Ovoca Bio Regulatory News (OVB)

23 Jun 2006 17:28

Ovoca Gold PLC23 June 2006 Ovoca Gold Reports Final Results for the ten month period ending 31 December 2005 Ovoca Gold Plc (AIM: OVG; IEX: OVX) wishes to report its final results for theten month period ending 31st December 2005. During the year, the company hascontinued to expand its presence around the "Kolmozero-Voronya Greenstone Belt"in the Kola Peninsula with the acquisition of a further three licences and anincreased 86% stake in Norplat. Ovoca Gold now holds a total exploration areaof 669 square kilometres in Northwest Russia, giving the company a dominantposition in this under-explored but highly prospective geological province. In June 2006, shareholders approved the acquisition of a 74% interest in CJSCProspectors Artel Ayax which holds 100% of the Goltsovoye exploration andproduction licence in the Magadan Oblast of eastern Russia. Goltsovoye containsa Russian standard C1/C2 resource of 74 million ounces of silver equivalent atan average grade of 934 grammes per tonne silver. The Goltsovoye project also brings three new directors with extensive experienceof the Russian mining, business and financial sectors to the Board of OvocaGold, expanding our expertise and strengthening our senior management team. Thecompany has also made the key operational appointments of Mr Rowan Maule asChief Operations Officer and Mr Sergey Salamantin as General Director of Ayax. Commenting on the results, Ovoca Gold's Chairman, Roger Turner said, "Theacquisition of Goltsovoye gives Ovoca Gold a flagship project capable oftransforming the company from an advanced exploration and development companyinto a mid-tier precious metals producer by 2008." Highlights: Kola Peninsula • Ovoca Gold has increased its holding in Norplat to 86% from 78% and holds an option to acquire the balance of Norplat on the basis of 11 new Ovoca Gold shares for every 10 Norplat shares. • The Kolmozero-Voronya Greenstone Belt is known to host eight gold deposits which have been defined by drilling and trenching as well as platinum group metals occurrences and a copper-molybdenum porphyry deposit. There is evidence of continuity along strike between these gold and platinum bearing structures over a distance of 20 kilometres. • In 2006 Ovoca Gold entered into a joint venture agreement giving 50% control over the Lovozero Mining Company, which in turn holds the Porosozero mining licence. Ovoca has a call option to acquire the 50% equity of its joint venture partner. Goltsovoye • Using a silver cut-off grade of 150 g/t, our consultants, Micon International reported the C1/C2 resource statement of 2,475,540 tonnes of ore at a grade of 934g/t (30oz/t) silver plus 3.16% lead; containing approximately 74.3 million ounces of silver and 78,000 tonnes of lead. A high priority for Ovoca Gold is now to verify these resources and upgrade them to internationally recognised resource standards. • The Goltsovoye deposit lies between Bema Gold's Julietta mine to the south and the Dukat Silver mine to the northwest. The deposit has been explored by approximately 66,000 metres of diamond drilling and 12 km of underground exploration tunnels. • Goltsovoye is well served by paved road and power infrastructure which lie within 40 km of the site and is 69 km from a commercial airport at the regional administrative centre of Omsukchan. Sweden • Our consultants have confirmed the potential of our Swedish properties and a systematic reconnaissance exploration programme continues aimed at identifying suitable targets for follow up work. Financing • In June 2006, Ovoca Gold completed a £5m financing issuing 60.6m new shares at 8.25p/share. The above information has been reviewed and verified by Mr. Roger Turner,Chairman of Ovoca, for the purposes of the Guidance Note for Mining, Oil and GasCompanies issued by the London Stock Exchange in March 2006. Mr. Turner, with40 years of mining engineering, management and consulting experience, graduatedas a mining engineer from the Camborne School of Mines, has an MSc degree inEconomic Geology from Leicester University and is a member in good standing withthe Institute of Mining and Metallurgy and a UK Chartered Engineer. Ovoca Gold Plc is an international company developing and exploring precious and base metals in Russia, Sweden and Ireland quoted in London (OVG.L) and Dublin (OVX.IR). Consolidated profit and loss accountfor the 10 months ending 31 December 2005 10 Months to 12 Months to 31-Dec-05 28-Feb-05 Administration Expenses (809,857) (391,005) Operating loss - continued operations (809,857) (391,005) Other Income 3,894 22,326 Share of losses of joint venture 0 (37,489) Interest Received 5,740 (180) Taxation 0 16,523 Loss for the financial year (800,223) (389,825) Opening P&L (6,136,711) (5,746,886) Closing P&L (6,936,934) (6,136,711) Loss per share (0.82c) (0.73c) Consolidated Balance Sheetat 31 December 2005 Intangible Assets 9,730,798 4,482,304 Tangible assets 3,193 21,205 less Minority Interests (398,926) 0 9,335,066 4,503,510 Debtors 105,609 108,962 Bank 2,069,908 16,389 2,175,516 125,352 Creditors: Amounts falling due within one year (610,805) (214,283) Net current assets 1,564,711 (88,931) Net Assets 10,899,777 4,414,579 Financed by: Share Capital 3,052,181 1,331,542 Other Reserves 11,482 11,681 Share Premium 13,452,744 9,035,379 Revaluation Reserve 0 16,874 Profit & Loss Account (5,616,629) (5,980,898) 10,899,778 4,414,579 Consolidated cash flow statement for the 10 months ending 31 December 2005 10 Months to 12 Months to 31 December 2005 28 February 2005 Net cash (outflow)/inflow from operating (364,083) (370,389) activities Returns on investment and servicing of finance Interest Received Net 5,920 (180) Sale of Tangible asset 22,000 112,855 Net cash (outflow)/inflow from returns on investment and servicing of finance 27,920 112,675 Tax Paid 0 0 Capital expenditure and financial investment Purchase of Tangible Assets 18,012 (3,509) Purchase of Intangible assets (3,534,910) (147,016) Net cash (outflow) from capital expenditure and financial investment (3,516,898) (150,525) Acquisition and Disposals Investment in Norplat Ltd (231,425) 0 Net cash outflow from acquisitions and disposals (231,425) 0 Net cash outflow before financing and management of liquid resources (4,084,486) (408,239) Financing and management of liquid resources Proceeds from Issue of Share capital 6,138,004 327,815 Net cash transferred from liquid resources 0 0 Net cash inflow from financing and use of liquid resources 6,138,004 327,815 Increase in cash in the period 2,053,518 (80,424) Notes: 1 These do not constitute statutory accounts as defined in the Companies Acts. Statutory accounts for the year ended 31 December 2005 together with a report from the auditors will be filed with the Irish regulatory authorities in due course. 2 The Directors have decided not to pay dividend. 3 Basic earnings per share is computed by dividing the profit or loss after taxation for the period available to ordinary shareholders by the sum of the weighted average number of ordinary shares in issue and ranking for dividend during the period. Diluted earnings per share is computed by dividing the profit or loss after taxation of the period by the weighted average number of ordinary shares in issue, adjusted for the effect of all dilutive potential ordinary shares that were outstanding during the period. For ten months to 31.12.2005 (and year to 28.2.2005) the basic and diluted loss per share were the same, as effect of the outstanding share options was anti-dilutive, and was therefore excluded. The weighted average number of shares in issue in the period was 97,738,588. The annual report and accounts for the company for the year ended 31 December 2005 will be posted to shareholders on or before 30 June 2006 and copies of report and accounts will be available from that date at company's registered office at York House, Rear 176 Rathgar Road, Dublin 6 Ireland.. For further information please visit www.ovocagold.com or contact: John O'Connor - Director Ovoca Gold Richard Chase - Ambrian PartnersTel: +353 (0)1 491 2944 +44 (0)207 776 6461Email: john.oconnor@ovocagold.com Email: richard.chase@ambrian.com Simon Beardsmore - Ovoca Gold Tom McCormack - ConnexionsTel: ++44 (0) 20 7397 8151 Tel: +353 (0)1 230 3015Email: simon.beardsmore@ovocagold.com Email : tommcc@indigo.ie Mr John Frain - Davy Stockbrokers Nick Bias - Buck BiasTel: +353 (0)1 679 6363 Tel: +44 (0)7887 920 530Email: john.frain@davy.ie Email:nick@buckbias.com This information is provided by RNS The company news service from the London Stock Exchange