Weatherly International Plc Regulatory News (WTI)

29 Sep 2005 13:23

Weatherly International PLC30 September 2005 WEATHERLY INTERNATIONAL PLC (the "Company") INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2005 CHAIRMAN'S STATEMENT The results for the period under review represent a further six months in whichWeatherly remained a cash shell but significant changes have taken place since30 June 2005 which, the Director's believe, will be the start of a new directionfor the company aimed at turning it into a major player in the Central Africanmining industry. In July, the Company completed the acquisition of WM Exploration Limited ('WMEL'), a company owned by Rod Webster and myself for a consideration of£512,000 in shares issued at 3p and a placing at 3p to raise £723,500 (beforeexpenses), of which Rod Webster and I contributed £166,400. Warrants tosubscribe for 4,993,958 new ordinary shares were also issued to Rod Webster andmyself. At the same time, we were appointed to the Board of Weatherly and havesince been appointed CEO and Chairman respectively. Full details of thetransactions were provided in the circular to shareholders dated 24 June 2005. Rod Webster and I had for some time been investigating a range of miningprojects in Central Africa and elsewhere and, under the terms of the acquisitionof WMEL, Weatherly has secured the right of first refusal over certain of theseprojects. The most advanced of these relates to a decommissioned copper mine atLuanshya in the Zambian Copper Belt. Weatherly has decided to exercise its rightof first refusal over this project, the rights to which are owned by PukuMinerals Limited, a company controlled by us. Due diligence is proceeding onthis project and it is hoped that the Company will be able to make a furtherannouncement in the near future. We believe Luanshya is one of the larger copper resources in Zambia with overone and a half million tonnes of copper contained in resource categories and iscapable of producing up to 60,000 tonnes of copper annually when reopened. Usingmodern mining techniques, we believe we will be able to rework reserves leftbehind during previous operations and eventually exploit deposits not yet mined. In the meantime, the Directors decided to raise additional capital so as to bein a position to carry out the evaluation work required on Luanshya and othermining projects to be acquired by the company. Hence, Weatherly announced afurther placing of £1.41 million (before expenses) at 6p, completed on 23 August2005. The Directors believe that the developments announced over the past three monthsrepresent a major step forward for the Company and will set it on a course for apositive and profitable future. W. MartinickChairman WEATHERLY INTERNATIONAL PLC INTERIM ACCOUNTS FOR THE SIX MONTHS ENDED 30 JUNE 2005 PROFIT AND LOSS ACCOUNT 30 Jun 31 Dec 30 Jun 2005 2004 2004 Unaudited Audited Unaudited £ £ £ Turnover - - - Cost of sales - - - Gross profit - - - Administrative expenses (12,613) (31,677) (21,807) Operating Loss (12,613) (31,677) (21,807) Exceptional items - (22,960) (16,215) Interest receivable and similar income 2,693 3,465 296 Loss on ordinary activities before (9,920) (51,172) (37,726)taxation Tax on loss on ordinary activities - - - Loss on ordinary activities after (9,920) (51,172) (37,726)taxation Loss per share in pence (1) (0.11) (0.62) (0.50) There were no recognised gains or losses other than the loss for each period asshown above. WEATHERLY INTERNATIONAL PLC INTERIM ACCOUNTS FOR THE SIX MONTHS ENDED 30 JUNE 2005 BALANCE SHEET 30 Jun 31 Dec 30 Jun 2005 2004 2004 Unaudited Audited Unaudited £ £ £ Current assetsDebtors - 1,175 9,152Cash at bank and in hand 128,375 130,385 171,934 128,375 131,560 181,086Creditors: amounts falling due (15,890) (9,155) (40,975)within one year Net current assets 112,485 122,405 140,111 Total assets less current 112,485 122,405 140,111liabilities Net assets 112,485 122,405 140,111 Capital and reservesCalled up share capital 282,417 282,417 282,417 Share premium account 4,755,990 4,755,990 4760,250 Profit and loss account (4,925,922) (4,916,002) (4,902,556) Shareholders' funds 112,485 122,405 140,111 WEATHERLY INTERNATIONAL PLC INTERIM ACCOUNTS FOR THE SIX MONTHS ENDED 30 JUNE 2005 CASH FLOW STATEMENT 30 Jun 31 Dec 30 Jun 2005 2004 2004 Unaudited Audited Unaudited £ £ £ Net cash outflow from operating activities (4,703) (132,635) (87,917) Returns on investments and servicing of financeInterest received 2,693 3,465 296 (2,010) (129,170) (87,621) Net cash outflow for capital - - -expenditure Net cash inflow /(outflow) before (2,010) (129,170) (87,621)management of liquid resources and financing Net cash inflow/ (outflow) from - - -management of liquid resources Net cash inflow from financing - 224,951 224,951Issue of ordinary share capital (Decrease)/ increase in cash in the period (2,010) 95,781 137,330 WEATHERLY INTERNATIONAL PLC INTERIM ACCOUNTS FOR THE SIX MONTHS ENDED 30 JUNE 2005 NOTES TO THE ACCOUNTS 1 Earnings per share Earnings per share have been calculated on the basis of the loss after taxationof £9,920 (year ended 31 December 2004 £51,172 loss, six months ended 30 June2004 £37,726 loss) and the weighted average number of shares in issue in theperiod of 8,814,801 (year ended 31 December 2004: 8,152,703, six months ended 30June 2004 adjusted: 7,479,631). 2 Status of these accounts The interim accounts for the six months to 30 June 2005 are unaudited. Thefinancial information set out in this statement does not constitute statutoryaccounts within the meaning of the Companies Act 1985. The comparative figuresfor the year ended 31 December 2004 are not the statutory accounts for that yearbut are abridged from those accounts which have been reported on by theCompany's auditors and delivered to the registrar of Companies. The report ofthe auditors was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. 3 Post balance sheet events As described in the Chairman's statement, on 15 July 2005 the Company completedthe acquisition of WM Exploration Limited ('WMEL'), by way of an issue of17,069,748 new ordinary shares at an issue price of 3p per share which equatesto a consideration of approximately £512,000. The WMEL directors, Wolf Martinickand Rod Webster were appointed to the Board and the Company also raised £723,500before expenses via a placing of 24,116,667 new ordinary shares at 3p per share. Under the terms of the acquisition of WMEL the Company has secured the 'right offirst refusal' to acquire the rights in respect of natural resource projectsbeing investigated by Messrs. Martinick and Webster. In accordance with this obligation the Company has been provided with theopportunity to acquire a Zambian copper mining project, the relevant rights ofwhich are held by Puku Minerals Limited ('Puku'), a company incorporated inZambia. In connection with the proposed acquisition of Puku, the Company announced aplacing of 23.5 million new ordinary shares of 0.5p at an issue price of 6p pershare which will raise approximately £1.41 million before expenses. This information is provided by RNS The company news service from the London Stock Exchange