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KEFI MINERALS PLC - Interim results for the half-year ended 30 June 2012

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PR Newswire

AIM: KEFI 10 September 2012

                               KEFI Minerals Plc                               

                      ("KEFI Minerals" or the "Company")                       

             INTERIM RESULTS FOR THE HALF-YEAR ENDED 30 JUNE 2012              

KEFI Minerals, an AIM-quoted gold and copper exploration company with projects in the Kingdom of Saudi Arabia, is pleased to announce its unaudited interim results for the half-year ended 30 June 2012.

Highlights of the Half-Year Period

  * The Gold and Minerals JV ("G&M") in Saudi Arabia was granted 2 Exploration
    Licences (ELs) by the Kingdom of Saudi Arabia's Deputy Ministry for Mineral
    Resources in January 2012 and a further 1 EL (outside the reporting period,
    on 4 July 2012). The G&M JV has now 4 granted ELs and 19 EL applications.
   
  * Exploration work at the Selib North project defined new gold-bearing dykes
    at the Camel Hill prospect with best trench results of 17m at 3.4 g/t Au.
    Diamond drilling commenced in July 2012.
   
  * Exploration at the Jibal Qutman prospect returned rock chip channel samples
    of up to 4m at 9.36 g/t Au and 93 g/t Ag and trench sampling carried out
    outside the reporting period in July returned best results of 3.2m at 27.7
    g/t Au and 262 g/t Au.
   
  * The Company decided to allow its exclusivity period, over the tailings
    retreatment project and mining of remnant ore at the Tiouit Mine in
    Morocco, to lapse. The due diligence and evaluation work that was conducted
    during the exclusivity period, since July 2011, demonstrated less potential
    than initially envisaged.
   
  * In February 2012, raised £1,850,000 via a placing at 3p per share.
   
  * In August 2012, raised £966,000 via a placing to 3 members of the Al Rashid
    family at 2.3p per share.
   

Jeffrey Rayner, Managing Director of KEFI Minerals, commented:

"KEFI Minerals through the G&M JV in Saudi Arabia has made excellent progress in 2012. Our exploration work has led to new gold discoveries and early drill target definition. Diamond drilling has commenced at the Selib North prospect and is due to start at the Jibal Qutman prospect in early September 2012. The Company's strategy is very cost-effective with every one of our highly dedicated full-time personnel focused on activities in the field."

Enquiries:                                                                     
                                                                               
KEFI Minerals              Fox-Davies Capital        Bishopsgate Communications
                                                                               
Jeffrey Rayner             Simon Leathers            Nick Rome                 
                                                                               
+90 533 928 19 13          +44 203 463 5022          +44 207 562 3366          
                                                                               
www.kefi-minerals.com                                                          

References in this announcement to exploration results and potential have been approved for release by Mr Jeffrey Rayner (BSc.Hons). Mr Rayner is a geologist and has more than 25years relevant experience in the field of activity concerned. He is a member of the Australasian Institute of Mining and Metallurgy (AusIMM) and has consented to the inclusion of the material in the form and context in which it appears.

Managing Director's Report


ARIVA.DE Börsen-Geflüster

Kurse

-  
0,00%
Kefi Minerals Chart

The Company has been advancing its prospects in Saudi Arabia with the G&M JV. The Arabian Shield is under-explored and has excellent potential for discovery of major gold and copper mines. We will continue to progress effective exploration programmes that aim to fast-track gold discovery and eventual development of new mines.

Exploration - Saudi Arabia

The Gold & Minerals Joint Venture has been granted a further 3 ELs up to July 2012, bringing the total to 4 ELs and 19 ELAs. Exploration work in 2012 has involved surface mapping, reconnaissance sampling, trenching and initiated in July diamond drilling at the Selib North prospect.

New gold structures have been discovered at the Selib North prospect hosted in pyritic dykes and sampling of trenches revealed best results of 17m at 3.4 g/t Au. The dykes have been mapped over an extensive area and geophysics is planned to locate the mineralised dykes at depth.

Diamond drilling commenced in July and drill results are pending.

The Company released encouraging trench results from the Jibal Qutman prospect, in July 2012, outside the reporting period. Mapping and sampling has extended the quartz vein field to over 3km in strike and discovered new veins. The veins are generally 2-5m thick and highlights from initial sampling of the unmined portions of the trenches include the following:

  * 3.2 m at 27.7 g/t Au and 262 g/t Ag
   
  * 4.0 m at 14.9 g/t Au and 84 g/t Ag
   
  * 5.0 m at 10.9 g/t Au and 56 g/t Ag
   
  * 4.2 m at 4.6 g/t Au and 35 g/t Ag
   
  * 2.0 m at 7.2 g/t Au and 58 g/t Ag and
   
  * 19.0 m at 1.9 g/t Au.
   

Diamond drilling is scheduled to commence at Jibal Qutman in early September 2012.

At the Hikyrin South licence, samples taken from the waste dumps of the ancient Houimedan West mine have returned grades of up to 16.3 g/t Au and averaged 5.9 g/t Au from 24 samples spread over a 700m strike length. The veins are generally narrow and extend over 1km.

Permitting of the 19 ELAs is continuing and the G&M JV is expecting further licence grants in H2 2012.

Outlook

The Arabian Shield is recognised as under-explored and is very prospective for discoveries of large gold and copper deposits.

KEFI Minerals continues to develop its tenement position within the Kingdom of Saudi Arabia as a 40% equity holder and operator of the Gold and Minerals Joint Venture with ARTAR.

KEFI Minerals will continue its current exploration efforts in a very cost-effective manner while evaluating further opportunities in the region. We are fully focused on expanding G&M's presence in the Kingdom of Saudi Arabia and are encouraged by our results thus far. The Company is well funded to continue with the 12,000m drilling programme planned on the granted ELs and those expected in the second half of 2012.

KEFI MINERALS PLC

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2012

Contents


                                                                        Page   
                                                                               
Condensed Interim Consolidated Statement of Comprehensive Income         4     
                                                                               
Condensed Interim Consolidated Statement of Financial Position           5     
                                                                               
Condensed Interim Consolidated Statement of Changes in Equity            6     
                                                                               
Condensed Interim Consolidated Statement of Cash Flows                   7     
                                                                               
Notes to the Condensed Interim Consolidated Financial Statements        8-15   
                                                                               
Review Report                                                            16    

KEFI MINERALS PLC

CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2012

(UNAUDITED)

                                                    Six months       Six months
                                                         ended         ended 30
                                                                      June 2011
                                                  30 June 2012                 
                                                                               
                                           Notes       GBP'000          GBP'000
                                                                               
Revenue                                                      -                -
                                                                               
Exploration costs                                          (2)            (118)
                                                                               
Gross loss                                                 (2)            (118)
                                                                               
Administrative expenses                                  (563)            (367)
                                                                               
Share-based payments                                     (121)             (82)
                                                                               
Share of loss from jointly controlled                    (117)             (74)
entity                                                                         
                                                                               
Impairment of other receivables                              -             (28)
                                                                               
Other loss                                                (19)                -
                                                                               
Operating loss                                           (822)            (669)
                                                                               
Foreign exchange gain                                       67               18
                                                                               
Loss before tax                                          (755)            (651)
                                                                               
Tax                                                          -                -
                                                                               
Loss for the period                                      (755)            (651)
                                                                               
Other comprehensive loss:                                                      
                                                                               
Exchange differences on translating                       (54)             (39)
foreign operations                                                             
                                                                               
Total comprehensive loss for the period                  (809)            (690)
                                                                               
Basic and fully diluted loss per share       4            0.19             0.18
(pence)                                                                        

The notes on pages 8 to 15 form an integral part of these condensed interim consolidated financial statements. KEFI MINERALS PLC

CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2012

(UNAUDITED)

                                                   30 June   30 June     31 Dec
                                                      2012      2011       2011
                                                                               
                                           Notes   GBP'000   GBP'000    GBP'000
                                                                               
ASSETS                                                                         
                                                                               
Non-current assets                                                             
                                                                               
Property, plant and equipment                5           2        15          2
                                                                               
Fixed asset investments                                181       181        181
                                                                               
                                                       183       196        183
                                                                               
Current assets                                                                 
                                                                               
Financial assets at fair value through                  22         -         43
profit or loss                                                                 
                                                                               
Trade and other receivables                  6          83       169         86
                                                                               
Cash and cash equivalents                            1,572     1,372        640
                                                                               
                                                     1,677     1,541        769
                                                                               
Total assets                                         1,860     1,737        952
                                                                               
EQUITY AND LIABILITIES                                                         
                                                                               
Equity attributable to owners of the                                           
Company                                                                        
                                                                               
Share capital                                7       4,267     3,648      3,650
                                                                               
Share premium                                        3,843     2,712      2,719
                                                                               
Share options reserve                        8         506       336        385
                                                                               
Foreign exchange reserve                             (224)     (246)      (170)
                                                                               
Accumulated losses                                 (6,638)   (4,968)    (5,883)
                                                                               
                                                     1,754     1,482        701
                                                                               
Non-current liabilities                                                        
                                                                               
Share of loss in joint ventures                          -        89          -
                                                                               
                                                         -        89          -
                                                                               
Current liabilities                                                            
                                                                               
Trade and other payables                     10        106       166        251
                                                                               
                                                       106       166        251
                                                                               
Total liabilities                                      106       255        251
                                                                               
Total equity and liabilities                         1,860     1,737        952
                                                                               

The notes on pages 8 to 15 form an integral part of these condensed interim consolidated financial statements.

KEFI MINERALS PLC

CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2012


(UNAUDITED)

                         Share    Share    Share   Foreign Accumulated   Total
                                premium  options  exchange                    
                       capital           reserve   reserve      losses        
                                                                              
                       GBP'000  GBP'000  GBP'000   GBP'000     GBP'000 GBP'000
                                                                              
At 1 January 2011        3,311    1,697      396     (207)     (4,459)     738
                                                                              
Comprehensive loss for       -        -        -         -       (651)   (651)
the period                                                                    
                                                                              
Other comprehensive          -        -        -      (39)           -    (39)
loss                                                                          
                                                                              
Issue of share capital     337    1,106        -         -           -   1,443
                                                                              
Share issue costs            -     (91)        -         -           -    (91)
                                                                              
Recognition of               -        -       82         -           -      82
share-based payments                                                          
                                                                              
Exercise of options/         -        -     (73)         -          73       -
warrants                                                                      
                                                                              
Forfeit of options/          -        -     (69)         -          69       -
warrants                                                                      
                                                                              
At 30 June 2011          3,648    2,712      336     (246)     (4,968)   1,482
                                                                              
Comprehensive loss for       -        -        -         -       (941)   (941)
the period                                                                    
                                                                              
Other comprehensive          -        -        -        76           -      76
income                                                                        
                                                                              
Issue of share capital       2        7        -         -           -       9
                                                                              
Recognition of               -        -       75         -           -      75
share-based payments                                                          
                                                                              
Forfeit of options/          -        -     (26)         -          26       -
warrants                                                                      
                                                                              
At 31 December 2011      3,650    2,719      385     (170)     (5,883)     701
                                                                              
Comprehensive loss for       -        -        -         -       (755)   (755)
the period                                                                    
                                                                              
Other comprehensive          -        -        -      (54)           -    (54)
loss                                                                          
                                                                              
Issue of share capital     617    1,233        -         -           -   1,850
                                                                              
Share issue costs            -    (109)        -         -           -   (109)
                                                                              
Recognition of               -        -      121         -           -     121
share-based payments                                                          
                                                                              
At 30 June 2012          4,267    3,843      506     (224)     (6,638)   1,754

The following describes the nature and purpose of each reserve within Group's
equity:

Reserve              Description and purpose                                   
                                                                               
Share capital        amount subscribed for share capital at nominal value      
                                                                               
Share premium        amount subscribed for share capital in excess of nominal  
                     value, net of issue expenses                              
                                                                               
Share options        reserve for share options granted but not exercised or    
reserve              lapsed                                                    
                                                                               
Accumulated losses   cumulative net gains and losses recognised in the         
                     statement of comprehensive income, excluding foreign      
                     exchange gains within other comprehensive income          
                                                                               
Foreign exchange     cumulative foreign exchange net gains and losses          
reserve              recognised on consolidation                               

The notes on pages 8 to 15 form an integral part of these condensed interim consolidated financial statements.

KEFI MINERALS PLC

CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2012

(UNAUDITED)

                                                       Six months    Six months
                                                       to 30 June    to 30 June
                                                             2012          2011
                                                                               
                                               Notes      GBP'000       GBP'000
                                                                               
CASH FLOWS FROM OPERATING ACTIVITIES                                           
                                                                               
Loss before tax                                             (755)         (651)
                                                                               
Adjustments for:                                                               
                                                                               
Depreciation of property, plant and equipment    5              -             5
                                                                               
Share-based benefits                                          121            82
                                                                               
Profit on disposal of property, plant and                                      
equipment                                                                      
                                                                               
Share of loss in joint venture                                117            74
                                                                               
Impairment of receivables                                       -            28
                                                                               
Fair value losses on financial assets at fair                  21             -
value through profit or loss                                                   
                                                                               
Foreign exchange losses/(gains) on financing                   11          (14)
activities                                                                     
                                                                               
Foreign exchange gains on operating activities               (67)             6
                                                                               
                                                            (552)         (470)
                                                                               
Changes in working capital:                                                    
                                                                               
Trade and other receivables                                     2          (65)
                                                                               
Trade and other payables                                    (145)            46
                                                                               
Net cash used in operating activities                       (695)         (489)
                                                                               
CASH FLOWS FROM INVESTING ACTIVITIES                                           
                                                                               
Proceeds from sale of property, plant and                       3             -
equipment                                                                      
                                                                               
Advances to joint venture                                   (117)          (30)
                                                                               
Net cash from/(used in) investing activities                (114)          (30)
                                                                               
CASH FLOWS FROM FINANCING ACTIVITIES                                           
                                                                               
Proceeds from issue of share capital                        1,850         1,443
                                                                               
Listing and issue costs                                     (109)          (91)
                                                                               
Net cash from financing activities                          1,741         1,352
                                                                               
Net increase in cash and cash equivalents                     932           833
                                                                               
Cash and cash equivalents:                                                     
                                                                               
At beginning of period                                        640           539
                                                                               
At end of period                                            1,572         1,372
                                                                               

The notes on pages 8 to 15 form an integral part of these condensed interim consolidated financial statements. KEFI MINERALS PLC

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2012

1. Incorporation and principal activities

Country of incorporation

The Company was incorporated in United Kingdom as a public limited company on 24 October 2006. Its registered office is at 27/28 Eastcastle Street, London W1W 8DH.

Principal activities

The principal activities of the Group for the period are:

  * To explore for mineral deposits of precious and base metals and other
    minerals that appear capable of commercial exploitation, including
    topographical, geological, geochemical and geophysical studies and
    exploratory drilling.
   
  * To evaluate mineral deposits determining the technical feasibility and
    commercial viability of development, including the determination of the
    volume and grade of the deposit, examination of extraction methods,
    infrastructure requirements and market and finance studies.
   
  * To develop, operate mineral deposits and market the metals produced.
   

2. Summary of significant accounting policies

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

Basis of preparation and consolidation

The condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standards (IFRS) including International Accounting Standard 34 "Interim Financial Reporting" and using the historical cost convention.

These condensed interim consolidated financial statements (`the statements") are unaudited and include the financial statements of the Company and its subsidiary undertakings. They have been prepared using accounting bases and policies consistent with those used in the preparation of the financial statements of the Company and the Group for the year ended 31 December 2011. These statements do not include all of the disclosures required for annual financial statements, and accordingly, should be read in conjunction with the financial statements and other information set out in the Company's 31 December 2011 Annual Report. The accounting policies are unchanged from those disclosed in the annual consolidated financial statements.

Going concern

The Directors have formed a judgment at the time of approving the condensed interim consolidated financial statements that there is a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The financial statements have been prepared on a going concern basis, the validity of which depends principally on the discovery of economically viable mineral deposits, obtaining the necessary mining licences and the availability of subsequent funding to extract the resource or alternatively the availability of funding to extend the Company's exploration activities. The financial statements do not include any adjustment that would arise from a failure to complete any of the above. Changes in future conditions could require write downs of the carrying values of property, plant and equipment, intangible assets and/or deferred tax.

KEFI MINERALS PLC

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2012

2. Summary of significant accounting policies (continued)

Use and revision of accounting estimates

The preparation of the condensed interim consolidated financial statements requires the making of estimations and assumptions that affect the recognised amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Adoption of new and revised International Financial Reporting Standards (IFRSs)

The Group has adopted all the new and revised IFRSs and International Accounting Standards (IAS) which are relevant to its operations and are effective for accounting periods commencing on 1 January 2012. The adoption of these Standards did not have a material effect on the condensed interim consolidated financial statements.

At the date of authorisation of these condensed interim consolidated financial statements some Standards were in issue but not yet effective. The Board of Directors expects that the adoption of these Standards in future periods will not have a material effect on the consolidated financial statements of the Group.

Critical accounting estimates and judgements

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are unchanged from those disclosed in the annual consolidated financial statements.

3. Operating segments

The Group has only one distinct operating segment, being that of mineral exploration. The Group's exploration activities are located in Turkey and Bulgaria and its administration and management is based in Cyprus.

2012                                   Cyprus   Turkey   Bulgaria         Total
                                                                               
                                      GBP'000  GBP'000    GBP'000       GBP'000
                                                                               
Operating loss                          (660)     (45)          -         (705)
                                                                               
Foreign exchange gain/(loss)               10       62        (5)            67
                                                                               
Loss before tax                         (650)       17        (5)         (638)
                                                                               
Share of loss from jointly                                              (117)  
controlled entities                                                            
                                                                               
Tax                                                                           -
                                                                               
Loss for the period                                                       (755)
                                                                               
Total assets                            1,755       78          3         1,836
                                                                               
Total liabilities                          87        2         17           106
                                                                               
Depreciation of property, plant and         -        -          -             -
equipment                                                                      

KEFI MINERALS PLC

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2012

3. Operating segments (continued)

   
2011                                     Cyprus   Turkey  Bulgaria        Total
                                                                               
                                        GBP'000  GBP'000   GBP'000      GBP'000
                                                                               
Operating loss                            (446)    (121)                  (567)
                                                                               
Foreign exchange (loss)/gain                (3)        7        14           18
                                                                               
                                          (449)    (114)        14        (549)
                                                                               
Share of loss from jointly controlled                                      (74)
entities                                                                       
                                                                               
Impairment of other receivables                                            (28)
                                                                               
Loss before tax                                                           (651)
                                                                               
Tax                                                                           -
                                                                               
Loss for the period                                                       (651)
                                                                               
Total assets                              1,526      205         6        1,737
                                                                               
Total liabilities                           138       99        18          255
                                                                               
Depreciation of property, plant and           -        5         -            5
equipment                                                                      

4. Loss per share

The calculation of the basic and fully diluted loss per share attributable to the ordinary equity holders of the parent is based on the following data:

                                                      Six months     Six months
                                                      to 30 June     to 30 June
                                                            2012           2011
                                                                               
                                                         GBP'000        GBP'000
                                                                               
Net loss attributable to equity shareholders               (755)          (651)

Average number of ordinary shares for the purposes of 409,130 358,688 basic loss per share (`000s)

Basic and fully diluted loss per share (pence)              0.19           0.18

The diluted loss per share is the same as the basic loss per share as the exercise of the share options would decrease the basic loss per share, thus being anti-dilutive.

KEFI MINERALS PLC

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2012

5. Property, plant and equipment

   
Cost                                             Motor    Furniture,       Total
                                                            fixtures            
                                              vehicles                          
                                                          and office            
                                                           equipment            
                                                                                
                                               GBP'000       GBP'000     GBP'000
                                                                                
1 January 2011                                      72            21          93
                                                                                
Disposals                                         (24)             -        (24)
                                                                                
Exchange difference on translation of             (17)           (8)        (25)
subsidiaries                                                                    
                                                                                
At 31 December 2011                                 31            13          44
                                                                                
Disposals                                            -           (2)         (2)
                                                                                
At 30 June 2012                                     31            11          42
                                                                                
Accumulated Depreciation                            56            10          66
                                                                                
At 1 January 2011                                                               
                                                                                
Charge for the period                                2             1           3
                                                                                
Disposals                                         (24)             -        (24)
                                                                                
Exchange difference on translation of              (3)             -         (3)
subsidiaries                                                                    
                                                                                
At 31 December 2011                                 31            11          42
                                                                                
Charge for the period                                -             -           -
                                                                                
Disposals                                            -           (2)         (2)
                                                                                
At 30 June 2012                                     31             9          40
                                                                                
Net Book Value at 30 June 2012                       -             2           2
                                                                                
Net Book Value at 31 December 2011                   -             2           2

 6. Trade and other receivables                30 June      30 June      31 Dec
                                                  2012         2011        2011
                                                                               
                                               GBP'000      GBP'000     GBP'000
                                                                               
Trade receivables                                    -            3           3
                                                                               
Amount receivable from Saudi Arabia Joint           39           30          39
Venture                                                                        
                                                                               
Other receivables                                    -           99           -
                                                                               
Deposits and prepayments                            44           37          44
                                                                               
                                                    83          169          86

 7. Share capital                     Number       Share       Share      Total
                                          of     capital     premium           
                                      shares                            GBP'000
                                        '000     GBP'000     GBP'000           
                                                                               
Issued and fully paid                                                          
                                                                               
At 1 January 2012                    365,180       3,650       2,719      6,369
                                                                               
Issued 22 February 2012 at GBP0.03    61,666         617       1,233      1,850
                                                                               
Share issue costs                          -           -       (109)      (109)
                                                                               
At 30 June 2012                      426,846       4,267       3,843      8,110

KEFI MINERALS PLC

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2012

 7. Share capital (continued)
   
Issued capital

2012

On 22 February 2012, 61,667,000 shares of GBP 0.01 were issued at a price of GBP 0.03 Upon the issue an amount of GBP 1,233,000 was credited to the Company's share premium reserve.

Warrants

2012

On 22 February 2012, the Company issued 2,917,000 warrants to subscribe for new ordinary shares of GBP 0.01 each at GBP 0.03 per share.

Details of warrants outstanding as at 30 June 2012:

Grant date             Expiry date          Exercise price            Number of
                                                                       warrants
                                                                               
                                                 GBP                      000's
                                                                               
20 October 2010        19 October 2013          0.0125                      830
                                                                               
22 February 2011       21 February 2016         0.0500                      780
                                                                               
22 February 2012       21 February 2017         0.0300                    2,917
                                                                               
                                                                          4,527

The Company has issued warrants to advisers to the Group. All warrants, except
those noted below expire five years after grant date and are exercisable at the
exercise price.

                                                                      Number of
                                                                       warrants
                                                                               
                                                                          000's
                                                                               
Outstanding warrants at 1 January 2012                                    1,610
                                                                               
- granted                                                                 2,917
                                                                               
- exercised / expired                                                         -
                                                                               
Outstanding warrants at 30 June 2012                                      4,527

 8. Share options reserve
   
 9. 
   
                                           30            31        
                    30 June 2012         June           Dec        
                                         2011                      
                                                       2011        
                                                                   
                                 GBP'000      GBP'000       GBP'000
                                                                   
Opening amount                       385          396           396
                                                                   
Recognition of share based           121           82           157
payments - options and warrants                                    
                                                                   
Exercise/cancellation/forfeiture       -        (142)         (168)
of options and warrants                                            
                                                                   
Closing amount                       506          336           385

                                                                     Number of 
                                                                        shares 
                                                                               
                                                                           '000
                                                                               
Outstanding options at 1 January 2012                                    26,335
                                                                               
-granted                                                                      -
                                                                               
-cancelled                                                                (500)
                                                                               
-exercised / expired                                                          -
                                                                               
Outstanding options at 30 June 2012                                      25,835

KEFI MINERALS PLC

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2012

9. Joint Venture Agreements

9.1 Joint Venture with Centerra Gold (KB) Inc.

On 22 October 2008, the company entered into a Joint Venture Agreement ("Joint Venture Agreement") in respect of its 100%-owned Artvin Project with Centerra Gold (KB) Inc ("Centerra KB"), a wholly-owned subsidiary of Centerra Gold Inc.

In August 2011, KEFI Mineral's subsidiary holding these licences, was sold in return for a cash payment of US$100,000 and a 1% Net Smelter Royalty on all future mineral production from the Artvin licences.

9.2 Joint Venture with Gold and Minerals

In May 2009, KEFI Minerals announced the formation of a new minerals exploration joint venture, Gold & Minerals ("G&M") Joint Venture, with leading Saudi construction and investment group Abdul Rahman Saad Al-Rashid & Sons Company Limited ("ARTAR"). KEFI Minerals is the operating partner with a 40% shareholding of the G&M Joint Venture with ARTAR holding the other 60%.

KEFI Minerals provides the G&M Joint Venture with technical advice and assistance, including personnel to manage and supervise all exploration and technical studies. ARTAR provides administrative advice and assistance to ensure that the G&M Joint Venture remains in compliance with all governmental and other procedures.

9.3 Joint Venture with Centerra Gold Inc.

KEFI Minerals previously had a joint venture with Centerra Gold Inc. ("Centerra") in the Bakir Tepe Project in Turkey. On 15 December 2010, Centerra withdrew from the joint venture which resulted in. an income of GBP 66,733 being recognised in the 2011 accounts.

10. Trade and other payables                                                   
                                                                               
                                                  30 June     30 June    31 Dec
                                                     2012        2011      2011
                                                                               
                                                  GBP'000     GBP'000   GBP'000
                                                                               
Trade payables                                         16          97       126
                                                                               
Accruals                                               31           6         4
                                                                               
Payable to shareholders                                59          63       121
                                                                               
                                                      106         166       251

KEFI MINERALS PLC

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2012

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