Horizonte Minerals Regulatory News (HZM)

5 Sep 2007 08:00

Horizonte Minerals PLC05 September 2007 Horizonte Minerals plc / Index: AIM / Epic: HMZ / Sector: Mining 5 September 2007 Horizonte Minerals plc ('Horizonte' or 'the Company') Interim Results Horizonte Minerals plc, the AIM listed exploration and development company withassets in Brazil and Peru, is pleased to announce its interim results for sixmonths ended 30 June 2007. Overview • Advanced the Brazilian and Peruvian portfolio through focussed exploration programmes • 1500 metre diamond drilling completed at Tangara Brazilian gold project, results awaited • Acquired 256 sq km Lontra nickel play in Brazil - encouraging soil anomalies being followed up by auger drilling and rock sampling • Sampling at El Aguila Zona Sur target returned excellent grades averaging 0.24g/t Au, 10.24 oz/t Ag, 4% Pb and 5.6% Zn - detailed ground geophysical programme complete, with a 2000m drilling program planned for Q4 • Actively reviewing and evaluating other generative opportunities • Raised £2.2 million to further develop portfolio Chairman's Statement I am pleased to report on the six months ended 30 June 2007, which has proven tobe yet another busy period. Your Company has aggressively developed itsexisting Brazilian and Peruvian portfolio through focussed explorationprogrammes and has further strengthened its South American presence by acquiringthe exciting Lontra nickel play in Brazil. Brazil At our flagship Tangara gold project, the first phase drilling results werecritically reviewed and it was agreed that the project justified a second phaseof drilling. The initial drill programme covered a large area of over threekilometres and the discovery hole on the Gerson Trend clearly highlighted thepotential for economic mineralisation. Focused exploration, including detailedmapping, additional geochemistry and ground geophysics, resulted in a secondround of 1500 metre diamond drilling being carried out. We hope to releaseresults from this programme in the near future with the aim of attracting ajoint venture partner to assist in taking the project forward. Horizonte has in a short time rapidly advanced the Lontra nickel play in theAraguaia mobile belt, which flanks the eastern margin of the Carajas MineralProvince in southern Para state. Situated 65 km southeast of Horizonte's Tangaragold project, this 256 sq km project consists of five exploration claims. The Araguaia mobile belt is a major new lateritic nickel province, whichcontains a number of large deposits scheduled to enter into production. WhileTeck Cominco has claims to the south/southeast of the Lontra Project, Xstratahas claims to the north/northwest including a major grassroots lateritic nickeldiscovery at Serra da Tapa, which has a global resource of 73Mt at 1.5% Ni and0.06% Co. Other lateritic nickel deposits in the area being developed or withdefined resources include the Niquel do Vermelho, Onca Puma and the Jacaredeposits. Initial encouraging soil anomalies over seven areas are now being followed up byauger drilling and rock sampling to date has returned values greater than 1% Nithus highlighting Lontra's potential. We are currently awaiting further results,which we will report on in due course. Peru The Company has further evaluated the El Aguila high grade silver-zinc-lead-goldproject by large scale geological mapping, geochemistry and ground geophysics.Our work has centred on the veins in the Pacos Hill claim, which is in an areasurrounded by active mines. More recently, we have focussed on Zona Sur to thesouth of Pacos Hill, where sampling has returned excellent grades averaging0.24g/t Au, 10.24 oz/t Ag, 4% Pb and 5.6% Zn. On the back of these results, wehave now commenced a detailed ground geophysical programme over a large area ofthe Zona Sur with the view to defining additional targets for drilling that willcommence in Q4 of this year. Outlook Despite the recent correction in the market, the resource sector is stillbuoyant with most commodities continuing to demonstrate high prices. Horizontesuccessfully raised £2.2 million before the summer break, illustrating theconfidence the market has in our management and the quality of our portfolio.Your Company is now well funded to continue to develop its portfolio with a viewto a potential joint venture, option or sale on one its assets if it isperceived that to do so will achieve maximum shareholder value. The remainder of 2007 should see the development of the Company with the keyfocus remaining on El Aguila, Lontra and Tangara. In addition, your managementis actively seeking, reviewing and evaluating other potentially generativeopportunities. I would like to take this opportunity to extend my thanks to theboard and to you, our shareholders, for your continuing support. David J. HallChairman Interim Results Consolidated Income Statements Period Period Period 1-Jan-07 1-Jan-06 1-Jan-06 30-Jun-07 30-Jun-06 31-Dec-06 Un-audited Un-audited Audited Note £ £ £ Revenue - - -Cost of Sales - - - Gross Profit - - -Administrative Expenses (168,815) (69,019) (240,475)Gain/(Loss) on Foreign Exchange 39,754 33,845 (6,580) Loss from Operations (129,061) (35,174) (247,055)Finance Income 30,425 17,656 58,999 Loss before Taxation (98,636) (17,518) (188,056)Taxation - - - Retained Loss for the Period attributable (98,636) (17,518) (188,056)to Equity Shareholders Loss per share (pence) -Basic and Diluted 2 (0.33) (0.10) (0.76) Consolidated Balance Sheet 30-Jun-07 30-Jun-06 31-Dec-06 Un-audited Un-audited Audited £ £ £ASSETSNon-Current AssetsIntangible Assets 1,793,291 893,686 1,445,195Property, Plant and Equipment 818 944 972 1,794,109 894,630 1,446,167Current AssetsTrade and Other Receivables 8,423 21,322 2,793Cash and Cash Equivalents 992,562 2,102,995 1,427,044 1,000,985 2,124,317 1,429,837Total Assets 2,795,094 3,018,947 2,876,004 EQUITY AND LIABILITIESEquityIssued Capital 295,077 295,077 295,077Share Premium 3,793,147 3,793,147 3,793,147Other Reserves (1,048,100) (1,048,100) (1,048,100)Retained Earnings (354,323) (89,018) (255,687)Total Equity 2,685,801 2,951,106 2,784,437 Current LiabilitiesBorrowings - -Trade and Other Payables 109,293 67,841 91,567Total Liabilities 109,293 67,841 91,567 Total Equity and Liabilities 2,795,094 3,018,947 2,876,004 Consolidated Statement of Changes in Equity Share Share Retained Merger Capital Premium £ Reserve Reserve Total £ £ £ £ As at 1 January 2006 218,410 1,965,690 (70,937) (1,548,100) 565,063Issue of Ordinary Shares 76,667 2,223,333 - - 2,300,000Issuance Costs - (395,876) (563) - (396,439)Movement on Merger Reserve - - - 500,000 500,000Loss for the period - - (17,518) - (17,518)As at 30 June 2006 295,077 3,793,147 (89,018) (1,048,100) 2,951,106 As at 1 January 2007 295,077 3,793,147 (255,687) (1,048,100) 2,784,437Loss for the period - - (98,636) - (98,636)As at 30 June 2007 295,077 3,793,147 (354,323) (1,048,100) 2,685,801 Consolidated Cash Flow Statement Period Period Period 1-Jan-07 1-Jan-06 1-Jan-06 30-Jun-07 30-Jun-06 31-Dec-06 Un-audited Un-audited Audited £ £ £Cash flows from operating activitiesLoss before taxation (98,636) (17,518) (188,056)Interest income (30,425) (17,656) (58,999)Employee Share Options - - 3,306Depreciation 154 113 254Operating loss before changes in working capital (128,907) (35,061) (243,495) Increase in trade and other receivables (5,630) (20,855) (2,326)Increase in trade and other payables 17,726 36,052 59,778Net cash outflow from operating activities (116,811) (19,864) (186,043) Cash flows from investing activities Purchase of intangible assets (348,096) (240,916) (792,425)Purchase of property, plant and equipment - (1,057) (1,226)Interest received 30,425 17,656 58,999Net Cash used in investing activities (317,671) (224,317) (734,652) Cash flows from financing activitiesProceeds from issue of ordinary shares - 1,903,561 1,904,124Change in short term borrowings - (55,580) (55,580) Net cash inflow from financing activities - 1,847,981 1,848,544 Net increase/(decrease) in cash and cash (434,482) 1,603,800 927,849equivalents Cash and cash equivalents at beginning of period 1,427,044 499,195 499,195Cash and cash equivalents at end of period 992,562 2,102,995 1,427,044Consisting of:Group Cash 992,562 2,102,995 1,427,044 Notes to Interim Results 1. Basis of preparation This financial information has been prepared in accordance with InternationalFinancial Reporting Standards (IFRS) and IFRIC interpretations, as adopted bythe European Union and those parts of the Companies Act 1985 applicable tocompanies reporting under IFRS. The financial information has been preparedunder the historical cost convention. The financial information is in conformitywith generally accepted accounting principles and requires the use ofestimates and assumptions that affect the reported amounts of assets andliabilities at the date of the financial statements and the reported amounts ofrevenues and expenses during the reporting period. Although these estimates arebased on management's best knowledge of the amount, event or actions, actualresults ultimately may differ from those estimates. The financial information set out above does not constitute statutory accountswithin the meaning of Section 240 of the Companies Act 1985. It has beenprepared on a going concern basis in accordance with the International ReportingStandards. The accounting policies applied in preparing the financialinformation are consistent with those that were adopted in the Group's 2006statutory accounts. The financial information for the periods ended 30 June 2007 and 30 June 2006has not been audited. 2. Loss per share The loss per share is 0.33p (2006: 0.1p). The loss per share is calculated by dividing the loss for the period of £98,636(2006: £17,518) by 29,507,700 (2006: 17,413,744) ordinary shares, being theweighted average number of shares in issue. There is no difference between thediluted loss per share and the loss per share shown. 3. Post Balance Sheet Event In July 2007 the company issued 10,940,000 1p ordinary shares through a placing at 20 pence per share raising gross proceeds of £2.19m. Independent review report to the Directors of Horizonte Minerals plc Introduction We have been instructed by the Company to review the financial information forthe six months ended 30 June 2007 which comprises the consolidated incomestatement, the consolidated balance sheet, the consolidated statement of changesin equity and the consolidated cash flow statement and the related notes to theaccounts and we have read the other information contained in the interim reportand considered whether it contains any apparent misstatements or materialinconsistencies with the financial information. This report, including the conclusion, has been prepared for and only for theCompany for the purpose of the AIM Rules of the London Stock Exchange and for noother purpose. We do not, in producing this report, accept or assumeresponsibility for any other purpose or to any other person to whom this reportis shown or into whose hands it may come, save where expressly agreed by ourprior consent in writing. Directors' Responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the Directors. The Directorsare responsible for preparing the interim report in accordance with the AIMRules of the London Stock Exchange which require that the accounting policiesand presentation applied to the interim figures should be consistent with thoseapplied in preparing the annual accounts except where any changes, and thereasons for them, are disclosed. Review Work Performed We conducted our review in accordance with the guidance contained in Bulletin1999/4; the review of interim financial information issued by the AuditingPractices Board for use in the United Kingdom. A review consists principally ofmaking enquiries of management and applying analytical procedures to thefinancial information and underlying financial data and, based thereon,assessing whether the accounting policies and presentation have beenconsistently applied unless otherwise disclosed. A review excludes auditprocedures such as tests of controls and verification of assets, liabilities andtransactions. It is substantially less in scope than an audit performed inaccordance with International Standards on Auditing (UK and Ireland) andtherefore provides a lower level of assurance than an audit. Accordingly, we donot express an audit opinion on the financial information. Review Conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 June 2007. CLB Littlejohn FrazerChartered Accountants1 Park PlaceCanary WharfLondon E14 4HJ * * ENDS * * For further information visit www.horizonteminerals.com or contact: Jeremy Martin/David Hall Horizonte Minerals plc Tel: 020 7495 5446David Paxton Hichens Harrison Tel: 020 7382 7785Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477John Frain/Fergal Meegan Davy Tel: +353 1 679 6363 This information is provided by RNS The company news service from the London Stock Exchange