Craig Moulton, Executive Director, commented: The company is positioning itself to begin a strong and exciting journey, and is focused on growth commodities in well-regulated jurisdictions.
While global economic volatility continues to make capital for junior explorers very competitive, we believe that prudent explorers with quality projects, such as Cobra, will continue to demonstrate their appeal.
Cobra Resources plc (LSE:COBR), the precious and base metals mineral exploration and development company, has published its results for the six months ended 30 June 2019.
Electronic copies of the report are available at the Company’s website: www.cobraresources.co.uk
Key operational milestones achieved during the period:
· Announcement of an increased 211k oz gold resource for the Wudinna gold project.
· Completion of positive CPR’s by SRK for both the Wudinna Gold Project and the Prince Alfred Copper Mine.
· Completion of exploration planning for the 2019/20 drilling programmes with all of the Wudinna exploration permits approved by the South Australian Department of Energy and Mining (DEM).
Corporate and Financial Highlights
· The Company announced the proposed acquisition of Lady Alice Mines Pty Ltd (LAM) on the 7th March 2019, which will see the Company transform into an operating business.
· Since this announcement, the board has focused on raising funds to complete the acquisition agreement and support the 2019/2020 exploration programmes.
The last 6 months have been an exciting time for the Company as it finalised an agreement to acquire Lady Alice Mines Pty Ltd (LAM), the holder of two highly prospective exploration assets in Australia, namely the Wudinna Gold Project and the Prince Alfred Copper Mine. This acquisition will transform the Company into an operational business, and the board is confident that this will mark the beginning of an exciting journey for Cobra shareholders.
In preparation for fund raising activities the Wudinna mineral resource was re-estimated by Optiro, increasing the gold resource inventory from 200k oz to 211k oz. Both assets were then reviewed by SRK consulting who confirmed the assets exploration prospectivity, as well as the Company’s proposed exploration programme.
The board then turned its focus to raising the necessary funds to complete the agreement, and also to support the planned 2019/20 exploration programme, which it believes will unlock the value in these assets and provide capital growth to shareholders.
In parallel, the Company continued exploration planning activities to ensure that the planned exploration programmes could progress once fundraising was completed, with all permits for the Wudinna Gold project now approved by the South Australian Department of Energy and Mining (DEM).
Operational Review, continued
By the end of the period, fund raising activities have continued to progress, however a regulation changes by the FCA regarding prospectus structure required the Company to re-submit its prospectus
after having received initial eligibility status. As this coincided with the summer holiday period for the financial community, the board decided to delay fundraising activities until late September / early October.
The Board was strengthened during the period with the appointment of Craig Moulton as an Executive Director. Mr Moulton brings the benefit of a long career in the geology and mining sector as a geologist and mineral economist. Mr Moulton received his Bachelor of Science degree in Geology with honours from the University of Western Australia and also holds a Masters in Mineral Economics (with Distinction) from Curtin University.
Cobra reported an unaudited operating loss for the six months ended 30 June 2019 of £361,284 which equates to a loss per share for the period of £0.0054. The Company is undergoing a fundraise which will enable the Company to develop its targeted exploration campaigns across its key projects over the next 12-18 months.
During the first six months of the financial year the Company will be focused on completing the planned fund raise and then executing the initial phases of the Wudinna Exploration programme which will include geochemical sampling and then drilling of priority targets.
We confirm that to the best of our knowledge:
· The interim financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the EU;
· Give a true and fair view of the assets, liabilities, financial position and loss of the Company;
· The interim report includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the interim financial information, and a description of the principal risks and uncertainties for the remaining six months of the year; and
· The interim financial information includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules, being the information required on related party transactions.
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