2016 to the date of this report.

Audit Committee

The Chairman of the Audit Committee is Gary FitzGerald. The Audit Committee may examine any matters relating to the financial affairs of the Group and the Group's audits, this includes reviews of the annual financial statements and announcements, internal control procedures, accounting procedures, accounting policies, the appointment, independence, objectivity, terms of reference and fees of external auditors and such other related functions as the Board may require.

 

The membership of the Audit Committee comprises two non-executive Directors, Michael Martineau and Gary FitzGerald. The external auditors have direct access to the members of the Committee, without the presence of the executive Directors, for independent discussions.

Remuneration Committee

The Chairman of the Remuneration Committee is Michael Martineau. The committee comprises two non-executive Directors, Michael Martineau and Gary FitzGerald. It determines the terms and conditions of employment and annual remuneration of the Executive Directors. It consults with the Managing Director, takes into consideration external data and comparative third party remuneration and has access to professional advice outside the Company.

 

The key policy objectives of the Remuneration Committee in respect of the Company's executive Directors and other senior executives are:-

a)            to ensure that individuals are fairly rewarded for their personal contribution to the Company's overall performance, and

b)            to act as an independent committee ensuring that due regard is given to the interests of the Company's Shareholders and to the financial and commercial health of the Company.

 

Remuneration of executive Directors comprises basic salary, discretionary bonuses, participation in the Company's share option scheme and other benefits. The Company's remuneration policy with regard to options is to maintain an amount of not more than 10% of the issued share capital in options for the Company's management and employees which may include the issue of new options in line with any new share issues.

 

Total Directors' emoluments are disclosed in notes 8  and  23 to the financial statements and the Directors' options are disclosed above. During 2016 no options were granted to the Directors (2015: nil).

Dividends and profit retention

No dividend is proposed in respect of the year (2015: £nil) and the retained loss for the year attributable to the equity holders of the parent of £740,265 (2015 loss of £1,372,466) has been taken to reserves.

Research and future development

The Group's activities during the year continued to be concentrated principally on mineral exploration programmes and the improvement of mining techniques and metallurgical processes. While developing its core projects disclosed in the Operations update the Group will continue studying and searching for new "near production" project in the geographical areas it gained its experience in.

 

Auditors

Grant Thornton UK LLP are willing to continue in office and a resolution proposing their re-appointment as auditors of the Company and a resolution authorising the Directors to fix their remuneration will be put to shareholders at the Annual General Meeting.

 

By order of the Board

 

 

 

 

M J de Villiers

Company Secretary

 

16 May 2017

 

 

Eurasia Mining Plc.

(Company number 3010091)

Consolidated statement of profit or loss and other comprehensive income

For the year ended 31 December 2016

 


Note

Year to

31 December 2016

unaudited

Year to

31 December 2015

unaudited



£

£

Sales


139,862

-

Cost of sales


(130,688)

-

Gross profit


9,174

-





Administrative costs


(654,263)

(667,970)

Finance cost


(224,814)

-

Other gains and losses

9

1,864,143

(1,019,838)

Profit/(loss) before tax


994,240

(1,687,808)

Income tax expense

10

-

-

Profit/(loss) for the period


994,240

(1,687,808)





Other comprehensive income:




Items that will not be reclassified subsequently to profit and loss:




NCI share of foreign exchange differences on translation of foreign operations


(132,190)

110,925

Items that will  be reclassified subsequently to profit and loss:




Parent's share of foreign exchange differences on translation of foreign operations


(248,650)

282,733

Other comprehensive income for the period, net of tax


(380,840)

393,658

Total comprehensive profit/(loss) for the period


613,400

(1,294,150)





Profit/(loss) for the period attributable to:




Equity holders of the parent


740,265

(1,372,466)

Non-controlling interest

13

253,975

(315,342)



994,240

(1,687,808)





Total comprehensive profit/(loss) for the period attributable to:




Equity holders of the parent


491,615

(1,089,733)

Non-controlling interest

13

121,785

(204,417)



613,400

(1,294,150)





Loss per share attributable to equity holders of the parent:




Basic profit/(loss) (pence per share)

22

0.06

(0.11)

Diluted profit/(loss) (pence per share)

22

0.06

-





 

In accordance with section 408(3) of the Companies Act 2006, Eurasia Mining plc is exempt from the requirement to present its own income statement. The amount of loss for the financial year recorded within the financial statements of Eurasia Mining plc is £655,352 (2015: loss of £5

 

 


Eurasia Mining Plc.                                                                                                                                                                           

(Company number 3010091)

Consolidated statement of financial position

As at 31 December 2016

 


Note

31 December

2016

unaudited

31 December

2015

unaudited



£

£

ASSETS




Non-current assets




Property, plant and equipment

11

4,402,272

24,375

Assets in the course of construction


39,216


Intangible assets

12

813,134

3,200,726

Investments in joint operations


44,131


Other financial assets

14

489,312

406,702

Total non-current assets


5,788,065

3,631,803





Current assets




Inventories


 23,844

218

Trade and other receivables

15

 149,146

210,795

Cash and cash equivalents


 154,674

104,925

Total current assets


327,664

315,938





Total assets


6,115,730

3,947,741





EQUITY




Issued capital

16

 25,577,993

24,185,436

Other reserves

18

 3,281,842

3,530,492

Accumulated losses


 (22,544,900)

(23,285,165)

Equity attributable to equity holders

of the parent


6,314,935

4,430,763





Non-controlling interest

13

(675,395)

(797,178)





Total equity


5,639,542

3,633,585





LIABILITIES




Current liabilities




Borrowings

19

318,314

-

Trade and other payables

20

157,874

314,156

Total current liabilities


476,188

314,156





Total liabilities


476,188

314,156





Total equity and liabilities


6,115,730

3,947,741

 

These financial statements were approved by the board on 16 May 2017

and were signed on its behalf by:

 

 

C. Schaffalitzky

Managing Director

 


Eurasia Mining Plc.

(Company number 3010091)

Company statement of financial position

As at 31 December 2016

 


Note

31 December

2016

unaudited

31 December

2015

unaudited



£

£

ASSETS




Non-current assets




Property, plant and equipment

11

 238

705

Investments in subsidiaries

13

 1,277,489

1,277,489

Investments in joint operations


 44,131

-

Other financial assets

14,22

 5,765,654

4,915,081

Total non-current assets


7,087,512

6,193,275





Current assets




Trade and other receivables

15

 80,040

70,921

Cash and cash equivalents


 116,428

83,444

Total current assets


 196,468

154,365





Total assets


7,283,980

6,347,640





EQUITY




Issued capital

16

 25,577,993

24,185,436

Other reserves

18

 3,542,694

3,542,694

Accumulated losses


 (22,462,468)

(21,807,116)

 

Total equity


 6,658,219

5,921,014





LIABILITIES




Current liabilities




Borrowings

19

318,314

-

Trade and other payables

20

307,447

426,626

Total current liabilities


625,761

426,626





Total liabilities


625,661

426,626





Total equity and liabilities


7,283,980

6,347,640

 

 

These financial statements were approved by the board on 16 May 2017

and were signed on its behalf by:

 

 

 

 

 

C. Schaffalitzky

Managing Director

 


Eurasia Mining Plc.

(Company number 3010091)

Consolidated statement of changes in equity

 



Share capital

unaudited

Share premium

unaudited

Deferred shares

unaudited

Capital redemption and other reserves

unaudited

Foreign currency translation reserve

unaudited

Accumulated losses

unaudited

Total attributable to owners of parent

Non-controlling interest

unaudited

Total



£

£

£

£

£

£

£

£

£

Balance at 1 January 2015


1,108,220

15,046,077

7,025,483

3,939,141

(294,935)

(22,311,934)

4,512,052

(592,761)

3,919,291

Issue of ordinary share capital for cash


160,823

868,358

-

-

-

-

1,029,181

-

1,029,181

Share issue costs


-

(23,525)

-

-

-

-

(23,525)

-

(23,525)

Reversals due to expired options


-

-

-

(399,235)

-

399,235

-

-

-

Recognition of share-based payments

20

-

-

-

2,788

-

-

2,788

-

2,788

Transactions with owners


 160,823

 844,833

 -

 (396,447)

 -

 399,235

 1,008,444

 -

 1,008,444

Loss for the period


-

-

-

-

-

 (1,372,466)

 (1,372,466)

 (315,342)

 (1,687,808)

Exchange differences on translation of

foreign operations


-

-

-

-

 282,733

-

 282,733

 110,925

 393,658

Total comprehensive income


 -

 -

 -

 -

 282,733

 (1,372,466)

 (1,089,733)

 (204,417)

 (1,294,150)

Balance at 31 December 2015


 1,269,043

 15,890,910

 7,025,483

 3,542,694

 (12,202)

 (23,285,165)

 4,430,763

 (797,178)

 3,633,585












Balance at 1 January 2016


 1,269,043

 15,890,910

 7,025,483

 3,542,694

 (12,202)

 (23,285,165)

 4,430,763

 (797,178)

 3,633,585

Issue of ordinary share capital for cash


145,350

723,207

-

-

-

-

868,557

-

868,557

Shares issued in lieu of loan note interest

13

90,458

458,542

-

-

-

-

549,000

-

549,000

Issue of shares for professional services


4,937

20,063

-

-

-

-

25,000

-

25,000

Share issue cost



(50,000)

-

-

-

-

(50,000)

-

(50,000)

Transactions with owners


240,745

1,151,812

-

-

-

-

1,392,557

-

1,392,557

Profit for the period


-

-

-

-

-

740,265

740,265

253,975

994,20

Exchange differences on translation of

foreign operations


-

-

-

-

(248,650)

-

(248,650)

(132,190)

380,840

Total comprehensive income


-

-

-

-

 (248,650)

740,265

491,615

121,785

613,400

 

Balance at 31 December 2016


1,509,788

17,042,722

7,025,483

3,542,694

 (260,852)

(22,544,900)

6,314,935

 (675,393)

5,639,542

 


Eurasia Mining Plc.

(Company number 3010091)

Company statement of changes in equity

 



Share

capital

unaudited

Share

Premium

unaudited

Deferred shares

unaudited

Other reserves

unaudited

Retained

loss

unaudited

Total



£

£

£

£

£

£

Balance at 1 January 2015


1,108,220

15,046,077

7,025,483

3,939,141

(21,684,177)

5,434,744

Issue of ordinary share capital for cash


160,823

868,358

-

-


1,029,181

Share issue costs



(23,525)




(23,525)

Reversals due to expired options


-

-

-

(399,235)

399,235

-

Recognition of share-based payments

20

-

-

-

2,788


2,788

Transactions with owners


 160,823

 844,833

 -

 (396,447)

399,235

1,008,444

Loss and total comprehensive income






(522,174)

(522,174)

Balance at 31 December 2015


1,269,043

15,890,910

7,025,483

3,542,694

(21,807,116)

5,921,014









Balance at 1 January 2016


1,269,043

15,890,910

7,025,483

3,542,694

(21,807,116)

5,921,014

Issue of ordinary share capital for cash


145,350

723,207

-

-

-

868,557

Shares issued in lieu of loan note interest

13

90,458

458,542

-

-

-

549,000

Issue of shares for professional services


4,937

20,063




25,000

Share issue cost



(50,000)




(50,000)

Transactions with owners


240,745

1,151,812




1,392,557

Profit and total comprehensive income


-

-

-

-

(655,352)

(655,352)

 

Balance at 31 December 2016


1,509,788

17,042,722

7,025,483

3,542,694

 (22,462,468)

6,658,219

 

 

 


Eurasia Mining Plc.

(Company number 3010091)

Consolidated statement of cash flows

For the year ended 31 December 2016


Note

Year to

31 December

2016

unaudited

Year to

31 December

2015

unaudited



£

£

Cash flows from operating activities




Profit/(loss) for the period


994,240

(1,687,808)

Adjustments for:




  Depreciation of non-current assets


1,923

1,936

  Amortisation of intangible assets


15,712

-

  Finance costs recognised in profit or loss


224,814

-

  Impairment loss recognised on trade and other receivables


95,215

-

  Net foreign exchange (profit)/loss


(1,959,358)

1,019,838

  Expense recognised in income statement in respect of equity-settled share-based payment


25,000

2,788



(602,454)

(663,246)

Movement in working capital




  (Increase)/decrease in inventories


(25,530)

25

  Decrease/(increase) in trade and other receivables


46,371

(65,515)

  (Decrease)/increase in trade and other payables


(203,036)

150,180

Cash outflow from operations


(782,649)

(578,556)

Income tax paid


-

-

Net cash used in operating activities


(782,649)

(578,556)





Cash flows from investing activities




Contributed to joint operations


(44,131)

-

Purchase of property, plant and equipment

11

(42,794)

(633)

Payment for intangible assets

12

(620,416)

(516,701)

Net cash used in investing activities


(707,341)

(517,334)





Cash flows from financing activities




Proceeds from issue of equity shares

16

818,557

1,005,626

Proceeds from borrowings


892,500

-

Repayment of borrowings


(250,000)

-

Net cash proceeds from financing activities


1,461,057

1,005,656

Net decrease in cash and cash equivalents


(28,933)

(90,234)

Effects of exchange rate changes on the balance of cash held in foreign currencies


78,682

(29,704)

Cash and cash equivalents at beginning of period


104,925

224,863

 

Cash and cash equivalents at end of period


154,674

104,925






Eurasia Mining Plc.

(Company number 3010091)

Company statement of cash flows

For the year ended 31 December 2016


Note

Year to

31 December

2016

unaudited

Year to

31 December

2015

unaudited



£

£

Cash flows from operating activities




(Loss)/profit for the period


(655,352)

(522,174)

Adjustments for:




  Depreciation of non-current assets


467

1,013

  Finance costs recognised in profit or loss


224,814

-

  Net foreign exchange loss


1,818

(564)

  Expense recognised in income statement in respect of equity-settled share-based payment


25,000

2,788



(403,253)

(518,937)

Movement in working capital




  Decrease in trade and other receivables


(9,119)

(5,739)

  (Decrease)/increase in trade and other payables


(121,762)

85,782

Cash outflow from operations


(534,134)

(438,894)

Income tax paid


-

-

Net cash used in operating activities


(534,134)

(438,894)





Cash flows from investing activities




Contributed to joint operations


(44,131)

-

Purchase of property, plant and equipment

11

-

(633)

Amounts advanced to related party

22

(850,573)

(694,607)

Net cash used in investing activities


(894,704)

(695,240)





Cash flows from financing activities




Proceeds from issue of equity shares

16

818,577

1,005,656

Proceeds from borrowings


892,500

-

Repayment of borrowings


(250,000)

-

Net cash proceeds from financing activities


1,461,057

1,005,656

Net decrease in cash and cash equivalents


32,219

(128,478)

Effects of exchange rate changes on the balance of cash held in foreign currencies


765

1,762

Cash and cash equivalents at beginning of period


83,444

210,160

 

Cash and cash equivalents at end of period


116,428

83,444





 

 

 


Notes to the consolidated financial statements

1          General information

 

Eurasia Mining Plc (the "Company") is a public limited company incorporated and domiciled in Great Britain with its registered office and principal place of business at 2nd Floor, 85-87 Borough High Street, London SE1 1NH. The Company's shares are listed on the AIM Market of the London Stock Exchange plc. The principal activities of the Company and its subsidiaries (the "Group") are related to the exploration for and development of platinum group metals, gold and other minerals in Russia.

Eurasia Mining Plc's consolidated financial statements are presented in Pounds Sterling (£), which is also the functional currency of the parent company.

2          Going concern

 

The Directors have a reasonable expectation based on a review of the Group's budgets, plans, cash flow forecasts and the ability to flex their forecast spending to suit prevailing circumstances, that the Group is a going concern for a period of at least 12 months from the date of signing the financial statements.

3          Changes in accounting policies

3.1 New and revised relevant standards that are effective for annual periods commencing on or after 1 January 2016

 

Amendments to IFRS 10, IFRS 12 and IAS 28 - Investment entities: Applying the consolidation exception (effective 1 January 2016)

Amendments made to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in associates and joint ventures clarify that:

·      The exception from preparing consolidated financial statements is also available to intermediate parent entities which are subsidiaries of investment entities.

·      An investment entity should consolidate a subsidiary which is not an investment entity and whose main purpose and activity is to provide services in support of the investment entity's investment activities.

·      Entities which are not investment entities but have an interest in an associate or joint venture which is an investment entity have a policy choice when applying the equity method of accounting. The fair value measurement applied by the investment entity associate or joint venture can either be retained, or a consolidation may be performed at the level of the associate or joint venture, which would then unwind the fair value measurement.

 

Amendments to IFRS 11 Joint Arrangements (effective 1 January 2016)

·      These amendments provide guidance on the accounting for acquisitions of interests in joint operations constituting a business. The amendments require all such transactions to be accounted for using the principles on business combinations accounting in IFRS 3 'Business Combinations' and other IFRSs except where those principles conflict with IFRS 11. Acquisitions of interests in joint ventures are not impacted by this new guidance.

 

Amendments to IAS 1-Disclosure Initiative (effective 1 January 2016)

The amendments to IAS 1 Presentation of Financial Statements are made in the context of the IASB's Disclosure Initiative, which explores how financial statement disclosures can be improved. The amendments provide clarifications on a number of issues, including:

·      Materiality - an entity should not aggregate or disaggregate information in a manner that obscures useful information. Where items are material, sufficient information must be provided to explain the impact on the financial position or performance.

·      Disaggregation and subtotals - line items specified in IAS 1 may need to be disaggregated where this is relevant to an understanding of the entity's financial position or performance. There is also new guidance on the use of subtotals.

·      Notes - confirmation that the notes do not need to be presented in a particular order.

·      OCI arising from investments accounted for under the equity method - the share of OCI arising from equity-accounted investments is grouped based on whether the items will or will not subsequently be reclassified to profit or loss. Each group should then be presented as a single line item in the statement of other comprehensive income.

 

Amendments to IAS 16 and IAS 38 - Clarification of Acceptable Methods of Depreciation and Amortisation -(effective 1 January 2016)

The IASB has amended IAS 16 Property, Plant and Equipment to clarify that a revenue-based method should not be used to calculate the depreciation of items of property, plant and equipment.

IAS 38 Intangible Assets now includes a rebuttable presumption that the amortisation of intangible assets based on revenue is inappropriate. This presumption can be overcome if either

·      The intangible asset is expressed as a measure of revenue (ie where a measure of revenue is the limiting factor on the value that can be derived from the asset), or

·      It can be shown that revenue and the consumption of economic benefits generated by the asset are highly correlated.

 

Amendments to IAS 27 - Equity method in separate financial statements (effective 1 January 2016)

The IASB has made amendments to IAS 27 Separate Financial Statements which will allow entities to use the equity method in their separate financial statements to measure investments in subsidiaries, joint ventures and associates.

IAS 27 currently allows entities to measure their investments in subsidiaries, joint ventures and associates either at cost or as a financial asset in their separate financial statements. The amendments introduce the equity method as a third option. The election can be made independently for each category of investment (subsidiaries, joint ventures and associates). Entities wishing to change to the equity method must do so retrospectively.

 

Amendments to IFRS 10 and IAS 28 - Sale or contribution of assets between an investor and its associate or joint venture - (effective 1 January 2016)

The IASB has made limited scope amendments to IFRS 10 Consolidated financial statements and IAS 28 Investments in associates and joint ventures, which clarify the accounting treatment for sales or contribution of assets between an investor and its associates or joint ventures. They confirm that the accounting treatment depends on whether the non-monetary assets sold or contributed to an associate or joint venture constitutes a 'business' (as defined in IFRS 3 Business Combinations).

Where the non-monetary assets constitute a business, the investor will recognise the full gain or loss on the sale or contribution of assets. If the assets do not meet the definition of a business, the gain or loss is recognised by the investor only to the extent of the other investor's investors in the associate or joint venture. The amendments apply prospectively.

 

Annual Improvements to IFRSs 2012-2014 cycle (effective 1 January 2016)

The latest annual improvements clarify:

·      IFRS 5 - when an asset (or disposal group) is reclassified from 'held for sale' to 'held for distribution' or vice versa, this does not constitute a change to a plan of sale or distribution and does not have to be accounted for as such

·      IFRS 7 - specific guidance for transferred financial assets to help management determine whether the terms of a servicing arrangement constitute 'continuing involvement' and, therefore, whether the asset qualifies for derecognition

·      IFRS 7 - that the additional disclosures relating to the offsetting of financial assets and financial liabilities only need to be included in interim reports if required by IAS 34

·      IAS 19 - that when determining the discount rate for post-employment benefit obligations, it is the currency that the liabilities are denominated in that is important and not the country where they arise

·      IAS 34 - what is meant by the reference in the standard to 'information disclosed elsewhere in the interim financial report' and adds a requirement to cross-reference from the interim financial statements to the location of that information

 

The adoption of these Standards and Interpretations has had no material impact on the financial statements of the Group

 

3.2 Standards, amendments and interpretations to existing standards that are not yet effective and have not been adopted early by the Group

 

At the date of authorisation of these financial statements, certain new standards, amendments and interpretations to existing standards have been published by the IASB but are not yet effective, and have not been adopted early by the Group.

Management anticipates that all of the relevant pronouncements will be adopted in the Group's accounting policies for the first period beginning after the effective date of the pronouncement. Information on new standards, amendments and interpretations that are expected to be relevant to the Group's financial statements is provided below. Certain other new standards and interpretations have been issued but are not expected to have a material impact on the Group's financial statements.

 

IFRS 9 Financial Instruments (effective 1 January 2018)

IFRS 9 represents the completion of its project to replace IAS 39 'Financial Instruments: Recognition and Measurement'. The new standard introduces extensive changes to IAS 39's guidance on the classification and measurement of financial assets and introduces a new 'expected credit loss' model for the impairment of financial assets. IFRS 9 also provides new guidance on the application of hedge accounting.

 

IFRS 15 Revenue from contracts with customers (effective 1 January 2017)

The IASB has issued a new standard for the recognition of revenue. This will replace IAS 18 which covers contracts for goods and services and IAS 11 which covers construction contracts.

The new standard is based on the principle that revenue is recognised when control of a good or service transfers to a customer - so the notion of control replaces the existing notion of risks and rewards.

 

 

IFRS 16 Leases (effective 1 January 2019)

IASB released IFRS 16 'Leases', which will require lessees to account for leases 'on-balance sheet' by recognising a 'right-of-use' asset and a lease liability.

IFRS 16 also:

·      •changes the definition of a lease;

·      •sets requirements on how to account for the asset and liability, including complexities such as non-lease elements, variable lease payments and option periods;

·      •provides exemptions for short-term leases and leases of low value assets;

·      •changes the accounting for sale and leaseback arrangements;

·      •largely retains IAS 17's approach to lessor accounting;

·      •introduces new disclosure requirements.

 

Amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions (effective 1 January 2018)

The amendments clarify the following:

1.     In estimating the fair value of a cash-settled share-based payment, the accounting for the effects of vesting and non-vesting conditions should follow the same approach as for equity-settled share-based payments.

2.     Where tax law or regulation requires an entity to withhold a specified number of equity instruments equal to the monetary value of the employee's tax obligation to meet the employee's tax liability which is then remitted to the tax authority, i.e. the share-based payment arrangement has a 'net settlement feature', such an arrangement should be classified as equity-settled in its entirety, provided that the share-based payment would have been classified as equity-settled had it not included the net settlement feature.

3.     A modification of a share-based payment that changes the transaction from cash-settled to equity-settled should be accounted for as follows:

·      i.the original liability is derecognised;

·      the equity-settled share-based payment is recognised at the modification date fair value of the equity instrument granted to the extent that services have been rendered up to the modification date; and

·      any difference between the carrying amount of the liability at the modification date and the amount recognised in equity should be recognised in profit or loss immediately.

 

Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (effective on or after the date to be determined)

The amendments to IFRS 10 and IAS 28 deal with situations where there is a sale or contribution of assets between an investor and its associate or joint venture. Specifically, the amendments state that gains or losses resulting from the loss of control of a subsidiary that does not contain a business in a transaction with an associate or a joint venture that is accounted for using the equity method, are recognised in the parent's profit or loss only to the extent of the unrelated investors' interests in that associate or joint venture. Similarly, gains and losses resulting from the remeasurement of investments retained in any former subsidiary (that has become an associate or a joint venture that is accounted for using the equity method) to fair value are recognised in the former parent's profit or loss only to the extent of the unrelated investors' interests in the new associate or joint venture.

 

Amendments to IAS 7 Disclosure Initiative (effective 1 January 2017)

The amendments require an entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities.

 

Amendments to IAS 12 Recognition of Deferred Tax Assets for Unrealised Losses (effective 1 January 2017)

The amendments clarify the following:

1. Decreases below cost in the carrying amount of a fixed-rate debt instrument measured at fair value for which the tax base remains at cost give rise to a deductible temporary difference, irrespective of whether the debt instrument's holder expects to recover the carrying amount of the debt instrument by sale or by use, or whether it is probable that the issuer will pay all the contractual cash flows;

2. When an entity assesses whether taxable profits will be available against which it can utilise a deductible temporary difference, and the tax law restricts the utilisation of losses to deduction against income of a specific type (e.g. capital losses can only be set off against capital gains), an entity assesses a deductible temporary difference in combination with other deductible temporary differences of that type, but separately from other types of deductible temporary differences;

3. The estimate of probable future taxable profit may include the recovery of some of an entity's assets for more than their carrying amount if there is sufficient evidence that it is probable that the entity will achieve this; and

4. In evaluating whether sufficient future taxable profits are available, an entity should compare the deductible temporary differences with future taxable profits excluding tax deductions resulting from the reversal of those deductible temporary differences.

 

The directors of the Company do not anticipate that the application of these amendments will have a material impact on the Group's consolidated financial statements.

4          Summary of significant accounting policies

4.1 Basis of preparation

The financial information set out in this report does not constitute the Group's statutory accounts for the year ended 31 December 2016, but derived from the Group's full financial accounts, which are in the process of being audited.

The consolidated financial statements of the Group and the Company financial statements will be prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) as adopted by the EU.

These financial statements will be prepared under the historical cost convention. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these consolidated financial statements.

4.2 Presentation of financial statements

The consolidated financial statements are presented in accordance with IAS 1 Presentation of Financial Statements. The Group has elected to present the "Statement of comprehensive income" in one statement.

4.3 Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company. Control is achieved where the Company has all of the following:

·           Power over investee;

·           Exposure, or rights, to variable returns from its involvement with the investee;

·           The ability to use its power over the investee to affect the amount of investor's returns.

The results of subsidiaries acquired or disposed of are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group.

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Group's equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling party's share of changes in equity since the date of the combination.

4.4 Business combinations

The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests issued by the Group, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred.

The Group recognises identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognised in the acquiree's financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values.

Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of a) fair value of consideration transferred, b) the recognised amount of any non-controlling interest in the acquiree and c) acquisition-date fair value of any existing equity interest in the acquiree, over the acquisition-date fair values of identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated above, the excess amount (ie gain on a bargain purchase) is recognised as a profit or loss immediately.

In a business combination achieved in stages, the Group remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognise the resulting gain or loss, if any, in profit or loss or other comprehensive income, as appropriate.

4.5 Interests in joint arrangements

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. The considerations made in determining significant influence or joint controls are similar to those necessary to determine control over subsidiaries.

The Group reports its interests in jointly controlled entities using the equity method of accounting, except when the investment is classified as held for sale.

Under the equity method, investments in joint ventures are carried in the consolidated statement of financial position at cost as adjusted for post-acquisition changes in the Group's share of the net assets of the joint venture, less any impairment in the value of individual investments. Losses of a joint venture in excess of the Group's interest in that joint venture are not recognised, unless the Group has incurred legal or constructive obligations or made payments on behalf of the joint venture.

Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets, liabilities and contingent liabilities of the joint venture recognised at the date of acquisition is recognised as goodwill.

The goodwill, if any is included within the carrying amount of the investment and is assessed annually for impairment as part of the investment. Any excess of the Group's share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after reassessment, is recognised immediately as a profit or loss.

Unrealised gains on transactions between the Group and its joint venture are eliminated to the extent of the Group's interest in the joint venture. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

4.6 Foreign currencies

Functional and presentation currency

The individual financial statements of each group entity are prepared in the currency of the primary economic environment in which the entity operates ("the functional currency"). The consolidated financial statements are presented in GBP, which is the functional and the presentation currency of the Company.

 

Transaction and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

 

Group companies

The results and financial position of all the group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

• assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;

• income and expenses for each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); and

• all resulting exchange differences are recognised as a separate component of other comprehensive income.

 

4.7 Share-based payments

Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instrument at the grant date. Fair value is measured by use of Black Scholes model. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest.

Equity-settled share-based payment transactions with other parties are measured at the fair value of the goods and services received, except where the fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service.

All equity-settled share-based payments are ultimately recognised as an expense in the profit or loss with a corresponding credit to "Share-based payments reserve".

Upon exercise of share options the proceeds received net of attributable transaction costs are credited to share capital, and where appropriate share premium. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to that estimated on vesting or if the share options vest but are not exercised.

When share options lapse or are forfeited the respective amount recognised in the Share-based payment reserve is reversed and credited to accumulated profit and loss reserve.

4.8 Revenue

Goods sold

Revenue is measured at the fair value of the consideration received or receivable (excluding VAT), net of returns, trade discounts and volume rebates.

Revenue is recognised when persuasive evidence exists, usually in the form of an executed sales agreement, that the significant risks and rewards of ownership have been transferred to the customer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably.

 

The timing of the transfers of risks and rewards varies depending on the individual terms of the sales agreement. For sales of the platinum group and other metals, the transfer usually occurs upon receipt by the customer.

 

Services

Revenue comprises project management services to external customers (excluding VAT). Consideration receivable from customers is only recorded as revenue to the extent that the Company has performed its contractual obligations in respect of that consideration.

4.9 Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

 

Current tax

The tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the statement of financial position date.

 

Deferred tax

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill, initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the statement of financial position date  and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.

4.10 Property, plant and equipment

 

Mining assets

Mining assets are stated at cost less accumulated depreciation. Mining assets include the cost of acquiring and developing mining assets and mineral rights, buildings, vehicles, plant and machinery and other equipment located on mine sites and used in the mining operations.

Mining assets, where economic benefits from the asset are consumed in a pattern which is linked to the production level, are depreciated using a units of production method based on the volume of ore reserves. This results in a depreciation charge proportional to the depletion of reserves. Where the mining plan anticipates future capital expenditure to support the mining activity over the life of the mine, the depreciable amount is adjusted for such estimated future expenditure.

 

Other assets

Freehold properties held for administrative purposes, are stated in the statement of financial position at cost.

Fixtures and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is charged so as to write off the cost or valuation of assets over their estimated useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at each year end, with the effect of any changes in estimate accounted for on a prospective basis.

The estimated useful lives are as follows:

Property                                 30 years

Office equipment                    3 years

Furniture and fittings              5 years

The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

 

4.11 Intangible assets

Exploration and evaluation of mineral resources

 

Exploration and evaluation expenditure comprises costs that are directly attributable to:

• researching and analysing existing exploration data;

• conducting geological studies, exploratory drilling and sampling;

• examining and testing extraction and treatment methods; and/or

• compiling prefeasibility and feasibility studies.

Exploration expenditure relates to the initial search for deposits with economic potential. Evaluation expenditure arises from a detailed assessment of deposits that have been identified as having economic potential.

Such capitalised evaluation expenditure is reviewed for impairment at each statement of financial position date. The review is based on a status report regarding the Group's intentions for development of the undeveloped property. Subsequent recovery of the resulting carrying value depends on successful development of the area of interest or sale of the project.

If a project does not prove viable, all irrecoverable costs associated with the project net of any related impairment provisions are written off.

4.12 Impairment testing intangible assets and property, plant and equipment

At each statement of financial position date, the Group reviews the carrying amounts of the assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years.

A reversal of an impairment loss of the assets is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

4.13 Financial instruments

Financial assets and liabilities are recognised on the group's statement of financial position when the group has become a party to the contractual provisions of the instrument.

 

Financial assets

 

Loans and receivables

Trade receivables, loans, cash and cash equivalents, and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured initially fair value plus transaction costs and subsiquently at amortised cost using the effective interest method less any impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables where the recognition of interest would be immaterial.

 

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand and on deposit with banks.

 

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each statement of financial position date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables where the carrying amount is reduced through the use of an allowance account.

When a trade receivable is uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.

Impairment losses recognised in the income statement on equity instruments are not reversed through the income statement. Impairment losses recognised previously on debt securities are reversed through the income statement when the increase can be related objectively to an event occurring after the impairment loss was recognised in the income statement.

 

Revision in timing of cash flows

Where there is a change in the planned timing of repayment of loans or receivables the carrying amount of these financial assets or liabilities are adjusted to reflect the revised estimated cash flows. The present value of the estimated future cash flows is computed by reference to the effective interest rate of the item, the adjustment is recognised in profit or loss as income or expense.

 

Financial liabilities and equity instruments issued by the Group

 

Classification as debt or equity

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Where the contractual liabilities of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities, and are presented as such in the statement of financial position. Finance costs and gains or losses relating to financial liabilities are included in the income statement. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any features meeting the definition of a financial liability then such capital is classed as an equity instrument.  Dividends and distributions relating to equity instruments are debited direct to equity.

 

Other financial liabilities

Other financial liabilities, are initially measured at fair value, net of transaction costs.

Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

4.14 Segmental reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision-Maker. The Chief Operating Decision-Maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the executive directors of the Group that make the operating decisions.

5          Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

5.1 Investments in subsidiaries

The Company has a holding of 48.33% in the BVI registered company Energy Resources Asia Limited (the "ERA").

Directors consider the ERA to be a subsidiary of the Company despite holding less than 50% of the voting power of the entity based on the fact that the Company has the ability to use its power over the investee to affect the amount of the investor's returns.

5.2 Key sources of estimation uncertainty

The following are the key assumptions / uncertainties at the statement of financial position date, which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

5.2.1 Share-based payments

The estimation of share-based payment costs requires the selection of an appropriate valuation model and consideration as to the inputs necessary for the valuation model chosen. The Group has made estimates as to the volatility of its own shares, the probable life of options granted and the time of exercise of those options. The model used by the Group is the Black-Scholes valuation model.

5.2.2 Recoverability of other financial assets

The majority of other financial assets represent loans provided to subsidiary and joint venture, which are associated with funding of mineral exploration and development projects. The recoverability of such loans is dependent upon the discovery of economically recoverable reserves, obtaining of regulatory approval for the extraction of such reserves, the ability of the Company to maintain necessary financing to complete the development of reserves and future profitable production or proceeds from the disposition thereof.

 

6          Segmental information

 

During the year under review Management identified the group as one operating segment being investing in exploration for and development of platinum group metals, gold and other minerals in Russia. This one segment is monitored and strategic decisions are made based upon it and other non-financial data collated from the on-going exploration activities.

The formats of financial reports that are reported to the Chief Operating Decision Maker are consistent with those presented in the annual financial statements.

7          Employees

 

Average number of staff (excluding non-executive directors) employed throughout the year was as follows:


2016

Unaudited

2015

Unaudited

By the Company

4

5

By the Group

19

19

8          Profit/(loss) for the year

 

Profit/(loss) for the year has been arrived at after charging:


Year to 31 December 2016

Year to 31 December 2015


Group

Unaudited

Company

Unaudited

Group Unaudited

Company Unaudited


£

£

£

£

Staff benefits expense:





Wages, salaries and directors fees (note 22 )

250,644

180,724

314,432

249,651

Social security costs

24,848

7,476

26,429

10,425

Other short term benefits

18,500

18,500

16,141

16,141


293,992

206,700

357,002

276,217






Audit fees payable to the company's auditor for the audit of the annual Group's accounts

33,553

33,553

28,487

31,424







33,553

33,553

28,487

31,424






 

9          Other gains and losses


Year to 31 December 2015


Group

Unaudited

Company Unaudited

Group

Unaudited

Company

Unaudited


£

£

£

£

Net foreign exchange (loss)/profit

1,959,358

(1,818)

(1,019,838)

564

 

 

1,959,358

(1,818)

(1,019,838)

(183,209)

 

 

10        Income taxes


Year to 31 December 2015


Group

Unaudited

Company Unaudited

Group

Unaudited

Company

Unaudited


£

£

£

£

(Loss)/profit before tax

994,240

(655,352)

(1,687,808)

(522,174)

Current tax at 20% (2015: 20%)

198,848

(131,070)

(337,562)

(104,435)

Adjusted for the effect of:





Expenses not deductible for tax purposes

-

-

-

-

Profits not subject to tax

-

-

-

-

Tax losses utilised/(carried forward)

194,848

(131,070)

(337,562)

(104,435)

 

Tax liability

-

-

-

-






There was no tax payable for the year ended 31 December 2016 (2015: £nil) due to the Group and the Company having taxable losses.

The Group's business operations currently comprise mining projects in Russia, which are either at an exploration stage or entering into active production stage. The Group has tax losses of £15,679,161 (2015: £15,024,814) carried forward on which no deferred tax asset is recognised. These losses may affect the future tax position by way of offset against profits as and when mining projects reach a full scale production stage.

 

The deferred asset arising from the accumulated tax losses has not been recognised due to insufficient evidence of timing of suitable taxable profits against which it can be recovered.

 

 

11        Property, plant and equipment

 

(a)   Group property, plant and equipment


Mining asset

Unaudited

Property

 

Unaudited

Plant and machinery

Unaudited

Office fixture and fittings Unaudited

Total


£

£

£

£

£

Cost






Balance at 1 January 2015

-

24,109

72,484

54,856

151,449

Additions

-

-

-

633

633

Disposals

-

-

-

(1,162)

(1,162)

Exchange differences

-

(1,461)

(13,910)

(2,789)

(18,160)

Balance at 31 December 2015

-

22,648

58,574

51,538

132,760

Additions

-

-

2,888

690

3,578

Transferred from intangible assets

4,388,797

-

-

-

4,388,797

Disposals

-

-

-

-

-

Exchange differences

-

2,707

25,765

5,112

33,584

Balance at 31 December 2016

4,388,797

25,355

87,227

57,340

4,558,719







Depreciation






Balance at 1 December 2015

-

(404)

(70,569)

(52,877)

(123,850)

Disposals

-

-

-

1,162

1,162

Depreciation expense

-

(82)

(805)

(1,049)

(1,936)

Exchange differences

-

78

13,543

2,618

16,239

Balance at 31 December 2015

-

(408)

(57,831)

(50,146)

(108,385)

Disposals


-

-



Depreciation expense

(15,712)

(117)

(1,207)

(599)

(17,635)

Exchange differences

-

(180)

(25,438)

(4,809)

(30,427)

Balance at 31 December 2016

(15,712)

(705)

(84,476)

(55,554)

(156,447)







Carrying amount:






at 31 December 2016

4,373,085

24,650

2,751

1,786

4,402,272

at 31 December 2015

-

22,240

743

1,392

24,375







 

(b)   Assets in the course of construction



2016

2015



£

£

Cost




Balance at 1 January


-

-

Additions


39,216

-

Balance at 31 December


39,216

-

Assets in the course of construction represent the group investment in the powerline to deliver electricity to the mining site. By 31 December 2016 the power line had not been commissioned yet.

 

(c)   Company's office fixture and fittings



2016

Unaudited

2015

Unaudited



£

£

Cost




Balance at 1 January


39,918

40,447

Additions


-

633

Disposal


-

(1,162)

Balance at 31 December


39,918

39,918

 

Depreciation




Balance at 1 January


(39,213)

(39,362)

Depreciation expense


(467)

(1,013)

Disposals


-

1,162

Balance at 31 December


(39,680)

(39,213)

 

Carrying amount


238

705

 

The Group's and Company's property, plant and equipment are free from any mortgage or charge.

 

12        Intangible assets

 

In 2016 intangible assets represented only capitalised costs associated with Group's exploration, evaluation and development of mineral resources.



2016

Unaudited

2015

Unaudited



£

£

Cost




Balance at 1 January


3,200,726

3,276,976

Additions


620,416

516,701

Transferred to mining asset


(4,388,797)

-

Exchange differences


1,380,789

(592,951)

Balance at 31 December


813,134

3,200,726

 

The Company did not directly own any intangible assets at 31 December 2016 (2015 - nil)

 

 

13        Significant subsidiaries

 

Details of the Company's significant subsidiaries at 31 December 2016 are as follows:

 

Name of subsidiary

Place of incorporation

Proportion of ordinary shares held

Principal activity

Urals Alluvial Platinum Limited

Cyprus

100%

Holding Company

ZAO Eurasia Mining Service

Russia

100%

Holding Company

ZAO Kosvinsky Kamen

Russia

75%

Mineral Evaluation

ZAO Terskaya Mining Company

Russia

80%

Mineral Evaluation

ZAO Yuksporskaya Mining Company

Russia

100%

Mineral Evaluation

Eurasia Mining (UK) Limited

UK

100%

Holding Company





 

* In 2011 the Group signed the Memorandum of Understanding (the "MOU") to acquire an interest in the Kamushanovsky uranium project in Kyrgyzstan. To facilitate the MOU, the Group has nominated Energy Resources Asia Limited (the "ERA"), a British Virgin Islands registered company. During 2011 the Group raised $486,000 (£299,960) net of expenses on the market to fund acquisition and during the same period the Group invested $602,000 (£389,392) (note 14 ) towards the acquisition of interest in the company holding Kamushanovsky licence. Following this investment work has continued on completing a feasibility study for the mining of this project. The legal holder of the Kamushanovsky licence is negotiating a sale of all or part of the deposit and it is expected that the investment made by the Group will be refunded to the Group at profit.

 

Directors consider ERA to be a subsidiary of the Company despite holding only 48.33% of the voting power of the entity based on the fact that the Company has the ability to use its power over the investee to affect the amount of the Company's returns.

 

The Company's investments in subsidiaries presented on the basis of direct equity interest and represent the following:



 

2016

 

2015



£

£

Investment in subsidiaries (i)


1,277,489

1,277,489

Investment in joint operations (ii)


44,131

-



1,321,620

1,277,489

 

(i)            Investment in subsidiaries represent the Company investments made into its 100% subsidiary Urals Alluvial Platinum (the "UAP"), which in turn controls other subsidiaries within the Group.

 

(ii)           In 2015 the Group entered into the agreement to participate in the Semenovsky Tailings Project in Russia. Ultimate legal structure of the arrangements is subject to the results of studies and due diligence work carried down by the parties and until then investment is treated as an investment in joint operations. Work has largely been funded by one of the participating partners and the Group contribution by the end of 2016 totalled to £44,131 (2015- nil).

 

Subsidiary with material non-controlling interests ("NCI")

 

Summary of non-controlling interest



2016

Unaudited

2015

Unaudited



£

£

As at 1 January


(797,178)

(592,761)

NCI arising on the acquisition of subsidiary



-

Profit/(loss) attributable to NCI


 253,975

(315,342)

Exchange differences


 (132,190)

110,925

As at 31 December 2014


(675,393)

(797,178)

 

Non-controlling interest on subsidiary basis



2016

Unaudited

2015

Unaudited



£

£

Energy Resources Asia Limited


326,194

286,558

ZAO Kosvinsky Kamen


(436,518)

(494,610)

ZAO Terskaya Mining Company


(565,069)

(589,126)



(675,393)

(797,178)

 

Energy Resources Asia Limited



2016

Unaudited

2015

Unaudited



£

£

Non-current assets


489,312

406,702

Current assets


-

-

Total assets


489,312

406,702





Current liabilities


(3,545)

(2,946)

Total liabilities


(3,545)

(2,946)

Net assets


485,767

403,756

Equity attributable to owners of the parent


159,573

117,198

Non-controlling interests


326,194

286,558





Loss for the year attributable to owners of the parent


-

(657)

Loss for the year attributable to NCI


-

(613)

Loss for the year


-

(1,270)





Total comprehensive income for the year attributable to owners of the parent


42,375

9,133

Total comprehensive income for the year attributable to NCI


39,646

8,545

Total comprehensive income for the year


82,011

17,678





 

 



 

ZAO Kosvinsky Kamen



2016

Unaudited

2015

Unaudited



£

£

Non-current assets


4,001,272

2,655,286

Current assets


71,104

133,514

Total assets


4,072,376

2,788,800

Non-current liabilities


5,824,503

(4,781,766)

Current liabilities


15,602

(7,133)

Total liabilities


5,840,105

(4,788,899)

Net assets


(1,767,729)

(2,000,099)

Equity attributable to owners of the parent


(1,331,211)

(1,505,489)

Non-controlling interests


(436,518)

(494,610)





Profit/(loss) for the year attributable to owners of the parent


682,134

(923,317)

Profit/(loss) for the year attributable to NCI


227,378

(307,773)

Profit/(loss)for the year


909,512

(1,231,090)





Total comprehensive income for the year attributable to owners of the parent


85,093

(578,203)

Total comprehensive income for the year attributable to NCI


58,092

(210,123)

Total comprehensive income for the year


143,185

(788,326)





ZAO Terskaya Mining Company



2016

Unaudited

2015

Unaudited



£

£

Non-current assets


760,534

280,526

Current assets


58,534

41,710

Total assets


819,068

322,236

Non-current liabilities


708,917

(299,920)

Current liabilities


86,091

(118,541)

Total liabilities


795,008

(418,461)

Net assets


24,060

(96,225)

Equity attributable to owners of the parent


589,129

499,901

Non-controlling interests


(565,069)

(589,126)





Profit/(loss) for the year attributable to owners of the parent


106,388

(27,824)

Profit/(loss)for the year attributable to NCI


26,597

(6,956)

Profit/(loss) for the year


132,985

(34,780)

Total comprehensive income for the year attributable to owners of the parent


193,378

(63,822)

Total comprehensive income for the year attributable to NCI


24,057

(2,839)

Total comprehensive income for the year


217,435

(66,661)



 

14        Other financial assets


2016

2015


Group

Unaudited

Company

Unaudited

Group

Unaudited

Company

Unaudited


£

£

£

£

Loans to subsidiaries

-

5,765,654

-

4,915,081

Advanced to acquire interest in

uranium project

489,312

-

406,702

-

 

 

489,312

5,765,654

406,702

4,915,081

 

The monies advanced to the subsidiary enterprises by the Company are on an interest free basis with no fixed date for repayment. As such these amounts represent a net investment in the other members of the Group and are recognised at their full value as there are no indications of impairment.

 

In prior years the Group advanced $602,000 with the intention to acquire an interest in the Kyrgyzstan company holding the Kamushanovsky uranium exploration licences (note 13 ). This amount is equivalent to £489,312 using the prevailing rate of exchange at the year end (2015: £406,702).

The maximum exposure to credit risk at the reporting date is the carrying value of each class of assets mentioned above.

Recoverability of the loans is dependent on the borrower's ability to (i) transform them into cash generating units through discovery of economically recoverable reserves and their development into profitable production or (ii) to complete a sale of all or part of the deposit, which is currently being negotiated.

 

15        Trade and other receivables


2016

2015


Group

Unaudited

Company

Unaudited

Group

Unaudited

Company

Unaudited


£

£

£

£

Trade receivables

-

-

-

-

Other receivables

105,016

21,073

178,554

14,711

Prepayments

44,130

41,724

32,241

17,297

Due from subsidiaries


17,243

-

38,913

 

 

149,146

80,040

210,795

70,921






The fair value of trade and other receivables is not materially different to the carrying values presented. None of the receivables are secured or past due.

 

16        Issued capital



2016

Unaudited

2015

Unaudited





Issued and fully paid ordinary shares

with a nominal value of 0.1p




Number


1,509,787,583

1,269,042,780

Nominal value(£)


1,509,788

1,269,043





Issued and fully paid deferred shares

 with a nominal value of 4.9p




Number


143,377,203

143,377,203

Nominal value (£)


7,025,483

7,025,483





Share premium




Value (£)


17,042,781

15,890,910





Total issued capital (£)


25,577,992

24,185,436

 

Fully paid ordinary shares carry one vote per share and carry the right to dividends.

 

Deferred shares have attached to them the following rights and restrictions:

- they do not entitle the holders to receive any dividends and distributions;

- they do not entitle the holders to receive notice or to attend or vote at General Meetings of the Company;

- on return of capital on a winding up the holders of the deferred shares are only entitled to receive the amount paid up on such shares after the holders of the ordinary shares have received the sum of 0.1p for each ordinary share held by them and do not have any other right to participate in the assets of the Company.

 

Issue of ordinary share capital in 2016:


Price

in pence per share

Number

Unaudited

Nominal value

Unaudited




£

As at 1 January 2015


1,269,042,780

1,269,043

23 February 2016

0.550

22,523,357

22,523

05 April 2016

0.770

13,388,100

13,388

12 May 2016

0.550

90,909,091

90,909

31 May 2016

0.550

9,090,909

9,091

01 August 2016

0.550

28,181,818

28,182

20 September 2016

0.650

24,321,539

24,322

26 October 2016

0.875

1,142,857

1,143

26 October 2016

0.550

391,608

392

18 November 2016

0.625

4,800,000

4,800

20 December 2016

0.650

30,769,231

30,769

20 December 2016

0.800

2,812,500

2,812

29 December 2016

0.725

12,413,793

12,414



240,744,803

240,745

As at 31 December 2016


1,509,787,583

1,509,788

 

 

17        Contingent shares

 

Share options and warrants outstanding at the end of the year have the following expiry date and exercise prices:

 

Expiry date


Exercise price in pence per share

Number of options as at

31 December 2016

Unaudited

Number of options as at

31 December 2015

Unaudited

Share options





21 December-2017


7.00

250,000

250,000




250,000

250,000

Weighted average exercise price



7.00

7.00






Warrants





11 July 2017


1.50

500,000

500,000

12 November 2018


0.57

950,000

950,000




1,450,000

1,450,000

Weighted average exercise price



0.89

0.89

Total contingently issuable shares

at 31 December



1,700,000

1,700,000

 

All listed options and warrants were exercisable as at 31 December 2016 and 2015 respectively.

 

18        Other reserves

 


2016

2015


Group

 Unaudited

Company

Unaudited

Group

 Unaudited

Company

Unaudited


£

£

£

£

Capital redemption reserve

3,539,906

3,539,906

3,539,906

3,539,906






Foreign currency translation reserve:





At 1 January

(12,202)

-

(294,935)

-

Recognised in the period

(248,650)

-

282,733

-

At 31December

(260,852)


(12,202)

-






Share-based payments reserve:





At 1 January

2,788

2,788

399,235

399,235

Recognised in the period

-

-

2,788

2,788

Lapsed in the period (note 20 )



(399,235)

(399,235)

At 31December

2,788

2,788

2,788

2,788






 

 

3,281,842


3,530,492

3,542,694

 

The capital redemption reserve was created as a result of a share capital restructure in early years.

The foreign currency translation reserve represents exchange differences relating to the translation from the functional currencies of the Group's foreign subsidiaries into GBP.

The share-based payments reserve represents (i) reserve arisen on the grant of share options to employees under the employee share option plan and (ii) reserve arisen on the grant of warrants under terms of professional service agreements.

 

19        Borrowings


2016

2015

Repayments made in shares

Group

 Unaudited

Company

Unaudited

Group

 Unaudited

Company

Unaudited


£

£

£

£

Unsecured loan

318,314

318,314

-

-


318,314

318,314

-

-

 

In 2016 the Company entered into three consecutive short term unsecured loan facilities with Sanderson Capital Partners Limited. Under the terms of facilities the funds were made available in monthly intervals, loan interest prepaid in shares and due for issue on signature of the loan, drawdown fees payable on each drawdown and payable in shares.

 

Loan 1 - The Company entered into the loan facility for the total of £250,000 in February 2016. The loan was drawn in February 2016 and repaid in full in May 2016.

Loan 2 - The Company entered into the loan facility for the total of £500,000 in August 2016. The loan was drawn in monthly instalments from August through November 2016. The loan was due for repayment in January 2017 but in December the Company agreed with the lender to roll over the loan 2 into to the loan 3.

Loan 3 - The Company entered into the loan facility for the total of £1,000,000 in December 2016. £500,000 was rolled over from the loan 2 and another £500,000 to be drawn in five monthly instalments starting from December 2016. The loan is due for repayment in May 2017.

 

Combined movement of the three loans:


2016

Unaudited


£

Loan proceeds

900,000

Arrangement fees

(7,500)

Interest accrued

224,814

Payments made in shares

(549,250)

Payments made in cash

(250,000)

Balance at 31 December 2016

318,314

 

20        Trade and other payables


2016

2015


Group

Unaudited

Company

Unaudited

Group

Unaudited

Company

Unaudited


£

£

£

£

Accruals

65,832

60,467

79,620

72,932

Social security and other taxes

12,375

5,064

5,188

1,785

Other payables

79,667

43,333

229,348

153,326

Due to related party

-

198,583

-

198,583


157,875

307,447

314,156

426,626

 

The fair value of trade and other payables is not materially different to the carrying values presented. The above listed payables were all unsecured.

 

21        Share-based payments

Share options

No share options had been granted by the Group in 2016 (2015: nil).

 

Movement in number of share options and their related weighted average exercise prices are as follows:

 

(Price expressed in pence per share)

2016

2015


Average exercise price

Unaudited

No. of options

Unaudited

Average exercise price

Unaudited

No. of options

Unaudited

Share options





At 1 January

7.00

250,000

1.38

31,750,000

Lapsed

-

-

1.33

(31,500,000)

At 31 December

7.00

250,000

7.00

250,000

The exercise price of all outstanding options at 31 December 2016 was 7p.

Other than those options which either expired or were forfeited during the year all options were exercisable as at 31 December 2016 and 2015 respectively.

 

Warrants

No warrants were granted by the Group in 2016 (2015: 950,000).

Movement in number of warrants outstanding and their related weighted average exercise prices are as follows:

 

(Price expressed in pence per share)

2016

2015


Average exercise price

Unaudited

No. of warrants

Unaudited

Average exercise price

Unaudited

No. of warrants

Unaudited

Warrants





At 1 January

0.89

1,450,000

0.90

42,568,358

Granted

-

-

0.57

950,000

Exercised

-

-

0.63

(12,068,358)

Exercised

-

-

1.00

(30,000,000)

At 31 December

0.89

1,450,000

0.89

1,450,000

All listed warrants were exercisable as at 31 December 2016 and 2015 respectively.

 

22        Profit per share

 

Basic loss per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year.



2016

Unaudited

2015

Unaudited



£

£

Profit/(loss) attributable to equity holders of the company


740,265

(1,372,466)

Weighted average number of ordinary shares in issue


1,317,930,420

1,216,456,798

Basic profit/(loss) per share (pence)


0.06

(0.11)

 

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.



2016

Unaudited

2015

Unaudited




£

Profit/(loss) attributable to equity holders of the company


740,265

(1,372,466)





Weighted average number of ordinary shares in issue


1,317,930,420

1,216,456,798

Share options and warrants


1,700,000

-

Weighted average number of ordinary shares for  diluted earnings per share


1,319,630,420

1,216,456,798

Diluted profit per share(pence)


0.06

(0.011)

 

There was no dilutive effect of share options or warrants in 2015.

 

23        Related party transactions

 

Transactions with subsidiaries and joint venture

In the normal course of business, the Company provides funding to its subsidiaries for reinvestment into exploration projects and manages funds received from partners in joint venture.



2016

Unaudited

2015

Unaudited



£

£

Receivables from subsidiaries


17,243

38,913

Loans provided to subsidiaries


5,765,654

4,915,081

Payables to subsidiaries


(198,583)

(198,583)





Service charges to subsidiary


120,000

120,000

 

The amounts owed by subsidiaries are unsecured and receivable on demand but are not expected to be fully received within the next twelve months but when the project reaches such an advanced stage of development that it can be repaid out of the proceeds of either the project's cash flow or through the direct or indirect disposal to a third party of an interest in the project.



 

 

Transactions with key management personnel

The Group considers that the key management personnel are the directors of the Company.

 

The following amounts were paid and accrued to the directors of the Company who held office at 31 December 2016:



2016

Unaudited

2015

Unaudited



£

£

Short-term benefits


153,512

151,149



153,512

151,149

 

The remuneration of the directors is determined by the remuneration committee having regard to the performance of individuals and market trends. No pension contribution has been made for the directors in 2016 (2015: nil).

 

An analysis of remuneration for each director of the company in the current financial year:

 

Name

Position

Salaries and allowances

Unaudited

Directors fees

Unaudited



£

£

M. Martineau

Non-Executive Chairman

-

20,000

C. Schaffalitzky

Managing Director

103,512

-

G. FitzGerald

Non-Executive Director

-

15,000

D. Suschov

Non-Executive Director


15,000



103,512

50,000

24        Operating lease arrangements

Operating leases relate to the office premises with lease terms up to one year. The Group does not have an option to purchase the leased asset at the expiry of the lease period.

 


2016

2015


Group

Unaudited

Company

Unaudited

Group

Unaudited

Company

Unaudited


£

£

£

£

Payments recognised as an expense:





Minimum lease payments

14,701

9,625

17,586

11,417






Non-cancellable operating lease commitments:





No longer than one year

33,457

27,250

33,011

27,250

Longer than one year and not longer than five years

36,333

36,333

63,583

90,833

Longer than five years

-


-

-


69,790

63,583

96,594

118,083

 

Minimum lease payment was adjusted for the office premises sub-lease receipts received by the Company in 2016.

Operating lease commitments represent full commitment by the Company under office lease arrangements. Expected sub-lease receipts are not included and hence do not reduce amount of the Company's commitments.

 



 

25        Commitments

 

The Group is committed to issue 20m warrants of the Company shares exercisable at 1p to Sanderson Capital Partners Limited on the loan repayment date due in May 2017 with an expiry date of three years from issue.

 

The Group has no other material commitments.

 

26        Contingent liabilities and contingent assets

 

The Group has no material contingent liabilities and assets (2015 - £nil).

 

27        Risk management objectives and policies

Financial risk management objectives

The Group's operations are limited at present to investing in entities that undertake mineral exploration. All investments in exploration are capitalised on project basis, which are funded by shareholders funds, fixed rate borrowings and contributions from the partners in joint ventures. The Group's activities expose it to a variety of financial risks including currency, fair value and liquidity risk. The Group seeks to minimise the effect of these risks on daily basis, though due to its limited activities the Group has not applied policy of using any financial instruments to a hedge these risks exposures.

Risk management is carried out by the Company under close board supervision.

Foreign currency risk

The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to US Dollars and Russian Roubles. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations. The Group's policy is not to enter into currency hedging transactions.

 

The following significant exchange rates have been applied during the year:

 

GBP

Average rate

Reporting date spot rate


2016

Unaudited

2015

Unaudited

2016

Unaudited

2015

Unaudited

USD

1,364

1.528

1.230

1.480

RUB

92,132

93.392

75,347

108.489

 

Sensitivity analysis

A reasonably possible strengthening (weakening) of the USD and RUB, as indicated below, against GBP at 31 December would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss before taxes by the amounts shown below. The analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.


Strengthening

Weakening


Equity

Unaudited

Profit or loss

Unaudited

Equity

Unaudited

Profit or loss

Unaudited


USD

USD

USD

USD

31 December 2016





USD (5% movement)

106,294

38,858

(96,169)

(35,158)

RUB (5% movement)

(87,336)

54,278

79,012

(49,109)






31 December 2015





USD (5% movement)

(6,303)

12,642

5,702

(11,436)

RUB (5% movement)*

(107,421)

(67,601)

97,193

61,162

 

Interest rate risk

As the Group has no significant interest-bearing assets, the group's operating cash flows are substantially independent of changes in market interest rates.

 

Fair values

In the opinion of the directors, there is no significant difference between the fair values of the Group's and the Company's assets and liabilities and their carrying values.

Credit risk

The Group's exposure to credit risk is limited to the carrying amount of financial assets recognised at the statement of financial position date, as summarised below:

 


2016

2015


Group

Unaudited

Company

Unaudited

Group

Unaudited

Company Unaudited


£

£

£

£

Non-current loans and advances

489,312

5,765,654

406,702

4,915,081

Trade and other receivables

149,146

80,040

210,795

70,921

Cash and cash equivalents

154,674

116,428

104,925

83,444


793,132

5,962,122

722,422

5,069,446






 

The Group's risk is on cash at bank is mitigated by holding of majority of funds at "A" rated bank.

No significant amounts are held at banks rated less than "B". Cash is held either on current account or on short-term deposit at floating rate. Interest determined by the relevant prevailing base rate. The fair value of cash and cash equivalents at 31 December 2016 are not materially different from its carrying value.

 

Recoverability of the loans is dependent on the borrower's ability to transform them into cash generating units through discovery of economically recoverable reserves and their development into profitable production.

 

The Company continuously monitors defaults by the counterparties, identified either individually or by group, and incorporates this information into its credit risk control. Management considers that all of the above financial assets that are not impaired are of good credit quality.

Liquidity risk

Ultimate responsibility for liquidity risk management rests with the board of directors, which has built an appropriate liquidity risk management framework for the management of the Group's short, medium and long term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, borrowing facilities, cash and cash equivalent by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

 

The following table details the Group's remaining contractual maturity for its non-derivative financial liabilities.


Current

Unaudited

Non-current

Unaudited


within

6 months

6 to 12

months

1 to 5

years

later

than 5 years


£

£

£

£

2016





Borrowings

318,314

-

-

-

Trade and other payables

157,874

-

-

-


476,188

-

-

-

2015





Trade and other payables

314,156

-

-

-


314,156

-

-

-

 

The following table details the Company's remaining contractual maturity for its non-derivative financial liabilities.


Current

Unaudited

Non-current

Unaudited


within

6 months

6 to 12

months

1 to 5

years

later

than 5 years


£

£

£

£

2016





Borrowings

318,314

-

-

-

Trade and other payables

105,864

198,583

-

-


424,178

198,583


-

2015





Trade and other payables

228,043

198,583

-

-


228,043

198,583

-

-

 

The tables above have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows.

The contractual maturities reflect the gross cash flows, which may differ to the carrying values of the liabilities at the statement of financial position date.

Capital risk

At present the Group's capital management objective is to ensure the Group's ability to continue as a going concern.

Capital is monitored on the basis of its carrying amount and summarised as follows:


2016

2015


Group

Unaudited

Company

Unaudited

Group

Unaudited

Company

Unaudited


£

£

£

£

Total borrowings

318,314

318,314

-

-

Less cash and cash equivalents

(154,674)

 (116,428)

(104,925)

(83,444)

Net debt

163,640

201,886

-

-

Total equity

6,314,935

6,658,219

4,430,763

5,921,014

Total capital

6,478,575

6,860,105

4,430,763

5,921,014

Gearing

3%

3%

0%

0%






Capital structure is managed depending on economic conditions and risk characteristics of underlying assets. In order to maintain or adjust capital structure, the Group may issue new shares and debt financial instruments or sell assets to reduce debt.

 

28        Events after the statement of financial position date

 

Subsequent to the reporting date the Company raised the following funds:

 

a) Issue of shares (Unaudited)

Date

Transaction

No of shares issued

 

Nominal value

£

03 February 2017

Issue of ordinary shares under term of financing arrangements

15,652,174

15,652

21 February 2017

Issue of ordinary shares under term of financing arrangements

2,727,273

2,727

27 March 2017

Issue of ordinary shares under term of financing arrangements

2,857,173

2,857

26 April 2017

Issue of ordinary shares under term of financing arrangements

1,500,000

1,500





Total


22,736,620

22,736

 

b) Loan proceeds (Unaudited)

Date

Transaction


£

19 January 2017

Drawn under the terms of financing arrangements


100,000

21 February 2017

Drawn under the terms of financing arrangements


100,000

19 March 2017

Drawn under the terms of financing arrangements


100,000

20 April 2017

Drawn under the terms of financing arrangements


50,000

 

No other adjusting or significant non-adjusting events have occurred between the statement of financial position date and the date of authorisation of the financial statements.

 

29        Annual Report Accounts and AGM

 

A copy of the unaudited report and accounts will be available from the Company's website (www.eurasiamining.co.uk) from today. The annual report and audited accounts will be dispatched to shareholders on or before 6 June 2017 and will be available on the Company's website www.eurasiamining.co.uk on that date.

 

The Company's Annual General Meeting is due to be held at the East India Club, 16 St James's Square, London, SW1Y 4LH on 29 June 2017 at 11.00am.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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