RE: Asia Mineral Resources Financial Statement Interesting ?2 Sep 2020 07:20
SLE to the rescue!
1. Nature of business and going concern:
Asian Mineral Resources Limited (the “Company” or “AMR”) is incorporated under the laws of the Province of
British Columbia by a certificate of continuance as of December 31, 2004, having previously been incorporated
and registered under the New Zealand Companies Act 1993. On April 19, 2004, the Company became listed on
the TSX-Venture Exchange (TSX-V). The Company’s principal business activities are the exploration and
development of mineral property interests. The Company’s registered corporate office is located at 120 Adelaide
Street West, Suite 2500, Toronto, Ontario, Canada M5H 1T1.
The Company’s principal mineral property interest, until July 17, 2018, was a nickel joint venture, in the Ban
Phuc Project Area located 160 km west of Hanoi in Son La Province, in northwestern Vietnam. Development of
the project completed in 2012, with commercial production commencing November 1, 2013. Mining and
processing operations were suspended in September 2016 and the operations were sold in 2018, after approval
by the Company’s shareholders, allowing for an orderly exit from Vietnam.
Subsequent to quarter-end, on July 17, 2020 the Company completed an agreement to acquire all the issued
and outstanding shares of Nigerian-based Decklar Petroleum Limited, whose sole asset is a Risk Service
Agreement with Millenium Oil and Gas Company Limited (‘Millenium’). Millenium is the owner of the Oza Field
located onshore in the northern part of Oil Mining License 11 in the Eastern Niger Delta of Nigeria (note 20(a)).
The Company will now focus on assisting with the development and funding of Millenium’s oil assets.
These consolidated financial statements have been prepared on a going concern basis, which assumes that the
Company will continue in operations for the foreseeable future and will be able to realize its assets and discharge
its liabilities in the normal course as they come due. As at June 30, 2020, the Company had an accumulated
deficit of $132.8 million, with cash and cash equivalents of $1.0 million, and working capital of $194,701.
Financing was announced August 31, 2020 for the initial development of the new Nigerian asset, however this
financing is not yet finalized (note 20(a)). Additional funding will be required for corporate administrative
expenditures. The Company currently has no source of operating cash flow and no assurance that additional
funding will be available. These factors indicate the existence of an uncertainty that may cast doubt about the
Company’s ability to continue as a going concern.
There can be no assurance that the Company will be able to obtain requisite financing in the future and, if
realized, such financing might not be favourable to the Company and might involve dilution to existing
shareholders. Should the Company not be able to continue as a going concern, adjustments to the carrying
values and classification of its assets and li
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