Final Results

Cora Gold Limited

22 May 2023

 

Cora Gold Limited / EPIC: CORA.L / Market: AIM / Sector: Mining

22 May 2022

Cora Gold Limited ('Cora' or the 'Company')

2022 Final Results

and

Notice of Annual General Meeting

Cora Gold Limited, the West African focused gold company, is pleased to announce its final audited results for the year ended 31 December 2022, and to give notice of the Company's Annual General Meeting ('AGM') which will be held at 12:00pm on the 28 June 2023 at the offices of Hannam & Partners, 3rd Floor, 7-10 Chandos Street, London, W1G 9DQ, United Kingdom and online.

Highlights

Ahead of construction, targeted to start in 2023, Cora's flagship Sanankoro Gold Project delivered significant highlights throughout 2022, including:

●     Updated Mineral Resource Estimate ('MRE') provided a 14% increase in total MRE ounces for 24.9 Mt at 1.15 g/t Au for 920 koz, including a 22% increase in oxide Indicated Mineral Resources to 509 koz.

●     Environmental Permit awarded in October 2022 following the completion and submission of the Environmental and Social Impact Assessment ('ESIA').

●     Optimised Project Economics, published November 2022 (using a US$1,750 gold price), which included:

o  52.3% internal rate of return ('IRR')

o  1.2-year payback period

o  US$71.8 million first full year Free Cash Flow ('FCF')

o  US$234 million FCF over life of mine

o  US$997/oz All-in Sustaining Costs ('AISC')

o  6.8 years Reserve mine life

o  56,000 oz annual average production

o  US$90 million pre-production capital

Post year end, during Q1 2023 the Company closed a fundraising through equity and convertible loan notes ('CLN') for US$19.8 million to support the commencement of development at Sanankoro during 2023.

Bert Monro, CEO of Cora, commented: "2022 has been a significant year for Cora as we approach construction readiness at our Sanankoro Gold Project.  The bulk of our attention focused on the delivery of our Definitive Feasibility Study and Optimised Project Economics, which were published in November.  This work underlined the robust technical and economic fundamentals of the Sanankoro Project and highlighted in particular the potential strong free cash flow of US$71.8 million in the first full year, based on a US$1,750 gold price.  Equally important is the low technical risk with an open-pit free digging oxide operation, we have the benefit of lower operating costs and also a low strip ratio.

"Our ongoing commitment to the responsible and sustainable development of Sanankoro has been supported by the appointment of an ESG manager in January 2022. The ESG team have continued their important work to support and engage with local communities near the Sanankoro Project, and strengthening communication channels as we approach construction.

"2023 is set to be a pivotal year for Cora and we remain focused on commencing construction in as short a time frame as practicable once permitting and financing is completed.  I would like to thank Cora's shareholders for their continued strong support and patience throughout this year."

Annual General Meeting

The AGM will be held at 12.00 p.m. (United Kingdom time) on 28 June 2023 at the offices of Hannam & Partners, 3rd Floor, 7-10 Chandos Street, London, W1G 9DQ, United Kingdom plus, in the interest of allowing as many shareholders as possible to attend, the AGM will also take place online. There are two ways in which attendees may join the AGM online:

Option 1               By dial in. Use one of the telephone numbers and Meeting ID set out below:

●     telephone number:                                        [phone]

[phone]

[phone]

●     other local telephone numbers: https://us02web.zoom.us/u/kbDDvV7Ly4

●     Meeting ID:        831 9560 2852 #

Option 2               Over the internet. This requires the use of a device (computer, laptop, tablet or smartphone) connected to the internet. The device will need to have video switched on for the attendee to be seen, and speakers and microphone capability activated in order to be able to speak. Use the hyperlink set out below:

●     hyperlink: https://us02web.zoom.us/j/83195602852

Shareholders should note that if they elect to attend the AGM online using Option 1 above, they will not, in accordance with the articles of association of the Company, be counted as being present at the meeting and will not be entitled to vote. The Company's board of directors (the 'Board' or the 'Board of Directors') strongly advises shareholders who wish to attend online to use Option 2 above and ensure their video, microphone and speakers are switched on.

The Board strongly advises shareholders to submit their votes by proxy prior to the AGM. Shareholders who have submitted a proxy may still attend the AGM. However, submitting a proxy means shareholders know that their vote will be counted. Copies of proxy forms (both Form of Proxy and Form of Instruction) can be downloaded via the Company's website at www.coragold.com/category/company-reports.

The Company always welcomes questions from its shareholders at its general meetings. On this occasion the Board would rather shareholders submit their questions beforehand in order that the Board may ensure questions are answered either at the AGM or afterwards. Questions should be submitted by email to [e-mail] no later than 12.00 p.m. (United Kingdom time) on 23 June 2023.

The Company's Notice of AGM and Forms of Proxy will be dispatched to shareholders shortly and will be available on the website at https://www.coragold.com.

Market Abuse Regulation ('MAR') Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014 ('MAR'), which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, until the release of this announcements

**ENDS**

For further information, please visit http://www.coragold.com or contact:

Bert Monro Craig Banfield	Cora Gold Limited	[e-mail]
Christopher Raggett Charlie Beeson	finnCap Ltd Nomad & Broker	[phone]
Susie Geliher Isabelle Morris Will Turner	St Brides Partners Financial PR	[e-mail]

Notes

Cora is a West African gold developer with two de-risked project areas within two known gold belts in Mali and Senegal covering c.600 sq km. Led by a team with a proven track record in making multi-million ounce gold discoveries that have been developed into operating mines, its primary focus is on developing the Sanankoro Gold Project in the Yanfolila Gold Belt, southern Mali, into an open pit oxide mine. Based on a gold price of US$1,750/oz and a Maiden Probable Reserve of 422 koz at 1.3 g/t Au the project has strong economic fundamentals, including 52% IRR, US$234 million Free Cash Flow over life of mine and all-in sustaining costs of US$997/oz.

CHAIR'S STATEMENT

I am pleased to present the Annual Report of Cora Gold Limited ('Cora' or 'the Company') and its subsidiaries (together the 'Group') for the year ended 31 December 2022.

Cora is a gold company focused on two world class gold regions in Mali and Senegal in West Africa, being the Yanfolila Gold Belt (south Mali) and the Kédougou-Kéniéba Inlier gold belt (also known as the 'Kenieba Window'; west Mali / east Senegal).

The strategy of the Company is, through systematic exploration, to discover, delineate and develop economic ore bodies. Historical exploration has resulted in the highly prospective Sanankoro Gold Discovery ('Sanankoro', 'Sanankoro Gold Project' or the 'Project') in the Yanfolila Gold Belt. Cora's highly experienced and successful management team has a proven track record in making multi-million ounce gold discoveries which have been developed into operating mines. Cora's primary focus is on further developing its flagship Sanankoro Gold Project, which the Company believes has the potential for a standalone mine development.

Highlights

2022 has been a milestone year for Cora. Having completed work on a Definitive Feasibility Study ('DFS') for Sanankoro, Cora can now look towards mine development. Highlights for Sanankoro included:

●     During Q1 2022 a drill programme got underway at Sanankoro focused on enhancing the November 2021 Mineral Resource Estimate ('MRE') of 809.3 koz at 1.15 g/t Au. The drill programme was completed in Q2 2022 and comprised 6,992 metres of reverse circulation plus 897 metres of aircore drilling.

●     In Q3 2022 Cora announced an updated MRE for 24.9 Mt at 1.15 g/t Au for 920 koz, comprising Indicated Mineral Resources of 16.1 Mt at 1.27 g/t Au for 657 koz and Inferred Mineral Resources of 8.7 Mt at 0.94 g/t Au for 263 koz. This represented a 14% increase in total MRE ounces compared to the November 2021 MRE, including a 22% increase in oxide Indicated Mineral Resources to 509 koz from 419 koz. In addition, the 2022 drilling programme identified two new discoveries, at Fode 1 and Target 6, close to existing Mineral Resources.

●     On 14 October 2022 an Environmental Permit was awarded in relation to mine development at the Sanankoro Gold Project. This followed the completion and submission of an Environmental and Social Impact Assessment on Sanankoro in July 2022, with all environmental work having been completed in alignment with the International Finance Corporation Performance Standards. Following the award of the Environmental Permit and completion of the DFS (see below) the Company is able to submit an application for a Mining Permit over Sanankoro. On 28 November 2022 the Mali government announced the suspension of issuing new mining permits. When this moratorium is lifted then formal submission of the DFS and the application for a Mining Permit will be submitted to the Mali government. Further updates on this will be provided in due course.

●     In November 2022 Cora announced completion of the DFS for Sanankoro and the results of subsequent Optimised Project Economics, notably:

○     JORC-compliant Maiden Probable Reserves of 10.1 Mt at 1.30 g/t Au for 422 koz for the Selin, Zone A and Zone B deposits;

○     post tax and based on a gold price of US$1,750/oz:

·    52.3% internal rate of return

·    1.2 year payback period

·    US$71.8 million first full year free cash flow ('FCF')

·    US$234 million FCF over life of mine

·    US$997/oz all-in sustaining cost

·    6.8 years Reserve mine life

·    56,000 oz annual average production

o US$90m pre-production capital (including mining pre-production & contingencies); and

o solar hybrid power option incorporated into the plant design, delivering savings in both operating costs and carbon emissions.

●     In addition, the Company announced that:

○     further infill drilling should, in time, enable the conversion of MRE Inferred Resources into Indicated with a view to them then being added to the inventory of Reserves for the mine schedule; and

○     an independently completed Exploration Target estimate contains between 26.0 Mt and 35.2 Mt with a grade range of 0.58 g/t Au - 1.21 g/t Au for a potential gold content of 490 koz - 1,370 koz, giving significant potential upside.

In Q4 2022 Cora provided an update on a regional exploration programme carried out across all of Cora's southern Mali permits in the Yanfolila Project Area. Most notably the results of this programme identified over 12 km of pre-drilling gold structures discovered from early stage exploration work across all permits in the Yanfolila Project Area.

Outlook for 2023

2023 has already been busy for Cora with the closing of a fundraising in Q1 2023 for aggregate investments of US$19.8 million, comprising US$3.9 million for ordinary shares in the capital of the Company plus US$15.9 million for convertible loan notes. We are very pleased with the strong support received for this fundraising and over the coming months we look forward to providing progress updates on our flagship Sanankoro Gold Project, including submission of the application for a Mining Permit once the current moratorium is lifted.

Cora's primary focus is on further developing Sanankoro and following a review of projects in 2023 the board of directors decided to terminate the Farani, Farassaba III, Siékorolé and Tékélédougou projects in the Yanfolila Project Area.

Finally, I'd like to take this opportunity to thank the Cora team for their hard work and thank Cora's shareholders for their continued support. 2022 was a milestone year for the Company and I am confident Cora will make further significant progress during 2023 and beyond.

Edward Bowie

Non-Executive Director & Chair of the Board of Directors

19 May 2023

Consolidated Statement of Financial Position

as at 31 December 2022

All amounts stated in thousands of United States dollar

	Note(s)		2022 US$'000	2021 US$'000
Non-current assets
Intangible assets	9		23,826 ________	21,574 ________
Current assets
Trade and other receivables	10		91	208
Cash and cash equivalents	11		461 ________	5,376 ________
			552 ________	5,584 ________
Total assets			24,378 ________	27,158 ________
Current liabilities
Trade and other payables	12		(193) ________	(570) ________
Total liabilities			(193) ________	(570) ________
Net current assets			359 ________	5,014 ________
Net assets			24,185 ________	26,588 ________
Equity and reserves
Share capital	14		28,202	28,202
Retained deficit			(4,017) ________	(1,614) ________
Total equity			24,185 ________	26,588 ________

The consolidated financial statements were approved and authorised for issue by the board of directors of Cora Gold Limited on 19 May 2023 and were signed on its behalf by

Robert Monro

Chief Executive Officer & Director

19 May 2023

The attached notes form an integral part of the Consolidated Financial Statements.

Consolidated Statement of Comprehensive Income

for the year ended 31 December 2022

All amounts stated in thousands of United States dollar (unless otherwise stated)

	Note(s)		2022 US$'000	2021 US$'000
Overhead costs	6		(1,502)	(1,296)
Impairment of intangible assets	9		(1,012) ________	(466) ________
Loss before income tax			(2,514)	(1,762)
Income tax	7		- ________	- ________
Loss for the year			(2,514)	(1,762)
Other comprehensive income			- ________	- ________
Total comprehensive loss for the year			(2,514) ________	(1,762) ________
Earnings per share from continuing operations attributable to owners of the parent
Basic and fully diluted earnings per share (United States dollar)	8		(0.0087) ________	(0.0076) ________

The attached notes form an integral part of the Consolidated Financial Statements.

Consolidated Statement of Changes in Equity

for the year ended 31 December 2022

All amounts stated in thousands of United States dollar

Share capital US$'000

Retained deficit US$'000

Total equity US$'000

As at 01 January 2021			18,118 ________	(96) ________	18,022 ________
Loss for the year			- ________	(1,762) ________	(1,762) ________
Total comprehensive loss for the year			- ________	(1,762) ________	(1,762) ________
Proceeds from shares issued			10,063	-	10,063
Issue costs			(126)	-	(126)
Proceeds from share options exercised			147	-	147
Share based payments - share options			- ________	244 ________	244 ________
Total transactions with owners, recognised directly in equity			10,084 ________	244 ________	10,328 ________
As at 31 December 2021			28,202 ________	(1,614) ________	26,588 ________

As at 01 January 2022		28,202 ________	(1,614) ________	26,588 ________
Loss for the year		- ________	(2,514) ________	(2,514) ________
Total comprehensive loss for the year		- ________	(2,514) ________	(2,514) ________
Share based payments - share options		- ________	111 ________	111 ________
Total transactions with owners, recognised directly in equity		- ________	111 ________	111 ________
As at 31 December 2022		28,202 ________	(4,017) ________	24,185 ________

The attached notes form an integral part of the Consolidated Financial Statements.

Consolidated Statement of Cash Flows

for the year ended 31 December 2022

All amounts stated in thousands of United States dollar

	Note(s)	2022 US$'000	2021 US$'000
Cash flows from operating activities
Loss for the year		(2,514)	(1,762)
Adjustments for:
Share based payments - share options		111	244
Impairment of intangible assets	9	1,012	466
Decrease / (increase) in trade and other receivables		117	(149)
(Decrease) / increase in trade and other payables		(377) ________	354 ________
Net cash used in operating activities		(1,651) ________	(847) ________
Cash flows from investing activities
Additions to intangible assets	9	(3,264) ________	(8,375) ________
Net cash used in investing activities		(3,264) ________	(8,375) ________
Cash flows from financing activities
Proceeds from shares issued	14	-	10,063
Issue costs	14	-	(126)
Proceeds from share options exercised	14	- ________	147 ________
Net cash generated from financing activities		- ________	10,084 ________
Net (decrease) / increase in cash and cash equivalents		(4,915)	862
Cash and cash equivalents at beginning of year	11	5,376 ________	4,514 ________
Cash and cash equivalents at end of year	11	461 ________	5,376 ________

The attached notes form an integral part of the Consolidated Financial Statements.

Notes to the Consolidated Financial Statements

for the year ended 31 December 2022

All tabulated amounts stated in thousands of United States dollar (unless otherwise stated)

1.       General information

The principal activity of Cora Gold Limited ('the Company') and its subsidiaries (together the 'Group') is the exploration and development of mineral projects, with a primary focus in West Africa. The Company is incorporated and domiciled in the British Virgin Islands. The address of its registered office is Rodus Building, Road Reef Marina, P.O. Box 3093, Road Town, Tortola VG1110, British Virgin Islands.

2.       Accounting policies

The principal accounting policies applied in the preparation of financial statements are set out below ('Accounting Policies' or 'Policies'). These Policies have been consistently applied to all the periods presented, unless otherwise stated.

2.1.   Basis of preparation

The consolidated financial statements of Cora Gold Limited have been prepared in accordance with International Financial Reporting Standards ('IFRS') and IFRS Interpretations Committee ('IFRS IC') as adopted by the European Union ('EU'). The consolidated financial statements have been prepared under the historical cost convention.

The financial statements are presented in United States dollar (currency symbol: USD or US$), rounded to the nearest thousand, which is the Group's functional and presentational currency.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 4.

(a)          New and amended standards mandatory for the first time for the financial period beginning 01 January 2022

New standards and amendments to standards and interpretations which were effective for the financial period beginning on or after 01 January 2022 were not material to the Group or the Company.

(b)          New standards, amendments and interpretations in issue but not yet effective or not yet endorsed and not early adopted

The following standards have been published and are mandatory for accounting periods beginning after 01 January 2023 but have not been early adopted by the Group or the Company and could have impact on the Group and the Company financial statements:

Title	Effective date
Amendments to IAS 1: Presentation of Financial Statements: Classification of Liabilities as Current or Non-current Amendments to IAS 1: Classification of Liabilities as Current or Non-current - Deferral of Effective Date	01 January 2023 ^
Amendments to IAS 1: Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting Policies	01 January 2023
Amendments to IAS 8: Accounting policies, Changes in Accounting Estimates and Errors - Definition of Accounting Estimates	01 January 2023

Key:

^      Not yet endorsed in the EU.

The Group is evaluating the impact of the new and amended standards above. The directors believe that these new and amended standards are not expected to have a material impact on the Group's results or shareholders' funds.

2.2.   Basis of consolidation

The consolidated financial statements incorporate those of the Company and its subsidiary undertakings for all periods presented.

Subsidiaries are entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The Group applies the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.

Acquisition-related costs are expensed as incurred unless they result from the issuance of shares, in which case they are offset against the premium on those shares within equity.

Where necessary, adjustments are made to the financial information of subsidiaries to bring the accounting policies used into line with those used by other members of the Group. All intercompany transactions and balances between Group entities are eliminated on consolidation.

As at 31 December 2022 and 2021 the Company held:

●    a 100% shareholding in Cora Gold Mali SARL (registered in the Republic of Mali; the address of its registered office is Rue 224 Porte 1279, Hippodrome 1, BP 2788, Bamako, Republic of Mali);

●    a 100% shareholding in Cora Exploration Mali SARL (the address of its registered office is Rue 224 Porte 1279, Hippodrome 1, BP 2788, Bamako, Republic of Mali);

●    a 95% shareholding in Sankarani Ressources SARL (the address of its registered office is Rue 841 Porte 202, Faladie SEMA, BP 366, Bamako, Republic of Mali). The remaining 5% of Sankarani Ressources SARL can be purchased from a third party for US$1 million; and

●    Cora Resources Mali SARL (registered in the Republic of Mali; the address of its registered office is Rue 841 Porte 202, Faladie SEMA, BP 366, Bamako, Republic of Mali) was a wholly owned subsidiary of Sankarani Ressources SARL.

2.3.   Interest in jointly controlled entities

Joint venture arrangements that involve the establishment of a separate entity in which each venturer has joint control are referred to as jointly controlled entities. The results and assets and liabilities of jointly controlled entities are included in these financial statements for the period using the equity method of accounting.

2.4.   Going concern

As part of the Definitive Feasibility Study ('DFS') for the Sanankoro Gold Project (completed in November 2022) cash flow forecasts for the life of mine have been prepared. The forecasts include the costs of developing the Sanankoro Gold Project, including a construction period of 21 months (including pre-construction engineering work and commissioning the plant) plus related corporate and operational overheads. On 28 November 2022 the Mali government announced the suspension of issuing new mining permits. When this moratorium is lifted then formal submission of the DFS and the application for a Mining Permit will be submitted to the Mali government, and construction will formally commence. In addition, the Company has an unsecured obligation in relation to issued and outstanding Convertible Loan Notes for a total of US$15,875,000. The Mandatory Conversion of the Convertible Loan Notes is subject to the conclusion of definitive binding agreements in respect of senior debt in relation to the Sanankoro Gold Project and such agreements being unconditional. If not converted then the Convertible Loan Notes are repayable on their maturity date of 09 September 2023 at a 5% premium to the total amount outstanding. The directors are confident in the ability of the Company to make such repayment, if required, as well as fund working capital requirements over the 12 month period from the date of approval of these financial statements, using its current balance of cash and cash equivalents. The forecasts demonstrate that in the event that development of the Sanankoro Gold Project:

●    is deferred, then: the Group has the ability to meet all ongoing working capital requirements and committed payments during the 12 month period from the date of approval of these financial statements; and the directors are confident in the ability of the Group to raise additional funding in subsequent periods from the issue of equity or the sale of assets as and when this is required.

●    continues, then: the Group will require additional funds during the going concern period in order to undertake all the planned discretionary exploration, evaluation and development activities; and the directors are confident in the ability of the Group to raise additional funding when required from the issue of equity or the sale of assets, and from secured debt finance.

Any delays in the timing and / or quantum of raising additional funds can be accommodated by deferring discretionary exploration, evaluation and development expenditure.

The directors have a reasonable expectation that the Group will have adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

2.5.   Segment 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 board of directors (the 'Board' or the 'Board of Directors') that makes strategic decisions.

2.6.   Foreign currencies

(i)           Functional and presentational currency

Items included in the financial statements of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the 'functional currency'). The financial statements are presented in United States dollar, rounded to the nearest thousand, which is the Company's and Group's functional and presentational currency.

(ii)          Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where such items are re-measured. 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 profit or loss.

2.7.   Investments

Investments in subsidiary companies are stated at cost less provision for impairment in value, which is recognised as an expense in the period in which the impairment is identified in the Company accounts. These investments are consolidated in the Group consolidated accounts.

2.8.   Intangible assets

The Group has adopted the provisions of IFRS 6 Exploration for and Evaluation of Mineral Resources.

The Group capitalises expenditure as project costs, categorised as intangible assets, when it determines that those costs will be successful in finding specific mineral resources. Expenditure included in the initial measurement of project costs and which are classified as intangible assets relate to the acquisition of rights to explore, topographical, geological, geochemical and geophysical studies, exploratory drilling, trenching, sampling and activities to evaluate the technical feasibility and commercial viability of extracting a mineral resource. Capitalisation of pre-production expenditure ceases when the mining property is capable of commercial production. Project costs are recorded and held at cost. An annual review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise and carry forward project costs in relation to that area of interest. Accumulated capitalised project costs in relation to (i) an expired permit, (ii) an abandoned area of interest and / or (iii) a joint venture over an area of interest which is now ceased, will be written off in full as an impairment to profit or loss in the year in which (i) the permit expired, (ii) the area of interest was abandoned and / or (iii) the joint venture ceased.

Exploration and evaluation costs are assessed for impairment when facts and circumstances suggest that the carrying amount of an asset may exceed its recoverable amount.

2.9.   Financial assets

Classification

The Group's financial assets consist of financial assets held at amortised cost. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.

Financial assets held at amortised cost

Assets that are held for collection of contractual cash flows, where those cash flows represent solely payments of principal and interest, are measured at amortised cost. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains / (losses) together with foreign exchange gains and losses. Impairment losses are presented as a separate line item in the statement of profit or loss.

They are included in current assets, except for maturities greater than 12 months after the reporting date, which are classified as non-current assets. The Group's financial assets at amortised cost comprise trade and other current assets and cash and cash equivalents at the year-end.

Recognition and measurement

Regular purchases and sales of financial assets are recognised on the trade date - the date on which the Group commits to purchasing or selling the asset. Financial assets are initially measured at fair value plus transaction costs. Financial assets are de-recognised when the rights to receive cash flows from the assets have expired or have been transferred, and the Group has transferred substantially all of the risks and rewards of ownership.

Financial assets are subsequently carried at amortised cost using the effective interest method.

Impairment of financial assets

The Group assesses, on a forward-looking basis, the expected credit losses associated with its financial assets carried at amortised cost. For trade and other receivables due within 12 months the Group applies the simplified approach permitted by IFRS 9. Therefore, the Group does not track changes in credit risk, but rather recognises a loss allowance based on the financial asset's lifetime expected credit losses at each reporting date.

A financial asset is impaired if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset, and that loss event(s) had an impact on the estimated future cash flows of that asset that can be estimated reliably. The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset, or a group of financial assets, is impaired.

The criteria that the Group uses to determine that there is objective evidence of an impairment loss include:

●  significant financial difficulty of the issuer or obligor;

●  a breach of contract, such as a default or delinquency in interest or principal repayments;

●  the Group, for economic or legal reasons relating to the borrower's financial difficulty, granting to the borrower a concession that the lender would not otherwise consider;

●  it becomes probable that the borrower will enter bankruptcy or other financial reorganisation.

The Group first assesses whether objective evidence of impairment exists.

The amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred), discounted at the financial asset's original effective interest rate. The asset's carrying amount is reduced and the loss is 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 (such as an improvement in the debtor's credit rating), the reversal of the previously recognised impairment loss is recognised in profit or loss.

2.10. Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, and are subject to an insignificant risk of changes in value.

2.11. Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

2.12. Reserves

Retained (deficit) / earnings - the retained (deficit) / earnings reserve includes all current and prior periods retained profit and losses, and share based payments.

2.13. Financial liabilities at amortised cost

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

Trade payables are recognised initially at fair value, and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities are initially measured at fair value. They are subsequently measured at amortised cost using the effective interest method.

Financial liabilities are de-recognised when the Group's contractual obligations expire or are discharged or cancelled.

2.14. Provisions

The Group provides for the costs of restoring a site where a legal or constructive obligation exists. The estimated future costs for known restoration requirements are determined on a site-by-site basis and are calculated based on the present value of estimated future costs. All provisions are discounted to their present value.

2.15. Taxation

Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. Current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

2.16. Share based payments

Equity-settled share based payments with employees and others providing services are measured at the fair value of the equity instruments at the grant date. Fair value is measured by use of an appropriate pricing model. The Company has adopted the Black-Scholes Model for this purpose.

Equity-settled share based payment transactions with other parties are measured at the fair value of the goods and services, except where the fair value cannot be estimated reliably in which case they are valued at the fair value of the equity instrument granted.

3.       Financial risk management

3.1.   Financial risk factors

The Group's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group's financial performance.

Risk management is carried out by the management team under policies approved by the Board.

(i)           Market risk

The Group is exposed to market risk, primarily relating to interest rate, foreign exchange and commodity prices. The Group does not hedge against market risks as the exposure is not deemed sufficient to enter into forward contracts. The Group has not sensitised the figures for fluctuations in interest rates, foreign exchange or commodity prices as the directors are of the opinion that these fluctuations would not have a significant impact on the financial statements of the Group at the present time. The directors will continue to assess the effect of movements in market risks on the Group's financial operations and initiate suitable risk management measures where necessary.

(ii)          Credit risk

Credit risk arises from cash and cash equivalents as well as outstanding receivables. To manage this risk, the Group periodically assesses the financial reliability of customers and counterparties.

The amount of exposure to any individual counterparty is subject to a limit, which is assessed by the Board.

The Group considers the credit ratings of banks in which it holds funds in order to reduce exposure to credit risk.

(iii)         Liquidity risk

Cash flow and working capital forecasting is performed for all entities in the Group for regular reporting to the Board. The directors monitor these reports and forecasts to ensure the Group has sufficient cash to meet its operational needs.

3.2.   Capital risk management

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern, in order to enable the Group to continue its exploration and evaluation activities, and to maintain an optimal capital structure to reduce the cost of capital.

The Group defines capital based on the total equity of the Company. The Group monitors its level of cash resources available against future planned operational activities and may issue new shares in order to raise further funds from time to time.

4.       Judgements and key sources of estimation uncertainty

The preparation of the financial statements in conformity with IFRSs requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of expenses during the year. Actual results may vary from the estimates used to produce these financial statements.

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.

Significant items subject to such estimates and assumptions include, but are not limited to:

(i)           Intangible assets (see Note 9)

An annual review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise and carry forward project costs in relation to that area of interest. Accumulated capitalised project costs in relation to (i) an expired permit, (ii) an abandoned area of interest and / or (iii) a joint venture over an area of interest which is now ceased, will be written off in full as an impairment to the statement of income in the year in which (i) the permit expired, (ii) the area of interest was abandoned and / or (iii) the joint venture ceased.

Each exploration project is subject to review by a senior Group geologist to determine if the exploration results returned to date warrant further exploration expenditure and have the potential to result in an economic discovery. This review takes into consideration long-term metal prices, anticipated resource volumes and grades, permitting and infrastructure. The directors have reviewed each project with reference to these criteria and have made adjustments for any impairment as necessary.

5.       Segmental analysis

The Group operates principally in the UK and West Africa, with operations managed on a project by project basis. Activities in the UK are administrative in nature whilst the activities in West Africa relate to exploration and evaluation.

An analysis of the Group's overhead costs, and reportable segment assets and liabilities is as follows:

	UK US$'000	Africa US$'000	Total US$'000
Year ended 31 December 2022
Overhead costs	1,502	-	1,502
Impairment of intangible assets	- _______	1,012 _______	1,012 _______
Loss from operations per reportable segment	1,502 _______	1,012 _______	2,514 _______
As at 31 December 2022
Reportable segment assets	512	23,866	24,378
Reportable segment liabilities	(94) _______	(99) _______	(193) _______

	UK US$'000	Africa US$'000	Total US$'000
Year ended 31 December 2021
Overhead costs	1,288	8	1,296
Impairment of intangible assets	- _______	466 _______	466 _______
Loss from operations per reportable segment	1,288 _______	474 _______	1,762 _______
As at 31 December 2021
Reportable segment assets	5,463	21,695	27,158
Reportable segment liabilities	(77) _______	(493) _______	(570) _______

6.       Expenses by nature

		2022 US$'000	2021 US$'000
Employees' and directors' remuneration (see below)		584	574
Legal and professional		149	324
General administration		104	68
Investor relations and conferences		72	64
Auditor's remuneration (see below)		33	39
Travel		19	11
Consultants		- _______	8 _______
		961	1,088
Share based payments - share options		111	244
Foreign exchange loss / (gain)		430 _______	(36) _______
Overhead costs		1,502 _______	1,296 _______

Employees' and directors' remuneration

The average monthly number of employees and directors was as follows:

		2022	2021
Non-executive directors		4	4
Employees		32 _______	36 _______
Total average number of employees and directors		36 _______	40 _______

Employees' and directors' remuneration comprised:

		2022 US$'000	2021 US$'000
Non-executive directors' fees		129	109
Wages and salaries		1,078	1,494
Social security costs		142	119
Pension contributions		16 _______	16 _______
Total employees' and directors' remuneration		1,365	1,738
Capitalised to project costs (intangible assets)		(781) _______	(1,164) _______
Employees' and directors' remuneration expensed		584 _______	574 _______

Auditor's remuneration

Expenditures relating to the Company's auditor, PKF Littlejohn LLP, in respect of both audit and non-audit services were as follows:

		2022 US$'000	2021 US$'000
Audit fees: audit of the Group and the Company's financial statements		33 _______	39 _______
Auditor's remuneration expensed		33 _______	39 _______

7.       Income tax

The Company is tax resident in the British Virgin Islands, where corporate profits are taxed at 0%. The Group's subsidiaries in Mali are taxed at 30%. For the years ended 31 December 2022 and 2021 no current or deferred tax arose, and no deferred tax asset has been recognised due to the uncertainty of future taxable profits.

The tax on the Group's loss before tax differs from the theoretical amount that would arise as follows:

		2022 US$'000	2021 US$'000
Loss before tax		(2,514) _______	(1,762) _______
Tax at standard rate of 0% (2021: 0%)		-	-
Effects of:
Impairment of intangible assets		304	140
Other		-	2
Difference in overseas tax rates		(304) _______	(142) _______
Income tax		- _______	- _______

8.       Earnings per share

The calculation of the basic and fully diluted earnings per share attributable to the equity shareholders is based on the following data:

		2022 US$'000	2021 US$'000
Net loss attributable to equity shareholders		(2,514) _______	(1,762) _______
Weighted average number of shares for the purpose of basic and fully diluted earnings per share (000's)		289,557 _______	231,393 _______
Basic and fully diluted earnings per share (United States dollar)		(0.0087) _______	(0.0076) _______

As at 31 December 2022 and 2021 the Company's issued and outstanding capital structure comprised a number of ordinary shares and share options (see Note 14).

9.       Intangible assets

Intangible assets relate to exploration and evaluation project costs capitalised as at 31 December 2022 and 2021, less impairment.

		2022 US$'000	2021 US$'000
As at 01 January		21,574	13,665
Additions		3,264	8,375
Impairment		(1,012) _______	(466) _______
As at 31 December		23,826 _______	21,574 _______

Additions to project costs during the years ended 31 December 2022 and 2021 were in the following geographical areas:

		2022 US$'000	2021 US$'000
Mali		3,256	8,292
Senegal		8 _______	83 _______
Additions to projects costs		3,264 _______	8,375 _______

Impairment of project costs during the years ended 31 December 2022 and 2021 relate to the following terminated projects:

		2022 US$'000	2021 US$'000
Tagan (Yanfolila Project Area, Mali)		891	-
Satifara Sud (Diangounté Project Area, Mali)		116	-
Winza (Yanfolila Project Area, Mali)		5	193
Kakadian (Diangounté Project Area, Mali)		-	145
Satifara Ouest (Diangounté Project Area, Mali)		-	79
Karan Ouest (Sanankoro Project Area, Mali)		- _______	49 _______
Impairment of project costs		1,012 _______	466 _______

Those projects which were terminated were considered by the Board to be no longer prospective.

Project costs capitalised as at 31 December 2022 and 2021 related to the following geographical areas:

		2022 US$'000	2021 US$'000
Mali		23,318	21,074
Senegal		508 _______	500 _______
As at 31 December		23,826 _______	21,574 _______

After the reporting date certain projects were terminated (see Note 19).

10.    Trade and other receivables

		2022 US$'000	2021 US$'000
Other receivables		-	113
Prepayments		91 _______	95 _______
		91 _______	208 _______

11.    Cash and cash equivalents

Cash and cash equivalents held as at 31 December 2022 and 2021 were in the following currencies:

		2022 US$'000	2021 US$'000
British pound sterling (GBP£)		421	5,358
CFA franc (XOF)		34	8
United States dollar (US$)		5	7
Euro (EUR€)		1 _______	3 _______
		461 _______	5,376 _______

External ratings of cash at bank and short-term deposits as at 31 December 2022 and 2021 were as follows:

		2022 US$'000	2021 US$'000
A1		427	5,368
A2		34 _______	8 _______
		461 _______	5,376 _______

12.    Trade and other payables

		2022 US$'000	2021 US$'000
Trade payables		58	408
Other payables		30	-
Accruals		105 _______	162 _______
		193 _______	570 _______

13.    Financial instruments

		2022 US$'000	2021 US$'000
Financial assets at amortised cost
Trade and other receivables		-	113
Cash and cash equivalents		461 _______	5,376 _______
		461 _______	5,489 _______
Financial liabilities at amortised cost
Trade and other payables		193 _______	570 _______
		193 _______	570 _______

14.    Share capital

The Company is authorised to issue an unlimited number of no par value shares of a single class.

As at 31 December 2020 the Company's issued and outstanding capital structure comprised:

●   205,382,159 ordinary shares;

●   share options over 1,900,000 ordinary shares in the capital of the Company exercisable at 16.5 pence (British pound sterling) per ordinary share expiring on 18 December 2022;

●   share options over 6,200,000 ordinary shares in the capital of the Company exercisable at 8.5 pence (British pound sterling) per ordinary share expiring on 09 October 2023; and

●   share options over 7,200,000 ordinary shares in the capital of the Company exercisable at 10 pence (British pound sterling) per ordinary share expiring on 12 October 2025.

During the year ended 31 December 2021:

●     on 09 June 2021 the Company closed a subscription for 40,425,000 ordinary shares in the capital of the Company at a price of 7.75 pence (British pound sterling) per ordinary share for total gross proceeds of GBP£3,132,937.50 - certain directors of the Company participated in this subscription (see Note 18);

●     on 15 June 2021 share options over 275,000 ordinary shares in the capital of the Company exercisable at 16.5 pence (British pound sterling) per ordinary share expiring on 18 December 2022 were cancelled;

●     on 30 June 2021 share options over 100,000 ordinary shares in the capital of the Company exercisable at 10 pence (British pound sterling) per ordinary share expiring on 12 October 2025 were cancelled;

●     on 06 September 2021 share options were exercised over 1,250,000 ordinary shares in the capital of the Company at a price of 8.5 pence (British pound sterling) per ordinary share expiring on 09 October 2023 for total gross proceeds of GBP£106,250;

●     on 08 December 2021:

●     the Company closed a placing and subscription for 42,500,000 ordinary shares in the capital of the Company at a price of 10 pence (British pound sterling) per ordinary share for total gross proceeds of GBP£4,250,000 - certain directors of the Company participated in this subscription (see Note 18);

●     the Board granted and approved share options over 7,850,000 ordinary shares in the capital of the Company exercisable at 10.5 pence (British pound sterling) per ordinary share expiring on 08 December 2026;

●     on 31 December 2021:

●     share options over 400,000 ordinary shares in the capital of the Company exercisable at 16.5 pence (British pound sterling) per ordinary share expiring on 18 December 2022 were cancelled;

●     share options over 2,500,000 ordinary shares in the capital of the Company exercisable at 10 pence (British pound sterling) per ordinary share expiring on 12 October 2025 were cancelled;

●     share options over 1,200,000 ordinary shares in the capital of the Company exercisable at 10.5 pence (British pound sterling) per ordinary share expiring on 08 December 2026 were cancelled.

As at 31 December 2021 the Company's issued and outstanding capital structure comprised:

●   289,557,159 ordinary shares;

●   share options over 1,225,000 ordinary shares in the capital of the Company exercisable at 16.5 pence (British pound sterling) per ordinary share expiring on 18 December 2022;

●   share options over 4,950,000 ordinary shares in the capital of the Company exercisable at 8.5 pence (British pound sterling) per ordinary share expiring on 09 October 2023;

●   share options over 4,600,000 ordinary shares in the capital of the Company exercisable at 10 pence (British pound sterling) per ordinary share expiring on 12 October 2025; and

●   share options over 6,650,000 ordinary shares in the capital of the Company exercisable at 10.5 pence (British pound sterling) per ordinary share expiring on 08 December 2026.

During the year ended 31 December 2022:

●   on 14 May 2022 share options over 100,000 ordinary shares in the capital of the Company exercisable at 10.5 pence (British pound sterling) per ordinary share expiring on 08 December 2026 were cancelled; and

●   on 18 December 2022 share options over 1,225,000 ordinary shares in the capital of the Company exercisable at 16.5 pence (British pound sterling) per ordinary share expired.

As at 31 December 2022 the Company's issued and outstanding capital structure comprised:

●   289,557,159 ordinary shares;

●   share options over 4,950,000 ordinary shares in the capital of the Company exercisable at 8.5 pence (British pound sterling) per ordinary share expiring on 09 October 2023;

●   share options over 4,600,000 ordinary shares in the capital of the Company exercisable at 10 pence (British pound sterling) per ordinary share expiring on 12 October 2025; and

●     share options over 6,550,000 ordinary shares in the capital of the Company exercisable at 10.5 pence (British pound sterling) per ordinary share expiring on 08 December 2026.

Movements in capital during the years ended 31 December 2022 and 2021 were as follows:

	Number of ordinary shares		Share options over number of ordinary shares (exercise price per ordinary share; expiring date)				Proceeds US$'000
			16.5 pence; 18 December 2022	8.5 pence; 09 October 2023	10 pence; 12 October 2025	10.5 pence; 08 December 2026
As at 01 January 2021	205,382,159		1,900,000	6,200,000	7,200,000	-	18,118
Placing and subscriptions	82,925,000		-	-	-	-	10,063
Exercise of share options	1,250,000		-	(1,250,000)	-	-	147
Granting of share options	-		-	-	-	7,850,000	-
Cancellation of share options	-		(675,000)	-	(2,600,000)	(1,200,000)	-
Issue costs	- __________		- _________	- _________	- _________	- _________	(126) ________
As at 31 December 2021	289,557,159		1,225,000	4,950,000	4,600,000	6,650,000	28,202
Cancellation of share options	-		-	-	-	(100,000)	-
Expiry of share options	- __________		(1,225,000) _________	- _________	- _________	- _________	- ________
As at 31 December 2022	289,557,159 __________		- _________	4,950,000 _________	4,600,000 _________	6,550,000 _________	28,202 ________

The fair value of share options and warrants issued to a broker of a placing has been calculated using the Black-Scholes Model, the inputs into which were as follows:

●   for share options granted on 09 October 2019:

●   strike price 8.5 pence (British pound sterling);

●   share price 7.47 pence (British pound sterling);

●   volatility 34.7%;

●   expiring on 09 October 2023;

●   risk free rate 0.6%; and

●   dividend yield 0%;

●   for share options granted on 12 October 2020:

●     strike price 10 pence (British pound sterling);

●     share price 10.5 pence (British pound sterling);

●     volatility 25.9%;

●     expiring on 12 October 2025;

●     risk free rate 0.6%; and

●     dividend yield 0%;

●     for share options granted on 08 December 2021:

●     strike price 10.5 pence (British pound sterling);

●     share price 9.6 pence (British pound sterling);

●     volatility 22.2%;

●     expiring on 08 December 2026;

●     risk free rate 0.6%; and

●     dividend yield 0%.

The cost of share based payments relating to share options has been recognised in the consolidated statement of comprehensive income and in retained (deficit) / earnings.

15.    Ultimate controlling party

The Company does not have an ultimate controlling party.

As at 31 December 2022 the Company's largest shareholder was Brookstone Business Inc ('Brookstone') which held 82,796,025 ordinary shares, being 28.59% of the total number of ordinary shares issued and outstanding. Brookstone is wholly owned and controlled by First Island Trust Company Ltd as Trustee of The Nodo Trust, being a discretionary trust with a broad class of potential beneficiaries. Patrick Quirk, father of Paul Quirk (Non-Executive Director of the Company), is a potential beneficiary of The Nodo Trust.

Brookstone, Key Ventures Holding Ltd ('KVH') and Paul Quirk (Non-Executive Director of the Company) (collectively the 'Investors'; as at 31 December 2022 their aggregated shareholdings being 33.32% of the total number of ordinary shares issued and outstanding) entered into a Relationship Agreement on 18 March 2020 to regulate the relationship between the Investors and the Company on an arm's length and normal commercial basis. In the event that Investors' aggregated shareholdings becomes less than 30% then the Relationship Agreement shall terminate. KVH is wholly owned and controlled by First Island Trust Company Ltd as Trustee of The Sunnega Trust, being a discretionary trust of which Paul Quirk (Non-Executive Director of the Company) is a potential beneficiary.

16.    Contingent liabilities

A number of the Company's project areas have potential net smelter return royalty obligations, together with options for the Company to buy out the royalty. At the current stage of development, it is not considered that the outcome of these contingent liabilities can be considered probable or reasonably estimable and hence no provision has been recognised in the financial statements.

17.    Capital commitments

There were no capital commitments as at 31 December 2022.

During 2020 and 2021 the Company entered into contracts with a number of contractors in respect of the DFS for the Sanankoro Gold Project. Total estimated costs in respect of the DFS contractors were approximately US$2,000,000. As at 31 December 2021, under the terms of the contracts, the Company had incurred costs of approximately US$1,080,000. Accordingly, as at 31 December 2021 the balance of outstanding capital commitments was approximately US$920,000. The DFS was completed in 2022.

18.    Related party transactions

There were no reportable related party transactions during the year ended 31 December 2022.

During the year ended 31 December 2021:

●   GBP£162,667 was paid to Norman Bailie, the Company's Head of Exploration, and Mr Bailie's consultancy business, Phoenix (PPM) Consultants, for exploration services. This arrangement with Mr Bailie and Phoenix (PPM) Consultants terminated on 31 December 2021;

●   on 09 June 2021 the Company closed a subscription for 40,425,000 ordinary shares in the capital of the Company at a price of 7.75 pence (British pound sterling) per ordinary share for total gross proceeds of GBP£3,132,937.50. The following directors of the Company participated in this subscription:

●   Edward Bowie, Non-Executive Director of the Company & Chair of the Board of Directors, subscribed for 64,000 ordinary shares for total gross proceeds of GBP£4,960;

●   Andrew Chubb, Non-Executive Director of the Company, subscribed for 129,000 ordinary shares for total gross proceeds of GBP£9,997.50;

●   Robert Monro, Chief Executive Officer & Director of the Company, subscribed for 182,000 ordinary shares for total gross proceeds of GBP£14,105; and

●   Key Ventures Holding Ltd, which is wholly owned and controlled by First Island Trust Company Ltd as Trustee of The Sunnega Trust being a discretionary trust of which Paul Quirk (Non-Executive Director of the Company) is a potential beneficiary, subscribed for 1,820,000 ordinary shares for total gross proceeds of GBP£141,050;

●   on 07 September 2021 the Company entered into a US$25 million mandate and term sheet with Lionhead Capital Advisors Proprietary Limited ('Lionhead') to fund the development of the Sanankoro Gold Project. This was conditional on, among other matters, the completion of a DFS on the Sanankoro Gold Project. Paul Quirk (Non-Executive Director of the Company) is a director of Lionhead. Following completion of the DFS in November 2022 the mandate and term sheet with Lionhead was renegotiated, and this resulted in a new mandate and term sheet being entered into on 09 February 2023 (see Note 19);

●   on 08 December 2021 the Company closed a placing and subscription for 42,500,000 ordinary shares in the capital of the Company at a price of 10 pence (British pound sterling) per ordinary share for total gross proceeds of GBP£4,250,000. The following directors of the Company participated in this subscription:

●   Edward Bowie, Non-Executive Director of the Company & Chair of the Board of Directors, subscribed for 100,000 ordinary shares for total gross proceeds of GBP£10,000;

●   Andrew Chubb, Non-Executive Director of the Company, subscribed for 200,000 ordinary shares for total gross proceeds of GBP£20,000; and

●   Robert Monro, Chief Executive Officer & Director of the Company, subscribed for 300,000 ordinary shares for total gross proceeds of GBP£30,000.

19.    Events after the reporting date

On 09 February 2023 the Company entered into an up to US$30 million mandate and term sheet (the 'Term Sheet') with Lionhead to fund the development of the Sanankoro Gold Project (the 'Project Financing'). This Term Sheet replaces the previous one entered into with Lionhead on 07 September 2021 (see Note 18). Paul Quirk (Non-Executive Director of the Company) is a director of Lionhead.

On 13 March 2023 the Company closed a subscription for:

●   80,660,559 ordinary shares in the capital of the Company at a price of US$0.0487 per ordinary share for total gross proceeds of US$3,928,169.26 (the 'Equity Financing'); and

●   convertible loan notes ('CLN' or 'Convertible Loan Notes') convertible into ordinary shares in the capital of the Company in accordance with the Convertible Loan Note Instrument dated 28 February 2023 for a total of US$15,875,000 (the 'Convertible Financing')

(together the 'Fundraising'). The Fundraising is part of the Project Financing arrangement with Lionhead. The following directors of the Company participated in the Fundraising:

●   Edward Bowie, Non-Executive Director of the Company & Chair of the Board of Directors, subscribed for 100,000 ordinary shares for total gross proceeds of US$4,870 plus CLN with a value of US$20,000;

●   Andrew Chubb, Non-Executive Director of the Company, subscribed for CLN with a value of US$20,000; and

●   Robert Monro, Chief Executive Officer & Director of the Company, subscribed for 206,000 ordinary shares for total gross proceeds of US$10,032.20 plus CLN with a value of US$30,000.

In accordance with the Term Sheet a total fee of US$567,902.39 was paid to Lionhead in relation to the Fundraising.

The Convertible Loan Note Instrument dated 28 February 2023 sets out the terms of the CLN, which are principally as follows:

●    Maturity Date: 09 September 2023.

●    Coupon: 0%.

●    Mandatory Conversion: In the event of conclusion of definitive binding agreements in respect of senior debt and such agreements being unconditional:

●   on or prior to 11 June 2023, at the lower of (a) US$0.0596 per ordinary share, (b) the market price per ordinary share as at the date of the Mandatory Conversion and (c) the price of any equity issuance by the Company in the prior 60 days (excluding shares issued pursuant to the Company's Share Option Scheme or pursuant to terms of any other agreement entered into prior to 13 March 2023);

●   after 11 June 2023, at the lower of (a) US$0.0542 per ordinary share, (b) the market price per ordinary share as at the date of the Mandatory Conversion and (c) the price of any equity issuance by the Company in the prior 60 days (excluding shares issued pursuant to the Company's Share Option Scheme or pursuant to terms of any other agreement entered into prior to 13 March 2023).

●    Optional Conversion: At the election of the holder at any time after 11 June 2023, at US$0.0569 per ordinary share.

●    Repayment: Repayable on Maturity Date, if not converted, or earlier, at the option of the holder, in the case of a (i) a change of control of the Company (ii) the merger or sale of the Company (including the sale of substantially all of the assets), at a 5% premium to the total amount outstanding under the CLN.

●    Net Smelter Royalty: Holders of CLN have proportionate participation in a Net Smelter Royalty ('NSR') of 1% in respect of all ores, minerals, metals and materials containing gold mined and sold or removed from the Sanankoro Gold Project, until 250,000 ozs of gold has been produced and sold from the Sanankoro Gold Project, provided that the Company may purchase and terminate the NSR, in full and not in part, at any time for a value of US$3 million.

●    Other: CLN are issued fully paid in amount and are fully transferable.

Immediately upon closing of the Fundraising on 13 March 2023:

●   the total number of ordinary shares issued was 370,217,718;

●   Brookstone, the Company's largest shareholder, held 103,329,906 ordinary shares (being 27.91% of the total number of ordinary shares issued and outstanding); and

●   the aggregated shareholdings of the Investors (see Note 15) were 31.60% of the total number of ordinary shares issued and outstanding.

On 13 March 2023 the Board granted and approved share options over 14,350,000 ordinary shares in the capital of the Company exercisable at 4 pence (British pound sterling) per ordinary share expiring on 13 March 2028.

As at the date of these consolidated financial statements the Company's issued and outstanding capital structure comprised:

●   370,217,718 ordinary shares;

●   share options over 4,950,000 ordinary shares in the capital of the Company exercisable at 8.5 pence (British pound sterling) per ordinary share expiring on 09 October 2023;

●   share options over 4,600,000 ordinary shares in the capital of the Company exercisable at 10 pence (British pound sterling) per ordinary share expiring on 12 October 2025;

●     share options over 6,550,000 ordinary shares in the capital of the Company exercisable at 10.5 pence (British pound sterling) per ordinary share expiring on 08 December 2026; and

●     share options over 14,350,000 ordinary shares in the capital of the Company exercisable at 4 pence (British pound sterling) per ordinary share expiring on 13 March 2028.

In addition, the Company had an unsecured obligation in relation to issued and outstanding Convertible Loan Notes for a total of US$15,875,000, being convertible into ordinary shares in accordance with the Convertible Loan Note Instrument dated 28 February 2023. These Convertible Loan Notes were issued on 13 March 2023 and have a maturity date of 09 September 2023.

Cora's primary focus is on further developing Sanankoro and following a review of projects in 2023 the board of directors decided to terminate all projects in the Yanfolila Project Area (southern Mali), being the Farani, Farassaba III, Siékorolé and Tékélédougou permits. Intangible assets relating to exploration and evaluation project costs capitalised as at 31 December 2022 and 2021 in respect of such terminated projects were as follows:

		2022 US$'000	2021 US$'000
Siékorolé (Yanfolila Project Area, Mali)		784	760
Tékélédougou (Yanfolila Project Area, Mali)		513	494
Farassaba III (Yanfolila Project Area, Mali)		417	393
Farani (Yanfolila Project Area, Mali)		49 _______	37 _______
		1,763 _______	1,684 _______

Subsequent to 31 December 2022 an impairment adjustment has been made in respect of the exploration and evaluation project costs capitalised to the above terminated projects.

 

END