TIDMHZM
RNS Number : 5631G
Horizonte Minerals PLC
09 August 2016
Horizonte Minerals plc / Index: AIM and TSX / Epic: HZM /
Sector: Mining
9 August 2016
INTERIM RESULTS
____________________________________________________________________
Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) ('Horizonte' or
'the Company') the nickel development company focused in Brazil,
announces its unaudited financial results for the six months ended
30 June 2016 and the Management Discussion and Analysis for the
same period.
Both of the above have been posted on the Company's website at
www.horizonteminerals.com and are also available on SEDAR at
www.sedar.com.
Overview
-- Issue of the Preliminary Environmental Licence ('LP') a
significant milestone, demonstrating the Parà State government's
confidence in and viability of the Araguaia Project
('Araguaia')
-- Following the award of the LP Horizonte can now work towards
the Installation Licence, which will permit construction of the
project
-- Completed the acquisition of the Glencore Araguaia Project
('GAP'). The combination of GAP and Araguaia creates one of the
largest nickel saprolite projects globally
-- In the final stages of delivering a new Pre-Feasibility study
on the combined Araguaia Project with the aim of demonstrating the
project will be one of the most competitive advanced nickel
projects in the marketplace
-- Continuing to consolidate land position with award of
additional licence areas south of GAP totalling c. 20,000
hectares
-- Cost reduction plan completed to lower the overall operating
costs while maintaining project development
-- Strong cash position of GBP1.6 million
Chairman's Statement
In the last six months despite the very tough market conditions
for the resource sector, the Company has delivered a number of
significant milestones at Araguaia which we are developing as the
next major nickel project in Brazil.
We have been able to continue the critical aspect of permitting
for the project, and in this respect we were delighted to receive
the LP in June for the mining and beneficiation plant to produce
ferronickel. This is a significant milestone which demonstrates the
viability of Araguaia and represents the State Government approval
for the planned project. The next stage is to advance the
permitting process towards the award of the Installation Licence
('LI') which allows construction to commence. The Pará State
Government considers Araguaia to be a key economic driver for the
southern part of the State with the potential to provide
approximately 1,100 jobs in the construction phase, and around 500
jobs during the operational phase of the mine. We have also
received strong community support for the project as evidenced in
the 2015 Public Hearing in Conceição do Araguaia which received a
high turnout at the meeting (+1,000 people) and the overriding
support at the local and state level is a key factor for the future
success of Araguaia.
The award of the LP is timely as we are in the final stages of
completing the new Pre-Feasibility Study based on the enlarged
project combining Araguaia with the GAP project following our
acquisition of the project from Glencore. The combination of the
two projects creates one of the largest nickel saprolite resources
globally. The PFS will include a revised Mineral Resource, data
from the full scale metallurgical pilot plant campaign completed in
Q3 2015, and updated capital and operating costs. It is our aim,
with the completion of the PFS, to show that Horizonte owns a Tier
1 asset with robust economics even at the current low nickel prices
with a proven process route for the commercial production of
ferronickel. If we are able to deliver a project at the lower end
of the cost curve combined with significant resource upside and
optionality, we will be well positioned for the upturn in the
nickel markets which are forecast to rise further over the coming
years from the lows of early 2016.
Another key achievement post period end was the completion of
the Glencore transaction. This was a compelling transaction in
terms of the purchase price for Horizonte and provides massive
flexibility in the way the project is developed. Following the
delivery of the PFS, it is our plan to advance to full Feasibility
Study and we intend to commence this process later in the year.
I would like to take this opportunity to thank our shareholders
for their continued support and we look forward to keeping the
market updated with our progress during an exciting second half of
2016.
David Hall
Condensed Consolidated Interim Financial Statements for the six
months ended 30 June 2016
Condensed consolidated statement of comprehensive income
6 months ended 3 months ended
30 June 30 June
2016 2015 2016 2015
------------------------------------------------------------ ------ ---------- ------------ ---------- ----------
Unaudited Unaudited Unaudited Unaudited
------------------------------------------------------------ ------ ---------- ------------ ---------- ----------
Notes GBP GBP GBP GBP
------------------------------------------------------------ ------ ---------- ------------ ---------- ----------
Continuing operations
Revenue - - - -
Cost of sales - - - -
------------------------------------------------------------ ------ ---------- ------------ ---------- ----------
Gross profit - - - -
Administrative expenses (385,028) (415,968) (200,938) (201,531)
Charge for share options granted (18,184) (86,890) (9,092) (44,679)
Change in value of contingent consideration (463,301) (55,063) (363,534) 190,312
Gain/(Loss) on foreign exchange 80,300 (196,620) 35,988 (69,478)
Other losses - Impairment of available for sale assets - (253,006) - -
Loss from operations (786,213) (1,007,547) (537,576) (125,376)
Finance income 2,964 10,329 909 3,212
Finance costs (172,925) (161,963) (87,407) (80,982)
------------------------------------------------------------ ------ ---------- ------------ ---------- ----------
Loss before taxation (956,174) (1,159,181) (624,074) (203,146)
Taxation - - - -
------------------------------------------------------------ ------ ---------- ------------ ---------- ----------
Loss for the year from continuing operations (956,174) (1,159,181) (624,074) (203,146)
============================================================ ====== ========== ============ ========== ==========
Other comprehensive income
Items that may be reclassified subsequently to profit or
loss
Change in value of available for sale financial assets - 253,006 - -
Currency translation differences on translating foreign
operations 8,206,506 (3,693,733) 4,917,794 (766,850)
------------------------------------------------------------ ------ ---------- ------------ ---------- ----------
Other comprehensive income for the period, net of tax 8,206,506 (3,440,727) 4,917,794 (766,850)
------------------------------------------------------------ ------ ---------- ------------ ---------- ----------
Total comprehensive income for the period
attributable to equity holders of the Company 7,250,332 (4,599,908) 4,293,720 (969,996)
------------------------------------------------------------ ------ ---------- ------------ ---------- ----------
Earnings per share from continuing operations attributable
to the equity holders of the Company
Basic and diluted (pence per share) 9 (0.142) (0.235) (0.093) (0.041)
Condensed consolidated statement of financial position
30 June 31 December
2016 2015
Unaudited Audited
------------------------------ ------ ------------- -------------
Notes GBP GBP
------------------------------ ------ ------------- -------------
Assets
Non-current assets
Intangible assets 6 28,292,139 20,046,102
Property, plant & equipment 6,278 11,888
Deferred tax assets 4,902,865 3,590,675
------------------------------ ------ ------------- -------------
33,201,282 23,648,665
------------------------------ ------ ------------- -------------
Current assets
Trade and other receivables 23,424 40,912
Cash and cash equivalents 1,660,194 2,738,905
------------------------------ ------ ------------- -------------
1,683,618 2,779,817
------------------------------ ------ ------------- -------------
Total assets 34,884,900 26,428,482
============================== ====== ============= =============
Equity and liabilities
Equity attributable to
owners of the parent
Issued capital 7 6,712,044 6,712,044
Share premium 7 31,252,708 31,252,708
Other reserves 870,179 (7,336,327)
Accumulated losses (12,019,163) (11,081,173)
------------------------------ ------ ------------- -------------
Total equity 26,815,768 19,547,252
------------------------------ ------ ------------- -------------
Liabilities
Non-current liabilities
Contingent consideration 5,807,855 5,171,629
Deferred tax liabilities 2,130,886 1,560,581
------------------------------ ------ ------------- -------------
7,938,741 6,732,210
------------------------------ ------ ------------- -------------
Current liabilities
Trade and other payables 130,391 149,020
------------------------------ ------ ------------- -------------
Total liabilities 8,069,132 6,881,230
------------------------------ ------ ------------- -------------
Total equity and liabilities 34,884,900 26,428,482
============================== ====== ============= =============
Condensed statement of changes in shareholders' equity
Attributable to the owners of the parent
------------------------------------------------------------------
Share Share Accumulated Other
capital premium losses reserves Total
GBP GBP GBP GBP GBP
---------------------- ---------- ----------- ------------- ------------ ------------
As at 1 January
2015 4,924,271 31,095,370 (9,526,869) (321,601) 26,171,171
---------------------- ---------- ----------- ------------- ------------ ------------
Comprehensive
income
Loss for the
period - - (1,159,181) - (1,159,181)
Other comprehensive
income
Impairment of
available for
sale assets - - - 253,006 253,006
Currency translation
differences - - - (3,693,733) (3,693,733)
---------------------- ---------- ----------- ------------- ------------ ------------
Total comprehensive
income - - (1,159,181) (3,440,727) (4,599,908)
---------------------- ---------- ----------- ------------- ------------ ------------
Transactions
with owners
Share based
payments - - 86,890 - 86,890
---------------------- ---------- ----------- ------------- ------------ ------------
Total transactions
with owners - - 86,890 - 86,890
As at 30 June
2015 (unaudited) 4,924,271 31,095,370 (10,599,160) (3,762,328) 21,658,153
====================== ========== =========== ============= ============ ============
Attributable to the owners of the parent
------------------------------------------------------------------
Share Share Accumulated Other
capital premium losses reserves Total
GBP GBP GBP GBP GBP
---------------------- ---------- ----------- ------------- ------------ ------------
As at 1 January
2016 6,712,044 31,252,708 (11,081,173) (7,336,327) 19,547,252
---------------------- ---------- ----------- ------------- ------------ ------------
Comprehensive
income
Loss for the
period - - (956,174) - (956,174)
Other comprehensive
income
Impairment of - - - - -
available for
sale assets
Currency translation
differences - - - 8,206,506 8,206,506
---------------------- ---------- ----------- ------------- ------------ ------------
Total comprehensive
income - - (956,174) 8,206,506 7,250,332
---------------------- ---------- ----------- ------------- ------------ ------------
Transactions
with owners
Share based
payments - - 18,184 - 18,184
---------------------- ---------- ----------- ------------- ------------ ------------
Total transactions
with owners - - 18,184 - 18,184
As at 30 June
2016 (unaudited) 6,712,044 31,252,708 (12,019,163) 870,179 26,815,768
====================== ========== =========== ============= ============ ============
Condensed Consolidated Statement of Cash Flows
6 months ended 3 months ended
30 June 30 June
----------------------------------------------------- -------------------------- ------------------------
2016 2015 2016 2015
----------------------------------------------------- ------------ ------------ ---------- ------------
Unaudited Unaudited Unaudited Unaudited
----------------------------------------------------- ------------ ------------ ---------- ------------
GBP GBP GBP GBP
Cash flows from operating activities
Loss before taxation (956,174) (1,159,181) (624,074) (203,146)
Interest income (2,964) (10,329) (909) (3,212)
Finance costs 172,925 161,963 87,407 80,982
Loss on disposal of subsidiary - 3,848 - -
Realisation of Peruvian Reserves - 13,353 - -
Impairment of available for sale financial assets - 253,005 - -
Project impairment - - - -
Gain on sale of fixed asset - (11,011) - (11,011)
Exchange differences (80,300) 196,620 (35,988) 69,478
Employee share options charge 18,184 86,890 9,092 44,679
Change in fair value of contingent consideration 463,301 55,063 363,534 (190,312)
Depreciation 579 819 294 407
------------------------------------------------------ ------------ ------------ ---------- ------------
Operating loss before changes in working capital (384,449) (408,960) (200,644) (212,135)
Decrease/(increase) in trade and other receivables 18,657 6,034 5,723 6,313
(Decrease)/increase in trade and other payables (43,028) (61,358) 3,842 17,238
------------------------------------------------------ ------------ ------------ ---------- ------------
Net cash outflow from operating activities (408,820) (464,284) (191,079) (188,584)
====================================================== ============ ============ ========== ============
Cash flows from investing activities
Purchase of intangible assets (751,986) (1,978,727) (359,011) (870,162)
Proceeds from sale of property, plant and equipment - 13,292 - 13,292
Interest received 2,964 10,329 909 3,213
------------------------------------------------------ ------------ ------------ ---------- ------------
Net cash used in investing activities (749,022) (1,955,106) (358,102) (853,657)
------------------------------------------------------ ------------ ------------ ---------- ------------
Net decrease in cash and cash equivalents (1,157,842) (2,419,390) (549,181) (1,042,241)
Cash and cash equivalents at beginning of period 2,738,905 5,030,968 2,173,055 3,527,280
Exchange gain/(loss) on cash and cash equivalents 79,131 (195,872) 36,320 (69,333)
------------------------------------------------------ ------------ ------------ ---------- ------------
Cash and cash equivalents at end of the period 1,660,194 2,415,706 1,660,194 2,415,706
====================================================== ============ ============ ========== ============
Notes to the Financial Statements
1. General information
The principal activity of the Company and its subsidiaries
(together 'the Group') is the exploration and development of
precious and base metals. There is no seasonality or cyclicality of
the Group's operations.
The Company's shares are listed on the Alternative Investment
Market of the London Stock Exchange (AIM) and on the Toronto Stock
Exchange (TSX). The Company is incorporated and domiciled in the
United Kingdom. The address of its registered office is 26 Dover
Street London W1S 4LY.
2. Basis of preparation
The condensed consolidated interim financial statements have
been prepared using accounting policies consistent with
International Financial Reporting Standards and in accordance with
International Accounting Standard 34 Interim Financial Reporting.
The condensed interim financial statements should be read in
conjunction with the annual financial statements for the year ended
31 December 2015, which have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union.
The condensed consolidated interim financial statements set out
above do not constitute statutory accounts within the meaning of
the Companies Act 2006. They have been prepared on a going concern
basis in accordance with the recognition and measurement criteria
of International Financial Reporting Standards (IFRS) as adopted by
the European Union. Statutory financial statements for the year
ended 31 December 2015 were approved by the Board of Directors on
15 March 2016 and delivered to the Registrar of Companies. The
report of the auditors on those financial statements was
unqualified.
The condensed consolidated interim financial statements of the
Company have not been audited or reviewed by the Company's auditor,
BDO LLP.
Going concern
The Directors, having made appropriate enquiries, consider that
adequate resources exist for the Group to continue in operational
existence for the foreseeable future and that, therefore, it is
appropriate to adopt the going concern basis in preparing the
condensed consolidated interim financial statements for the period
ended 30 June 2016.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of
the business. The key risks that could affect the Group's medium
term performance and the factors that mitigate those risks have not
substantially changed from those set out in the Group's 2015 Annual
Report and Financial Statements, a copy of which is available on
the Group's website: www.horizonteminerals.com and on Sedar:
www.sedar.com The key financial risks are liquidity risk, foreign
exchange risk, credit risk, price risk and interest rate risk.
Critical accounting estimates
The preparation of condensed consolidated interim financial
statements 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 end of the
reporting period. Significant items subject to such estimates are
set out in note 4 of the Group's 2015 Annual Report and Financial
Statements. The nature and amounts of such estimates have not
changed significantly during the interim period.
3. Significant accounting policies
The condensed consolidated interim financial statements have
been prepared under the historical cost convention as modified by
the revaluation of certain of the subsidiaries' assets and
liabilities to fair value for consolidation purposes.
The same accounting policies, presentation and methods of
computation have been followed in these condensed consolidated
interim financial statements as were applied in the preparation of
the Group's Financial Statements for the year ended 31 December
2015.
4 Segmental reporting
The Group operates principally in the UK and Brazil, with
operations managed on a project by project basis within each
geographical area. Activities in the UK are mainly administrative
in nature whilst the activities in Brazil relate to exploration and
evaluation work. The reports used by the chief operating decision
maker are based on these geographical segments.
2016 UK Brazil Other Total
6 months 6 months 6 months 6 months
ended ended ended ended
30 June 30 June 30 June 30 June
2016 2016 2016 2016
GBP GBP GBP GBP
-------------------------------- ---------- ----------- --------- -----------
Revenue - - - -
-------------------------------- ---------- ----------- --------- -----------
Administrative expenses (256,251) (128,777) - (385,028)
Profit on foreign exchange 63,320 16,980 - 80,300
(Loss) from operations
per reportable segment (192,931) (111,797) - (304,728)
Inter segment revenues - 567,589 - 567,589
Depreciation charges (519) (61) - (579)
Additions and foreign
exchange movements to
non-current assets - 8,175,863 - 8,175,863
Reportable segment assets 1,635,604 33,249,296 - 34,884,900
Reportable segment liabilities 5,848,311 2,220,821 - 8,069,132
2015 UK Brazil Other Total
6 months 6 months 6 months 6 months
ended ended ended ended
30 June 30 June 30 June 30 June
2015 2015 2015 2015
GBP GBP GBP GBP
-------------------------------- ---------- ----------- --------- -----------
Revenue - - - -
-------------------------------- ---------- ----------- --------- -----------
Administrative expenses (318,060) (84,555) (13,353) (415,968)
(Loss) on foreign exchange (108,941) (87,679) - (196,620)
(Loss) from operations
per reportable segment (427,001) (172,234) (13,353) (612,588)
Inter segment revenues - 427,513 - 427,513
Depreciation charges (519) (300) - (819)
Additions and foreign
exchange movements to
non-current assets - 1,310,368 - 1,310,368
Reportable segment assets 2,269,845 23,898,966 - 26,168,811
Reportable segment liabilities 2,503,815 2,006,843 - 4,510,658
2016 UK Brazil Other Total
3 months 3 months 3 months 3 months
ended ended ended ended
30 June 30 June 30 June 30 June
2016 2016 2016 2016
GBP GBP GBP GBP
---------------------------- ---------- ---------- --------- ----------
Revenue - - - -
---------------------------- ---------- ---------- --------- ----------
Administrative expenses (113,961) (86,977) - (200,938)
Profit on foreign exchange 25,808 10,180 - 35,988
(Loss) from operations
per (88,153) (76,797) - (164,950)
reportable segment
---------------------------- ---------- ---------- --------- ----------
Inter segment revenues - 327,101 - 327,101
Depreciation charges (259) (35) - (294)
Additions and foreign
exchange movements to
non-current assets - 4,818,164 - 4,818,164
2015 UK Brazil Other Total
3 months 3 months 3 months 3 months
ended ended ended ended
30 June 30 June 30 June 30 June
2015 2015 2015 2015
GBP GBP GBP GBP
---------------------------- ---------- --------- --------- ----------
Revenue - - - -
---------------------------- ---------- --------- --------- ----------
Administrative expenses (154,912) (46,619) - (201,531)
(Loss) on foreign exchange (63,700) (5,778) - (69,478)
(Loss) from operations
per (218,612) (52,397) - (271,009)
reportable segment
---------------------------- ---------- --------- --------- ----------
Inter segment revenues - 221,935 - 221,935
Depreciation charges (260) (147) - (407)
Additions and foreign
exchange movements to
non-current assets -- 28,722 - 28,722
A reconciliation of adjusted loss from operations per reportable
segment to loss before tax is provided as follows:
6 months 6 months 3 months 3 months
ended ended ended ended
30 June 30 June 30 June 30 June
2016 2015 2016 2015
GBP GBP GBP GBP
------------------------------ ---------- ------------ ---------- ----------
Loss from operations per
reportable segment (304,728) (612,588) (164,950) (271,009)
- Change in fair value
of contingent consideration (463,301) (55,063) (363,534) 190,312
- Charge for share options
granted (18,184) (86,890) (9,092) (44,679)
- Impairment of available
for sale asset - (253,006) - -
- Finance income 2,964 10,329 909 3,212
- Finance costs (172,925) (161,963) (87,407) (80,982)
Loss for the period from
continuing operations (956,174) (1,159,181) (624,074) (203,146)
================================ ========== ============ ========== ==========
5 Change in Fair Value of Contingent Consideration
Contingent Consideration payable to the former owners of Teck
Cominco Brasil S.A.
Contingent consideration payable to the former owners of Teck
Cominco Brasil S.A. has a carrying value of GBP2,637,724 at 30 June
2016 (30 June 2015: GBP 2,452,538). The fair value of the
contingent consideration arrangement with the former owners of Teck
Cominco Brasil S.A. was estimated at the acquisition date according
to when future taxable profits against which the tax losses may be
utilised were anticipated to arise. The fair value estimates were
based on the current rates of tax on profits in Brazil of 34%. A
discount factor of 7.0% was applied to the future dates at which
the tax losses will be utilised and consideration paid.
As at 30 June 2016, there was a finance expense of GBP83,000 (30
June 2015: GBP161,963) recognised in finance costs within the
Condensed Statement of Comprehensive Income in respect of this
contingent consideration arrangement, as the discount applied to
the contingent consideration at the date of acquisition was
unwound.
The cash flow model used to estimate the contingent
consideration was adjusted, to take into account changed
assumptions in the timing of cash flows as derived from the
Pre-Feasibility Study as published by the Group in March 2014. The
key assumptions underlying the cash flow model derived from the
Pre-Feasibility Study as published by the Group in March 2014 are
unchanged as at 30 June 2016, other than that in 2015 the assumed
date for commencement of commercial production was revised from
2017 to 2019. The change in the fair value of contingent
consideration payable to the former owners of Teck Cominco Brasil
S.A. generated a charge to profit or loss of GBP 189,971 for the
six months ended 30 June 2016 (30 June 2015: GBP55,063 charge) due
to changes in the functional currency in which the liability is
payable.
Contingent Consideration payable to Xstrata Brasil Mineração
Ltda
The contingent consideration payable to Xstrata Brasil Mineração
Ltda has a carrying value of GBP 3,170,131 at 30 June 2016 (30 June
2015: GBP nil). It comprises two elements: US$1,000,000 due after
the date of issuance of a joint feasibility study for the combined
Enlarged Project areas and to be satisfied by shares or cash,
together with US$5,000,000 consideration in cash as at the date of
first commercial production from any of the resource areas within
the Enlarged Project area. The key assumptions underlying the
treatment of the contingent consideration the US$5,000,000 are as
per those applied to the contingent consideration payable to the
former owners of Teck Cominco Brasil S.A.
As at 30 June 2016, there was a finance expense of GBP89,925
(2014: GBPnil) recognised in finance costs within the Statement of
Comprehensive Income in respect of this contingent consideration
arrangement, as the discount applied to the contingent
consideration at the date of acquisition was unwound.
The change in the fair value of contingent consideration payable
to Xstrata Brasil Mineração Ltda generated a charge to profit or
loss of GBP273,330 for the six months ended 30 June 2016 (30 June
2015: GBPnil) due to changes in the functional currency in which
the liability is payable.
6 Intangible assets
Intangible assets comprise exploration and evaluation costs and
goodwill. Exploration and evaluation costs comprise internally
generated and acquired assets.
Group Exploration
and
Goodwill Exploration evaluation Total
licences costs
GBP GBP GBP GBP
---------------------------- --------- ------------ ------------ -----------
Cost
At 1 January 2016 192,028 3,174,275 16,679,799 20,046,102
Additions - - 784,588 784,588
Exchange rate movements 70,174 1,162,895 6,228,380 7,461,449
Net book amount at 30 June
2016 262,202 4,337,170 23,692,767 28,292,139
============================ ========= ============ ============ ===========
7 Share Capital and Share Premium
Issued and fully Ordinary
paid Number of shares Share premium Total
shares GBP GBP GBP
------------------- ------------ ---------- -------------- -----------
At 1 January 2016 671,204,378 6,712,044 31,252,708 37,964,752
At 30 June 2016 671,204,378 6,712,044 31,252,708 37,964,752
------------------- ------------ ---------- -------------- -----------
8 Dividends
No dividend has been declared or paid by the Company during the
six months ended 30 June 2016 (2015: nil).
9 Earnings per share
The calculation of the basic loss per share of 0.142 pence for
the 6 months ended 30 June 2016 (30 June 2015 loss per share: 0.235
pence) is based on the loss attributable to the equity holders of
the Company of GBP (956,174) for the six month period ended 30 June
2016 (30 June 2015: GBP(1,159,181)) divided by the weighted average
number of shares in issue during the period of 671,204,378
(weighted average number of shares for the 6 months ended 30 June
2015: 492,427,105).
The calculation of the basic loss per share of 0.093 pence for
the 3 months ended 30 June 2016 (30 June 2015 loss per share: 0.041
pence) is based on the loss attributable to the equity holders of
the Company of GBP (624,074) for the three month period ended 30
June 2016 (3 months ended 30 June 2014: GBP 203,146) divided by the
weighted average number of shares in issue during the period of
671,204,378 (weighted average number of shares for the 3 months
ended 30 June 2015: 492,427,105).
The basic and diluted loss per share is the same, as the effect
of the exercise of share options would be to decrease the loss per
share.
Details of share options that could potentially dilute earnings
per share in future periods are disclosed in the notes to the
Group's Annual Report and Financial Statements for the year ended
31 December 2015 and in note 10 below.
10 Issue of Share Options
No share options were issued in the first 6 months of 2016.
On 10 June 2015, the Company awarded 13,250,000 share options to
Directors and senior management. All of the share options have an
exercise price of 4.00 pence. One third of the options are
exercisable from 10 December 2015, one third from 10 June 2016 and
one third from 10 December 2016.
11 Ultimate controlling party
The Directors believe there to be no ultimate controlling
party.
12 Related party transactions
The nature of related party transactions of the Group has not
changed from those described in the Group's Annual Report and
Financial Statements for the year ended 31 December 2015.
13 Events after the reporting period
On August 3(rd) 2016 the Company announced the transfer to a
wholly-owned subsidiary of the Company of the remaining two
licences that make up the Glencore Araguaia nickel project ('GAP').
This completes the licence transfer under the agreement ('Asset
Purchase Agreement') to acquire GAP from Xstrata Brasil Exploraçâo
Mineral Ltda ('Xstrata'), a wholly owned subsidiary of Glencore, as
announced by the Company on 28 September 2015.
Following the registration by the National Department of Mineral
Production of Brazil of the transfer of the outstanding GAP
licences from Xstrata to a wholly-owned subsidiary of the Company
and pursuant to the Asset Purchase Agreement, Horizonte has now
completed the second and final allotment to Xstrata of Initial
Consideration Shares.
Further to the above, the Company has issued and allotted
50,729,922 new Ordinary Shares to Xstrata, being the Initial
Consideration Shares equivalent in value to US$1,340,000. These
closing Initial Consideration Shares were issued at a price of 1.99
pence (the "Issue Price"). In accordance with the terms of the
Asset Purchase Agreement the Issue Price was equal to the five day
weighted average price per Ordinary Share on AIM, taken on the
business day when the transfer of the remaining GAP licences was
confirmed, and converted at a rate of exchange as set out in the
Asset Purchase Agreement. This allocation of shares signifies the
completion of the issuance of the Initial Consideration Shares to a
total value of US$2,000,000. Initial Consideration Shares were
previously issued under the Asset Purchase Agreement to the value
of US$660,000 in November 2015 following transfer of the first GAP
licence to a wholly-owned subsidiary of the Company.
Approval of interim financial statements
These Condensed Consolidated Interim Financial Statements were
approved by the Board of Directors on 9 August 2016.
**ENDS**
For further information visit www.horizonteminerals.com or
contact:
Jeremy Martin Horizonte Minerals plc Tel: +44 (0) 20 7763
7157
David Hall Horizonte Minerals plc Tel: +44 (0) 20 7763
7157
Joanna Weaving finnCap Ltd (Corporate Tel: +44 (0) 20 7220
Christopher Raggett Broking) 0500
finnCap Ltd (Corporate Tel: +44 (0) 20 7220
Finance) 0500
Lottie Brocklehurst St Brides Partners Ltd Tel: +44 (0) 20 7236
Elisabeth Cowell (PR) 1177
St Brides Partners Ltd Tel: +44 (0) 20 7236
1177
About Horizonte Minerals:
Horizonte Minerals plc is an AIM and TSX-listed nickel
development company focused in Brazil, which wholly owns the
advanced Araguaia nickel laterite project located to the south of
the Carajas mineral district of northern Brazil. The Company is
developing Araguaia as the next major nickel mine in Brazil, with
targeted production by 2019.
Horizonte has a strong shareholder structure including Teck
Resources Limited 26.1%, Henderson Global Investors 15.7% and
Glencore 10.3%.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
Except for statements of historical fact relating to the
Company, certain information contained in this press release
constitutes "forward-looking information" under Canadian securities
legislation. Forward-looking information includes, but is not
limited to, statements with respect to the potential of the
Company's current or future property mineral projects; the success
of exploration and mining activities; cost and timing of future
exploration, production and development; the estimation of mineral
resources and reserves and the ability of the Company to achieve
its goals in respect of growing its mineral resources; and the
realization of mineral resource and reserve estimates. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved".
Forward-looking information is based on the reasonable assumptions,
estimates, analysis and opinions of management made in light of its
experience and its perception of trends, current conditions and
expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances at the
date that such statements are made, and are inherently subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking information, including
but not limited to risks related to: exploration and mining risks,
competition from competitors with greater capital; the Company's
lack of experience with respect to development-stage mining
operations; fluctuations in metal prices; uninsured risks;
environmental and other regulatory requirements; exploration,
mining and other licences; the Company's future payment
obligations; potential disputes with respect to the Company's title
to, and the area of, its mining concessions; the Company's
dependence on its ability to obtain sufficient financing in the
future; the Company's dependence on its relationships with third
parties; the Company's joint ventures; the potential of currency
fluctuations and political or economic instability in countries in
which the Company operates; currency exchange fluctuations; the
Company's ability to manage its growth effectively; the trading
market for the ordinary shares of the Company; uncertainty with
respect to the Company's plans to continue to develop its
operations and new projects; the Company's dependence on key
personnel; possible conflicts of interest of directors and officers
of the Company, and various risks associated with the legal and
regulatory framework within which the Company operates.
Although management of the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SSUFEAFMSEFA
(END) Dow Jones Newswires
August 09, 2016 02:00 ET (06:00 GMT)
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