Alba Mineral Resources Regulatory News (ALBA)

28 May 2008 11:08



Alba Mineral Resources Plc

Final results for the year ended 30 November 2007

CHAIRMAN'S STATEMENT

The results for Alba Mineral Resources plc (the "Company" or "Alba", and collectively with its Subsidiary Companies, the "Group") cover the year ended 30 November 2007. They incorporate the results of its subsidiary companies Aurum Mineral Resources Limited ("AMR"), Mauritania Ventures Limited ("MVL") and Alba Mineral Resources Sweden AB (collectively the "Subsidiary Companies"). 

INTRODUCTION

AMR, holds, or has applied for, exclusive rights to explore a portfolio of mineral exploration properties. These are primarily nickel and gold exploration projects in Scotland and Ireland, which are at different stages of development, from conceptual exploration targets to more advanced drill-ready projects.

The Group holds nine exploration licences in Sweden. These targets have the potential to develop into opportunities with the disused Kleva copper-nickel mine within the licence area.

The Group also has co-formed MVL to acquire exploration permits in Mauritania, West Africa to prospect for uranium and Iron Oxide-Copper-Gold (IOCG). Seven permits have been granted and five are pending. Ground-based exploration commenced during the year.

The Company was admitted to the AIM market of the London Stock Exchange on 4 April 2005 after successfully raising £1,050,000 (before expenses), it subsequently raised a further £504,600 (before expenses) by the placing of 6,307,500 ordinary shares at 8p per share on 22 August 2006 and in November 2007 raised £343,200 (before expenses) by the placing of 21,450,000 shares at 1.6 pence per share.

REVIEW OF ACTIVITIES

On 3 January 2007 the Company announced that the exploration efforts on its existing project portfolio would be within the constraints of the financial resources available and that the Group would be seeking to raise additional funds to actively pursue and explore these existing projects.

On 27 April 2007 the Company further announced that it was continuing to seek additional funding to pursue these objectives and until this funding was in place the Group would, in the short term, downgrade active fieldwork exploration on the existing licences and permits, whilst maintaining the portfolio of assets and that Alba would continue the programme of desktop research, analysis and studies using its existing in-house team.

On 17 October 2007 the Company announced that directors would suspend drawing salaries and fees until the additional funding was in place.

The fundraising process was finally concluded in November 2007 when the Company raised £343,200 (before expenses) by the placing of 21,450,000 shares at 1.6 pence per share.

The funds secured were primarily used to undertake on ground exploration work in Mauritania. 

The Group has also, where possible, been enhancing its understanding of its nickel-copper-platinum group minerals (PGM) and gold licences that it holds in Scotland and Ireland.

At the Group's PGM project in Arthrath in Scotland, a detailed electromagnetic survey conducted in the latter part of 2006 indicated the presence of a number of moderate and weak electromagnetic conductors, which confirm the Group's interest in the area as a significant regional target. The Board believes that this project has now sufficiently progressed to enable it to examine and evaluate the various options available to it to pursue further detailed exploration and outline discussions have been made with a number of parties regarding a future possible joint venture arrangement.

In December 2006, four gold and silver licences were awarded to the Group by the Crown Mineral Agent at Loch Tay (Aberfeldy), Ochil Hills (Perthshire), Kimelford (Argyllshire) and Arthrath (Aberdeenshire). The Group is currently reviewing its position with regard to the licence at Loch Tay due to the difficulty of being able to gain access on the ground to certain parts of the licence. It is expected that this licence will be relinquished. 

The Group also has exploration licences in Bohaun (Co. Galway) and near Pallas Green (Cos. Limerick and Tipperary) in Ireland. Initial exploration results from a rock sampling programme have confirmed Bohaun as a prospective gold target with some high-grade potential. We have had discussions with a number of parties concerning the ground in Limerick where it is hoped a joint venture arrangement can be completed to facilitate the work programme on this licence.

The focus of our sediment-hosted gold exploration near Pallas Green has now turned to zinc where interesting base metal results have been obtained. These licences are close to licences owned by Connemarra Mining/Teck Cominco and Xstrata/Minco from where very encouraging exploration results associated with a significant diamond drilling programme have already been announced.

In Sweden Alba holds nine exploration licences where technical research has identified a number of nickel sulphide exploration targets. These licence areas offer the Group an opportunity to expand operations in a new geographical area.

Our activities in Mauritania represent Alba's most significant development over the last year where, following the establishment of a jointly owned company, we have to date acquired seven uranium exploration permits totalling approximately 13,500 km2 of prospective ground. Target generation and ground acquisition was conducted based on known mineral occurrences and favourable geology. An additional five permits are pending in the south of the country for iron oxide-copper-gold style mineralization. Work recommenced in Mauritania in December 2007 and with encouraging results has been continued through April 2008. We have been approached by several companies regarding joint venture proposals. Discussions are ongoing.

OUTLOOK

The Group is now an established and committed junior explorer and developer with a diversified exploration portfolio focused on the margins of the Atlantic Ocean. The Group's overall corporate and exploration strategy is to develop a series of well-researched and promising exploration properties which will be developed either in the Group's own right or in conjunction with other parties.

The Group, although now focused as a uranium and nickel junior explorer, will continue to evaluate additional cost effective projects and proposals that the Board believes have the potential to add value to the Group.

The Board believes it is developing not only a strong portfolio of primary projects, but also a series of supplementary exploration projects. The rationale behind this approach is to limit the Group's risk on a particular commodity, or the political or climatic restrictions associated with a particular geographical area. 

The funding secured during November 2007 is being used to maintain our existing property portfolio and primarily fund our activities in Mauritania.

It is intended to seek joint venture partners where possible as the need for funds is ongoing and is under constant review.

Our exploration programmes can only be financed within our financial constraints and in the near term the Group will be seeking additional funding to maintain and pursue our goals as identified above.

In order to alleviate the immediate working capital constraint on the Group the Directors have agreed to suspend drawing salaries effective from 1 April 2008.

Michael Nott, Chairman

27 May 2008

CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 30 NOVEMBER 2007

CONSOLIDATED BALANCE SHEET

30 NOVEMBER 2007

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 NOVEMBER 2007

NOTES

1. Basis of preparation 

The financial information set out above does not constitute the Group's statutory accounts within the meaning of section 240 of the Companies Act 1985. The balance sheet at 30 November 2007 and the profit and loss account and cash flow statement for the year then ended have been extracted from the Group's audited financial statements. The auditors report on those financial statements is unqualified and does not contain statements under s.237(2) or (3) Companies Act 1985.These financial statements will be delivered to the Registrar of Companies and shareholders in due course.

2. Taxation

No charge for corporation tax for the period has been made due to the expected tax losses available.

3. Loss per share

Basic loss per share is calculated by dividing the loss attributed to ordinary shareholders of £437,296 by the weighted average number of shares of 67,673,022 in issue during the year. The diluted loss per share calculation is identical to that used for basic loss per share as the exercise of warrants would have the effect of reducing the loss per ordinary share and is therefore not dilutive under the terms of Financial Reporting Standard 14 "Earnings per Share".

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