RNS Number:3017R
Moydow Mines International Inc
01 April 2008
Moydow Mines International Inc.
Management's Discussion and Analysis of Financial Condition and Operating
Results
For year ended December 31, 2007
General
The Management's Discussion and Analysis ("MD&A") provides a detailed analysis
of Moydow's business and compares its 2007 financial results with those of the
previous year. In order to better understand the MD&A, it should be read in
conjunction with the audited consolidated financial statements of the Company
and notes thereto for the year ended December 31, 2007. The MD&A has been
prepared as at March 30, 2008. The consolidated financial statements have been
prepared in accordance with Canadian generally accepted accounting principles.
The reporting currency for the Company is the United States dollar, and all
amounts in the following discussion are in United States dollars unless
otherwise noted.
Company Overview
Moydow Mines International Inc. ("Moydow" or the "Company") is an international
exploration company with primary interests in precious and industrial minerals
and diamonds. Exploration activities are focused principally in Africa. Moydow
Mines' common shares are listed on both the Toronto Stock Exchange and the AIM
Market of the London Stock Exchange (symbol "MOY"). For further information on
the Company please visit our website at www.moydow.com or view our public
filings on the SEDAR website at www.sedar.com.
Subsidiaries and affiliated companies of Moydow are organized internationally so
that each has a specific geographic area or mineral project interest. Moydow
provides administrative, technical and financial assistance to these companies.
Forward-Looking Statements
This MD&A contains "forward-looking statements" that are subject to a number of
known and unknown risks, uncertainties and other factors that may cause actual
results to differ materially from those anticipated in our forward looking
statements. Factors that could cause such differences include: changes in metal
prices, equity markets, results of exploration and related expenses, drilling
activity, sampling and other data, currency exchange rates, change in
governments, ability to raise finances and changes to regulations affecting the
mining industry. Such forward-looking statements involve known and unknown
risks and uncertainties that could cause actual events or results to differ
materially from estimated or anticipated events or results implied or expressed
in such forward-looking statements.
Disclosure Controls and Procedures
As at December 31, 2007, an evaluation was carried out under the supervision of
and with the participation of the Company's management, including the Chief
Executive Officer and Chief Financial Officer, of the effectiveness of the
Company's disclosure controls and procedures. Based on that evaluation, the
Chief Executive Officer and the Chief Financial Officer concluded that the
design and operation of these disclosure controls and procedures were effective
as at December 31, 2007, to provide reasonable assurance that material
information relating to the Company and its consolidated subsidiaries would be
made known to them by others within those entities.
Application of Critical Accounting Estimates
Moydow's accounting policies are described in Note 2 to the Consolidated
Financial Statements. Set out below is a discussion of the application of
Moydow's critical accounting policies that require the Company to make
assumptions about matters that are uncertain at the time the accounting estimate
is made, and where different estimates that could reasonably have been used in
the current period, or changes in the accounting estimate that reasonably likely
to occur from period to period would have a material impact on Moydow's
financial statements.
Carrying value of mineral properties
Acquisition costs of mineral properties, together with direct exploration and
development expenses incurred thereon, are deferred and capitalized on a
property by property basis. Upon reaching commercial production, these
capitalized costs are transferred from exploration properties to producing
properties on the consolidated balance sheets and are amortized into operations
using the unit-of-production method over the estimated useful life of the
estimated related ore reserves.
In the event that the long-term expectation is that the net carrying amount of
these capitalized exploration costs will not be recovered, the carrying amount
is written down accordingly and the write-down amount charged to operations.
Such would be indicated where:
* Exploration activities have ceased;
* Exploration results are not promising such that exploration will not be
planned for the foreseeable future;
* Lease ownership rights expire; or
* Insufficient funding is available to complete the exploration program.
The amount shown for mineral properties represents costs incurred to date net of
recoveries from option or joint venture participants and write-downs, and does
not necessarily reflect present or future values.
Overview of Exploration Activities, Contractual Obligations and Commitments
Angola - Africa
Dala project, Angola
The Company is party to two separate exploration projects with the same partners
on the Dala property in Angola, relating to the exploration for alluvial and
kimberlite diamonds.
Alluvial diamonds
On October 1, 2004, the Company signed an agreement with Empressa Nacional De
Diamantes De Angola (Endiama), the Angolan state diamond mining company and
Cimader-Comercio Geral Limitada (Cimader), a local Angola company, to explore
for alluvial diamonds on the Dala concession, located near the town of Saurimo,
in north-east Angola. The concession comprises 3,000 square kilometres. To
obtain a 33% interest, the Company will have to incur expenditures of not less
than $5,000,000 on or before February 2008. The combined cumulative
expenditures by the Company and Concord (see below) to the year ended December
31, 2007 is $5.33 million. Cimader and Endiama have a free carried interest in
the exploration phase of the project.
The Company's cumulative expenditures on the alluvial licence to December 31,
2007 amounted to $4.60 million of which $1.34 million was incurred during 2007
($1.48 million was incurred during 2006). In addition, Concord Minerals LLC
cumulative expenditures as at December 31, 2007, amount to $0.73 million ($0.69
million-December 31, 2006)
Kimberlite
On December 16, 2005, the Company signed another agreement with Endiama and
Cimader to explore for kimberlite (primary) diamonds on the Dala concession.
Under the terms of the agreement, the Company can earn 40% interest in the
concession with the remaining percentages held by Endiama and Cimader. To
obtain its interest, the Company will have to incur expenditures of not less
than $10,000,000 on or before January 14, 2009. Cimader and Endiama have a free
carried interest in the exploration phase of the project. The granting of the
licence was ratified by the Angolan Council of Ministers on October 18th, 2006
and was subject to the Company making a deposit of $1 million with the Angolan
government. The deposit was made in 2006 and may be refunded provided that
Moydow meet certain conditions. The deposit has been included as a component of
the cost to acquire an interest in the Dala project.
The Company's cumulative expenditures on the kimberlite licence to December 31,
2007 amounted to $3.68 million of which $2.01 million was incurred during 2007
(2006 - $1.66 million).
The Company entered into a separate agreement with Concord Minerals LLC
(Concord), a private Nevada company, whereby Concord was granted the right to
earn up to 50% of Moydow's interest in the concession by funding exploration
expenditures under Moydow's agreement with Endiama and Cimader. However,
Concord has not exercised this right in full and it presently holds a 10%
interest in the Moydow-Concord agreement.
On April 20, 2007, the Company agreed to issue 4,000,000 shares to Concord
Minerals LLC in connection with the acquisition of its interest in the Dala
project, Angola. The shares will be issued at a price of CA$0.20 per share, in
settlement of the cumulative expenditures incurred by Concord Minerals LLC on
the Dala project, Angola of $0.73 million. The issue of these shares is subject
to receipt of all necessary regulatory approval.
Sierra Leone, West Africa
Port Loko property, Sierra Leone
The Company has a 50% interest in the Port Loko bauxite exploration project in
Sierra Leone, West Africa. The other 50% interest in the project is held by
Gondwana Investments Limited ("Gondwana"), a company incorporated in Luxembourg.
On January 28, 2008, a one year prospecting licence with respect to the Port
Loko project was granted by the Ministry of Mineral Resources in Sierra Leone.
Cumulative expenditures by the Company to December 31, 2007 amounted to $3.04
million of which $0.45 million was incurred in 2007.
Ghana, West Africa
Ntotoroso property, Ghana
On December 8, 2003, the Company sold its wholly owned subsidiary, Moydow
Limited (Isle of Man), which, following an internal restructuring, owned the
Company's 50% joint venture interest in the Ntotoroso property but no other
mineral properties, to Newmont Mining Corporation (Newmont).
In connection with the sale, the Company entered into a royalty agreement,
whereby the company acquired the right to a net smelter return royalty of 2% on
all recovered ounces of gold and silver produced from the Ntotoroso property
after the first 1,200,000 gold equivalent ounces in consideration for $250,000.
No value has been ascribed to the royalty rights acquired by the Company.
At the time of sale, the reserve at Ntotoroso was calculated at 1,200,000 ounces
of gold. This figure was based on a gold price of $325 per ounce and assumed
that only the Subika pit would be mined down to a depth of 150 metres.
In March 2005, Newmont published public disclosure documents relating to the
development of the Ahafo mine. These documents showed a newly calculated
reserve on Subika of 2,460,000 ounces of gold and envisaged mining the pit to a
depth of 270 metres. In addition, the Awonsu pit schedules to start production
during 2008 falls partly under the royalty agreement.
The project poured it's first gold on July 18, 2006 and as at December 31, 2007
had produced 390,294 ounces of gold of which 263,741 ounces of gold was produced
in 2007. Assuming the same rate of production, we expect our first royalty
payment in year 2011. Using the price of gold as at December 31, 2007 of $845
per ounce, we expect annual royalty payments of up to $4.50 million.
Hwidem property, Ghana
On November 23, 2007, the Company was granted a one-year extension to its
prospecting licence with respect to the Hwidem property by the Minister for
Lands, Forestry and Mines in Ghana. The licence area covers 24.7 square
kilometres and it adjoins the Kenyase-Ntotoroso area currently under lease to
Rank Mining Company Limited, a subsidiary of Newmont. The Company incurred
exploration expenditures on this property of $0.07 million in 2007. The minimum
exploration expenditures required to be spent by the end of the extension in
order to maintain the licence are $0.52 million, of which $0.56 million had been
spent as at December 31, 2007. If gold mineralization does not exist in
sufficient quantities in the area to warrant completion of the work program, the
Company is not liable for any shortfall of the minimum exploration expenditures.
Kanyankaw property, Ghana
On December 21, 2007, the Company was granted a two-year extension to its
prospecting licence with respect to the Kanyankaw property by the Minister for
Lands, Forestry and Mines in Ghana. The carrying value of the Kanyankaw
property was written off in 2005 in the amount of $0.33 million, as exploration
results are not promising such that exploration will not be planned for the
foreseeable future.
Okumpreko property, Ghana
On September 17, 2004, the Company signed an agreement with PW Limited, an
international engineering and mining contractor. Under the terms of the
agreement, the Company can earn a majority interest in the Nyaduom and Kushea
mining leases, which are collectively known as the Okumpreko gold project. On
January 23, 2007, the Minerals Commission cancelled the mining lease for
non-performance. The Company wrote off its investments in the amount of $0.40
million.
Commitments
The Company, either directly or through certain joint ventures, has obligations
to expend various amounts on its mineral properties and projects in order to
keep its mineral property rights in good standing. All agreements are in the
normal course of business.
Payments due ($ thousand) Total Less than 1 year 1 to 3 years
Exploration and development $15,523 $15,523 $nil
Segmented Information
The Company has one reportable operating segment, being exploration of mineral
properties in geographic areas disclosed in Note 4 to the Consolidated Financial
Statements.
Results of Operations
Comprehensive loss for 2007 was $0.99 million or $0.02 per share compared to a
loss of $1.06 million in 2006 or $0.03 per share.
General and administrative expenses were $1.04 million in 2007 as compared with
$0.92 million in 2006. The increase in 2007 compared with 2006 is a result of
operating currencies strengthening against the United States dollars together
with additional professional fees associated with the issue of capital stock.
On July 13, 2007, the Company granted 3.30 million stock options to officers,
directors, employees and consultants. The estimated fair value of the options
granted was $0.30 million or an average of Cdn$0.09 per option. The Company
recognizes this expense over the period in which entitlement to the awards vest.
The foreign exchange gain in 2007 was $0.02 million compared to a gain of $0.03
million in 2006. The foreign exchange gain resulted from the movements in
exchange rates between operating currencies and the United States dollar.
The Company earned dividend income of nil and $0.001 million during 2007 and
2006, respectively. The dividend income was received from the Company's
shareholding in Newmont. During 2006, the Company disposed of its shares in
Newmont.
The Company earned deposit interest income of $0.004 million and $0.01 million
in 2007 and 2006, respectively.
A company controlled by certain insiders of the Company advanced money to the
Company and interest has been accrued at Libor plus 2%. The amount of interest
charged to the Company during 2007 and 2006 was $0.15 million and nil,
respectively.
The Company had an unrealised loss of $0.06 million and nil in 2007 and 2006,
respectively on financial assets held-for-trading.
On January 1, 2007, the Company accounted for changes in fair value of financial
assets held-for-trading in the amount of $0.085 million through retained
earnings.
The Company's revenues are derived from: interest and dividend income, which is
dependent on available cash balances and prevailing interest rates and returns
on investments which are dependent on the prevailing market at the time of sale.
In 2007 and 2006, the Company recorded a recovery of income taxes in the sum of
$0.48 million and $0.32 million respectively. The underlying effective tax rate
for 2007 is 32.72% as compared to 23.02% in 2006.
On March 1, 2006, the Company announced that it had reached an agreement with
Diamond Fields International Ltd. ("Diamond Fields") effective February 28, 2006
pursuant to which Moydow common shareholders would have exchanged their Moydow
securities for securities of Diamond Fields ("the acquisition"). The
acquisition was subject to, among other things, receipt of all necessary
regulatory, court and stock exchange approvals, Moydow's shareholder approval, a
valuation and/or fairness opinion by each Company and lock-up agreements
executed by the chairman and chief executive officer of the Company under which
they have agreed to vote in favour of the merger and entry of the parties into a
definite agreement. As all the necessary stipulations required under the terms
of agreement were not reached by May 31, 2006, the agreement was automatically
terminated. The Company incurred transaction and due diligence expense of
$0.402 million in connection with this transaction.
During 2006, the Company sold 45,000 Newmont common shares for proceeds of $2.52
million. The Company recognized a gain of $0.31 million on the sale of these
shares.
On January 23, 2007, the Minerals Commission cancelled the mining lease on the
Okumpreko gold project, Ghana for non-performance. The Company wrote off its
investments in the amount of $0.40 million, of which $0.17 million was incurred
during 2006.
Liquidity and Capital Resources
At December 31, 2007, the Company had negative working capital of $3.41 million
(December 31, 2006 - $2.24 million). Cash and cash equivalents at December 31,
2007 amounted to $0.09 million compared to cash and cash equivalents as the end
of 2006 of $0.14 million.
A company controlled by certain insiders of the Company advanced money to the
Company and interest has been accrued at Libor plus 2%. The amount of interest
charged to the Company during 2007 was $0.15 million. Included in accounts
payable and accrued liabilities as at December 31, 2007, is $3.44 million (2006
- $0.63 million) payable to these related parties.
These financial statements have been prepared using Canadian generally accepted
accounting principles applicable to a going concern, which contemplates the
realization of assets and settlement of liabilities in the normal course of
business as they come due. As at December 31, 2007, the Company had an excess
of current liabilities over current assets of $3.41 million and has recorded
losses and net cash outflows from operations for the past two years. The Company
is also required to make expenditures (as outlined in Note 4 to the Consolidated
Financial Statements) in the near term to keep its mineral property rights in
Angola. The Company will have to secure additional financing to meet its
required commitments. These circumstances lend substantial doubt as to the
ability of the Company to meet its obligations as they come due and,
accordingly, the appropriateness of the use of accounting principles applicable
to a going concern.
In recognition of these circumstances, the Company is exploring various
initiatives to secure capital so that Moydow can continue as a going concern.
It is not possible to determine, with any certainty, the success, adequacy or
sufficiency of these initiatives.
Cash Flow Statements
Cash flow provided by operating activities for the year ended December 31, 2007,
including changes in non-cash working capital of $2.98 million, totalled $1.99
million as compared to cash flow used in operation activities of $0.68 million
in 2006. In the twelve months ended December 31, 2007, cash used in investing
activities was $3.88 million which (2006 - $1.88 million of which $4.40 million
was expended on exploration) was expended on exploration of mineral properties
incurred principally in Angola and Sierra Leone. During 2006 the Company
received $2.52 million from the sale of 45,000 Newmont common shares.
Cash flow from financing activities for the year ended December 31, 2007, was
$1.84 million, principally from the issue of 18,297,186 shares in the amount of
$3.26 million for cash and debt conversion (2006 - $2.69 million). On March 29,
2007, the company closed a private placement of 9,547,186 shares at a price of
Cdn$0.20 per share in settlement of $1.62 million of debts owed for loans to the
company. These loans were from related parties to the Company.
Use of Financial Instruments
The Company has not entered into any specialized financial agreements to
minimize its investment risk, currency risk or commodity risk. There are no
off-balance sheet arrangements.
Changes in Accounting Policies
On January 1, 2007, the company adopted Section 1506 of the CICA Handbook
Accounting Changes, which prescribes the criteria for changing accounting
policies, together with the accounting treatment and disclosure of changes in
accounting policies, changes in accounting estimates and corrections of errors.
This standard did not affect the Company's financial position or results of
operations.
Canadian accounting pronouncements issued and not yet adopted
Section 1535
The new Section 1535, Capital Disclosures, requires that an entity disclose
information that enables users of its financial statements to evaluate an
entity's objectives, policies and processes for managing capital, including
disclosures of any externally imposed capital requirements and the consequences
of non-compliance. The new standard applies to interim and annual financial
statements relating to fiscal years beginning on or after October 1, 2007,
specifically January 1, 2008 for the Company.
This standard will impact the Company's disclosures provided but will not affect
the Company's results or financial position.
Section 3031
The new Section 3031, Inventories, relates to the accounting for inventories and
revises and enhances the requirements for assigning costs to inventories. The
new standard applies to interim and annual financial statements relating to
fiscal years beginning on or after January 1, 2008, and will be effective for
the Company as of this date.
This standard is not expected to have a significant effect on the Company's
consolidated financial statements.
Sections 3862 and 3863
The new Sections 3862 and 3863 replace Handbook Section 3861 Financial
Instruments - Disclosure and Presentation, revising and enhancing its disclosure
requirements, and carrying forward unchanged its presentation requirements.
These new sections place increased emphasis on disclosures about the nature and
extent of risks arising from financial instruments and how the entity manages
those risks. The new standards apply to interim and annual financial statements
relating to fiscal years beginning on or after October 1, 2007, specifically
January 1, 2008 for the Company.
This standard will impact the Company's disclosures provided but will not affect
the Company's results or financial position.
Outstanding Share Data
As at March 30, 2008, the Company has 56,572,904 common shares in issue.
Holders of common shares are entitled to one vote on any ballot at meetings in
respect of each common share held. The Company has 4,900,000 stock options
outstanding at a weighted average price of Cdn$0.27.
On March 29, 2007, the Company issued 9,547,186 common shares at a price of
Cdn$0.20 per share in settlement of $1.62 million of debts owed for loans made
to the Company. These shares were issued to parties at 'non-arms length' to the
Company.
On June 18, 2007, the Company closed a private placement and issued 8,750,000
common shares of the company at a price of Cdn$0.20 per shares. Of this,
3,075,000 shares were issued in settlement of debts owed for loans made to the
Company. These shares were issued to parties at 'non-arms length' to the
Company.
On April 20, 2007, the Company agreed to issue 4,000,000 shares to Concord
Minerals LLC in connection with the acquisition of its interest in the Dala
project, Angola. The shares will be issued at a price of CA$0.20 per share, in
settlement of the cumulative expenditures incurred by Concord Minerals LLC on
the Dala project, Angola of $728,051. The issue of these shares is subject to
receipt of all necessary regulatory approval.
In 2006, the Company issued 7,655,143 common shares at a price of Cdn$0.18 per
share pursuant to a private placement. Of this total, 3,062,057 have been
issued to parties at 'non-arm's length' to the Company and 4,593,080 have issued
to parties at 'arm's length' to the Company.
Transactions with Related Parties
Related party transactions relate primarily to the payment of fees under
contracts for services with companies in which a Moydow director is a
shareholder and director. The Company was charged a total of $0.30 million
during 2007 (2006 - $0.39 million) with respect to administration services.
The Company's primary legal counsel is a firm in which a director of the Company
is a partner. The Company was charged $0.10 million during 2007 (2006 - $0.25
million) for legal services provided by this firm.
A company controlled by certain insiders of the Company advanced money to the
Company and interest has been accrued at Libor plus 2%. The amount of interest
charged to the Company during 2007 was $0.15 million. Included in accounts
payable and accrued liabilities as at December 31, 2007 is $3.44 million (2006 -
$0.63 million) payable to these related parties.
These transactions are made in the normal course of business.
Selected Consolidated Annual Financial Information
Set forth below is certain financial data for the last three completed financial
years:
December 31, 2007 December 31, 2006 December 31, 2005
$ $ $
Total revenue - - -
Basic and diluted (loss) earning per share (0.02) (0.03) (0.05)
Total assets 12,478,835 8,358,027 6,334,596
(Loss) net income for the year (989,030) (1,060,179) (1,612,359)
Total long term financial liabilities - - -
Dividends declared - - -
Quarterly Information
The following table summaries the results of the Company for each of the most
recent eight quarters:
March March June June Sept Sept Dec Dec
2007 2006 2007 2006 2007 2006 2007 2006
$ $ $ $ $ $ $ $
Revenues - - - - - - - -
Net profit/(loss) (262,548) 33,490 (363,490) (331,574) (363,581) (335,633) 589 (426,462)
Basic and diluted
(loss)/ earnings per
Common share (0.007) 0.001 (0.007) (0.011) (0.006) (0.010) nil (0.011)
Total assets 9,150,435 6,841,872 10,973,189 7,110,675 10,967,515 8,931,585 12,478,835 8,358,027
Number of common
shares
outstanding 47,822,904 30,620,575 56,572,904 30,620,575 56,572,904 38,275,718 56,572,904 38,275,718
Comprehensive income for the three months ended December 31, 2007, was $0.001
million or nil per share and compared to a loss of $0.43 million or $0.011 per
share in the same period in 2006.
General and administrative expenses were $0.20 million in the fourth quarter of
2007 as compared with $0.28 million in the same period in 2006.
On July 13, 2007, the Company granted 3.30 million stock options to officers,
directors, employees and consultants. In the fourth quarter of 2007, the
estimated fair value of the options granted was $0.02 million. The Company
recognizes this expense over the period in which entitlement to the awards vest.
The foreign exchange gain in fourth quarter of 2007 was $0.04 million compared
to a loss of $0.15 million in 2006. The foreign exchange loss resulted from the
movements in exchange rates between operating currencies and the United States
dollar and also from the write off of foreign exchange movements previously
capitalised in Mineral Properties.
The Company earned deposit interest income of $0.001 million and $0.001 million
in the last quarter of 2007 and 2006, respectively.
A company controlled by certain insiders of the company advanced money to the
Company and interest has been accrued at Libor plus 2%. The amount of interest
charged to the Company during the last quarter of 2007 and 2006 was $0.15
million and nil respectively.
The Company had an unrealised loss of $0.06 million and nil in 2007 and 2006,
respectively on financial assets held-for-trading
In the last quarter of 2007 and 2006, the Company recorded a recovery of income
taxes in the sum of $0.37 million and $0.24 million, respectively. The
underlying effective tax rate for 2007 32.72% as compared to 23.02% in 2006.
During 2006, the Company incurred transaction and due diligence expense of $0.40
million in connection with the proposed merger with Diamond Fields. During the
fourth quarter of 2006, the Company renegotiated their professional fees in
relation to this transaction and received a discount of $0.14 million.
During the last quarter of 2006, the Company wrote off its investments on the
Okumpreko gold project located in Ghana in the amount of $0.40 million as the
Minerals Commission cancelled the licence for non-performance.
Cash flow provided by operating activities for the three months ended December
31, 2007, including changes in non-cash working capital of $0.92 million,
totalled $1.08 million. In the three months ended December 31, 2007 cash used
in investing activities was $1.11 million (2006 - $2.07 million) which was
expended on exploration of mineral properties incurred principally in Angola.
Cash flow from financing activities in the last quarter of 2007 and 2006 was nil
and $0.44 million, respectively.
Regulatory, Environmental and Other Risk Factors
The Company intends to fulfil all statutory commitments on its current licences
over the next year and will apply for licence renewals in the normal course of
business.
The Company's operating income and cash flow are affected by changes in the U.S.
/Canadian dollar exchange rate together with movement in the local currencies in
Angola, Sierra Leone, Ghana, and Ireland, as a portion of the Company's costs
are incurred in these currencies.
The profitability of any mining operation will be significantly affected by
changes in the market price of commodities. Commodity prices fluctuate on a
daily basis and are affected by numerous factors such as world supply, Central
Bank selling, stability of exchange rates, forward sales and inflationary
forces, among other factors beyond Moydow's control.
Exploration companies are subject to various laws and regulations including but
not limited to environmental and, health and safety matters together with
political risks which are outside the Company's control. Moydow is committed to
a program of environmental protection at all of its projects and exploration
sites.
The financial statements of the Company have been prepared on the basis that the
company will continue as a going concern which presumes that it will be able to
realize its assets and discharge its liabilities in the normal course of
business. The financial statements do not include any adjustments that might be
necessary if the Company is unable to continue as a going concern. If
management is unsuccessful in securing capital, the Company's assets may not be
realized or its liabilities discharged at their carrying amounts and these
differences could be material.
Outlook
The Company will focus its efforts on securing capital together with finalizing
terms with potential joint venture partners. The Company is in discussions with
a major international mining company who are interested in acquiring a stake in
our diamond property in Angola. Although negotiations are at an early stage,
this may present a good opportunity for the Company to significantly advance the
project and ensure continued participation in this very exciting diamond play.
The Company and its partner, Gondwana, are also in discussion with other
companies to further advance the Port Loko project in Sierra Leone. Future cash
flow from the royalty on the Ntotoroso gold property, Ghana, will provide funds
with which to evaluate new mining opportunities.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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