European Metals Holdings Regulatory News (EMH)

Name of entity

EUROPEAN METALS HOLDINGS LIMITED (ASX: EMH)

ABN

Quarter ended (Current quarter)

55 154 618 989

30 June 2017

Consolidated statement of cash flows

Current

quarter

$A'000

Year to date

(12 Months)

$A'000

1. Cash flows from operating activities

1.1 Receipts from customers

-

-

1.2 Payments for:

-

-

(a) exploration and evaluation

(1,018)

(4,362)

(b) development

-

-

(c) production

-

-

(d) staff costs and board remuneration

(145)

(406)

(e) administration and corporate costs

(75)

(825)

(f) UK Listing

-

(52)

1.3 Dividends received (see note 3)

-

-

1.4 Interest received

1

13

1.5 Interest and other costs of finance paid

-

-

1.6 Income taxes paid

-

-

1.7 Research and development refunds

-

-

1.8 Other (provide details if material)

-

-

1.9 Net cash from / (used in) operating activities

(1,237)

(5,664)

2. Cash flows from investing activities

2.1 Payments to acquire:

-

-

(a) property, plant and equipment

(1)

(322)

(b) tenements (see item 10)

-

-

(c) investments

-

-

(d) other non-current assets

-

-

2.2 Proceeds from disposal of:

-

-

(a) property, plant and equipment

-

(b) tenements (see item 10)

-

-

(c) investments

-

-

(d) other non-current assets

-

-

2.3 Cash flows from loans to other entities

-

-

2.4 Dividends received (see note 3)

-

-

2.5 Other (provide details if material)

-

-

2.6 Net cash from / (used in) investing activities

( 1)

(322)

Consolidated statement of cash flows

Current

quarter

$A'000

Year to date

(12 Months)

$A'000

3. Cash flows from financing activities

3.1 Proceeds from issues of shares

436

3,576

3.2 Proceeds from issue of convertible notes

-

-

3.3 Proceeds from exercise of share options

-

-

3.4 Transaction costs related to issues of shares, convertible notes or options

(198)

(279)

3.5 Proceeds from borrowings

-

-

3.6 Repayment of borrowings

-

-

3.7 Transaction costs related to loans and borrowings

-

-

3.8 Dividends paid

-

-

3.9 Other (provide details if material)

-

-

3.10 Net cash from / (used in) financing activities

238

3,297

4. Net increase / (decrease) in cash and cash equivalents for the period

4.1 Cash and cash equivalents at beginning of quarter/year to date

1,446

3,135

4.2 Net cash from / (used in) operating activities (item 1.9 above)

(1,237)

(5,664)

4.3 Net cash from / (used in) investing activities (item 2.6 above)

( 1)

(322)

4.4 Net cash from / (used in) financing activities (item 3.10 above)

238

3,297

4.5 Effect of movement in exchange rates on cash held

-

-

4.6 Cash and cash equivalents at end of quarter

446

446

5. Reconciliation of cash and cash equivalentsat the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current

quarter

$A'000

Previous

quarter

$A'000

5.1 Bank balances

446

1,446

5.2 Call deposits

-

-

5.3 Bank overdrafts

-

-

5.4 Other (provide details)

-

-

5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)

446

1,446

6. Payments to directors of the entity and their associates

Current

quarter

$A'000

6.1 Aggregate amount of payments to these parties included in item 1.2

70

6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

-

6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Nil.

7. Payments to related entities of the entity and their associates

Current

quarter

$A'000

7.1 Aggregate amount of payments to these parties included in item 1.2

35

7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

-

7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

Nil.

8. Financing facilities availableAdd notes as necessary for an understanding of the position

Total facility amount at quarter end$A'000

Amount drawn at quarter end$A'000

8.1 Loan facilities

1,750

-

8.2 Credit standby arrangements

-

-

8.3 Other (please specify)

-

-

8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

The interim funding facility at 8.1 is between European Metals Holdings Limited and 6466 Investments Pty Ltd. The facility limit is for an amount of $2 million for a period of 12 months from the date of execution.

The fees associated with the Facility are as follows:

(a) Establishment Fee: 2% of the facility limit payable at the subscription date from the proceeds of the first advance; and

(b) Standby Fee: 3% of each advance payable at the subscription date from the proceeds of that advance

The company has received the first advance of $250,000. In June 2017 the company issued shares in the company to 6466 Investments Pty Ltd to the value of the drawn facility plus any fees. The remaining facility balance as at 30 June 2017 is $1.75 million.

9. Estimated cash outflows for next quarter

$A'000

9.1 Exploration and evaluation(2)

613

9.2 Development

-

9.3 Production

-

9.4 Staff costs and director remuneration

148

9.5 Administration and corporate costs

188

9.6 Other (provide details if material)

-

9.7 Total estimated cash outflows

950

10. Changes in tenements(items 2.1(b) and 2.2(b) above)

Tenement reference and location

Nature of interest

Interest at beginning of quarter

%

Interest at end of quarter

%

10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced

10.2 Interests in mining tenements and petroleum tenements acquired or increased

Nil