The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement via
a Regulatory Information Service, this inside information is now
considered to be in the public domain.
22 November
2019
Conroy Gold and Natural Resources plc
(“Conroy Gold” or “the Company”)
FINAL RESULTS FOR
THE YEAR TO 31 MAY 2019
NOTICE OF ANNUAL
GENERAL MEETING
Conroy Gold and Natural Resources
plc (AIM: CGNR), the gold exploration and development company
focused on Ireland and
Finland, is pleased to report its
audited accounts for the year to 31 May
2019.
Highlights:
- Results included the discovery of additional high gold grades
at the Clontibret gold deposit along the 65Km (40 mile) new
district-scale gold trend which Conroy
Gold has discovered in the Longford -Down Massif in
Ireland.
- The discovery of a new gold outcrop between the Clontibret gold
deposit and the Corcaskea gold target, where significant gold
intersections have been made in trenches, including 6.5 g/t gold
over 16.5 metres and 5.3 g/t gold over 11 metres.
- Continuity in mineralisation between the Clontibret Gold
Deposit which is open in all directions as well as to depth and the
Corcaskea gold target would add further to the potential of the
entire Clontibret area.
- Drilling at Clontibret (where a JORC Resource of 320,000 oz Au
Indicated and 197,000 oz Au Inferred has been estimated on a small
part of the target area) showed additional high gold grades,
including 24.4g/t Au, over 1 metre, and 21.6g/t Au, over 1.2
metres.
- Drilling at Slieve Glah, in the southwest of the Company’s
licence area, where four large (approximately 3 Km gold targets
have been identified) intersected a new gold zone.
- £500,000 (€556,545) raised through a placing of ordinary shares
in August 2018.
Chairman, Professor Richard Conroy, commented:
“The year was one of highly encouraging progress for your
Company as it has accelerated the process of moving from
exploration success to mining development. Exploration to
date has led to the discovery of a JORC Resource, a new district-
scale gold trend and, for the combined Clay Lake-Clontibret-Glenish
gold targets, which lie along a 17Km section of the 65Km gold
trend, an 8.8m oz Au exploration
target (JORC) has been estimated.*
Following interest by other parties the Company looks forward to
engaging in due course in a Joint Venture agreement or other
suitable arrangement to develop the gold properties in
Ireland.”
Final Results for the Year to
31 May 2019
The full audited annual report and accounts for the year to
31 May 2019 (“Annual Report”) can be
viewed below:
ANNUAL REPORT
The Annual Report will be posted to shareholders today and will
be published on the Company’s website today. Key elements can
also be viewed at the bottom of this announcement.
Annual General Meeting
The annual general meeting of the Company (“AGM”) will be held
at The Davenport Hotel, Gandon Suite, 8-10 Merrion Street,
Dublin 2 at 12 noon on 16 December
2019. A copy of the notice of AGM can be viewed on the
Company’s website.
For further information please contact:
Conroy Gold and
Natural Resources plc |
Tel: +353-1-479-6180 |
Professor Richard
Conroy, Chairman |
|
Allenby Capital
Limited (Nomad) |
Tel: +44-20-3328-5656 |
Nick Athanas/Nick
Harriss |
|
Brandon Hill
Capital Limited (Broker) |
Tel: +44-20-3463-5000 |
Jonathan Evans |
|
Lothbury Financial
Services |
Tel: +44-20-3290-0707 |
Michael Padley |
|
Hall
Communications |
Tel: +353-1-660-9377 |
Don Hall |
|
Visit the website at: www.conroygold.com
Key Information Extracted from Annual
Report
Chairman’s
Statement
Dear Shareholder,
I have great pleasure in presenting the Company’s Annual Report
and Consolidated Financial Statements for the year ended
31 May 2019.
The year was one of highly encouraging progress for your Company
as it has accelerated the process of moving from exploration
success to mining development. This progress was exemplified by the
interest shown by the many companies who visited the Company’s
booth at the 2019 Prospectors and Developers Association Conference
("PDAC") in Toronto in
March. This has been followed up by a series of site visits
and the Company looks forward to engaging in due course in a Joint
Venture Agreement or other arrangement to develop the gold
properties it has discovered in Ireland.
Business Development
The Company’s objective has, from its inception, focused on
making a major economic gold discovery. Successful
exploration can and does take a long time. The Company has
discovered a 65 kilometre (“Km”) (40 miles) new district-scale gold
trend in the Longford-Down Massif in Ireland. The trend is located along a major
geological structure (the Orlock Bridge Fault Zone) in the
Longford-Down Massif in Ireland.
A series of potentially multi-million-ounce gold targets have
been discovered along the new district-scale gold trend. The
Company’s licences cover an area of over 800 Km2, are
100% held and give the exclusive rights to apply for a mining lease
or licence.
The Company’s first gold mine in this new gold district in
Ireland is now being planned.
Ireland is a mining friendly
country with an established mining tradition and a favourable
business climate. There is security of tenure and fiscal framework
and excellent infrastructure and technical services.
Ireland ranked 1st
for mining policy perception and 4th for investment
attractiveness by the prestigious Fraser Institute (2017).
The Irish Minister for Mines, Mr Sean
Canney, attended the 2019 PDAC Conference and visited the
Company’s booth accompanied by members of his department. Minister
Canney confirmed the Irish Governments positive attitude towards
mining. The Minister praised the Irish mineral sector and
referred to the contribution it makes to the economy and pointed
out that “Relying on distant resources (of minerals) is becoming
untenable”.
Exploration Results
Exploration to date by the Company has led to the discovery of a
new district-scale gold trend, and on part of one of the gold
targets along the trend (the Clontibret gold deposit) a JORC
Resource of
320,000 ounces gold (“oz Au”) Indicated and 197,000oz Au
Inferred (Indicated plus Inferred totalling 517,000 oz Au) has been
estimated. The Clontibret gold deposit is open in all directions
and to depth.
A JORC compliant Exploration Target of 8.8 million ounces (M oz)
Au for the combined Clay Lake-Clontibret-Glenish gold targets
(excluding the resource of 517,000oz Au at Clontibret) has been
estimated. The Exploration Target lies along a 17 Km section
of the 65 Km gold trend.*
To put the Company’s gold discovery of a 65 Km (40 mile) new
district-scale gold trend along the Orlock Bridge Gold Zone into
perspective, the Company’s technical staff have drawn a comparison
between the Orlock Bridge Fault Zone and the Boulder-Lefroy Gold
Zone in Western Australia. The Boulder-Lefroy Gold Zone is
100 Km long and has produced over 85
M oz of gold, and new discoveries continue to be made
there. There are structural similarities between the
Boulder-Lefroy Gold Zone and the Orlock Bridge Fault Zone, in
particular, flexures on what are major structures are interpreted
as controls on deposits in both areas.
Exploration on the Company’s licences in the Longford–Down
Massif has continued during the year with further excellent
results.
These results included the discovery of additional high gold
grades at the Company’s Clontibret gold deposit; the discovery of a
new gold outcrop between the Clontibret gold deposit and the
Corcaskea gold target, suggesting continuity between them, which
would indicate significantly increased gold potential in the area,
and gold in bedrock intersected during drilling at the Slieve Glah
gold target.
An independent review, post year end, of the structural controls
on the Clontibret Gold Deposit was carried out by Consultant
Structural Geologist, Dr Francis
Murphy, which identified structural controls for higher gold
grades and thicker gold intersections in the Clontibret gold
deposit area.
The new area of bedrock gold mineralisation discovered during
the year, lies halfway between the Clontibret gold deposit and gold
mineralisation intersected at the Corcaskea gold target, which are
over 500 m apart. Geological
interpretation suggests continuity between the Clontibret gold
deposit, which is open in all directions, as well as to depth, and
the Corcaskea gold target where significant gold intersections have
been made in trenches, including 6.5 grams/tonne (“g/t”) Au over
16.5 m and 4.9g/t Au over 12
m. Continuity in mineralisation between the Clontibret gold
deposit and the Corcaskea gold target would add further to the
potential of the entire Clontibret area.
During drilling at Clontibret during the year additional high
gold grades were discovered including 24.4 g/t Au, over
1 m, and 21.6 g/t Au, over
1.2 m.
At Slieve Glah, in the southwest of the Company’s licence area,
the Orlock Bridge Fault Zone under goes a significant
strike-swing. Gold-in-soil geochemistry at Sieve Glah has
identified four approximately 3 Km long gold targets while drilling
during the year intersected a new gold zone at Slieve Glah.
* (An Exploration target is not, and must not be, construed as a
mineral resource. It is designed to provide guidance as to the
mineral exploration potential of the defined area)
The Company holds exploration licences in Finland which it considers highly prospective
for gold and base metals.
Exploration on other targets in Ireland and on the Company’s licences in
Finland for gold and base metals
also continued.
Finance
The loss after taxation for the financial year ended
31 May 2019 was €557,569 (2018:
€745,485) and the net assets as at 31 May
2019 were €17,873,326 (2018: €17,874,350). During the year
the Company raised £500,000 (€556,545) through a placing of
ordinary shares in the Company.
Subsequent to the year-end the Company raised a total of
€350,000 in two separate tranches by way of an unsecured
convertible loan note with an existing shareholder. Full details
were announced on 15 July 2019 and
30 October 2019 and are set out at
Note 19 in the Consolidated Financial Statements.
Directors and Staff
I would like to express my deep appreciation of the support and
dedication of all the directors, consultants and staff, which has
made possible the continued progress and success which the Company
has achieved.
Future Outlook
I look forward to the Company continuing with its record of
success in exploration and to the successful development of its
first gold mine on the new district-scale gold trend which it has
discovered in Ireland.
Professor Richard Conroy
Chairman
Extract from the
Independent Auditor’s Report
The following section is extracted from the Independent
Auditor’s Report, but shareholders should read in full the
Independent Auditor’s Report contained in the Annual Report.
Material uncertainty related to going
concern
We draw your attention to Note 1 in the financial statements,
which indicates that the Group and Parent Company incurred a net
loss of €557,569 during the year ended 31
May 2019 and, as of that date, the Group and Parent Company
had net current liabilities of €3,358,234 and €3,009,116
respectively at that date.
In response to this, we:
- Obtained an understanding of the group’s and company’s controls
over the preparation of cash flow forecasts and approval of the
projections and assumptions used in cash flow forecasts to support
the going concern assumption and assessed the design and
implementation of these controls;
- We evaluated management’s plans and their feasibility by
testing the key assumptions used in the cash flow forecast provided
by agreeing the inputs to historical run rates, expenditure
commitments and other supporting documentation;
- Inspected confirmations received by the Group and Parent
Company from the Directors and former Directors that they will not
seek repayment of amounts owed to them by the Group and Parent
Company within 12 months of the date of approval of the financial
statements, unless the Group and/or Parent Company has sufficient
funds to repay;
- Inspected the confirmation received from Karelian Diamond
Resources Plc that it does not intend to seek repayment of owed by
the Group and Parent Company within 12 months of the date of
approval of the financial statements, unless the Group and/or
Parent Company has sufficient funds to repay;
- Tested the clerical accuracy of the cash flow forecast model;
and
- Assessed the adequacy of the disclosures made in the financial
statements.
As stated in Note 1, these events or conditions along with other
matters as set forth in Note 1 indicate that a material uncertainty
exists that may cast significant doubt on Group’s and Parent
Company’s ability to continue as a going concern. Our opinion is
not modified in respect of this matter.
Consolidated Income Statement for the
financial year ended 31 May 2019
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
€ |
|
|
€ |
|
|
|
|
|
|
Continuing operations |
|
|
|
|
|
Operating expenses |
|
(557,573) |
|
|
(745,498) |
Finance income – interest |
|
4 |
|
|
13 |
|
|
|
|
|
|
Loss before taxation |
|
(557,569) |
|
|
(745,485) |
|
|
|
|
|
|
Income tax expenses |
|
- |
|
|
- |
|
|
|
|
|
|
Loss for the financial
year |
|
(557,569) |
|
|
(745,485) |
|
|
|
|
|
|
Loss per share |
|
|
|
|
|
Basic loss per share |
|
(€0.0244) |
|
|
(€0.0485) |
Diluted loss per share |
|
(€0.0244) |
|
|
(€0.0396) |
The total loss for the financial year is entirely attributable
to equity holders of the Company.
Consolidated statement of
comprehensive income for the financial year ended 31 May 2019
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
€ |
|
|
€ |
|
|
|
|
|
|
Loss for the financial
year |
|
(557,569) |
|
|
(745,485) |
|
|
|
|
|
|
Income/expense recognised in
other comprehensive income |
|
- |
|
|
- |
|
|
|
|
|
|
Total comprehensive expense for
the financial year |
|
(557,569) |
|
|
(745,485) |
The total comprehensive income for the financial year is
entirely attributable to equity holders of the Company.
Consolidated statement of financial
position as at 31 May 2019
|
|
31 May
2019 |
|
|
31 May
2018 |
|
|
€ |
|
|
€ |
Assets |
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
Intangible assets |
|
21,772,045 |
|
|
21,000,286 |
Property, plant and equipment |
|
11,347 |
|
|
13,232 |
Total non-current
assets |
|
21,783,392 |
|
|
21,013,518 |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
77,299 |
|
|
233,161 |
Other receivables |
|
106,181 |
|
|
72,298 |
Total current
assets |
|
183,480 |
|
|
305,459 |
|
|
|
|
|
|
Total assets |
|
21,966,872 |
|
|
21,318,977 |
|
|
|
|
|
|
Equity |
|
|
|
|
|
Capital and
reserves |
|
|
|
|
|
Called up share capital |
|
23,693 |
|
|
20,057 |
Called up deferred share
capital |
|
10,504,431 |
|
|
10,504,431 |
Share premium |
|
12,727,194 |
|
|
12,174,285 |
Capital conversion reserve fund |
|
30,617 |
|
|
30,617 |
Share-based payments reserve |
|
751,293 |
|
|
995,489 |
Retained deficit |
|
(6,163,902) |
|
|
(5,850,529) |
Total equity |
|
17,873,326 |
|
|
17,874,350 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
Related parties’ loans |
|
551,832 |
|
|
185,343 |
Total non-current
liabilities |
|
551,832 |
|
|
185,343 |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Trade and other payables |
|
3,541,714 |
|
|
3,259,284 |
Total current
liabilities |
|
3,541,714 |
|
|
3,259,284 |
|
|
|
|
|
|
Total liabilities |
|
4,093,546 |
|
|
3,444,627 |
|
|
|
|
|
|
Total equity and
liabilities |
|
21,966,872 |
|
|
21,318,977 |
The financial statements were approved by the Board of Directors
on 21 November 2019 and authorised
for issue on 22 November
2019.
Consolidated statement of cash flows
for the financial year ended 31 May
2019
|
2019 |
|
|
2018 |
|
€ |
|
|
€ |
Cash flows from operating
activities |
|
|
|
|
Loss for the financial year |
(557,569) |
|
|
(745,485) |
Adjustments for: |
|
|
|
|
Depreciation |
1,885 |
|
|
1,884 |
Expense recognised in consolidated
income statement in respect of equity settled share-based
payments |
- |
|
|
74,621 |
Increase in payables |
341,326 |
|
|
665,196 |
(Increase)/ decrease in
receivables |
(33,883) |
|
|
26,682 |
Net cash (used in)/provided by
operating activities |
(248,241) |
|
|
22,898 |
|
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
Expenditure on intangible
assets |
(771,759) |
|
|
(1,042,705) |
Cash used in investing
activities |
(771,759) |
|
|
(1,042,705) |
|
|
|
|
|
Cash flows from financing
activities |
|
|
|
|
Issue of share capital |
556,545 |
|
|
1,534,076 |
Share issue costs |
- |
|
|
(48,206) |
Advances from Karelian Diamond
Resources P.L.C. |
89,397 |
|
|
41,832 |
Payments to Karelian Diamond
Resources P.L.C |
(148,293) |
|
|
(202,494) |
Advances from related parties |
366,489 |
|
|
89,736 |
Repayments to related parties |
- |
|
|
(181,680) |
Net cash provided by financing
activities |
864,138 |
|
|
1,233,264 |
|
|
|
|
|
(Decrease)/increase in cash and
cash equivalents |
(155,862) |
|
|
213,457 |
Cash and cash equivalents at
beginning of financial year |
233,161 |
|
|
19,704 |
Cash and cash equivalents at end
of financial year |
77,299 |
|
|
233,161 |