The loss for this year after taxation was £126,269 (2020: £668,198) and at company level £190,748 (2020: £611,688).

 

Review of the Business and Operations

 

The ongoing COVID-19 pandemic and related restrictions on travel into Ontario continued to impact on exploration staffing, permitting and logistics across the sector.  However, with a growing local network of contractors, Panther was able to progress work across the Canadian projects.

 

One of the key corporate developments of 2021 was the change in ownership of Panther Metals Limited in Australia as a result of the listing of Panther Metals Limited on the Australian Securities Exchange (the "ASX" or "ASX Exchange") in December 2021. This was affected in stages as follows:

 

·     In February 2021, Panther Australia appointed Mr. Ranko Matic and Mr. Daniel Tuffin to its board in Australia and converted the company to a UPC called Panther Metals Limited. 

·     On 10 May 2021 the Company announced the completion of the first stage in the process to pursue a listing of its Australian assets on the ASX with the completion of a pre-IPO seed financing raising AUD$300,000. As a result of the financing, the interest of Panther in its subsidiary, Panther Australia, reduced from 100% to 89.3%.

·   On 7 September 2021, the Company announced that its Australian subsidiary Panther Metals Limited had appointed Sanlam Private Wealth Pty Ltd and Kerr Allan Financial Ltd as joint lead managers as it moves towards listing on the Australian Securities Exchange. The subsidiary raised AUD$300,000 to fund the listing process and because of the financing, the interest of the Company in its Australian subsidiary, had reduced from 89% to 77%.

·    On 10^th December 2021, the Company announced that Panther Metals Limited has successfully listed on the Australian Securities Exchange raising AUD$5,000,000, thus diluting Panther Metals PLC to a holding of 36.6%.

 

As a result of the listing, on 10 December 2021, Kerim Sener stepped down from the Panther Metals PLC board to focus on the Australian interests and Nicholas O'Reilly was appointed Chairman.

 

Since the listing of Panther Metals' Australian assets on the Australian Securities Exchange in December 2021, the share price of Panther Metals Limited in which the Company has a 36.6% shareholding, has risen by 14% (as at 31 March 2022). The ASX listing has provided the Australian projects with the necessary capital to advance drill-ready targets focused on nickel and gold (within the Tier 1 Mining Districts of Laverton WA and in the NT. Further details can be found at https://www.panthermetals.com.au and a summary of activities is contained later in this section.

 

In June 2021, at the Company's AGM, all resolutions were passed by shareholders. This was announced by the Company on 15 June 2021.

 

The Company successfully raised £940,000 in the year ended 31 December 2021 through a combination of issuing new shares and warrant conversions.

 

·   On 21st April 2021, the Company announced the completion of a private placing for a total of 1,666,666 Ordinary Shares at a price of 12p following an unsolicited approach from two high net worth investors raising a total of £200,000.

·      On 17 May 2021, the Company announced that it has received notice of exercise of a total of 1,318,331 warrants with an exercise price of 6p per share, raising £79,100 for the Company.  The admission of those shares took place on 20 May 2021.

·     On 9 July 2021 the Company announced that it has received notice of exercise of a total of 333,334 warrants with an exercise price of 6p per share, raising £20,000 for the Company (admission of 333,334 new Ordinary Shares on 14 July 2021).

·    On 29 July 2021 the Company announced that it has received notice of exercise of a total of 181,667 warrants with an exercise price of 6p per share, raising £10,900 for the Company (admission 181,667 new Ordinary Shares on 3 August 2021).

·    On 22 September 2021 the Company announced completion of a capital raise for a total of 5,250,000 ordinary shares of no par value (the "Placing Shares"), raising £630,000 before expenses, at a price of 12p per Placing Share. Each Placing Share will be issued with a one-for-one warrant attached. The warrants have an exercise price of 18p and a 24-month life. The warrants are subject to an accelerator, shortening the exercise period, if the volume weighted average price of the Company's shares exceeds 30p for five consecutive trading days. It is expected that admission of the Placing Shares will take place at 8.00am on 29 September 2021.

 

 

On 20 August 2021 the Company announced that following its annual compensation review, the Remuneration Committee made recommendations to the Board which have been approved by the Board and as a result the Company has granted a total of 4,600,000 options to Directors and staff members. All the options have a five-year term from date of grant and an exercise price of 15p per share. The options are all subject to the vesting condition of the price of the Company's ordinary shares trading on the London Stock Exchange PLC at a volume weighted average price of 30p per share over any period of 10 trading days during the life of the options.

 

 

The following sections of the review focus on the developments in Canada and Australia, the primary geographic segments of the Group:

 

Canada

 

The ongoing COVID-19 pandemic and related restrictions on travel into Ontario continued to impact on exploration staffing, permitting and logistics across the sector.  However, with a growing local network of contractors, Panther was able to progress work across the Canadian properties.

 

Big Bear Gold Project

 

Overview

The acquisition of various prospects in 2018 and 2019 consolidated previously fragmented areas into the wider Big Bear umbrella project, priming Panther Metals for extensive and comprehensive exploration in the area. A total of 253 geophysical anomalies have been identified, with 39 designated for priority investigation. Gold in soil anomalies have been identified in five areas, ranging up to 0.71g/t Au, extending up to 250m wide and open along strike. Gold bearing quartz veins have been outlined within seven separate areas (two with rock and vein samples grading 1g/t to 5 g/t Au, four with quartz vein sample assays above 5g/t Au, and two quartz samples collected at 50m separation on an east-west trending vein open in both directions returning 105.5g/t Au and 112g/t Au respectively).

 

The Little Bear Lake and Schreiber prospects are of particular interest to the Company: historic work programmes in 2010 and 2011 targeted an intense magnetic response from both. Assays yielded from the 1.6km long gold trend included 6m at 1.5g/t Au, up to 53.7g/t Au and 19.25 g/t Ag in rock chip and 18.2g/t Au and 1.03g/t Ag in soil. Historical bulk sampling reported 150t averaging 17.6g/t Au, while historical drill intersections include 0.55m at 19.2% Zn and 4.6% Cu from 15.2m depth.

 

 Work conducted in 2021

 

At the Big Bear Project, in May 2021, Panther Canada submitted a further two Exploration Permit Applications which will facilitate reconnaissance drill testing and ground induced polarisation ("IP") geophysics across key prospective targets which have emerged from the results of the airborne Time Domain Electromagnetic ("TDEM") and Magnetics ("Mag") geophysics survey completed in August 2020 and the Autumn 2020 fieldwork programme. 

 

The Big Duck Creek Permit Application will allow testing of high priority AEM and Mag targets in the 'Big Duck Creek' area to the north and west of Little Bear Lake, in the north of the project area. The requested activities consist:

§  Mechanised drilling. Provision for up to 10 planned priority 1 diamond drill collars with a further proposed 9 drill pad locations preplanned to follow-up on encouraging results.

§  Ground geophysics incorporating the use of a generator. Planned work includes an initial 5-line km of IP survey arranged over 9 planned survey lines.

§  Construction of access roads and survey line cutting.

§  Permitted fuel storage for drill rig, vehicles and generators and construction of a temporary personnel camp.

 

The Hays Lake East Permit Application area overlies the interpreted northern intrusive contact of the Terrace Bay Batholith, targeting the Joa-Walton gold occurrence and potential eastern extensions to the historical Jedder gold mine. This application focusses on claims Panther acquired last year (announced 13 July 2020) which includes the Jedder mine and mill, which was intermittently worked between 1934-1986, with gold bearing quartz veins by open cuts up to 15m deep site. Historical gold production was not reported but channel sampling of an 87m long section of the Mill Vein in 1984 reportedly yielded values up to 39.50g/t Au & 73.17 g/t Ag over 0.5m.

 

The Joa-Walton occurrence includes at least three quartz veins (with government assays up to 210g/t Au & 258g/t Ag) which Panther intends to test through three-dimensional geophysical modelling and drilling.

 

Requested activities in the Hays Lake East Permit Application consist of:

§  Mechanised drilling. Provision for up to 5 planned priority 1 diamond drill collars with a further proposed 4 drill pad locations pre-planned to follow-up on encouraging results.

§  Ground geophysics incorporating the use of a generator. Planned work includes an initial 2.5-line km of IP survey arranged over 5 planned survey lines.

§  Construction of access roads and survey line cutting.

§  Permitted fuel storage for drill rig, vehicles and generators and construction of a temporary personnel camp.

 

 

The COVID-19 pandemic has continued to impact on the Canadian exploration sector and in line with other claim holders in Ontario, Panther Canada was granted 12-month extensions to claims with expiry dates  due up to 31st October 2021.

 

 

Dotted Lake Project

 

Overview

Panther Metals acquired the Dotted Lake Project in July 2020, it is situated approximately 16km from Barrick Gold's renowned Hemlo Gold Mine. An extensive soil programme conducted in 2021 identified numerous gold and base metal targets, all within the same geological footprint as Hemlo. Following the reopening of a historical trail providing direct access to the target location, an initial drilling programme in Autumn 2021 confirmed the presence of gold mineralisation within this system with anomalous gold continuing along strike and present within the surrounding area.

 

Work conducted in 2021

 

On 22 February 2021 Panther Canada announced the receipt of the processed high-resolution Airborne TDEM and Mag geophysics survey data and associated maps and report over the Dotted Lake Property on the north limb of the Schreiber-Hemlo greenstone belt in Ontario, Canada. Prospectair Geosurveys, the same company who flew the Big Bear property in June 2020, had conducted the helicopter 818 line-km survey over a series of seven flights between 9-11 December 2020.  A total of 138 geophysical anomalies were identified by the survey, with high priority anomalies since prioritised for follow-up ground investigation.

 

In early May, the Company received the Dotted Lake Exploration Permit (number PR-20-000376) which has allowed the Company to embark on plans for reconnaissance diamond drilling, grid soil sampling, ground IP geophysics and trenching focussed on testing intrusive contact shear-zone hosted gold mineralisation in the vicinity of the north shore of Dotted Lake. Panther's reconnaissance sampling in historical trenches at this locality has confirmed high-grade gold at surface (announced 5 November 2020) in an area that has never been drill-tested.

 

The Dotted Lake Exploration Permit allows the below permitted activities to be undertaken over a three-year period between 27 April 2021 and 26 April 2024 on Dotted Lake claim numbers 548354, 548355, 548356, 548357 and 548358, it replaces previous (2018) Dotted Lake Exploration Permit (PR-18-000152) considering the current claim focus and revised drilling plans. Permitted activities consist of:

§  Mechanised drilling. Provision for an initial 8 planned diamond drill collars to step-out along strike of any positive drill intersections.

§  Mechanised stripping. Allowance for a total 2,500m² of ground cover stripping to facilitate bedrock mapping and structural interpretation.

§  Pitting and trenching. Covers 7 planned trenches to provide strike cross-sections across the target shear zone.

§  Ground geophysics incorporating the use of a generator.  Planned work includes an initial 2.5-line km of ground IP survey across the sheared contact.

§  Construction of access roads and survey line cutting.

§  Permitted fuel storage for drill rig, vehicles, and generators.

 

In June 2021, Panther Canada contracted the experienced Thunder Bay based Fladgate Exploration Consulting Corporation ("Fladgate") to commence a soil geochemistry sampling programme over a 1.60km by 0.85km target area coinciding with the Dotted Lake Exploration Permit area.

 

The soil geochemistry survey was designed to build out and in-fill the westerly strike extensions of high-grade gold mineralisation intersected by historical trenching undertaken by a previous licence holder in 2010 (Tr-10-4) and as confirmed during Panther Canada's reconnaissance sampling (gold up to 18.9g/t Au) announced 5 November 2020.  The soil survey provided important geochemical coverage of target structures outlined by Panther's airborne geophysical survey. At the same time a separate contract was agreed for the construction of the Dotted Lake drill rig access trail.

 

Over the period mid-July to mid-August, the regional government issued a forest fire risk related work-stop safety implementation order, following a long period of hot dry weather.  With many uncontrolled forest fires burning throughout the district exploration work had to be put on hold, impacting the Dotted Lake drilling access trail construction, and delaying the completion of the soil programme until the end of August.

 

In late September 2021, the Company announced that it had confirmed the completion of the required access trail to the planned drill hole location at the Dotted Lake property and had engaged Niigaani Drilling, a north-western Ontario indigenous drilling company based in Thunder Bay, to undertake the work.

 

The Dotted Lake soil sampling survey results became available in early November 2021, the 480 sample survey data delineated a 1.3km long shear-related gold anomaly striking westward from the site of Panther's Dotted Lake drill hole. In addition, a further four distinct gold anomalies associated with interpreted intrusive contacts, or other structural features, were identified as well as a total 18 multi-element anomalies which may provide exploration vectors towards orogenic style gold deposits.

 

The Dotted Lake drilling consisted of a single NQ (47.6mm) core diameter, 400m deep inclined hole (PD-DL21-01), orientated directly below the 147 m long, average 2m deep, historical trench (Tr-10-4) excavated during 2010 by a previous claim holder.

 

The primary purpose of the drill hole was to investigate the stratigraphy in the vicinity of interpreted sheared felsic/ultramafic intrusive contacts, whilst testing for the vertical extensions of shear hosted gold mineralisation seen in the surface trenching.

 

The historical trench TR-10-4 which is orientated broadly north-south, was constructed to investigate gold in soil anomalies (up to 0.484ppm Au) from earlier soil sampling in 2008. Tr-10-4 intersected two narrow shear zones containing mineralised granodiorite with up to 10% pyrite, strong sericite alteration and localised quartz eyes.  Limited channel sampling in the sheared section yielded two significant channel samples including 9.02g/t Au & 859ppm Zn over 0.40m and 1.14g/t Au over 1.00m.  Significantly significant portions of the trench in the area around the two mineralised samples were unable to be channel sampled due to the intense shearing and associated deep weathering. An additional 2010 prospecting sample from the area of Tr-10-4 reportedly returned 16.95 g/t Au & 7.7 g/t Ag. Panther chip sampling within Tr-10-4 (reported 5 November 2020) had verified the historical mineralised intervals returning 18.9g/t Au & 0.94 g/t Ag and 9.37g/t & 1.73 g/t Ag, with a further three of the samples returning low level anomalous gold within the immediate stripped area.

 

The PD-DL21-01 drill hole also coincides with an anomalous magnetic geophysical feature outlined by Company's airborne geophysics survey (these results were reported 22 February 2021), at the boundary of an intense magnetic low, mapped as a sheared felsic intrusive pluton (Dotted Lake Batholith) contact, abutting an intense magnetic high interpreted to represent an ultramafic intrusive. Mafic volcanic and metavolcanic rocks of the Hemlo Assemblage outcrop to the north of Tr-10-4 and at the drill pad.

On a wider scale the drilling site sits upon the northern limb of the Schreiber-Hemlo Greenstone belt on the northern edge of the granitoid Dotted Lake Batholith.

 

The first batch of encouraging assay results for the first 174m of core from the Dotted Lake drill hole were announced post year end on 24^th January 2022; showing in total eight separate intervals of gold mineralisation are noted with four separate gold bearing intervals above 1.0g/t Au intersected between 47m and 158m down hole depth:

 

o  Four sample intervals > 1g/t Au:

0.9m @ 1.73 g/t Au from 47.3m

1m @ 1.05 g/t Au from 122.2m

1m @ 1.59 g/t Au from 136.2m 

1m @ 1.04 g/t Au from 158.2m

 

o  Eight Intersections >0.57g/t Au, including two 2m wide composites:

2m @ 0.87 g/t Au from 122.2m ( inc. 1m @ 1.05 g/t Au from 122.2m)

2m @ 0.96 g/t Au from 158.2m ( inc. 1m @ 1.04 g/t Au from 158.2m)

 

Preliminary analysis of the drill assay results points to an orogenic gold signature with a strong correlation between zones of shearing or strong foliation, alteration and sulphide bearing quartz veinlets. Disseminated sulphides are also noted.

 

Obonga Project

 

Overview

Panther Metals acquired the Obonga Greenstone Belt project in July 2021 and have already identified four prospective primary targets: Wishbone, Awkward, Survey and Ottertooth. A successful Phase 1 drilling campaign at Wishbone in Autumn 2021 revealed the presence of significant volcanogenic massive sulphide ("VMS") style mineralised systems on the property - the first such discovery across the entire greenstone belt. Intercepts include 27.3m of massive sulphide in hole one, and 51m of sulphide-dominated mineralisation in hole two. Both drill holes contained multiple lenses. Anomalous high-grade copper in lake sediment close to the target area has also been identified, increasing confidence in the prospectivity of the location.

 

Awkward is a highly anomalous magnetic target, interpreted to be a layered mafic intrusion and magmatic conduit based on mapped geology and airborne geophysics. Historic sampling in the area returned anomalous platinum and palladium (Pt, Pd) values, while historic drilling on the periphery of the target intersected non-assayed massive sulphide and copper (assumed to be chalcopyrite), non-assayed disseminated pyrite and chalcopyrite in coarse gabbro, and non-assayed 'marble cake' gabbro (matching the description of the Lac des Iles Mine varitexture gabbro ore zone).

 

Two additional named targets, Survey and Ottertooth, both displays further coincident magnetic and electromagnetic anomalies and are adjacent to the contact between intrusive and extrusive mafic rocks. Historic drilling at Survey intersected several meters of massive sulphides in multiple intersections (main parts of the anomaly remain untested) while Ottertooth remains untested in its entirety.

 

 

Work conducted in 2021

 

On 2 August 2021, the Company announced the acquisition of 1,128 claims, constituting an almost exclusive exploration holding over the Obonga Greenstone Belt located approximately 80km north of the Lac Des Iles Mine and 160km north of Thunder Bay in the Canadian Province of Ontario.  The acquisition of claims, consolidating Panther Canada's new Obonga Project, resulted from an agreement with Broken Rock Resources Ltd and Panther Canada's own claim staking strategy which provides the Company with control of an important mineral belt with identified and permitted high prospectivity drill-ready base and precious metal targets.

 

The acquisition agreement for the 80 claims held by Broken Rock Resources Ltd, together with associated exploration data and permits, entails Panther delivering combined cash and stock consideration together with a right to an additional deferred consideration and a net smelter return ("NSR") royalty.  In addition, as part of the agreement, Panther has made an exploration commitment which will be directed towards drilling and associated exploration works and will designate the 1,084 claims it has staked directly into the Obonga Project.

 

Consideration for the transaction consisted of CAD$50,000 in cash, 228,925 Panther shares credited as fully paid,  the right to receive deferred consideration comprising four tranches of CAD$30,000 in cash each payable within 30 days of the annual anniversary of the acquisition agreement, followed by a final payment of CAD$250,000 in cash payable within 30 days of the fifth anniversary of the date of the acquisition agreement and 1.5% NSR royalty (which has provision for Panther to reduce the royalty to 1.0% NSR through a CAD$3,000,000 buy-back). As part of the transaction Panther will also award 500,000 share options with an exercise price of 13p per share and a life of five years.

 

With Exploration Permits in place for the Wishbone VMS Prospect work quickly progressed through contract tendering to a helicopter supported diamond core drilling and prospecting programme. The first drilling target consisted of a significant magnetic geophysics anomaly which is coincident with a strong electromagnetic ("EM") geophysical anomaly (the "Wishbone anomaly"), a target which was identified as being indicative of possible VMS type mineralisation. Wishbone is situated in a similar geological environment to the nearby Sturgeon Lake area, and its Mattabi VMS mining camp, on the Wabigoon Greenstone Belt, approximately 75km due west. The Sturgeon Lake / Mattabi area hosted five commercially viable VMS mining operations that produced from the early 1970's into the 1990's. The Mattabi mine being the most prolific, reportedly produced 13.5 Mt of ore with an average grade 7.5% Zn, 0.88% Cu, 0.77% Pb and 3.10 oz/t (96.42g/t) Ag in the period 1970-1983. It was reportedly discovered through the drilling airborne geophysics anomalies. In the Obonga area, drilling in the 1970's intersected massive stringer and disseminated sulphide 800 m north of the Wishbone anomaly and drilling by BHP in the 1990's intersected massive stringer and disseminated sulphide 600 m south of the anomaly. BHP ranked the Wishbone anomaly a high priority for follow up in 1992 however no further work was completed. Airborne geophysics datasets compiled since that time have shown that the historical drilling failed to intersect the major anomalies.

 

The highly successful Wishbone drilling results and the discovery of a VMS mineral system summarised below were announced, post year end, on 18 January 2022.

 

Panther's CEO commented:

 

"The discovery of a VMS system at Obonga is a remarkable achievement for the team, and given that it took just two drill holes, it shows the level of work that was put into the exploration targeting process.

 

The implications of the Wishbone VMS discovery to the wider Obonga Project area are considerable. Before this programme no other VMS was known on this belt. Obonga has now been confirmed as a favourable geological environment for the development of VMS systems and many more potential VMS targets exist on Panther's landholding.

 

The very nature of this type of deposit means they tend to cluster, once you have one, the chances increase dramatically of finding others.

 

Elevated base metal content, especially within close proximity of our drilling location, adds further confidence to our future plans."

 

Wishbone Phase 1 Technical Summary

 

·    Wishbone Phase 1 Drilling Programme results, with the discovery of the first VMS system on the Obonga Greenstone Belt, show proof of concept and validation of the exploration targeting and modelling undertaken by Broken Rock Resources, Panther's exploration partner at Wishbone.

 

·     Two diamond core drill holes, totalling 600m, completed to planned depths of
BBR21_WB_001 ("WB001"): 297m; BBR21_WB_002 ("WB002"): 303m. Core diameter: 42mm.

 

·      Wide massive sulphide and semi-massive sulphide mineralisation intersections in both drill holes:

o  WB001: Three wide sulphide intersections:

·      27.3m of massive sulphide from 106.2m ('Upper layer'), with fault at base;

·      2.5m of massive sulphide from 234.8m ('Mid layer'; and

·      1.4m of massive sulphide from 256.6m ('Lower layer')

 

o  WB002:  Wide zoned sulphide intersection:

·      51m from 174m comprising a wide zone of sulphide dominated mineralisation, including:

·17m from 180m of massive sulphide ('Upper zone') and

·7m from 218m of semi-massive sulphide ('Lower zone')

·      An important characteristic of VMS deposits is that they typically display a zonation of metals within the massive sulphide body from Fe+Cu at the base to Zn+Fe±Pb±Ba at the top and margins, related to differing temperature and chemical conditions at mineral deposition. The major observed mineral component2 of the Wishbone massive sulphide mineralisation is pyrrhotite with less common pyrite and minor sphalerite and chalcopyrite in distinct zones:

 

o  WB001:

·      Upper layer: MS intersection includes a 7.5m wide zone of Fe above/ close to 50% Fe upper detection limit, with pyrrhotite, pyrite and magnetite identified in the core logging.

·      Mid layer: Strongest zinc (sphalerite) intersection averages 0.5m @ 1.9% Zn (based on verification sampling) within a 1.5m @ 1.1% Zn with 3.1g/t Ag from 235.5m.

·      Lower layer: geochemical correlation to the Mid layer with lower Zn & Ag.

 

o  WB002:

·      Upper zone: displays 10x relative enrichment in Ag (1g/t) over the Lower zone and similar mineralogical composition to WB001.

 

·     Work is ongoing to follow-up the Phase 1 programme results in combination with geophysical, structural and geological datasets to determine next steps to specifically target the potential for economic base metal zonation within and close to Wishbone.

 

·   The Wishbone assay result suite, including rare earth element (REE) analyses, yields important geochemical information allowing the classification of the mineralisation, alteration ratios and the development of exploration vectors towards zones of potential economic interest. 

 

o  Alteration and REE ratio markers in both drill holes correlate well with established VMS exploration models.

o  Zn+Pb and Cu ratios of the Wishbone massive sulphide layers indicate the mineralisation is most likely a bi-modal type VMS deposit.  The deposits of the Sturgeon Lake/Mattabi VMS Camp (consisting of 6 historic VMS mines) 75km west of Wishbone, has been classified as a bimodal type deposits as have Canada's Kidd Creek (Ontario) and Noranda (Quebec) VMS deposits.

 

·   Another important characteristic of VMS type deposits is that they typically occur in clusters. The Company views that the discovery of the Wishbone VMS system bodes very well for the existence of further, as yet undiscovered VMS bodies in the vicinity, as it confirms the western part of the Obonga Greenstone belt as a favourable geological environmental, and permissive tract, for the development of volcanic associated mineralising systems.

 

·   Panther have retained the support of a post-doctoral academic from a Canadian VMS centre of excellence and are working towards forging university relationships which will see the Company leverage all available knowledge and expertise to open up the Obonga greenstone belt for further VMS exploration.

Australia Highlights

 

Panther Metals Limited commenced trading on the Australian Securities Exchange ('ASX') on 10 December 2021 following the completion of its oversubscribed $5m IPO, which capitalised it at $10.9m.

 

Since listing the share price of Panther Metals Limited has risen by 14% (as at 31 March 2022). The ASX listing has provided the Australian projects with the necessary capital to advance drill-ready targets focused on nickel and gold (within the Tier 1 Mining Districts of Laverton WA and in the NT).

 

Panther Metals Limited Annual Report for the year ended 31 December 2021 is available on its website

 

https://www.panthermetals.com.au/component/rsfiles/download?path=asx%2Bannouncements%252F2347899.pdf&Itemid=101

 

The two key updates from the report are provided below:

 

Drilling on Panther's Coglia Ni-Co JORC Exploration target commenced 16 December 2021 with a 6,000m reverse circulation program focused on the generation of a maiden Mineral Resource Estimate, whilst also exploring deeper for potential nickel sulphides.

 

The Coglia Nickel-Cobalt Project is located in the Laverton region of Western Australia. The project area is highly prospective for nickel-cobalt laterite mineralisation and has the potential to host nickel sulphide mineralisation. Panther plans to upgrade the current JORC (2012) compliant Exploration Target to a Mineral Resource Estimate ("MRE") with a 6,000m infill drill programme, which is also intended to yield material for metallurgical, mineralogical and environmental studies and test-work. The Exploration Target was estimated by Geomin Services on 17 June 2021 based upon the previous exploration by Heron Resources (2001-03) who drilled 20 reverse circulation ("RC") holes for 1,562m and delineated a horizon of nickel laterite mineralisation. White Cliff Minerals followed this in 2018, who drilled 48 air-core holes totalling 2,866m. This drilling also intersected a layer of nickel enrichment in the weathered, lateritic material at a depth of between 40m to 70m. The Exploration Target dimensions and grade range were based on the historic Heron and White Cliff drill programmes that intersected nickel mineralisation in the project area. The assay results within the mineralised zone provided an average grade of about 0.7% Ni and 500ppm Co. These values have been used as mid-points for the grade range. The tonnage range incorporates variations of mineralised zone thickness and dry bulk densities.

 

 

Drilling at the Eight Foot Well gold prospect is scheduled to follow the completion of drilling at Coglia in February 2022.

 

The Eight Foot Well Gold Prospect is located 25km west of town of Laverton which is 957 kilometres north-northeast of the Western Australia state capital, Perth. The Eight Foot Well Gold Prospect is part of the southern tenement forming part of the greater Red Flag Project. There are two main target areas on this tenement: 1. The Eight Foot Well Gold Prospect; and 2. The yet undrilled anomalous nickel target at Mt Goose, lying to the southeast of Eight Foot Well. This infill drill programme at Eight Foot Well is designed to further define the existing strike to enable the potential creation of a gold MRE for the prospect

 

In Australia, the team had a busy and productive year both from a geological and corporate perspective.

In the first quarter: a 5,867 line-km airborne geophysical survey was completed over the Merolia Gold Project area and a targeted high resolution drone magnetic survey was undertaken over part of the Comet Well Gold trend, in an area which had previously provided highly anomalous gold in soil geochemistry.

 

Further airborne geophysics was completed in early May with 1,715 line-km of airborne geophysical survey over the Annaburroo and Marrakai gold project areas.

 

In mid-April 2021 Panther announced the intention to pursue a listing of its Australian assets on the Australian Securities Exchange (the "ASX" or "ASX Exchange") ahead of a pre-IPO seed financing raise of AU$300,000.

 

In late May 2021 the results of an 827-hole auger drill geochemistry programme undertaken to test the south-eastern extension Comet Well Gold trend, successfully delineated the new '40 Mile Camp' gold anomaly within the centre of the Merolia Gold Project ("Merolia") area. This significant gold anomaly which extends over 5km x 2.5 km in the central part of licence E38/3384.

 

In June 2021, Panther lodged applications for two further exploration tenements in Western Australia, E39/2249 and E39/2250, as part of an expansion programme for the Red Flag Nickel-Cobalt Project and ahead of announcing a JORC (2012) compliant Exploration Target for the Coglia Nickel-Cobalt Project ("Coglia") located at the southern end of Merolia. This Exploration Target was defined as 30Mt-50Mt of nickel-cobalt laterite mineralisation, grading at between 0.6-0.8% nickel and 400-600ppm cobalt over an interpreted strike of approximately 5.5km.

 

The year in Australia culminated with the ASX listing of Panther Metals Ltd which provided the experienced management the necessary capital to drive forward the highly prospective Australian exploration projects put together by Panther Metals PLC, without any further financial obligations to the Company.

 

The Company notes that post year end 2021, the Coglia drilling results announced by ASX listed Panther Metals Limited are showing promising upside potential ahead of a planned maiden Mineral Resource Estimate.

 

 

Post Year End Developments

 

Panther Metals PLC

 

On 7 March 2022, the Company announced the placing of 4,500,000 ordinary shares raising gross proceeds of approximately £360,000. Admission of the shares took place on 10 March 2022.

 

On 8 March 2022, the Company announced that it has received notice of exercise of a total of 265,242 warrants with an exercise price of 6p per share, raising £15,915 for the Company. Admission of the shares took place on 11 March 2022.

 

Panther Canada

 

On 18 January 2022 the Company announced that it had discovered a volcanogenic massive sulphide/VMS mineral system on the Obonga Project which is an exciting development.

 

On 24 January 2022 the Company announced the first batch of assay results, to 172m, from the 402m deep diamond core drill hole (PD-DL21-01) at the 100% owned Dotted Lake property in the wider Hemlo region, in Ontario. Preliminary results from the first batch of core assay results from the Dotted Lake diamond core drill hole (PD-DL21-01) shows widely dispersed gold mineralisation within the first 172m assayed.

 

On 22 March 2022 the Company announced the acquisition of thirteen single cell mining claims that provide coverage for the interpreted eastward strike extension side of the Awkward intrusive conduit target at the Awkward Prospect the Obonga greenstone belt.  The Awkward Prospect is an upcoming drill target for Panther.

 

On 7 April 2022 the Company announced the signing of a sale agreement (the "Agreement") for the transfer of 128 mining claims ("Claims"), constituting the Company's Big Bear Project ("Big Bear") located on the Schreiber-Hemlo Greenstone Belt. Under the terms of the agreement the Company's Canadian subsidiary Panther Metals (Canada) Limited has agreed to transfer the Claims, associated data, and documentation (the "Sale") to Fulcrum Metals (Canada) Ltd., the Canadian subsidiary of Fulcrum Metals Limited, ("Fulcrum") an Irish registered company, which is seeking an initial public offering ("IPO") on the AIM Market of the London Stock Exchange Group PLC.

 

As consideration for the sale upon Fulcrum IPO Panther will be issued with; 20% of the entire issued share capital in Fulcrum as Consideration Shares; a payment of £200,000 and the grant of a 2% net smelter return ("NSR") royalty. The Agreement is conditional upon, inter alia, Fulcrum being admitted to trading on the AIM Market of the London Stock Exchange Group PLC. The longstop date of the Agreement completion is 31 October 2022. In the event that completion does not occur before the longstop date Panther will be due a payment of 50,000 Euro from Fulcrum.

 

The sale will supplement Panther's Dotted Lake property through indirect exposure to early-stage gold and base metal exploration over a further four properties on the Schreiber-Hemlo Greenstone Belt; with an additional two properties on the Dayohessarah Lake Greenstone and the Michipicoten Greenstone Belt; whilst diversifying commodity exposure through Fulcrum's two uranium exploration properties in the vicinity of the Athabasca Basin in Saskatchewan1.

 

On 7 April 2022 the Company announced that it had entered into an option and sale and purchase agreement (the "Agreement") with Shear Gold Exploration Corporation ("Shear Gold") to purchase a substantial claim holding (the "Shear Gold Project" or "Project") including the West Limb and Glass Reef gold properties, on the Eagle - Manitou Lakes Greenstone Belt.

 

The Shear Gold Project covers a total area of approximately 98km2 and is located within the gold endowed Kenora Mining District, approximately 300km east of Thunder Bay and equidistant between the towns of Fort Frances and Dryden in north-western Ontario, Canada. 

 

The terms of the Agreement are set out below.

 

 

A cash consideration of $11,325 Canadian dollars ("CAD$") has been paid to Shear Gold Exploration Corporation in order to secure the option and sale and purchase agreement, under which Panther has committed to:

 

·    a minimum spend commitment of:

 

·      CAD$325,000 to be expended over years one and two; and

·      a further CAD$400,000 to be expended between the second and fourth annual anniversaries of the Agreement. Any excess spend in years one and two can be offset against expenditure in years three and four.

 

·        grant Shear Gold a net smelter return ("NSR") royalty of 2% over the 32 multicell mining claims (the "Claims") covered in the Agreement. Panther can elect to purchase 50% of the NSR (reducing the remaining royalty to 1%) for the sum CAD$1M at any time.

 

·        Panther Metals PLC can elect at any time to purchase the Claims outright through a payment of CAD$250,000 to Shear Gold.

 

 

Panther Australia

 

On 28 February 2022 Panther Metals Limited announced drilling results for the Coglia Nickel/Cobalt Project in Western Australia, detailing the initial results from the first five reverse circulation ("RC") drill holes on the project.

·      Initial RC drilling results include high-grade nickel and cobalt intercepts in all holes assayed to date.

·      These initial drill results cover 5 of a total 58 initially planned RC drill holes in the 6,000m programme.

·    New zone of mineralisation discovered outside the current Exploration Target. Four additional drill holes have been added to the programme to test extensions to the new mineralised zone.

·    A further 3,478 samples are currently at the laboratory awaiting analysis.

·    Once the Coglia drill programme is complete, Panther Metals Ltd intend to calculate a JORC 2012 compliant Mineral Resource Estimate, and the drilling rig will be moved to the Eight Foot Well Gold Prospect, with the aim of testing the potential for a shallow gold resource.

 

On 23 March 2022, Panther Metals Limited announced an update at the Coglia Nickel/Cobalt project in Western Australia which detailed significant reserve circulation drilling sample assay results.

 

Key Performance Indicators

 

The key performance indicators are set out below:

 

 

	31-Dec-21	31-Dec-20	Change
Net asset value	£2,411,075	£1,517,916	59%
Market Capitalisation	£7.85m	£8.68m	-10%
Share Price	12.75p	15.00p	-15%

 

Since the Company's listing on the Main Market of the London Stock Exchange the share price and market capitalisation of the Company come into focus and has formed part of the key performance indicators monitored by management.

 

Principal Risks and Uncertainties

 

The principal risks and uncertainties of the Group are outlined below.

 

A majority of the Group's operating costs will be incurred in US and Canadian dollars, whilst the Group has raised capital in £ Sterling

 

The Group will incur exploration costs in US and Canadian Dollars but it has raised capital in £ Sterling. Fluctuations in exchange rates of the US Dollar and Canadian Dollar against £ Sterling may materially affect the Group's translated results of operations. In addition, given the relatively small size of the Group, it may not be able to effectively hedge against risks associated with currency exchange rates at commercially realistic rates. Accordingly, any significant adverse fluctuations in currency rates could have a material adverse effect on the Group's business, financial condition and prospects to a much greater extent than might be expected for a larger enterprise.

 

The Group will need additional financial resources if it moves into commercial exploitation of any mineral resource that it discovers

 

Whilst the Group has sufficient financial resources to conduct its planned exploration activities, meet its committed licence obligations and cover its general operating costs and overheads for at least 12 months, the Group will need additional financial resources if it wishes to commercially exploit any mineral resource discovered because of its exploration activity.

 

The Group has budgets for all near and short-term activities and plans, however in the longer term the potential for further exploration, development and production plans and additional initiatives may arise, which have not currently been identified and which may require additional financing which may not be available to the Group when needed, on acceptable terms, or at all. If the Group is unable to raise additional capital when needed or on suitable terms, the Group could be forced to delay, reduce, or eliminate its exploration, development, and production efforts.

 

Even if the Group makes a commercially viable discovery in the future there are significant risks associated with the ability of such a discovery generating any operational cashflows

 

The economics of developing mineral properties are affected by many factors including the cost of operations, variations of the grade of ore mined, fluctuations in the price of the minerals being mined, fluctuations in exchange rates, costs of development, infrastructure and processing equipment and such other factors as government regulations, including regulations relating to royalties, allowable production, importing and exporting of minerals and environmental protection. Given that the Group is at the early exploration stage of its business many of these factors cannot be accurately assessed, costed, planned for or mitigated at the current time. As a result of these uncertainties, there can be no guarantee that mineral exploration and subsequent development of any of the Group's assets will result in profitable commercial operations.

 

The Group is not currently generating revenue and will not do so for in the near term

 

The Group is an exploration company and will remain involved in the process of exploring and assessing its asset base for some time. The Group is unlikely to generate revenues until such time as it has made a commercially viable discovery. Given the early stage of the Group's exploration business and even if a potentially commercially recoverable reserve were to be discovered, there is a risk that the grade of mineralisation ultimately mined may differ from that indicated by drilling results and such differences could be material. Accordingly given the very preliminary stages of the Group's exploration activity it is not possible to give any assurance that the Group will ever be capable of generating revenue at the current time.

 

Going Concern

 

As a junior exploration company, the Directors are aware that the Company must seek funds from the market in the next 12 months to meet its investment and exploration plans and to maintain its listing status.

 

The Group's reliance on a successful fundraising presents a material uncertainty that may cast doubt on the Group's ability to continue to operate as planned and to pay its liabilities as they fall due for a period not less than twelve months from the date of this report.

 

The Company successfully raised £940,000 in the year ended 31 December 2021 through a combination of issuing new shares and warrant conversions. As at the year-end date the Group had total cash reserves of £100,586 (2020: £241,194).

 

On 7 March 2022, the Company announced the placing of 4,500,000 ordinary shares raising gross proceeds of approximately £360,000. Admission of the shares took place on 10 March 2022.

 

The Directors are aware of the reliance on fundraising within the next 12 months and the material uncertainty this presents but having reviewed the Group's working capital forecasts they believe the Group is well placed to manage its business risks successfully providing the fundraising is successful. The financial statements have been prepared on a going concern basis and do not include adjustments that would result if the Group were unable to continue in operation.

 

The Company acted quickly to mitigate the short-term risk presented following the rapid spread of COVID-19 across the globe. The reduction in our cost base, combined with careful management of spend on exploration projects, leaves the business in a strong financial position in cash terms.

 

The medium to long term effects of the virus is unknown to us all but the Company will monitor developments across our portfolio and act accordingly. We note the positive impact on the gold price, and we believe we are in a strong position should future opportunities arise.

 

Stakeholder Engagement

 

The Company did not have any employees during the Reporting Period and therefore this stakeholder

engagement statement does not refer to how we consider their interests. The Company will monitor the need to incorporate the interests of employees in its decision making as the Company grows.

 

The table below acts as our stakeholder engagement statement by setting out the key stakeholder groups, their interests and how Panther Metals engages with them. Given the importance of stakeholder focus, long-term strategy and reputation to the Company, these themes are also discussed throughout this Annual Report.

 

 The stakeholder engagement statement should be read in conjunction with the full Strategic Report and the Company's Corporate Governance Statement.