MetalNRG plc (LSE:MNRG), the natural resource investing and exploration company, announces its results for the six months period ended 30 June 2020.
Key operational milestones achieved during the period:
The focus at the beginning of the financial year was very much on developing the opportunity within our Gold asset in Arizona, Goldridge. We completed two campaigns; one focused on measuring the gold content left behind in the waste dump at level 6 and the second campaign to establish the ore left behind in the underground pillars where we had some extremely encouraging results. Our priority focus has been the last mined face on Level 6 at the Gold Ridge Mine. This sample returned 30.4 grams/tonne (g/t) gold (Au) and 69 g/t silver. The face shows the exposed vein with a width of 0.6 metres on a mined face of 1.3 metres. The vein consists of quartz with massive sulphide mineralisation.
These results affirm our belief that the Gold Ridge Project is a unique exploration and production opportunity with demonstrable high-grade mineralisation and the potential for early avenues to revenue generative processing and a larger scale exploration opportunity. As activity at Goldridge has been impacted by the Covid-19 pandemic, we have had to take a temporary step back from further work on the ground but we remain keen to develop the mine as soon as current restrictions are eased as we see a substantial opportunity to turn Goldridge into a cash positive producing asset within the next 12 to 18 months.
We are continuously assessing the situation in Arizona and will seek to mobilise again as soon as it is safe to do so.
During the year we also entered into an exclusivity agreement to acquire an Oil & Gas asset in Romania. During the due diligence progress the price of oil changed dramatically and as a result we changed the terms of the agreement which the vendor is still considering. We then entered a second exclusivity agreement for the acquisition of a UK based portfolio of onshore oil and gas licences, of which one is currently in production. The due diligence is being finalised and we anticipate closing the transaction by the end of September 2020 when additional announcements will be made.
The Company will continue to seek additional projects that meet its set investment criteria. The intention is specifically to seek opportunities where we can deliver early positive cash flows from an asset and, where the cash generated from the operations allows us, explore and develop each particular project further. We expect announcements in the very near future on further developments.
During the year we welcomed Pierpaolo Rocco to our board; he brings with him a wealth of experience and expertise in Oil and Gas and he is leading our efforts in this sector.
MetalNRG reported an unaudited operating loss for the six months period ended 30 June 2020 of £386,304 (six months period to 31 August 2019: an unaudited operating loss of £260,228). Basic and diluted loss per share for the period was 0.11p and 0.08p respectively (six months period to 31 August 2019: Basic loss per share was 0.12p and diluted loss per share was 0.10p).
A number of projects have been evaluated and good progress has been made to date. We expect further announcements will be made to update the market on any concrete achievements.
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;
· The interim financial statements give a true and fair view of the assets, liabilities, financial position and loss of the Group;
· 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.
Notes for Editors:
MetalNRG plc (LSE:MNRG) is a natural resource investing and exploration company whose securities are listed on the main market of London Stock Exchange plc.
The Company’s primary strategy is to focus on seeking potential investments in precious and strategic metals through the application of disciplined and structured exploration and analysis.
The Company will update the market on developments as and when appropriate.
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