28th Nov 2022 11:25
(Alliance News) - Corcel PLC on Monday said its loss widened due to increased finance costs, reflecting interest and finance fees, while administrative costs also were up.
The London-based mining company with operations in south east Asia and Australia said its pretax loss in the financial year that ended June 30 widened to GBP2.1 million from GBP1.2 million a year prior.
Chair James Parsons and Chief Executive Officer Scott Kainz said this reflected multiplying finance costs to GBP224,000 from GBP65,000, alongside increased administrative costs in insurance, professional services, share-based payments and payroll costs to GBP1.3 million, up 26% from GBP1.0 million.
"We are amongst the first movers in this space in the micro-cap sector, and we believe that our shareholders will, in due course, see significant rewards from the hard miles we have covered building the foundations to support our present strategic positioning, which now includes both an intended Singapore-listed joint venture as well as investments from large industrial and strategic partners," said Parsons and Kainz.
Both added the board is very aware that continued stakeholder support from lenders, shareholders and equity investor Shangdong New Power Cosmo AM&T remains critical.
Last month, Corcel announced its intention to form a Singapore-based upstream battery metal joint venture with NPC, consolidating company interests in the Wowo Gap and Mambare nickel-cobalt projects in Papua New Guinea and adding to them an interest in the Doncella lithium project in Argentina.
The intention is for Corcel to own 50% and have control of the joint venture, while benefiting from USD1.5 million in carried interest generally and 1.5% in gross revenue royalty over the Wowo Gap project. NPC further agreed to invest GBP200,000 into Corcel at a price of 0.40 pence per share with one-for-one warrants exercisable at a price of 0.50p.
Shares in Corcel were down 7.7% to 0.30p in London on Monday morning.
By Greg Rosenvinge; [email protected]
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