Amara Mining Regulatory News (AMA)

28 Apr 2008 07:00

Cluff Gold PLC28 April 2008 28th March 2008 AIM: CLF Cluff Gold plc ("Cluff Gold" or the "Company") Preliminary Results for the Year Ended 31st December, 2007 Highlights For the year ended 31 December 2007(the period under review) and the four monthsended 25 April 2008 Angovia, Cote d'Ivoire (90% ownership) • Resource increased to 495,000 ounces • During 2008: o Completed development of gold mine o First gold poured in March 2008 o Annual gold production estimated to be 40,000 ounces from 2009 Kalsaka, Burkina Faso (78% ownership) • Resource increased to 790,000 ounces • During 2008: o Development of gold mine which is scheduled for completion in Q2, 2008 o First gold pour scheduled for Q3, 2008 o Annual gold production estimated to be 60,000 ounces from 2009 Baomahun, Sierra Leone (60% ownership) • Resource increased to 1.16 million ounces in 2007 with new resource estimate expected in Q3, 2008 • Scoping Study confirms potential for economic development • During 2008: o Pre-Feasibility drilling commences with excellent results received in Q1, 2008 o Application for Mining Licence submitted in January 2008 o Agreement signed in February 2008 to buy remaining 40% of project Finance • Successful placing in March 2007 raising gross proceeds of US$29.9 million • Cash at 31st December 2007 was US$13.9 million • During 2008: o Further placing in March 2008 raising gross proceeds of US$25.4 million o Cash at 31st March 2008 was US$24.3 million Results The consolidated net loss after taxation of the Group in respect of the yearended 31 December 2007 amounted to US$4.8 million (2006 : US$3.5 million); lossper share 7.47 cents (2006: 8.86 cents). The assets of the Group at 31 December 2007 amounted to US$69.6 million (2006:US$37.4 million) which include intangible assets amounting to approximatelyUS$10.7 million (2006: US$5.3 million) and tangible assets amounting toapproximately US$41.4 million (2006: US$10.0 million). Intangible assets relateto accumulated deferred exploration and evaluation costs mainly on the Baomahunproject. The increase in tangible assets was largely due to the Kalsaka projectand Angovia gold heap leach mine which were under construction throughout theyear. Cash balances held by the Group at year end amounted to approximately US$13.9million (2006: US$21.2 million). In March 2007, the Company raised approximatelyUS$29.9 million before expenses through a private placement of 22,600,000 sharesat 68 pence per share. The funds were used principally for the construction ofthe Angovia heap leach gold mine and the Kalsaka project as well as to continuethe exploration programmes in Sierra Leone, Cote d'Ivoire, Burkina Faso andMali. Post Balance Sheet Events Following a small increase in projected construction costs, a slight delay inproduction start-up for both development projects and increased expenditure atBaomahun, the Company took steps to raise funds in order to complete theconstruction of the Kalsaka project, investigate further both the existing andpotential mineralised target zones at Baomahun and fund working capitalrequirements. On 3 March 2008, the Company successfully raised approximatelyUS$25.4 million before expenses through a private equity placement of 14,570,000shares at 88 pence per share. The placement was well supported by investors inboth North America and Europe. Comment Chairman and Chief Executive Officer, Mr Algy Cluff comments today "With ourfirst gold pour from the Angovia Gold Mine, we are now a producing gold miningcompany. Our second gold mine at Kalsaka is scheduled to be operational withinthe next few months and results from Pre-Feasibility drilling underway atBaomahun, our flagship exploration project, continue to confirm our positiveexpectations." "It would be disingenuous of me not to refer to the cost inflation that themining industry is currently experiencing, with the price of cement, shipping,fuel and steel in particular at all time highs. Whilst the year ahead willcertainly present some challenges it is also set to be rewarding and exciting aswe head towards an annualised gold production of 100,000 ounces and thecompletion of the Pre-Feasibility Study at Baomahun" For further information, please contact: Cluff Gold WH Ireland Parkgreen CommunicationsJ.G. Cluff David Youngman / Katy Mitchell Louise Goodeve / Justine HowarthChairmanTel: +44 (0) 20 7340 9790 Tel: +44 (0) 161 832 2174 Tel: +44 (0) 20 7851 7480 Chairman and Chief Executive's Statement In the three years since Cluff Gold plc's admission to AIM, your company hasoperated on three principal West African mineral assets; namely the Angovia GoldMine ("Angovia") in Cote d'Ivoire, the Kalsaka Gold Project ("Kalsaka") inBurkina Faso and the Baomahun Exploration Project ("Baomahun") in Sierra Leone.I am pleased to record that steady progress has been made on each of theseassets since my last report to you. During 2007, your Company added value to its portfolio through the advancementof these projects with the commencement of mine construction at both Angovia andKalsaka. Angovia is now in production with the first gold poured on 14 March2008 marking the end of the commissioning phase and we expect to produce 40,000ounces of gold per annum from this deposit once full capacity has been reached.Kalsaka is due to start production early in the second half of 2008 at anannualised rate of 60,000 ounces of gold with significant upside potential.Together, these two projects are expected to produce a cumulative totalannualised rate of 100,000 ounces of gold for the calendar year 2009 of which82,800 ounces of gold will be attributable to Cluff Gold. Despite the rampant cost inflation experienced throughout the mining industry inrecent times, these two mines will have been brought into production at anexpected combined low capital construction cost of just US$38 million. Somedelays have been experienced due to adverse weather and the late delivery ofequipment and whilst this has had an effect on working capital requirements, thefact that two mines have been developed in such short order is a commendableachievement on the part of our Project Engineer, Tony Smith and our team in WestAfrica. We are now a producing gold mining company and our production assets arecomplemented by a highly prospective exploration project in Sierra Leone, whichis showing potential to add substantially to our production base from 2011. Our flagship exploration project is Baomahun in Sierra Leone, which is a jointventure with Winston Mines Limited. The last independently audited JORCresource estimation announced in July 2007 estimated an Indicated mineralresource of 115,000 ounces of gold and an Inferred resource of 1,040,000 ouncesof gold (Cluff attributable resource 60%). We have now resumed ourpre-feasibility drilling with three rigs operating on a double shift basis andthe resulting assay results will be incorporated into a further resourceestimation which will be announced later this year. Of note is the fact that70% of the prospective trend remains to be explored and that holes at depth (toabout 300 metres) have identified good grades and widths suggesting thepotential for an underground mine below the open pit project. The currentobjective is to significantly increase the resource by the end of this year inorder to complete a bankable feasibility study during 2009. With thisanticipated schedule, construction could begin in 2010. Whilst I believe we understand the geology and the engineering at our threeprojects, we cannot, of course, control the political environment. It is,however, pleasing that all four countries where your Company operates areexperiencing a welcome period of stability. Your Company has grown significantly since my last report. Assets have increasedand operational staff expanded as required by a production company. At Boardlevel, I would like to welcome Peter Cowley who was the Technical Director ofCluff Resources plc prior to its acquisition by Ashanti Goldfields CompanyLimited in 1996. Peter remained with Ashanti until 2004 when he joined BanroCorporation as Chief Executive Officer from which post he resigned this year,remaining as a director. It is excellent news for the Company that we have thebenefit of his many years experience of Africa's geology and mineral deposits.Edward Haslam resigned from the Board in September 2007 to devote time to hisrole as Chairman of the Talvivaara Mining Company Limited, and I would like tothank him for his valuable contribution to the company. I would also like tothank Charles Lutyens, who, as announced on 25th April 2008, steps down as ChiefFinance Officer at the end of April, for his contribution during his term ofoffice and to thank Eileen Carr, our Joint Deputy Chairman, for stepping intothis position. Eileen was Finance Director of Cluff Resources plc prior to itsacquisition by Ashanti and has been a director of Cluff Gold since November2003. There are also two key post balance sheet events which I would like to draw toyour attention. As I informed you on 27 February 2008, the Company has entered into aconditional agreement to acquire the 40 per cent interest in the Baomahunproject in Sierra Leone which it does not already own, thereby increasing itsownership to 100%. The consideration for the acquisition will be US$21.8million which will be satisfied by the issue of approximately 12.4 millionordinary shares. The acquisition is conditional upon, inter alia, the grant bythe Sierra Leone Government of the mining licence which has been applied for inrespect of the Baomahun project Secondly, on 3 March 2008, your Company successfully completed a placing of14,570,000 shares at a price of 88p per share and raised approximately US$ 25.4million (£12.8 million) before expenses. The funds were raised with the supportof BMO Capital Markets, WH Ireland Limited and Smith's Corporate AdvisoryLimited all of whom I would like to thank. The funds raised will enable theCompany to complete remaining construction and bring the Kalsaka project intoproduction, further investigate both the existing and potential mineralisedtarget zones at Baomahun as well as providing general working capital. Finally, it would be disingenuous of me not to refer to the cost inflation thatthe mining industry is currently experiencing, with the price of cement,shipping, oil and steel in particular at all time highs, the year ahead willcertainly present some challenges. However, with our objective of becoming agold producer now achieved, I look forward to our next objective of producingannually 100,000 ounces of gold. The current turmoil in the World financialmarkets, whilst unwelcome will together with the depreciation of the US dollar,continue to provide fundamental support to the gold price which, for the firsttime in March of this year rose above US$1,000 an ounce. I would like to thankyou, the shareholders, for your support as well as my Board colleagues and thestaff both in London and West Africa. J G CluffChairman and Chief ExecutiveCluff Gold plc25th April, 2008 Notes For the year For the year ended 31 ended 31 December 2007 December 2006 US$ US$ OPERATING COSTS (5,629,533) (3,583,899) General and administrative OPERATING LOSS (5,629,533) (3,583,899) Interest payable and similar charges (742,933) (734,223) Interest receivable and similar income 1,591,507 831,222 Loss on ordinary activities before taxATION (4,780,959) (3,486,900) Taxation - - Loss on ordinary activities after taxation (4,780,959) (3,486,900) Loss per share (CENTS) 7 (7.47) (8.86)- Basic and diluted Notes As at 31 As at 31 December 2007 December 2006 US$ US$ASSETSNon-current assetsIntangible assets- Exploration costs 9 10,693,223 5,302,577Property, plant and equipment- Mine development costs 8 41,395,030 10,032,390- Other 8 1,275,479 350,384 TOTAL NON-CURRENT ASSETS 53,363,732 15,685,351 Current assetsTrade and other receivables 2,174,099 540,575Inventories of mined ore and consumables 103,575 -Cash and cash equivalents 13,921,966 21,180,012 TOTAL CURRENT ASSETS 16,199,640 21,720,587 TOTAL ASSETS 69,563,372 37,405,938 CAPITAL AND RESERVESShare capital 1,288,558 844,104Share premium 64,990,510 37,282,361Share option reserve 1,611,500 1,326,884Merger reserve 2,500,366 2,500,366Retained losses (12,845,955) (8,064,996)Currency translation reserve 6,715,029 2,568,705 Total equity 64,260,008 36,457,424 NON-Current liabilitiesProvisions for other liabilities and charges 1,250,620 - Total non-current liabilities 1,250,620 - Current liabilitiesTrade and other payables 4,052,744 948,514 Total current liabilities 4,052,744 948,514 TOTAL LIABILITIES 5,303,364 948,514 TOTAL EQUITY AND LIABILITIES 69,563,372 37,405,938 Share Cumulative Share Share option Merger translation Retained Total capital premium reserve reserve reserve losses equity US$ US$ US$ US$ US$ US$ US$ BALANCE AT 1 JANUARY 2007 844,104 37,282,361 1,326,884 2,500,366 2,568,705 (8,064,996) 36,457,424Loss for the period - - - - (4,780,959) (4,780,959)Exchange translation differences on consolidation - - - - 4,146,324 4,146,324 Total recognised income and expenses - - - - 4,146,324 (4,780,959) (634,635) Issue of ordinary share capital 444,454 29,735,227 - - - - 30,179,681Issue costs - (2,027,078) - - - - (2,027,078)Share option charge - - 284,616 - - - 284,616 BALANCE AT 31 DECEMBER 2007 1,288,558 64,990,510 1,611,500 2,500,366 6,715,029 (12,845,955) 64,260,008 BALANCE AT 1 JANUARY 2006 438,127 12,419,639 707,743 2,500,366 (1,335,662) (4,578,096) 10,152,117Loss for the period - - - - - (3,486,900) (3,486,900)Exchange translation differences on consolidation - - - - 3,904,367 - 3,904,367 Total recognised income and expenses - - - - 3,904,367 (3,486,900) 417,467 Issue of ordinary share capital 405,977 26,845,907 - - - - 27,251,884Issue costs - (1,983,185) - - - - (1,983,185)Share option charge - - 619,141 - - - 619,141 BALANCE AT 31 DECEMBER 2006 844,104 37,282,361 1,326,884 2,500,366 2,568,705 (8,064,996) 36,457,424 For the year For the year ended 31 ended 31 December 2007 December 2006 US$ US$CASH FLOWS USED IN OPERATING ACTIVITIESOperating loss for the period (5,629,533) (3,583,899)Depreciation 58,191 14,289Increase/(decrease) in trade and other payables 4,354,850 (269,273)(Increase)/decrease in trade and other receivables (463,524) 292,987Increase in stock and work in progress (103,575) -Share option charge 284,616 619,141 NET CASH FLOWS USED IN OPERATING ACTIVITIES (1,498,975) (3,966,097) CASH FLOWS USED IN INVESTING ACTIVITIESInterest receivable 1,499,725 831,222Interest payable 622 -Purchase of property, plant and equipment (22,537,283) (1,618,200)Purchase of intangible assets (10,801,495) (4,245,132) NET CASH FLOWS USED IN INVESTING ACTIVITIES (31,839,715) (5,032,110) CASH FLOWS FROM financing ACTIVITIESProceeds from the issue of share capital 30,179,681 28,500,691Issue costs paid (2,027,078) (1,983,185)Amounts funded on behalf of joint venture party (1,170,000) - NET CASH FLOWS FROM FINANCING ACTIVITIES 26,982,603 29,517,506 NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (6,356,087) 18,558,641Cash and cash equivalents at start of period 21,180,012 751,476Exchange losses on cash and cash equivalents (901,959) 1,869,895 CASH AND CASH EQUIVALENTS AT END OF PERIOD 13,921,966 21,180,012 CASH AND CASH EQUIVALENT COMPRISECash at bank 622,504 245,116Short term deposits 13,299,462 20,934,896 13,921,966 21,180,012 1. BASIS OF FINANCIAL INFORMATION The financial information set out in this preliminary statement does notconstitute the group's statutory financial statements for the year ended 31December 2007, but is derived from those financial statements. The financialstatements for 2007 have not been delivered to the Registrar of Companies andwill be distributed to shareholders prior to the Company's Annual GeneralMeeting. The auditors have reported on these financial statements and haveissued an unqualified report which does not contain statements under theCompanies Act 1985, s237 (2) or (3). The financial statements for 2006 have beendelivered to the Registrar of Companies. 2. BASIS OF PREPARATION From January 1 2007, in the preparation of its consolidated financial statementsthe Group has adopted International Financial Reporting Standards ("IFRS") asadopted by the EU and with those parts of the Companies Act 1985 applicable tocompanies reporting under IFRS. The principle accounting policies applied in the preparation of these financialstatements are set out below. Information on the impact on accounting policies and financial results resultingfrom the conversion from UK Generally Accepted Accounting Practice ("UK GAAP")to IFRS is provided later in this report. The financial information is presented in US Dollars. The functional currencyof the parent company is currently Sterling. Prior to 2007, the Group presentedin Sterling. Operations denominated in other currencies are included in thisfinancial information in accordance with the policies set out below. Prior to 2007, the Group prepared its audited financial statements and unauditedinterim financial statements under UK GAAP. From 1 January 2007, the Group isrequired to prepare annual consolidated financial statements in accordance withIFRS as adopted by the European Union (EU) and implemented in the UK. As the2007 annual financial statements will include comparatives for 2006, the Group'sdate of transition to IFRS is 1 January 2006 with the 2006 comparatives restatedto IFRS. The financial statements are prepared in accordance with International FinancialReporting Standards and Interpretations in force at the reporting date. Thecompany has not adopted any standards or interpretations in advance of therequired implementation dates. It is not expected that adoption of standards orinterpretations which have been issued by the International Accounting StandardsBoard but have not been adopted will have a material impact on the financialstatements. 3. NATURE OF BUSINESS AND GOING CONCERN The Company is a public limited company incorporated and domiciled in England.The address of the registered office is 24 Queen Anne's Gate, London, SW1H 9AA The Group is involved in the acquisition, exploration and development of golddeposits in West Africa. In common with many exploration and development companies, the Group raisesequity funds in discrete tranches in order to fund its activities. The Companyraised approximately US$29.9 million before expenses, on 20 March 2007, and afurther US$25.4 million on 3 March 2008 by way of placement in order to fundfurther exploration in West Africa, construct and bring into production theAngovia project in Cote d'Ivoire and the Kalsaka project in Burkina Faso, aswell as for general working capital purposes. Details of the 2008 placing areincluded in the Post-balance sheet events note 10. Given these financial resources, the strength of the assets currently in theCompany's portfolio and the strong gold price, the Directors consider itappropriate to prepare these financial statements on the going concern basis.The use of that basis assumes that the Company meets its commitments as theyfall due. 4. TANGIBLE FIXED ASSETS ACCOUNTING POLICY i) MINING AND DEVELOPMENT COSTS Exploration costs are capitalised as intangible fixed assets until a decision ismade to proceed to development. Related costs are then transferred to miningassets. Before reclassification, exploration costs are assessed for impairmentand any impairment loss recognised in the income statement. Subsequentdevelopment costs are capitalised under mining assets, together with any amountstransferred from intangible exploration assets. Mining assets are amortisedover the estimated life of the commercial ore reserves on a unit of productionbasis. ii) Property, plant and equipment Properties in the course of construction for production, rental oradministrative purposes, or for purposes not yet determined, are carried atcost, less any identified impairment loss. Cost includes professional fees and,for qualifying assets, borrowing costs capitalised in accordance with theGroup's accounting policy. Depreciation of these assets, on the same basis asother property assets, commences when the assets are ready for their intendeduse. 5. Intangible fixed assets accounting policy Intangible fixed assets - deferred exploration and evaluation costs All costs incurred prior to obtaining the legal right to undertake explorationand evaluation activities on a project are written off as incurred. All costs associated with mineral exploration and investments are capitalised ona project-by project basis, pending determination of the feasibility of theproject. Costs incurred include appropriate technical and administrativeexpenses. If an exploration project is successful, the related costs will betransferred to mining assets and amortised over the estimated life of thecommercial ore reserves on a unit of production basis. Where a project isrelinquished, abandoned, or is considered to be of no further commercial valueto the group, the related costs are written off. The recoverability of deferred exploration costs is dependent upon the discoveryof economically recoverable ore reserves, the ability of the group to obtainnecessary financing to complete the development of the ore reserves and futureprofitable production or proceeds from the disposal thereof. Impairment of Property, plant and equipment and intangible assets excludinggoodwill At each balance sheet date, the Group reviews the carrying amounts of itsproperty, plant and equipment and intangible assets to determine whether thereis any indication that those assets have suffered an impairment. If any suchindication exists, the recoverable amount of the asset is estimated in order todetermine the extent of the impairment loss (if any). Where the asset does notgenerate cash flows that are independent from other assets, the Group estimatesthe recoverable amount of the cash-generating unit to which the asset belongs.An intangible asset with an indefinite useful life is tested for impairmentannually and whenever there is an indication that the asset may be impaired. Recoverable amount is the higher of fair value less costs to sell and value inuse. In assessing value in use, the estimated future cash flows are discountedto their present value using a pre-tax discount rate that reflects currentmarket assessments of the time value of money and the risks specific to theasset for which the estimates of future cash flows have been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated tobe less than its carrying amount, the carrying amount of the asset(cash-generating unit) is reduced to its recoverable amount. An impairment lossis recognised as an expense immediately, unless the relevant asset is carried ata revalued amount, in which case the impairment loss is treated as a revaluationdecrease. Where an impairment loss subsequently reverses, the carrying amount of the asset(cash-generating unit) is increased to the revised estimate of its recoverableamount, but so that the increased carrying amount does not exceed the carryingamount that would have been determined had no impairment loss been recognisedfor the asset (cash-generating unit) in prior years. A reversal of an impairmentloss is recognised as income immediately. Impairment reviews for deferred exploration and evaluation costs are carried outon a project by project basis, with each project representing a potential singlecash generating unit. An impairment review is undertaken when indicators ofimpairment arise but typically when one of the following circumstances apply:- i) unexpected geological occurrences that render the resource uneconomic; ii) title to the asset is compromised iii) variations in metal prices that render the project uneconomic; and iv) variations in the currency of operation. 6 SEGMENT REPORTING Business segments The Group has only one business segment, namely the exploration for, anddevelopment of, projects focused on gold. This is considered to be the primaryreporting segment for the Group. Geographical segment The Group reports by geographical segment as its' secondary reporting segment.All the Group's activities are related to exploration for, and production of,gold in Africa with indirect support provided by the UK office. In presentinginformation on the basis of geographical segments, segment assets and cost ofacquiring them are based on the geographical location of the assets. Segmentcapital expenditure is the total cost incurred during the period to acquiresegment assets that are expected to be used for more than one period. 6 SEGMENT REPORTING (Continued) There was no group turnover in the period. 2007 2006 US$ US$ Total assets UK 15,287,418 21,576,162 Burkina Faso 23,960,133 7,228,571 Sierra Leone 9,564,918 5,289,496 Cote d'Ivoire 19,910,732 3,222,768 Mali 612,055 88,941 Other 228,116 - Total 69,563,372 37,405,938 Operating loss UK (4,854,676) (3,583,899) Burkina Faso (381,779) - Sierra Leone - - Cote d'Ivoire (393,078) - Mali - - Other - - Total (5,629,533) (3,583,899) Depreciation UK 18,920 14,289 Burkina Faso 70,778 7,662 Sierra Leone 103,427 67,267 Cote d'Ivoire 122,132 10,421 Mali 24,999 12,525 Other - - Total 340,256 112,164 Capital expenditure on property, plant and equipment UK 10,313 23,487 Burkina Faso 13,187,346 293,342 Sierra Leone 115,938 122,878 Cote d'Ivoire 9,426,014 1,232,672 Mali 65,959 43,694 Other 13,778 - Total 22,819,348 1,716,073 Capital expenditure on intangibles 2007 2006 US$ US$ UK - - Burkina Faso 291,385 704,467 Sierra Leone 4,481,788 2,382,572 Cote d'Ivoire 5,409,438 1,129,004 Mali 429,000 29,089 Other 189,884 - Total 10,801,495 4,245,132 7 LOSS PER SHARE 2007 2006 The calculation of the basic and diluted earnings per share is US$ US$ based on the following data: Losses for the purposes of earnings per share (net loss for the (4,780,959) (3,486,900) year attributable to equity holders of the parent) Number of shares Weighted average number of ordinary shares for the purposes of 64,037,103 39,368,861 earnings per share There is no difference between the diluted loss per share and the basic loss pershare presented. Due to the loss incurred in the period the effect of the shareoptions in issue is anti-dilutive. At 31 December 2007 there were 4,454,793 (31 December 2006: 4,176,793) shareoptions in issue which would have a potentially dilutive effect on the basicprofit per share in the future. 8 PROPERTY, PLANT AND EQUIPMENT Motor vehicles, Mining, development and office equipment, associated property, plant fixtures & and equipment cost computers Total GROUP US$ US$ US$ COST At 1 January 2006 - 132,796 132,796 Additions 1,334,321 381,752 1,716,073 Transfer from intangible assets 8,081,937 - 8,081,937 Exchange difference on retranslation 616,132 - 616,132 At 31 December 2006 10,032,390 514,548 10,546,938 At 1 January 2007 10,032,390 514,548 10,546,938 Additions 21,684,923 1,134,425 22,819,348 Transfer from intangible assets 5,870,435 - 5,870,435 Exchange difference on retranslation 3,807,282 149,680 3,956,962 At 31 December 2007 41,395,030 1,798,653 43,193,683 DEPRECIATION At 1 January 2006 - 52,003 52,003 Charge for the year - 112,164 112,164 Exchange difference on retranslation - (3) (3) At 31 December 2006 - 164,164 164,164 At 1 January 2007 - 164,164 164,164 Charge for the year - 340,256 340,256 Exchange difference on retranslation - 18,754 18,754 At 31 December 2007 - 523,174 523,174 NET BOOK VALUE At 31 December 2007 41,395,030 1,275,479 42,670,509 At 31 December 2006 10,032,390 350,384 10,382,774 9 INTANGIBLE ASSETS Deferred exploration and evaluation costs GROUP US$ COST At 1 January 2006 8,455,266 Additions 4,245,132 Transfer to property, plant and equipment (8,081,937) Exchange difference on retranslation 684,116 At 31 December 2006 5,302,577 At 1 January 2007 5,302,577 Additions 10,801,495 Transfer to property, plant and equipment (5,870,435) Exchange difference on retranslation 459,586 At 31 December 2007 10,693,223 AMORTISATION At 1 January 2006 - Charge for the year - At 31 December 2006 - At 1 January 2007 - Charge for the year - At 31 December 2007 - CARRYING AMOUNT At 31 December 2007 10,693,223 At 31 December 2006 5,302,577 10 POST BALANCE SHEET EVENTS The Company raised US$25.4 million before expenses by placing 14,570,000 newordinary shares of 1p each in the Company at a placing price of £0.88 per share.The Shares were admitted to trade on AIM on 3 March 2008 The Company has entered into a conditional agreement on 27 February 2008 toacquire from Mr Winston the 40 per cent interest in the Baomahun project inSierra Leone which it does not already own. The consideration for theAcquisition will be US$21,808,000 which is to be satisfied by the issue of12,390,909 ordinary shares of 1p each. On completion of the Acquisition MrWinston will pay US$1,170,000 in full and final settlement of all monies owed inrelation to the Baomahun project. Annual Report The Annual Report will be sent to shareholders on or around 9 May 2008.Additional copies will be available to the public, free of charge, from theCompany's registered office at 24 Queen Anne's Gate, London SW1H 9AA and at theCompany's website www.cluffgold.com Annual General Meeting The Company's Annual General Meeting will be held on 19 June 2008 at 10 am atthe offices of Maclay Murray & Spens, One London Wall, London EC2Y 5AB. Notes to Editors: About Cluff Gold Cluff Gold plc is focused on the identification, acquisition and development ofgold deposits in West Africa that are amenable to open-pit mining and low costproduction techniques. The Company has made significant progress since its admission to AIM in December2004, increasing gold resources across its projects, expanding the projectportfolio and broadening the investor base to an increasingly internationalaudience. Mt. Yaoure, Cote d'Ivoire The Mt. Yaoure permit is located 40km northwest of Yamoussoukro, the politicalcapital of Cote d'Ivoire, and covers a surface area of 417km(2) including a 50km2 mining permit. The licence area includes the Angovia gold mine whichoperated between 1998 and 2003. The mine reportedly produced over 180,000ounces of gold during this period by heap leaching some 2 million tonnes ofoxide material. The infrastructure in the area is good and includes ahydroelectric dam six kilometres from the Angovia mine site. A measured andindicated JORC resource of 451 000 ounces and an inferred JORC resource of 44000 ounces has so far been delineated. Recently, the company announced the commencement of gold production at Angoviaat an annualized rate of 40 000 ounces of gold by the end of this year. Kalsaka, Burkina Faso Kalsaka is located approximately 150km north west of Ouagadougou, the capital ofBurkina Faso. A measured and indicated JORC resource of 634 000 ounces andinferred JORC resource of 157 000 ounces has been delineated so far. Theresource has been demonstrated, by a feasibility study, to be technicallyamenable to open-pit mining and processing via heap leaching. Water,environmental and mining permits for the project have been granted. The miningpermit is valid for twenty years. Construction has commenced at Kalsaka and commissioning is expected to commencein Q3, 2008 with production estimated to reach 60 000 ounces on an annualizedrate by the end of this year. Baomahun, Sierra Leone. The Baomahun Gold Project covers an area of about 137 km2 and is located about180 kilometres east of Freetown, in the Southern Province of Sierra Leone. Thegeological setting is similar to the Lake Victoria goldfields in Tanzania.According to the terms of a joint venture agreement with the owner of Baomahun,Winston Mines Limited, Cluff Gold has recently entered into a conditionalagreement to acquire from Mr. Winston the 40 per cent interest in the projectwhich it does not currently own. The consideration for the acquisition will beUS$21.8 million which will be satisfied by the issue of approximately 12.4million shares in the Company. The acquisition is conditional, inter alia, onthe approval of the recent application for a Mining Lease at Baomahun. Anindicated JORC resource of 115 000 ounces and inferred JORC resource of1,040,000 ounces has so far been delineated at Baomahun, though more than 70% ofthe defined mineralised zone is yet to be drilled. A Full Technical Glossary can be found on the company website at: http://www.cluffgold.com/pages/projects_glossary.asp This information is provided by RNS The company news service from the London Stock Exchange