Final Results

RNS Number : 7322B

Great Western Mining Corp. plc

06 April 2017

 

Great Western Mining Corporation PLC

("Great Western Mining", "GWM" or the "Company")

Final Results for the year ended 31 December 2016

Results Highlights

·     Loss for year €430,205 (2015: loss of €340,707)

·     Basic and diluted loss per share (cent): 0.001 (2015: 0.001)

·     Net Current assets at year end: €768,685 (2015: €839,366)

Operational Highlights

·     M2 JORC Resource upgrade

·     Huntoon Mine Area Cooperation Agreement signed

·     M1 drill target zone identified

·     Phase 1 joint drill programme on M1 commenced

·     M2 Technical Scoping Study commissioned

Chief Executive, David Fraser commented: "2016 has been a year of pleasing progress for Great Western Mining. Field work early in the year on M1 identified a gold target drill zone and as a result of this work a Phase 1 drill programme with local partner Crown Point Gold & Silver was initiated on M1 in November. Just after the year end the first results from the Scoping Study on M2 yielded a very encouraging resource upgrade to 4.1 million tonnes of 0.54% copper at a 0.2% cut off. GWM continues to make excellent progress with its strategy of identifying sufficient ore reserves to establish early production, whilst continuing ongoing evaluation of its significant project portfolio."

ENQUIRIES:

Great Western Mining Corporation Plc David Fraser, Chief Executive		[phone] (via Walbrook)
Davy (Nomad, ESM Adviser & Joint Broker) John Frain Roland French		[phone] [e-mail] [e-mail]
Beaufort Securities Ltd (Joint Broker) Jon Belliss Elliot Hance		[phone]
Walbrook PR (UK PR and IR) Paul Cornelius Gary Middelton Nick Rome		[phone]  [e-mail]

Chairman's Statement:

Dear Shareholder,

Enclosed are Great Western Mining Corporation PLC's audited results and annual report for the year ended 31 December 2016. As the Group's projects are still at the exploration and appraisal stage with no commercial revenues, we are reporting a loss of €430,205 (2015: loss of €340,707). At the end of the year net current assets totalled €768,685 (2015: €839,366).

This year saw a consolidation of the Group's exploration activity in Nevada and the establishment of a drilling joint venture with local operator Crown Point Gold & Silver Mining LLC which resulted in the start of a drilling programme to assess the potential for gold in the Huntoon area. This will be continued and finalised after the winter when weather conditions are favourable.

In the second half of the year we completed a placing of new shares which yielded £500,000 (€555,247) of new funds before expenses to enable us to progress our Nevada projects.

A pilot project for early copper production is currently being evaluated and we will keep shareholders informed as this progresses.

In a difficult but improving market for the mining industry, Great Western Mining Corporation Plc is working on an interesting and prospective inventory of properties in Nevada while always having an eye for diversification into other areas and projects if the right opportunities present themselves.

We are grateful for the support of our shareholders and look forward to accelerating exploration activity in the coming year.

Brian Hall

Chairman

Chief Executive's Report:

Dear Shareholder,

I am pleased to report that 2016 has been another year of progress in the development of your Company's 73 square kilometre claim area in Mineral Country, Nevada.

In the spring and early summer, the Great Western field team conducted a further soil sampling programme on the M1 prospect to follow up the excellent results of the previous year. The 2015 programme had revealed widespread anomalous mineralisation, with gold readings of up to 248 ppb Au spread over a very large area, and the 2016 field programme took a further 120 soil and rock chip samples. The combined programmes, comprising 215 soil samples at 40 metre intervals and 70 randomly selected rock samples, have been analysed by Bureau Veritas in Reno, Nevada and the 2016 programme has confirmed further widespread mineralisation.  An area of high gold readings spanning two separate soil grid lines, approximately 350 metres apart, is of particular interest. Anomalous readings of silver (1383 and 1986 ppm Ag) and lead (4434 ppm Pb) have also been found at these locations, establishing a potential drilling target zone.

In August, the Group signed the 'Huntoon Mine Area Cooperation Agreement' with neighbouring claim holder Crown Point Gold & Silver Mining Co. LLC ("Crown Point"). The agreement provides for the sharing of operational resources, providing Great Western with enhanced facilities on the ground, and allows Crown Point to follow any commercially exploitable veins originating on its own claim area into Great Western's area, with any consequent profits shared between the parties. Under this agreement, any farm-out or sale of acreage will be conducted jointly, with the benefits accruing to both parties.

In November, the Group commenced a joint Phase 1 drilling programme over M1 with Crown Point. Great Western's section of the programme is concentrating on the drilling target zone identified earlier in the year. The target zone falls within the 34 Great Western claims which form part of the Huntoon Mine Area Cooperation Agreement and is to the north-east of Crown Point's claim area. Great Western is funding three core boreholes to test the depth of the anomalous gold mineralisation identified at M1. Crown Point and Great Western operations personnel commenced drilling in late November and the programme is scheduled for completion as soon as the spring break up in this mountainous area allows work to recommence at the end of the winter.

During the year, the Group commissioned Mr. W T Cohan, a Mining Engineer with extensive experience of developing copper and gold mines in the region, to carry out a JORC Compliant Scoping Study for M2. This study represents the first stage in Great Western's application to the US Bureau of Land Management ("BLM") for a full mining licence with a view to developing a pilot heap leach facility on 10 acres of private land owned by the Group at Marietta. The first part of the scoping study, was completed in February 2017, and resulted in a pleasing upgrade to the open-pittable JORC Mineral Resource at M2.

In the summer and early autumn of 2017 a discovery level drilling programme is planned for M4, the Company's second copper-gold prospect in Mineral County. The programme will consist of six to nine core boreholes for an aggregate of approximately 600 metres. In October, the Company's placing of 125 million new ordinary shares raised gross proceeds of £500,000 (€555,247) and these funds will be used to progress the 2017 field programme. The Board and management greatly appreciate the continuing support of shareholders, and look forward to reporting positively on a busy 2017 programme.

Chief Executive Officer

David Fraser

Consolidated Income Statement

For the year ended 31 December 2016

	Notes	2016	2015
		€	€
Administrative expenses		(430,490)	(339,842)
Finance income	4	333	417
Finance costs	5	(48)	(1,282
Loss for the year before tax	6	(430,205)	(340,707)
Income tax expense	8	-	-
Loss for the financial year		(430,205)	(340,707)
Loss attributable to:
Equity holders of the Company		(430,205)	(340,707)
Earnings per share from continuing operations
Basic and diluted loss per share (cent)	9	(0.001)	(0.001)

All activities derived from continuing operations. All losses are attributable to the owners of the Company.

Consolidated Statement of Other Comprehensive Income

For the year ended 31 December 2016

	Notes	2016	2015
		€	€
Loss for the financial year		(430,205)	(340,707)
Other comprehensive income
Items that are or may be reclassified to profit or loss:
Currency translation differences		100,497	268,935
		100,497	268,935
Total comprehensive expense for the financial year attributable to equity holders of the Company		(329,708	(71,772)

Consolidated Statement of Financial Position

For the year ended 31 December 2016

	Notes	2016	2015
Assets		€	€
Non-current assets
Intangible assets	11	3,496,297	3,255,602
Total non-current assets		3,496,297	3,255,602
Current assets
Trade and other receivables	12	128,848	174,300
Cash and cash equivalents	13	712,273	759,381
Total current assets		841,121	933,681
Total assets		4,337,418	4,189,283
Equity
Capital and reserves
Share capital	15	2,660,738	2,648,238
Share premium	15	5,173,692	4,630,945
Share based payment reserves		44,448
Foreign currency translation reserve		710,719	610,222
Retained earnings		(4,324,615)	(3,794,437)
Attributable to owners of the Company		4,264,982	4,094,968
Total equity		4,264,982	4,094,968
Liabilities
Current liabilities
Trade and other payables	14	72,436	79,315
Convertible debt	19		15,000
Total current liabilities		72,436	94,315
Total liabilities		72,436	94,315
Total equity and liabilities		4,337,418	4,189,283

Consolidated Statement of Changes in Equity

For the year ended 31 December 2016

		Share Capital		Share Capital		Share based payment reserves		Foreign currency translation reserve		Retained earnings		Total
		€		€		€		€		€		€
Balance at 01 January 2015		2,648,238		4,630,945		-		341,287		(3,453,730.00)		4,166,740
Comprehensive income for the year
Loss for the year		-		-		-		-		(340,707.00)		(340,707.00)
Currency translation differences		-		-		-		268,935		-		268,935
Total comprehensive income for the year		-		-		-		268,935		(340,707.00)		(71,772.00)
Transactions with owners, recorded directly in equity
Shares issued		-		-		-		-		-		-
Warrants issued		-		-		-		-		-		-
Total transactions with owners, recorded directly in equity
Balance at 31 December 2015		2,648,238		4,630,945		-		610,222		(3,794,437.00)		4,094,968
Balance at 01 January 2016		2,648,238		4,630,945		-		610,222		(3,794,437.00)		4,094,968
Comprehensive income for the year
Loss for the year		-		-		-		-		(430,205.00)		(430,205.00)
Currency translation differences		-		-		-		100,497		-		100,497
Total comprehensive income for the year								100,497		(430,205.00)		(329,708.00)
Transactions with owners, recorded directly in equity
Shares issued		12,500		542,747		-		-		(55,525.00)		499,722
Warrants issued		-		-		44,448		-		(44,448.00)		-
Total transactions with owners, recorded directly in equity		12,500		542,747		44,448		-		(99,973.00)		499,722
Balance at 31 December 2016		2,660,738		5,173,692		44,448		710,719		(4,324,615.00)		4,264,982

Consolidated Statement of Cash Flows

For the year ended 31 December 2016

		2016		2015
	Notes	€		€
Cash flows from operating activities
Loss for the year		(430,205.00)		(340,707.00)
Interest receivable and similar income	4	(333.00)		(417.00)
Interest payable and similar charges	5	48		1,282
Movement in trade and other receivables		45,452		(64,626.00)
Movement in trade and other payables		(6,880.00)		(27,239.00)
Exchange rate adjustment		100,497		(100,061.00)
Net cash flows from operating activities		(291,421.00)		(531,768.00)
Cash flow from investing activities
Expenditure on intangible assets	11	(148,268.00)		(233,149.00)
Interest received	4	333		417
Interest paid	5	(48.00)		(1,282.00)
Net cash from investing activities		(147,983.00)		(234,014.00)
Cash flow from financing activities
Proceeds from the issue of new shares	15	555,247		-
Commission paid from the issue of new shares	15	(55,525.00)		-
Repayment of convertible debt	19	(15,000.00)		(25,000.00)
Net cash from financing activities		484,722		(25,000.00)
Increase/(decrease) in cash and cash equivalents		45,318		(790,782.00)
Exchange rate adjustment on cash and cash equivalents		(92,426.00)		98,621
Cash and cash equivalents at beginning of the year	13	759,381		1,451,542
Cash and cash equivalents at end of the year	13	712,273		759,381

Notes to the Financial Statements PDF link:

http://www.rns-pdf.londonstockexchange.com/rns/7322B_-2017-4-5.pdf

 

END

 

 

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