Interim Results

RNS Number : 0901I

Mila Resources PLC

31 March 2020

 

Mila Resources Plc / Index: LSE / Epic: MILA / Sector: Natural Resources

31 March 2020

Mila Resources Plc

("Mila" or "the Company")

Interim Results

Mila Resources Plc, a London listed natural resources company, is pleased to present its interim results for the six-month period ended 31 December 2019.

Highlights:

• February 2020; the announcement of a non-binding Head of Terms with regards to the possible acquisition of 100% of the share capital of E-Tech Metals Ltd ('E-Tech'). E-Tech is a private company developing projects in the critical and strategic metals industry and its primary asset is the high-grade Eureka Rare Earth Project in Namibia.

• Strong balance sheet position with cash balance at the end of the period £395,425 due to continuous prudent financial management.

Chairman Statement

I am pleased to present the interim financial statements to shareholders for the six months ended 31 December 2019.

The period under review was dominated by searching for a suitable reverse takeover candidate, culminating in the identification of E-Tech, whom hold the Eureka rare earth project in Namibia, which we believe is a highly interesting opportunity. We believe the project and its management will enable us to achieve the ambitions we have for Mila.

The current pandemic, although devastating to businesses globally, has not interrupted our plans to undertake a re-listing of the enlarged entity and the Company and its professional advisers are continuing with due diligence and preparing the documentation for the re-listing. Clearly, we will need to assess market conditions prior to raising any capital but it is very much our current intention to complete the transaction by the end of 2020.  

The company has advanced £50,000 to E-Tech in the form of a secured loan which will assist with the reverse takeover transaction and enable E-Tech to further enhance their project.

I look forward to reporting our progress to you over the coming the months.

Financial Review

For the six months to 31 December 2019, the Company reports a net loss of £50,504 (2018: £104,650). During the six-months to 31 December 2019, the Company continued its strict financial discipline, incurring a net operating cash outflow of £ 33,248 (£2018: £ 128,350 ). The Company held cash at 31 December 2019 of £395,425 (2018: £573,200)

Directors  

The following directors have held office during the period:

Mark Stephenson

Lee Daniels

Corporate Governance

The UK Corporate Governance Code (September 2014) ("the Code"), as appended to the Listing Rules, sets out the Principles of Good Corporate Governance and Code Provisions which are applicable to listed companies incorporated in the United Kingdom.  As a standard listed company, the Company is not subject to the Code, but the Board recognises the value of applying the principles of the Code where appropriate and proportionate and has endeavoured to do so where practicable.

Responsibility Statement

The Directors are responsible for preparing the Unaudited Interim Condensed Consolidated Financial Statements in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority ("DTR") and with International Accounting Standard 34 on Interim Reporting ("IAS 34"). The directors confirm that, to the best of their knowledge, this condensed consolidated interim report has been prepared in accordance with IAS 34 as adopted by the European Union. The interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

· an indication of important events that have occurred during the six months ended 31 December 2019 and their impact on the condensed consolidated financial statements for the period, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

· related party transactions that have taken place in the six months ended 31 December 2019 and that have materially affected the financial position of the performance of the business during that period.  

On behalf of the board 

Mark Stephenson

Director

31 March 2020

MILA RESOURCES PLC

Interim Statement of Comprehensive Income (Unaudited)

For the six months ended 31 December 2019

	Notes		Six months ended 31 December 2019 Unaudited		Six months ended 31 December 2018 Unaudited		Year ended 30 June 2019 Audited
			£		£		£
Revenue			-		-		-
Administrative expenses			(50,504)		(104,650)		(259,395)
Loss before taxation			(50,504)		(104,650)		(259,395)
Income tax expense	3		-		-		-
Loss for the year			(50,504)		(104,650)		(259,395)
Other comprehensive income / (loss)			-		-		-
Total comprehensive loss for the year attributable to equity holders			(50,504)		(104,650)		(259,395)
Loss per share (basic and diluted) attributable to equity holders (p)	4		(0.22)p		(0.45)p		(1.12)p

The income statement has been prepared on the basis that all operations are continuing operations.

MILA RESOURCES PLC

Interim Statement of Financial Position (Unaudited)

As at 31 December 2019

			At 31 December 2019 Unaudited		At 31 December 2018 Unaudited		At 30 June 2019 Audited
	Notes		£		£		£
Current assets
Trade and other receivables			5,815		11,651		17,642
Cash at bank and in hand			395,425		573,200		428,673
			401,240		584,851		446,315
Current liabilities
Trade and other payables			23,174		1,537		17,745
			23,174		1,537		17,745
Net current assets			378,066		583,314		428,570
Net assets			378,066		583,314		428,570
Equity
Share capital	5		232,000		232,000		232,000
Share premium	5		849,300		849,300		849,300
Share based payment reserve			4,720		4,720		4,720
Retained losses			(707,954)		(502,706)		(657,450)
Equity attributable to the owners of the parent			378,066		583,314		428,570

MILA RESOURCES PLC

Statements of changes in equity (Unaudited)

For the six months ended 31 December 2019

		Share  Capital	Share Premium Account	Share Based Payment Reserve	Retained Loss	TOTAL
		£	£	£	£	£
Balance at 30 June 2018		232,000	849,300	4,720	(398,056)	687,964
Total comprehensive loss for the year		-	-	-	(259,395)	(259,395)
Balance at 30 June 2019		232,000	849,300	4,720	(657,450)	428,570
Total comprehensive loss for the period		-	-	-	(50,504)	(50,504)
Balance at 31 December 2019		232,000	849,300	4,720	(707,954)	378,066

MILA RESOURCES PLC

Statement of cash flow (Unaudited)

For the six months ended 31 December 2019

		Six months to 31 December		Six months to 31 December		12 months to 30 June
		2019		2018		2019
		£		£		£
Cash flows from operating activities
Loss for the period		(50,504)		(104,650)		(259,395)
Adjustments for:
Costs settled by the payment of shares / warrants		-		-		-
Operating cashflow before working capital movements		(50,504)		(104,650)		(259,395)
Decrease / (increase) in trade and other receivables		11,827		(2,860)		(8,851)
Increase / (decrease) in trade and other payables		5,429		(20,840)		(4,632)
Net cash flow from operating activities		(33,248)		(128,350)		(272,878)
Net decrease / (increase) in cash and cash equivalents		(33,248)		(128,350)		(272,878)
Cash and cash equivalents at beginning of the period		428,672		701,550		701,550
Cash and cash equivalents at end of the period		395,425		573,200		428,672

MILA RESOURCES PLC

Notes to the financial statements

For the six months ended 31 December 2019

1  General information

Mila Resources Plc (the "Company'') looks to id entify potential companies, businesses or asset(s) that have operations in the natural resources exploration, development and production sector .

The Company is domiciled in the United Kingdom and incorporated and registered in England and Wales, with registration number 09620350.

The Company's registered office is Lockstrood Farm, Ditchling Common, Burgess Hill, West Sussex RH15 0SJ.

2  Accounting policies

The principal accounting policies applied in preparation of these consolidated financial statements are set out below. These policies have been consistently applied unless otherwise stated.

Basis of preparation

The interim unaudited financial statements for the period ended 31 December 2019 have been prepared in accordance with IAS 34 Interim Financial Reporting. This interim financial information is not the Company's statutory financial statements and should be read in conjunction with the annual financial statements for the period ended 30 June 2019, which have been prepared in accordance with International Financial Reporting Standards (IFRS) and have been delivered to the Registrars of Companies.  The auditors have reported on those accounts; their report was unqualified, did not include references to any matters which the auditors drew attention by way of emphasis of matter without qualifying their report and did not contain statements under section 498 (2) or (3) of the Companies Act 2006.

The interim financial information for the six months ended 31 December 2019 is unaudited. In the opinion of the Directors, the interim consolidated financial information presents fairly the financial position, and results from operations and cash flows for the period.

The Directors have made an assessment of the Company's ability to continue as a going concern and are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company, therefore, continues to adopt the going concern basis in preparing its consolidated financial statements.

The financial information of the Company is presented in British Pounds Sterling (£).

Critical accounting estimates and judgements

The preparation of interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and the reported amounts of income and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, the resulting accounting estimates will, by definition, seldom equal related actual results.

In preparing the interim financial information, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements for the year ended 30 June 2019.

3  Income tax expense

No tax is applicable to the Company for the six months ended 31 December 2019. No deferred income tax asset has been recognised in respect of the losses carried forward, due to the uncertainty as to whether the Company will generate sufficient future profits in the foreseeable future to prudently justify this.

MILA RESOURCES PLC

Notes to the financial statements

For the six months ended 31 December 2019 (cont.)

4  Loss per share

Basic loss per ordinary 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 period. 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.

There are currently no dilutive potential ordinary shares.

	Earnings   £	Weighted average number of shares  unit	Per-share amount   pence
Loss per share attributed to  ordinary shareholders	(50,504)	23,200,000	(0.22)p

5  Share capital

			Number
			of shares	Share	Share
			in issue	capital	premium	Total
				£	£	£
Balance at 30 June 2019			23,200,000	232,000	849,300	1,081,300
Movements during the period			-	-	-	-
Balance at 31 December 2019			23,200,000	232,000	849,300	1,081,300

The Company has one class of ordinary share which carries no right to fixed income.

6  Related party disclosures

Remuneration of directors and key management personnel

The remuneration of the Directors during the six-month period to 31 December 2019 amounted to £24,000 (31 December 2018: £36,000).

Shareholdings in the Company

Shares and warrants held by the Directors of the Company.

			Shares	Warrants 1
Mr Mark Stephenson			1,200,000	1,200,000
Balance at 31 December 2019			1,200,000	1,200,000

  ¹ Exercisable at £0.05, on or before 31 December 2020.

7  Subsequent events

Non-binding heads of Terms with E-Tech Metals Limited ("E-Tech")

On the 27^th of February 2020, the company entered into a non-binding Head of Terms with regards to the possible acquisition of 100% of the share capital of E-Tech Metals Ltd ('E-Tech') to be satisfied in New Ordinary Shares of the Company ('the Proposed Transaction'). E-Tech is a private company developing projects in the critical and strategic metals industry and its primary asset is the high-grade Eureka Rare Earth Project in Namibia. The Proposed Transaction remains subject to due diligence, completion of the acquisition and re-listing of the enlarged group on the Official List. The Proposed Transaction, if completed, would constitute a reverse takeover under the Listing Rules. As the Company is currently unable to provide a full disclosure under Listing Rule 5.6.15, it requested a temporary suspension of listing in its ordinary shares with effect from 8.00 a.m., 27 February 2020, pending the publication of a prospectus and the application for the enlarged Company to have its Ordinary Shares admitted to the Official List and to trading on the Main Market for listed securities of the London Stock Exchange. The Proposed Transaction will be subject to approval by shareholders of the Company at a general meeting.

**ENDS**

 For more information visit www.milaresources.com or contact:

Mark Stephenson	Mila Resources Plc	[phone]
Jonathan Evans	Brandon Hill Capital	[phone]
Susie Geliher / Beth Melluish	St Brides Partners Ltd	[phone]

 

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