29 Oct 2021 07:00
PRAIRIE MINING LIMITED
NEWS RELEASE | 29 October 2021
SEPTEMBER 2021 QUARTERLY REPORT
Prairie Mining Limited (Prairie or the Company) is pleased to present its Quarterly Report for the period during and subsequent to 30 September 2021.
HIGHLIGHTS
· Subsequent to the quarter, Prairie entered into an Earn-in Agreement (EIA) with Greenfields Exploration Ltd (GEX) to acquire an interest of up to 80% in the Arctic Rift Copper project (ARC or Project) in Greenland.
➢ Significant, large-scale project (5,774km2 license area) with historical exploration results indicative of an extensive mineral system with potential to host world-class copper deposits
➢ The ARC mineral system is known to be prospective for basalt, fault, and sedimentary rock-hosted copper mineralisation however, it remains virtually unexplored, giving the Company a first mover advantage in a major new metallogenic province
➢ Historical field programs identified widespread copper-silver occurrences at surface
➢ High priority target covering ~640km2 already identified with near-term discovery potential (Minik Anomaly) which has the highest copper grades that are proximal to a coincident gravity, conductivity and magnetic anomaly in the north-eastern portion of ARC
➢ Greenland is a mining friendly jurisdiction with strong Government support for expanding its mining industry, simple laws and regulations, and a competitive fiscal regime
➢ Strong pipeline of news flow is expected as Prairie mobilises the award-winning GEX exploration team who have extensive operating experience, including managing the Frontier Project in JV with IGO Limited, and well-established relations with government and other key stakeholders in Greenland
· Concurrent with entering into the EIA and to provide funding for new and current activities, Prairie announced a one (1) for ten (10) pro rata non-renounceable entitlements issue at $0.20 (£0.11/€0.13) per share (Entitlements Issue) to raise up to $4.6 million before costs.
· The Company will continue to defend its interests in Poland through International arbitration claims (Claim) against the Republic of Poland under both the Energy Charter Treaty (ECT) and the Australia-Poland Bilateral Investment Treaty (BIT) (together the Treaties).
➢ Prairie's Claim alleges that the Republic of Poland has breached its obligations under the applicable Treaties through its actions to block the development of the Company's Jan Karski and Debiensko mines in Poland which has effectively deprived Prairie of the entire value of its previous investments in Poland.
Enquiries
Prairie Mining Limited | Tel: +44 207 478 3900 |
Ben Stoikovich, Chief Executive Officer | Email: info@pdz.com.au |
Sapan Ghai, Head of Corporate Development Kazimierz Chojna, Commercial Officer |
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ARC PROJECT SUMMARY
Prairie and GEX consider the observed geological setting and features of ARC to be indicative of an extensive mineral system capable of hosting world-class copper deposits.
The large scale of the mineral system, widespread copper anomalism, combined with dual mineralising events are analogous to the largest copper systems known worldwide. Accordingly, Prairie considers that ARC has the potential to be a globally significant metallogenic province.
Very high-grade copper mineralisation identified at ARC is associated with the Minik Anomaly, a coincident magnetic-electromagnetic-gravity feature in an area where there is a change in oxidation state and widespread native copper in stream sediments. These features are presented as the footprint of a large-scale hydrothermal system. The frequency and size of the native copper clasts, and the high grade of the copper-silver sulphides that are exposed at the surface, bode well for the probability of discovery.
There are multiple additional identified targets and favourable geological settings to be tested within the ARC project area, including:
· the highly anomalous basalt is a high priority target that has not previously been the focus of commercial exploration. These basalts are the source of the native copper.
· the sulphide mineralised faults passing through these basalts into the overlying sediments have been subject to first pass exploration and shown to be rich in copper and silver. The high-grade sulphides in these faults will be the focus of further exploration.
· the permeable coarse-grained sandstone within the Jyske Ås Fm has high grade copper that is effectively unexplored. This stratiform mineralisation adds the potential for significant lateral extension of the known mineralisation exposed in the faults of the Discovery Zone.
As such, the extensive ARC mineral system is known to be prospective for basalt, fault, and sedimentary rock-hosted ('sediment-hosted') mineralisation that despite the attractive grades, is virtually unexplored.
Exploration Plan
The Company and GEX will take a systemic approach to exploring ARC in the most cost-effective and sustainable manner. The near-term forward work program includes:
· Undertake a widespread geochemical sampling campaign i.e., stream sediment and rock chip sampling. Historical data is mainly clustered, and the southern portion of ARC is mostly unsampled. The intention is for rock samples to be collected with a handheld drill (41mm diameter) to produce core that can be subject to non-destructive analysis.
· Perform passive seismic over the Minik Anomaly and 3D induced polarisation (IP) surveys over the Discovery Zone. Seismic and IP data will also provide more context to the gravity-magnetic anomaly. Passive seismic tomography does not require explosives or vibration equipment to collect data, and has a low environmental impact.
· Conduct high-resolution satellite mapping. Since the last exploration activity, commercial products have become available at a 30cm pixel resolution. These products include multispectral bands at coarser resolutions that can aid in identifying different types of alteration type and intensity, lithologies, and structures.
· Re-analyse historical samples. The assay suite used in the government-funded work is very restricted. The Company has located the storage locations of 311 unique samples that are suited to comprehensive, modern analysis methods. The higher precision and additional element information, along with mineral species identification, can provide new insights that can help refine the exploration search space.
· Reprocess airborne magnetic data.
· Create a three-dimensional (3D) model. The available geological maps, reprocessed geophysics and satellite imagery can be incorporated into a low-cost 3D model. The purpose of this model is to provide an initial framework design that can be easily validated by field inspection.
The intent is for the above work and resultant geological model to provide refined targets to be tested by deeper diamond drilling during a second field campaign, and to aid in generating more advanced exploration targets undercover within ARC and its immediate surrounds.
The proposed exploration above could be completed within 18 months and creates the potential for discovery from the outset. This approach has low cost per unit of information gained and permits a significant increase in the targeting accuracy. The Company envisages that the proposed work program will yield relatively high-certainty, drill-ready targets.
ARC PROJECT Overview
The ARC project consists of a single Special Exploration Licence, covering an area of 5,774km2, in northern Greenland.
ARC is located within an inner-fjord system and covers most of J.C. Christensen Land, a promontory that is flanked to the north and northwest by Independence Fjord, and to the southeast by Hagen Fjord. The expansive cliff faces of the fjords provide a unique insight into the structural geology of ARC and aid in geological interpretation.
The project area is uninhabited, with the nearest permanently inhabited site being the Station Nord military facility, located approximately 200km to the east.
The region is an Arctic desert, vegetation and wildlife are minimal and there are no designated sensitive areas within the Project. Flat, low elevations are typical of northeast J.C. Christensen Land and the rest of the area consists of high plateaus with elevations around 800m above sea level, with incised 'U' shaped valleys.
The big fjords that surround the Project reliably provide deep-water access throughout the ARC licence. An airstrip which has been used to land heavy-lift aeroplanes is adjacent to the Project, and sites suitable for smaller airstrips are located within it.
As a jurisdiction for exploration and mining, Greenland has many favourable attributes, such as being politically stable, pro mining, one of the lowest rates of corruption in the world, simple laws and regulations, low royalties, favourable tax treatment for mineral projects, and good access to markets.
Project Geology and Exploration Potential
The ARC mineral system is known to be prospective for basalt, fault, and sediment -hosted copper mineralisation however, it remains virtually unexplored. This provides the Company and GEX with essentially a first mover opportunity in a metallogenic province with the potential to host world class copper deposits.
ARC is located near an ancient triple junction that is associated with an ascending mantle plume in Mesoproterozoic times. This mantle plume emplaced a large amount of basalt lavas over a short period of time.
ARC contains a sequence of Mesoproterozoic-aged sediments sandstones belonging to the Independence Fjord Group that have been intruded by highly altered dolerites and overlain by 1.2km of Mesoproterozoic-aged flood basalts ('Zig-Zag Fm' basalts). In turn, the basalts are overlain by 1.1km of Neoproterozoic-aged clastic and carbonate sediments belonging to the Hagen Fjord Group. The lower portion of the Hagen Fjord Group is dominated by sandstones and siltstones, and the upper part by limestone and dolomites.
The metamorphic grade of the Zig-Zag Fm basalts is of the zeolite facies, and the Hagen Fjord Group sediments show lower grade metamorphism. Due to the location within a passive margin, there is adequate preservation aside from mechanical erosion.
The strata dips sub-horizontally (1-3°) to the northeast and hosts fault orientations parallel to major regional structures. Folding is almost non-existent.
Copper mineralisation occurs in both the Zig-Zag Fm basalts and Hagen Fjord Group sediments. The basalts are known to contain in situ native copper, which is found extensively in the surrounding drainage systems. Significantly, native copper specimens weighing up to 1kg have been recovered during historical exploration campaigns.
The age, setting and mineral composition makes the Zig-Zag Fm copper analogous to the copper deposits of the Michigan Upper (Keweenaw) Peninsula, and a primary source of copper for anomalies reported in the overlying sediments. Fault breccias observed to transect the basalts and overlying sediments are interpreted to represent fluid pathways. These breccias, which are up to 25m wide, also show copper mineralisation.
Copper and associated silver mineralisation occur in the source rocks, faults, and in 'classic' deposition sites. The highest copper grades are close to geophysical gravity, magnetic and electromagnetic anomalies.
Identified Prospects and Target Areas
Minik Anomaly
The empirical geophysical and geochemical evidence shows multifaceted anomalism within ARC. The Minik Anomaly is defined by multiple coincident, and proximal, geophysical (magnetic-electromagnetic-gravity) and geochemical anomalies over a ~640 km2 area in the north-eastern portion of ARC where high grade copper mineralisation has been identified. This large scale, high priority target area will be a key focus of the first field campaign.
Zig-Zag Formation
Native copper float frequently occurs near the Zig-Zag Fm in the area around the Discovery Zone and Neergaard Valley. Outside of ARC a 1.5m long chip sample returned a significant grade of 1.97% Cu, and a grab sample returned 3.17% Cu from chalcocite filled vesicles. The Company and GEX consider the widespread occurrence of low-grade copper mineralisation, the frequent presence of sizeable native copper, and the sampled grades within the licence to be very significant.
Discovery Zone
The most advanced prospect within ARC is the copper-silver bearing Discovery Zone, located at the northern end of Neergaard Dal. The Discovery Zone was identified in 2010 as a follow up to a geochemical anomaly identified by the GGS in 1994.
The Discovery Zone is comprised of at least three parallel breccia faults trending northwest-southeast, with the furthest faults being around 2km apart. The faults are traced for a minimum of 2km along strike before they disappear underneath moraine. The Discovery Zone is open in both directions.
The width of the fault breccias is variable, ranging from 1m to 25m thick. The host lithology is red sandstones of the lower Jyske Ås Fm, and they are proximal to outcrops of Zig-Zag Fm. The breccias have copper sulphide and copper oxide mineralisation. The copper-bearing species include chalcocite, brochantite, bornite, chalcopyrite, and malachite. The mineralisation is expressed in two main forms, within which there are two sub-forms:
1. Breccia bound. Mineralisation occurs in thin quartz-dominated veining within the fault breccia and contains disseminated copper sulphides. Assays from this material grades up to 53.8% Cu and 2,480g/t Ag.
Within the breccia-bound mineralisation are intensely potassic, unconsolidated materials known as 'Black Earth'. The multiple but discontinuous 0.7m to 3m horizons have lengths between 2m to 50m. The Black Earth material contains high grades of copper and silver, with reported true widths of 4.5m grading 2.15% Cu and 35.5g/t Ag (Chip Line #7, sampled interval 5.25m, estimated true width 4.5m).
2. Stratiform. Mineralisation occurs immediately adjacent to the faults and comprises lenses and blebs of chalcocite and bornite measuring from mm-scale to 15cm long.
Within the stratiform mineralisation is a poorly consolidated sandstone that is identified as a potentially vast target horizon within the Jyske Ås Fm. The outcrop shows pervasive interstitial chalcocite, bornite and chalcopyrite.
Campanuladal Formation
The Campanuladal Fm was known to contain anomalous copper since the late 1970s. Government work in the early 1990s managed to trace chalcopyrite and galena for several kilometres within the central part of the formation. Disseminated copper sulphides (often chalcopyrite) are widespread, and one such location is close to the Discovery Zone in the northeast corner of ARC.
Other Commodities
North Greenland contains multiple indications of mineralisation, and whilst copper is the target commodity for the ARC, the region to the north includes a large-scale zinc deposit, and there are indications of nickel-platinum group elements within the ARC licence. The known mineralisation occurs across a range of stratigraphic positions and is believed to be the result of more than one mineralising event.
The mafic intrusions of the Midsommersø Intrusions are prospective for magmatic-hosted nickel-copper-platinum group element (Ni-Cu-PGE) mineralisation. The Company and GEX identify supportive evidence in both the intrusions and their extrusive equivalents in the overlying Zig-Zag Fm.
The basal flows of the Zig-Zag Fm basalts show a marked depletion in nickel. Such a depletion suggests that the nickel may have been deposited into sulphides and conceptually, as nickel sulphide deposits. There has been no effective commercial work on testing the nickel sulphide potential of ARC.
Dispute with Polish Government
The Company's Claim against the Republic of Poland is being prosecuted through an established and enforceable legal framework, with Prairie and Poland agreeing to apply the United Nations Commission on International Trade Law Rules (UNCITRAL) rules to the proceedings.
Both the BIT and ECT claim Tribunals have been constituted, with both Claim's being registered with the Permanent Court of Arbitration in the Hague. The BIT and ECT claim proceedings proceed at pace, with the Company now having filed a Claim for compensation against Poland with the Tribunal in the amount of £806 million (A$1.5 billion / PLN 4.2 billion), which includes an assessment of the value of Prairie's lost profits and damages related to both the Jan Karski mine and Debiensko mines, and accrued interest related to any damages. The Claim for damages has been assessed by external quantum experts appointed by Prairie specifically for the purposes of the Claim.
In July 2020, the Company announced it had executed a Litigation Funding Agreement (LFA) for US$12.3 million with Litigation Capital Management. The facility is currently being drawn down to cover legal, tribunal and external expert costs and defined operating expenses associated with the Claim.
In September 2020, Prairie announced that it had formally commenced with the Claim by serving the Notices of Arbitration against the Republic of Poland.
Prairie's dispute alleges that the Republic of Poland has breached its obligations under the applicable Treaties through its actions to block the development of the Company's Jan Karski and Debiensko mines in Poland which effectively deprives Prairie of the entire value of its investments in Poland.
In February 2019, Prairie formally notified the Polish Government that there exists an investment dispute between Prairie and the Polish Government. Prairie's notification called for prompt negotiations with the Government to amicably resolve the dispute and indicated Prairie's right to submit the dispute to international arbitration in the event of the dispute not being resolved amicably. The Company remains open to resolving the dispute with the Polish Government amicably. However, as of the date of this report, no amicable resolution of the dispute has occurred, since the Polish Government has declined to participate in discussions related to the dispute and accordingly the Company has formerly submitted its Claim as discussed above.
Prairie's investment dispute with the Republic of Poland is not unique, with international media widely reporting that the political environment and investment climate in Poland has deteriorated since the change in Government in 2015. As a result, there are a significant number of International Arbitration claims being brought against Poland in the natural resources and energy sectors with damages claims ranging from US$120 million to over US$1.3 billion and includes Bluegas NRG Holding (Gas), Lumina Copper (Copper) and InvEnergy (wind farms).
CORPORATE
Change of Name
Following the acquisition of its interest in ARC, the Company is proposing to change its name to "GreenX Metals Limited" which will be put to shareholders at the upcoming Annual General Meeting on 24 November 2021.
Entitlement Issue
The Company will undertake a one (1) for ten (10) pro rata non-renounceable Entitlements Issue at $0.20 (£0.11/€0.13) per share to raise up to $4.6 million before costs.
Eligible shareholders will be entitled to acquire one (1) New Share for ten (10) ordinary shares held at the record date (5 November 2021).
Directors will reserve the right to offer any shortfall shares from the Entitlements Issue at their discretion (subject to applicable regulatory requirements).
Board Changes
Subsequent to the quarter, Ms Carmel Daniele, founder and Chief Executive Officer of CD Capital, stepped down as CD Capital's nominee to the Prairie Board as a non-executive Director and was replaced by Mr Garry Hemming, a highly experienced exploration geologist, effective immediately. Mr Hemming is a senior resource geologist at CD Capital and brings over 40 years' experience in exploration and as a mining executive of public companies.
During the quarter, Mr Tom Todd resigned as Director of Prairie to concentrate on other business and investment opportunities.
Forward Looking Statements
This release may include forward-looking statements. These forward-looking statements are based on Prairie's expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Prairie, which could cause actual results to differ materially from such statements. Prairie makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.
Competent Persons Statement
The information in this presentation that relates to Exploration Results for the Arc Rift Copper Project is extracted from the ASX announcement dated 6 October 2021. Which is available to view at www.pdz.com.au.
Prairie confirms that (a) it is not aware of any new information or data that materially affects the information included in the original announcements; (b) all material assumptions and technical parameters underpinning the content in the relevant announcements continue to apply and have not materially changed; and (c) the form and context in which the Competent Person's findings are presented have not been materially modified from the original announcement.
To view this announcement in full, including all images and figures, please refer to the Company's website at www. pdz.com.au
APPENDIX 1: TENEMENT INFORMATION
As at 30 September 2021, the Company has an interest in the following tenements:
Location | Tenement | PercentageInterest | Status | Tenement Type |
Greenland | Arctic Rift Copper Project (Licence No. 2021-07 MEL-S) | -1 | Granted | Exploration Licence |
Jan Karski, Poland | Jan Karski Mine Plan Area (K-4-5, K6-7, K-8 and K-9)2 | 100 | In dispute2 | Exclusive Right to apply for a mining concession |
Debiensko, Poland | Debiensko 1 | 100 | Granted2 | Mining |
Debiensko, Poland | Kaczyce 1 | 100 | Granted | Mining & Exploration (includes gas rights) |
Notes:
1 Subsequent to the end of the quarter, the Company announced that it had entered into the EIA with GEX to acquire an interest of up to 80% in the Project. As at the date of this announcement, the Company held no beneficial interest in the Project, other than through the EIA.
2 Prairie was commenced international arbitration claims against the Republic of Poland under both the ECT and the BIT. Prairie alleges that the Republic of Poland has breached its obligations under the Treaties through its actions to block the development of the Company's Jan Karski mine and Debiensko mines in Poland.
Appendix 2: Related Party Payments
During the quarter ended 30 September 2021, the Company made payments of $196,000 to related parties and their associates. These payments relate to existing remuneration arrangements (director fees, consulting fees and superannuation of ($116,000) and the provision of a serviced office and company secretarial and administration services ($80,000).
Appendix 3: Exploration and Mining Expenditure
During the quarter ended 30 September 2021, the Company made the following payments in relation to exploration activities:
Activity | $000 |
Legal and permitting related expenditure | 117 |
Consultants - technical and Debiensko statutory operations personnel | 106 |
Other | 72 |
Total as reported in the Appendix 5B | 295 |
There were no mining or production activities and expenses incurred during the quarter ended 30 September 2021.
Appendix 5B
Mining exploration entity or oil and gas exploration entityquarterly cash flow report
Name of entity | ||
Prairie Mining Limited | ||
ABN |
| Quarter ended ("current quarter") |
23 008 677 852 |
| 30 September 2021 |
Consolidated statement of cash flows | Current quarter$A'000 | Year to date(3 months)$A'000 | |
1. | Cash flows from operating activities | - | - |
1.1 | Receipts from customers | ||
1.2 | Payments for | (295)* | (295)* |
| (a) exploration & evaluation | ||
| (b) development | - | - |
| (c) production | - | - |
| (d) staff costs | (166) | (166) |
| (e) administration and corporate costs | (314) | (314) |
1.3 | Dividends received (see note 3) | - | - |
1.4 | Interest received | 5 | 5 |
1.5 | Interest and other costs of finance paid | - | - |
1.6 | Income taxes paid | - | - |
1.7 | Government grants and tax incentives | - | - |
1.8 | Other (provide details if material) (a) Business Development (b) Property rental and gas sales (c) Arbitration related expenses (d) Receipt of arbitration funding |
(19) 48 (494) 698 |
(19) 48 (494) 698 |
1.9 | Net cash from / (used in) operating activities | (537) | (537) |
*includes legal and permitting expenditure and payments made to consultants (Debiensko technical statutory operations personnel). | |||
2. | Cash flows from investing activities | - | - |
2.1 | Payments to acquire or for: | ||
| (a) Entities | ||
| (b) tenements | (30) | (30) |
| (c) property, plant and equipment | (2) | (2) |
| (d) exploration & evaluation | - | - |
| (e) investments | - | - |
| (f) other non-current assets | - | - |
2.2 | Proceeds from the disposal of: | - | - |
| (a) entities | ||
| (b) tenements | - | - |
| (c) property, plant and equipment | 30 | 30 |
| (d) investments | - | - |
| (e) 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 | (2) | (2) |
| |||
3. | Cash flows from financing activities | - | - |
3.1 | Proceeds from issues of equity securities (excluding convertible debt securities) | ||
3.2 | Proceeds from issue of convertible debt securities | - | - |
3.3 | Proceeds from exercise of options | - | - |
3.4 | Transaction costs related to issues of equity securities or convertible debt securities | - | - |
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 | - | - |
| |||
4. | Net increase / (decrease) in cash and cash equivalents for the period |
|
|
4.1 | Cash and cash equivalents at beginning of period | 4,762 | 4,762 |
4.2 | Net cash from / (used in) operating activities (item 1.9 above) | (537) | (537) |
4.3 | Net cash from / (used in) investing activities (item 2.6 above) | (2) | (2) |
4.4 | Net cash from / (used in) financing activities (item 3.10 above) | - | - |
4.5 | Effect of movement in exchange rates on cash held | 1 | 1 |
4.6 | Cash and cash equivalents at end of period | 4,224 | 4,224 |
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$A'000 |
5.1 | Bank balances | 4,224 | 4,762 |
5.2 | Call deposits | - | - |
5.3 | Bank overdrafts | - | - |
5.4 | Other (provide details) | - | - |
5.5 | Cash and cash equivalents at end of quarter (should equal item 4.6 above) | 4,224 | 4,762 |
6. | Payments to related parties of the entity and their associates | Current quarter$A'000 |
6.1 | Aggregate amount of payments to related parties and their associates included in item 1 | (196) |
6.2 | Aggregate amount of payments to related parties and their associates included in item 2 | - |
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. | ||
7. | Financing facilitiesNote: the term "facility' includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. | Total facility amount at quarter end$A'000 | Amount drawn at quarter end$A'000 |
7.1 | Loan facilities | 17,000* | 5,393 |
7.2 | Credit standby arrangements | - | - |
7.3 | Other (please specify) | - | - |
7.4 | Total financing facilities | 17,000* | 5,393 |
|
|
| |
7.5 | Unused financing facilities available at quarter end | 11,607 | |
7.6 | Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. | ||
On 30 June 2020, the Company executed a Litigation Funding Agreement (LFA) for US$12.3 million (*now worth A$17 million with the movement of the A$ compared to the $US) with LCM Funding UK Limited a subsidiary of Litigation Capital Management Limited (LCM), to pursue damages claims in relation to the investment dispute between Prairie and the Polish Government that has arisen out of certain measures taken by Poland in breach of the Energy Charter Treaty and the Australia - Poland Bilateral Investment Treaty (BIT). LCM will provide up to US$12.3million (~A$17 million), denominated in US$, in limited recourse financing which is repayable to LCM in the event of a successful Claim or settlement of the Dispute that results in the recovery of any monies. If there is no settlement or award, then LCM is not entitled to any repayment of the financing facility. In return for providing the financing facility, LCM shall be entitled to receive repayment of any funds drawn plus an amount equal to between two and five times the total of any funds drawn from the funding facility during the first five years, depending on the time frame over which funds have remained drawn, and then a 30% interest rate after the fifth year until receipt of damages payments. | |||
8. | Estimated cash available for future operating activities | $A'000 |
8.1 | Net cash from / (used in) operating activities (item 1.9) | (537) |
8.2 | (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) | - |
8.3 | Total relevant outgoings (item 8.1 + item 8.2) | (537) |
8.4 | Cash and cash equivalents at quarter end (item 4.6) | 4,224 |
8.5 | Unused finance facilities available at quarter end (item 7.5) | 11,607 |
8.6 | Total available funding (item 8.4 + item 8.5) | 15,831 |
|
|
|
8.7 | Estimated quarters of funding available (item 8.6 divided by item 8.3) | >10 |
Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as "N/A". Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. | ||
8.8 | If item 8.7 is less than 2 quarters, please provide answers to the following questions: | |
| 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? | |
| Answer: Not applicable | |
| 8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? | |
| Answer: Not applicable | |
| 8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? | |
| Answer: Not applicable | |
| Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. | |
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Date: 29 October 2021
Authorised by: Company Secretary
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.