Uranium Resources Plc Regulatory News (URA)

Uranium Resources plc / Market: AIM / Epic: URA / Sector: Exploration

Uranium Resources plc ('Uranium Resources') or ('the Company')

Final Results and Notice of AGM

Uranium Resources plc, the AIM-listed uranium exploration and development company, announces its results for the year ended 30 June 2014 and gives notice of its Annual General Meeting ('AGM') to be held at the offices of SGH Martineau LLP, 5th Floor, One America Square, Crosswall, London EC3N 2SG on 19 December 2014 at 11:00AM.

The Company also confirms that its annual report and financial statements for the year ended 30 June 2014 will be posted to shareholders on 25 November 2014, together with the Notice of AGM and will be available on the Company's website at the same time.

Overview

· Exploration company focused on the Mtonya uranium project in the United Republic of Tanzania

· Mtonya deposit hosts roll-front uranium mineralisation and is expected to be amenable to in-situ recovery, the most cost-effective and environmentally acceptable method of uranium extraction

· Continued to evaluate exploration/development strategy, including corporate transactions, in order to advance and develop the value of Mtonya

· Entered into a loan agreement with Estes Limited for US$300,000 bridge funding to explore opportunities to finance an expansion drilling campaign

· Refining extensive in-fill and step-out drilling programme to test the deeper redox tiers and extend the known uranium mineralisation along strike - planned programme will include both diamond and reverse-circulation drilling and pump and metallurgical testwork on the Mtonya sandstone

· Continue to identify and assess new resource opportunities which complement our investment criteria.

MANAGING DIRECTOR'S STATEMENT

The Company is an explorer with its principal focus on the Mtonya project in the United Republic of Tanzania. The Mtonya deposit hosts roll-front uranium mineralisation and is expected to be amenable to in-situ recovery ('ISR'), the most cost-effective and environmentally acceptable method of uranium extraction.

In May 2013, the Company announced a maiden uranium resource for its flagship Mtonya project ('Mtonya' or 'the Project'). The Project achieved its major milestone in one of the most challenging times for the uranium industry as uncertainty continues to enwrap some of the developed nations' nuclear power industry. The Board continues to be enthusiastic about the potential of Mtonya because of the strong nuclear fuel market fundamentals, continued growth in Asian power generation, and finite supplies of secondary uranium and economically viable resources.

In the reporting period, the Company continued to evaluate its exploration/development strategy, including corporate transactions in order to advance and develop the value of Mtonya.

Along with the evaluation process on how best to build shareholder value at Mtonya, the Board has implemented a review of its overall tenement strategy in Tanzania and has accordingly relinquished its licences in the Ruhuhu Basin. These were located some 150 km from Mtonya and were not central to the Company's future growth potential.

Further to developing a maiden resource at Mtonya, the Company entered into a loan agreement with Estes Limited ('Estes'), its cornerstone investor and strong supporter of the project. This agreement provides the Company with a US$300 thousand bridge funding as we explore the opportunities to finance an expansion drilling campaign. The previous US$1 million loan from Estes, which was payable on 15 September 2014, has been extended until July 2015.

In line with our strategy to build a leading uranium exploration and development company focussed on projects which are amendable to in-situ recovery ('ISR'), we continue to identify and assess new resource opportunities which complement our investment criteria.

Mtonya

The Company's 100%-owned flagship Mtonya project is located approximately 60km south of the world-class Mkuju River deposit, which is owned by ARMZ and operated by Uranium One, and has an indicated and measured resource of 93.3 Mlb U3O8 grading 257 ppm U308.

The Company's exploration model is based on the well-substantiated premise that the neighbouring Mkuju River project is a small segment of a regional mineralised roll-front feature, most of which has no surface exposure. 

We believe Mkuju River is part of a regional roll-front that was uplifted along a regional normal fault and eroded, forming narrow, thin, and disconnected pods and lenses of uranium ore that are dominated by secondary uranium minerals such as metaautunite and metauranocircite. The near-surface uranium mineralisation at Mtonya remains a valid exploration target, but its significance is viewed as less of a priority in comparison to the deep mineralisation that may yield a substantially larger world-class deposit, which is amenable to ISR.

The completion of the 26,485m resource-definition drilling programme in 2012 allowed the Company to delineate a maiden CIM-compliant Inferred Resource of 2.014 Mlb U3O8 grading 255 ppm U3O8. On a 250x50m grid the resource drilling remains fairly coarse and significant upside potential remains untested along strike of the roll-front feature and at depth. Volumetrically, only 1/6 of prospective lithologies have been systematically drilled at Mtonya.

The Company has been refining its extensive in-fill and step-out drilling programme for Mtonya to test the deeper redox tiers and extend the known uranium mineralisation along strike. The size of the drilling programme to be undertaken will be announced in due course. The planned programme includes both diamond and reverse-circulation (RC) drilling and pump and metallurgical testwork on the Mtonya sandstone.

The Board has decided to delay drilling at Mtonya until the uranium market fundamentals sufficiently improve and the true potential of the project can be recognised by the wider market.

Lukimwa

The Lukimwa prospect is located approximately 28km southwest of Mtonya. This prospect forms a part of the 36-kilometre long Mtonya redox corridor and is thought to be the southwestern extension of the Mtonya roll-front. The exploration programme for Mtonya includes a limited number of prospecting drillholes at Lukimwa.

Other regional licenced areas

The Company is establishing itself as a uranium-focused exploration company and we view Mtonya as our priority project. We are also confident that new exploration opportunities will be generated on our other licensed areas.

Financial Results

Uranium Resources is at the exploration stage of its development. It is not producing revenue and as such I am reporting a pre-tax loss of $387,000 for the year ended 30 June 2014 (2013: loss $1,074,000) including an impairment charge of $18,000 (2013: $327,000). 

During the latter part of the financial year the Company implemented a strategy to conserve its cash by reducing the Group's overhead, whilst part of the effect of this reduction can be seen in the 2013 results, the majority of the benefit will be reported in 2014.

Funding and going concern

In March 2013 and in March 2014 the company announced that it had entered into a US$1 million and US$300 thousand loan facility agreements ('the Loans') with its major shareholder and strategic investor Estes Limited ('Estes'). The Loans, which are unsecured, available for a period of 18 months and bears interest at LIBOR, will be used to fund working capital requirements.

At 30 June 2014 the Company had drawn down $1,095,000 (excluding interest) against these facilities. Estes continues to show its support in providing this flexible funding option to the Company. The Group plans to continue its work programme in the next twelve months and beyond as it develops and evaluates its Uranium project pipeline. The undrawn funds available from the loan facility, in conjunction with the Group's current cash resources, do not provide the Group with sufficient available resources to meet all of its commitments for the next twelve months; the Group will therefore need to raise additional funds. 

The Directors remain confident that Mtonya's potential, together with the Group's historic track record of raising additional funds and the interest being shown from potential partners, will enable the Group to fully finance its obligations beyond a period of at least twelve months from the date of this report, including meeting future capital and working capital requirements and also settling the Estes loan facilities, which are due for repayment in full on or before 1 July 2015 and 17 September 2015 accordingly.

Outlook

The Company's ability to fund further exploration has been affected by adverse uranium market conditions. In order to finance the 2015 programme, the Company is reviewing a number of strategic alternatives including, but not limited to, joint ventures, strategic partnerships, and mergers or other corporate transactions to enhance shareholder value.

Major shareholder Estes continues to be supportive of the Company and, at this stage, has indicated it intends to invest alongside a suitable strategic investor. The Company will provide further updates in due course.

The Company has made great progress with its Mtonya project - advancing it from a grassroots exploration opportunity to a resource stage. This was made possible by applying solid geoscience and by the professionalism of our personnel. The Board believes that these factors will continue to play a crucial role in unlocking Mtonya's potential and return value to our shareholders.

Alex Gostevskikh

Managing Director

For further information please visit www.uraniumresources.co.uk or contact:

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2014

The results shown above related entirely to continuing operations and are attributable to equity shareholders of the Company.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2014

COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2014

STATEMENTS OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2014

Consolidated statement of changes in equity

Consolidated statement of changes in equity

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2014

COMPANY STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2014

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2014

1. Background and accounting policies

The Company is registered in England and Wales, having been incorporated on 11 January 2005 under the Companies Act with registered number 05329401 as a public company limited by shares. The Company's shares are traded on the AIM Market ("AIM") of The London Stock Exchange plc.

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been applied to all years presented, unless otherwise stated below.

The Company's and Group's financial statements for the year ended 30 June 2014 and for the comparative year ended 30 June 2013 have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS") and IFRIC (International Financial Reporting Interpretations Committee) interpretations and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

1.1 Basis of preparation

The Group financial statements are prepared on the going concern basis, under the historical cost convention as modified for fair value accounting, if applicable, and in accordance with IFRS, including IFRS6 'Exploration for and Evaluation of Mineral Resources'. The Parent Company's financial statements have also been prepared in accordance with IFRS and the Companies Act 2006.

The Group and Parent Company financial statements are presented in US$ and have been rounded to the nearest US$'000.

The consolidated financial statements incorporate the accounts of the Company and its subsidiaries and have been prepared by using the principles of acquisition accounting ("the purchase method"), which includes the results of the subsidiaries from their dates of acquisition. Intra-group sales, profits and balances are eliminated fully on consolidation.

1.2 Going concern

In March 2013 and in March 2014 the company announced that it had entered into a US$1 million and US$300 thousand loan facility agreements ('the Loans') respectively with its major shareholder and strategic investor Estes Limited ('Estes'). The Loans, which are unsecured, available for a period of 18 months and bears interest at LIBOR, will be used to fund working capital requirements.

At 30 June 2014 the Company had drawn down $1,095,000 (excluding interest) against these facilities. Estes continues to show its support in providing this flexible funding option to the Company. The Group plans to continue its work programme in the next twelve months and beyond as it develops and evaluates its Uranium project pipeline. The undrawn funds available from the loan facility, in conjunction with the Group's current cash resources, do not provide the Group with sufficient available resources to meet all of its commitments for the next twelve months; the Group will therefore need to raise additional funds. 

The Directors remain confident that Mtonya's potential, together with the Group's historic track record of raising additional funds and the interest being shown from potential partners, will enable the Group to fully finance its obligations beyond a period of at least twelve months from the date of this report, including meeting future capital and working capital requirements and also settling the Estes loan facilities, which are due for repayment in full on or before 1 July 2015 and 17 September 2015 accordingly.

1.3 New IFRS standards and interpretations

The financial statements have been drawn up on the basis of accounting standards, interpretations and amendments effective at the beginning of the accounting period. Standards, amendments and interpretations, which are effective for reporting periods beginning after the date of these financial statements which have not been adopted early, are included below. The Directors anticipate that the adoption of these standards will not have a material impact on the group financial statements in the period of initial adoption.

1.4 Exploration and evaluation expenditure

Once a licence has been obtained, all costs associated with exploration and evaluation are capitalised on a project-by-project basis, where a project may be a collection of geographically and geologically similar licences. The costs are carried forward on a project-by-project basis until it has been established that commercial reserves do not exist or are insufficiently supported by the potential carrying value of the project. Costs incurred include appropriate technical and administrative expenses but not general overheads.

Where possible general Tanzanian costs attributable to projects are allocated to each project. However, where this is impractical, these general costs are held in a separate cost pool and are carried forward in one general pool of assets until it has been established that commercial reserves do not exist or are insufficiently supported by the potential carrying value of all Tanzanian projects.

When production commences the accumulated costs for the relevant area of interest are transferred from intangible assets to tangible assets as "Developed Uranium Assets" and amortised over the estimated life of the commercial reserves on a unit of production basis, as discussed in note 1.7 below.

 1.5 Impairment of exploration and evaluation expenditure

The carrying value of unevaluated areas is assessed on at least an annual basis or when there has been an indication that impairment in value may have occurred. The impairment of unevaluated prospects is assessed as based on the Directors' intention with regard to future exploration and development of individual significant areas and the ability to obtain funds to finance such exploration and development.

1.6 Impairment of developed uranium assets

When events or changes in circumstances indicate that the carrying amount of developed uranium assets included within tangible assets may not be recoverable from future net revenues from uranium reserves attributable to that asset, a comparison between the net book value of the asset and the discounted future cash flows from the estimated recoverable uranium reserves is undertaken. To the extent that the carrying amount exceeds the recoverable amount, the asset is written down to its recoverable amount, with the write off charged to the statement of comprehensive income.

1.7 Amortisation of developed uranium assets

Developed uranium assets are amortised on a unit of production basis using the ratio of uranium production in the period to the estimated quantity of commercial reserves at the end of the period plus production in the period. Changes in estimates of commercial reserves or future development costs are dealt with prospectively.

1.8 Decommissioning costs

Where a material liability for the removal of production facilities and site restoration at the end of the field life exists, a provision for decommissioning is recognised. The amount recognised is the present value of estimated future expenditure determined in accordance with local conditions and requirements. An asset of an amount equivalent to the provision is also created and depreciated on a unit of production basis. Changes in estimates are recognised prospectively, with corresponding adjustments to the provision and the associated asset.

1.9 Cash and cash equivalents

Cash and cash equivalents are carried in the statement of financial position at cost and comprise cash in hand, cash at bank, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are included within borrowings in current liabilities on the statement of financial position. For the purposes of the statement of cashflows, cash and cash equivalents also includes any the bank overdrafts.

1.10 Investments in subsidiaries

Investments in subsidiary companies are stated at cost less provision for impairment in the Company's statement of financial position.

1.11 Share based payments

The Company has made share-based payments to certain directors and employees by way of share options. The fair value of these payments is calculated by the Company using the Black Scholes option pricing model, as the Directors believe that the options are likely to be exercised nearer their expiry dates. The expense is recognised on a straight line basis over the period from the date of award to the date of vesting, based on the Company's best estimate of shares that will eventually vest.

1.12 Foreign currencies

(i) Functional and presentational currency

Items included in the Group's and Parent Company's financial statements are measured using the currency of the primary economic environment in which the Group operates ("the functional currency"). The Directors consider the Pound Sterling to be the Parent Company's functional currency. The Group and Company financial statements are presented in US$.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income. The year end rate applied was £1: US$1.7028 (2013: £1: US$1.5208)

Transactions in the accounts of individual Group companies are recorded at the rate of exchange ruling on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rates ruling at the statement of financial position date. All differences are taken to the statement of comprehensive income.

1.13 Deferred taxation

Deferred income taxes are provided in full, using the liability method, for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income taxes are determined using tax rates that have been enacted or substantially enacted and are expected to apply when the related deferred income tax asset is realised or the related deferred income tax liability is settled. The principal temporary differences arise from depreciation or amortisation charged on assets and tax losses carried forward. Deferred tax assets relating to the carry forward of unused tax losses are recognised to the extent that it is probable that future taxable profit will be available against which the unused tax losses can be utilised.

1.14 Receivables

Receivables are carried at original invoice amount less provision made for impairment of these receivables. A provision for impairment of receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the assets' carrying amount and the recoverable amount. Provisions for impairment of receivables are included in the statement of comprehensive income.

1.15 Payables

Payables are recognised initially at fair values and subsequently measured at amortised cost using the effective interest method.

1.16 Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the increase of new shares or options are shown in equity as a deduction from the proceeds.

1.17 Critical accounting judgements and estimates

The preparation of financial statements in conformity with International Financial Reporting Standards requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, actual results ultimately may differ from those estimates. IFRS also require management to exercise its judgement in the process of applying the Group's accounting policies. The prime areas involving a higher degree of judgement or complexity, where assumptions and estimates are significant to the financial statements, are as follows:

Impairment of exploration and evaluationassets

The Group determines whether exploration and evaluation assets are impaired when facts and circumstances suggest that the carrying amount may exceed its recoverable amount. Such indicators include the point at which a determination is made as to whether or not commercial reserves exist. The carrying amount of exploration and evaluation assets at 30 June 2014 is included in note 9 to the financial statements.

Share based payments

The Group measures the cost of equity settled transactions by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined using a Black-Scholes model. Refer to Note 16 for variables entered into the model. 

2. Segmental reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision‑maker. The chief operating decision‑maker, who is responsible for allocating resources and assessing performance of the operating segment and that make strategic decisions, has been identified as the Board of Directors.

The Group had no operating revenue during the period.

The Group operates in one segment, the exploration and evaluation of uranium. The Parent Company operates a head office based in the United Kingdom which incurred certain administration and corporate costs. The Group's operations span two countries, Tanzania and the United Kingdom.

The Group's depreciation, amortisation and capital expenditure is incurred entirely within the Tanzanian segment.

3. Group operating loss

4. Interest

5. Taxation

At the year end date, the Group has unused tax losses of US$5,842,000 (2013: US $5,371,000) available for offset against suitable future profits. A deferred tax asset has not been recognised in respect of such losses due to the uncertainty of future profit streams. The deferred tax asset at 20% (2013: 23%) is estimated to be US$1,168,000 (2013: US$ 1,235,000).

6. Loss per share

The basic loss per ordinary share is 0.05 cents (2013: 0.14 cents) and has been calculated using the loss for the financial year of US$387,000 (2013: loss US$ 1,074,000) and the weighted average number of ordinary shares in issue of 745,493,750 (2013: 745,493,750).

The diluted loss per share has been kept the same as the basic loss per share as the conversion of share options decreases the basic loss per share, thus being anti-dilutive. Details of potentially diluted shares are discussed in note 15.

7. Holding company profit and loss account

In accordance with the provisions of the Section 408 of the Companies Act 2006, the Parent Company has not presented a statement of comprehensive income. A loss for the year ended 30 June 2014 of US$1,781,000 (2013: US$ 336,000) has been included in the consolidated statement of comprehensive income.

8. Staff costs (including Directors)

There were a total of 7 (2013: 7) employees during the year.

Key management of the Group are considered to be the Directors of the Company and their remuneration was as follows:

During the period 25% (2013: 50%) of Alex Gostevskikh's salary was capitalised to intangibles. In 2014 this amounted to $50,612 (2013: $ 133,994), and is included in the amount disclosed above.

9. Exploration and evaluation assets

The Group's intangible asset consists entirely of capitalised exploration and evaluation expenditure. The exploration and evaluation ("E&E") asset represents costs incurred in relation to the Group's Tanzanian licences. These amounts have not been written off to the statement of comprehensive income as exploration expenses because commercial reserves have not yet been established nor has the determination process been completed.

In accordance with the Group's accounting policy, the Group's exploration and evaluation assets are reviewed for impairment when there have been circumstances suggesting that there has been the possibility of an impairment. After a strategic review the board have elected to allow a number of unprospective licences to lapse and to revert to the government. Accordingly the directors have reviewed the impairments required on each of the exploration and evaluation projects and the carried value for each of the condemned projects has been impaired in full in the current period. The total impairment charge for the period is $18,205 (30 June 2013: $327,323). The remaining carried value relates entirely to the Company's flagship project Mtonya.

The outcome of ongoing exploration and evaluation, and therefore whether the carrying value of E&E assets will ultimately be recovered, is inherently uncertain. The Directors have assessed the value of the remaining uranium exploration and evaluation expenditure and, in their opinion, no further impairment is necessary. This assessment includes a review of the expiry dates of licenses and the likelihood of their renewal.

10. Investments in subsidiary undertakings

The loans due from subsidiaries are denominated in US$ and are repayable to the Company in more than one year with no fixed repayment terms.

The Company's subsidiary undertakings as at 30 June 2014 were as follows:

The Directors have assessed the carrying value of the investments in subsidiaries, all of which are incorporated in Tanzania, and in their opinion no impairment provision is considered necessary at the year end. This is however subject to the risks and uncertainties as set out in the Strategic Report.

11. Receivables

13. Borrowings -current

On 15 March 2013 the Company entered into a US$1 million loan facility agreement with its major shareholder and strategic investor Estes Limited. The Loan facility, which is unsecured, has been fully utilised and was originally repayable on 15 September 2014. The Loan bears interest at LIBOR. On 10 September 2014 the Company entered into a supplementary agreement which extends the US$1 million loan facility agreement until 1 July 2015.

14. Borrowings - non-current

On 18 March 2014 the Company entered into a US$300,000 loan facility agreement with its major shareholder and strategic investor Estes Limited. The Loan, which is unsecured, is repayable on 17 September 2015 and bears interest at LIBOR. The facility of US$300,000 is available until 1 January 2015.

15. Share capital and share options

16. Share-based payments

Company and Group

Details of the Company's share options at 30 June 2014 are as follows

Number of options

Options outstanding at 30 June 2013 and 2014 were:

The Company's share price ranged between 0.68p and 1.45p (2013: 0.77p to 2.72p) during the year. The closing share price as at 30 June 2014 was 0.90p (2013: 0.77p).

On 30 November 2011, the Company cancelled 34,000,000 share options with exercise prices of 2.5p, 5p, 10p, 15p and 35p. New options were then issued as detailed below:

Expected volatility was determined by calculating the historical volatility of the Group's share price for the past four years. The share option charge was calculated using the Black-Scholes model.

17. Decommissioning expenditure

The Directors have considered the need for any necessary provision for the cost of rectifying any environmental damage, as might be required under local legislation and the Group's licence obligations. In their view, no provision is necessary at 30 June 2014, for any future costs of decommissioning or any environmental damage.

18. Financial instruments

Interest rate risk

The Company's exposure to interest rate risk, which is the risk that a financial instrument's value will fluctuate as a result of changes in market interest rates on classes of financial assets and financial liabilities, was as follows:

The effective weighted average interest rate was 0.05% (2013: 0.05%) on financial assets and 0.07% on financial liabilities.

The net fair value of financial assets and financial liabilities approximates to their carrying amount as disclosed in the statement of financial position and in the related notes.

Currency risk

The functional currency for the Group's operating activities is the British Pound and for drilling activities the US Dollar. The Group's objective in managing currency exposures arising from its net investment overseas is to maintain a low level of borrowings. The Group has not hedged against currency depreciation but continues to keep the matter under review. At 30 June 2014, the Group held the following US Dollar equivalent:

Financial risk management

The Directors recognise that this is an area in which they may need to develop specific policies should the Group become exposed to further financial risks as the business develops.

Capital risk management

The Group considers capital to be its equity reserves. At the current stage of the Group's life cycle, the Group's objective in managing its capital is to ensure funds raised meet the exploration expenditure commitments.

The Group ensures it is meeting its objectives by reviewing its KPIs to ensure its exploration activities are progressing in line with expectations, controlling costs and placing unused funds on deposit to conserve resources and increase returns on surplus cash held.

19. Events after the year end date

On 10 September 2014 the Company entered into a supplementary agreement with Estes Limited which extends a US$1 million loan facility agreement until 1 July 2015.

20. Related party transactions

Key management of the Group are considered to be the Directors of the Company. There are no transactions with the Directors other than the above, and their remuneration and interests in shares and share options. The remuneration of individual Directors is shown in the Directors' Report.

Estes Limited, the Company's ultimate controlling party, provided an additional loan facility during the period. As at 30 June 2014 the outstanding balance and the maximum outstanding during the year was $1,102,000 (2013: $550,000). Further details of the loan facility are included in note 13 and 14 to the financial statements.

21. Future exploration expenditure

Other than annual tenement rentals totalling circa $100,000 per annum, the Group does not have any contractual commitments required to maintain the Group's licences. At 30 June 2014, the Group has outstanding commitments of circa $100,000 relating to its Tanzanian exploration activities.

22. Ultimate controlling party

As at 30 June 2014 the Company's ultimate controlling party is Estes Limited which owns 56.0% of the Company's issued share capital. Details of transactions with Estes are included in note 20.