Half-Yearly Report 2019

30 May 2019

 

TERTIARY MINERALS PLC

("Tertiary" or "the Company")

 

HALF-YEARLY REPORT 2019

 

Tertiary Minerals plc, the AIM-traded company building a multi-commodity project portfolio, announces its unaudited interim results for the six months ended 31 March 2019.

 

Operational Summary for the Six Months Ending 31 March 2019:

 

Paymaster Project and Acquisition Opportunities

 

·      The Company has staked claim to the Paymaster zinc-copper-silver-cobalt-tellurium prospect in Nevada, USA

·      Grab samples assay up to 21% zinc (Zn), 6.5% lead (Pb), 3.3% copper (Cu) and 253g/t silver (Ag)

·      Mineralisation intermittently exposed and sampled over 1.7km strike length

·      Samples also contain high levels of high-tech metals tellurium and cobalt (Co)

·      Successful soil sampling programme recently completed:

 

Ø 165 soil samples

Ø Significant elevated levels of Ag, Cu, Zn, Co and Pb over a strike length of over 2,000 metres, maximum values:

 

§ Ag: 17.5 ppm

§ Cu: 896 ppm

§ Zn: 872 ppm

§ Co: 33 ppm

§ Pb: 2251 ppm

 

·      The Company will now conduct follow-up field work to define drilling targets

·      Several new projects are currently being assessed in line with the Company's strategy to build a new multi-commodity project portfolio to enable the Company to reduce its future geographical, technical, permitting and commodity risk exposure and provide long-term shareholder value

Storuman Fluorspar Project, Sweden - Exploitation (Mine) Permit Progress

 

·      The Company, together with its Swedish Lawyers, has prepared and submitted, on the 3 May 2019, a detailed appeal to the Swedish government against the decision by the Swedish Mining Inspectorate to reject Tertiary's Exploitation (Mine) Permit in its current form

MB Fluorspar Project, Nevada, USA - Metallurgical Testwork Progress

 

·      Scoping Study level bench scale metallurgical testwork progressing at SGS Lakefield in Canada with the aim of producing commercial grade acid-spar and mica

·      Testwork has indicated that some of the ore is metallurgically complex, presenting certain processing challenges, and therefore the Company has engaged the services of one of the world's leading consultant fluorspar metallurgists to assist with the testwork

Lassedalen Fluorspar Project, Norway

 

·      The project continues to be a lower priority for the Company given the commitments on its other larger/more advanced fluorspar projects, acquisition opportunities and new Paymaster Project

Kaaresselkä and Kiekerömaa Gold Projects, Finland

 

·      The Company retains pre-production and net smelter royalty interest in two gold projects owned by Aurion Resources.

·      Aurion is a Canadian listed exploration company with primary focus on the development of its Finnish gold projects, several of which are under joint venture with B2Gold. Kinross Gold Corporation are also significant shareholders of Aurion.

Partnership with Global Commodities Trading Group

 

·      Possehl continues to support the Tertiary management team with the development of its fluorspar operations and the evaluation of potential acquisition targets

 

 

Financial Results - Summary:

 

·      Operating Loss for the six-month period of £183,018 comprises:

o  Revenue of £106,747; less

o  Administration costs of £240,163 (which includes non-cash share-based payments of £3,013); and

o  Pre-licence and reconnaissance exploration costs totalling £49,602

 

·      Total Group Loss of £182,873 is after crediting:

o  Interest income of £145

 

·      83,333,333 Ordinary Shares were issued during the reporting period by way of placing at a price of 0.3 pence per share.

 

·      418,578 Ordinary Shares were issued during the reporting period to a director in satisfaction of outstanding directors fees at a price of 0.325 pence per share

 

 

 

Enquiries   Tertiary Minerals plc Patrick Cheetham, Executive Chairman Richard Clemmey, Managing Director	+44 (0)1625 838 679
SP Angel Corporate Finance LLP Nominated Adviser & Joint Broker Lindsay Mair/Caroline Rowe	+44 (0) 20 3470 0470
SVS Securities plc Joint Broker Elliot Hance	+44 (0) 203 700 0093

 

 

 

 

 

 

Chairman's Statement

 

I am pleased to present our Interim Report for the six-month period ended 31 March 2019.

 

Following my 2018 annual report to shareholders we received the unwelcome news, in January this year, that the Mining Inspector in Sweden had rejected our Mine Permit application for the Storuman Fluorspar Project, siding with the view of the County Administration that the proposed mine tailings site could not coexist with traditional herding activities in that area. The Company and its legal team strongly believes that the Mining Inspector has not properly considered the Company's submission on avoidance and mitigating measures and so, this month, we submitted an appeal of the decision to the Swedish Government together with a letter of support from the local Storuman municipal government. We await the outcome.

 

We are continuing our scoping level work on the large MB Fluorspar Project in Nevada, USA, where a programme of metallurgical testwork is in progress to address metallurgical complexities in those deposits that have been considered for early production. The project contains multiple zones of fluorspar mineralisation with different metallurgical characteristics and consideration is being given to a further drill programme to test for high-grade and metallurgically more-amenable deposits.

 

The fluorspar market remains strong and we continue to enjoy the support of global trading commodities group Possehl in the continuing evaluation of our fluorspar projects. However, the Board recognises that, whilst its key fluorspar deposits are large and potentially valuable, the current development hurdles have progressively eroded investor interest in the Company. The Board is actively addressing this and in the past few months we have been advancing a programme of low-cost mineral exploration and claim staking in the western USA to expand and diversify the Company's project portfolio and lower the Company's exposure to commodity and permitting risk.

 

The first of these projects - Paymaster, in Nevada - was staked to cover high-grade base metal-silver-cobalt-tellurium surface showings in a skarn environment in the highly productive Walker Lane mineral belt. Similar geological environments host world-class base and precious-metal deposits elsewhere in the western USA.

 

The Company is now pleased to announce the results of a soil sampling programme at Paymaster where significant values of silver, copper, cobalt, lead and zinc have been found over a strike length of 2km. Values of over half an ounce of silver per ton and 0.2% lead in soil are standout results. Follow up work is now planned to define drill targets.

 

Our most recent project acquisition is the Pyramid Gold Project in Nevada where we have secured an option to purchase a group of patented mining claims containing high-grade epithermal gold mineralisation which was discovered by drilling in the 1980s but never followed up.  The scope of this exciting target is highlighted by an associated 750m long gold-in-soil anomaly and widespread gold-bearing surface samples.  Nevada is ranked as the best mining jurisdiction in the world by the Frazer Institute and such targets are hard to find in this mature exploration province. We hope to move quickly to carry out confirmatory and follow-up drilling.

 

We continue to watch with interest the progress of Aurion Resources in Finland where our pre-production and net smelter royalty interests in two gold projects held by Aurion have been brought into sharper focus by Aurion's high-grade gold discoveries on the neighbouring Risti project. Aurion has a large land package and is being supported financially by large gold producer Kinross Gold Corporation.

 

The Company's financial results for the half-year are in line with expectations and largely reflect the Company's project and administration expenditures and enabling fundraising.

 

My expectation is that the Company's recent initiatives in Nevada, USA, will result in a higher level of news flow and investor interest than has been the case in the past several months and so look forward to keeping shareholders informed of further developments.

 

 

 

Patrick L Cheetham

Executive Chairman

30 May 2019

 

 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

 

Notes to Editors

Tertiary Minerals plc (ticker symbol 'TYM') is an AIM-traded mineral exploration and development company building a multi-commodity project portfolio.

 

CAUTIONARY NOTICE

The news release may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to the Company's proposed strategy, plans and objectives or to the expectations or intentions of the Company's directors. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.

 

 

 

 

Consolidated Income Statement

for the six months to 31 March 2019

 

	Six months to 31 March 2019 Unaudited		Six months to 31 March 2018 Unaudited		Twelve months  to 30 September 2018 Audited
	£		£		£
Revenue	106,747		110,554		218,841
Administration costs	(240,163)		(269,480)		(507,931)
Pre-licence exploration costs	(49,602)		(11,954)		(38,725)
Impairment of deferred exploration asset	-		-		(1,976,618)
Operating loss	(183,018)		(170,880)		(2,304,433)
Gain on disposal of available for sale investment	-		37,263		37,094
Interest receivable	145		78		142
Loss before income tax	(182,873)		(133,539)		(2,267,197)
Income tax	-		-		-
Loss for the period attributable to equity holders of the parent	(182,873)		(133,539)		(2,267,197)
Loss per share - basic and diluted (pence) (Note 2)	(0.05)		(0.04)		(0.65)

 

 

 

 

Consolidated Statement of Comprehensive Income

for the six months to 31 March 2019

 

	Six months to 31 March 2019 Unaudited	Six months to 31 March 2018 Unaudited	Twelve months to 30 September 2018 Audited
	£	£	£
Loss for the period	(182,873)	(133,539)	(2,267,197)
Other comprehensive income:
Items that have been reclassified subsequently to the Income Statement:
Disposal from available for sale investment reserve	-	(37,263)	(38,634)
	-	(37,263)	(38,634)
Items that could be reclassified subsequently to the Income Statement:
Foreign exchange translation differences on foreign currency net investments in subsidiaries	(1,180)	(209,948)	(62,575)
Fair value movement on available for sale investment reserve	-	(111,316)	(72,010)
	(1,180)	(321,264)	(134,585)
Items that will not be reclassified to the Income Statement:
Changes in the fair value of equity investments	(69,550)	-	-
	(69,550)	-	-
Total comprehensive loss for the period attributable to equity holders of the parent	(253,603)	(492,066)	(2,440,416)

 

 

 

Company Registration Number 03821411

Consolidated Statement of Financial Position

at 31 March 2019

 

	As at 31 March 2019 Unaudited		As at 31 March 2018 Unaudited		As at 30 September 2018 Audited
	£		£		£
Non-current assets
Intangible assets	2,730,899		4,406,689		2,670,386
Property, plant & equipment	2,658		2,463		3,308
Available for sale investment	-		164,391		202,328
Financial assets at fair value through other comprehensive income	132,778		-		-
	2,866,335		4,573,543		2,876,022
Current assets
Receivables	67,786		95,668		96,653
Cash and cash equivalents	217,432		474,052		218,297
	285,218		569,720		314,950
Current liabilities
Trade and other payables	(44,974)		(75,464)		(65,163)
Net current assets	240,244		494,256		249,787
Net assets	3,106,579		5,067,799		3,125,809
Equity
Called up Ordinary Shares	44,307		35,910		35,932
Deferred Shares	2,644,062		2,644,062		2,644,062
Share premium account	10,008,687		9,784,363		9,785,702
Merger reserve	131,096		131,096		131,096
Share option reserve	112,952		204,522		168,923
Fair value reserve	(6,324)		25,291		63,226
Foreign currency reserve	303,157		156,964		304,337
Accumulated losses	(10,131,358)		(7,914,409)		(10,007,469)
Equity attributable to the owners of the parent	3,106,579		5,067,799		3,125,809