18th Jun 2018 12:13
LONDON (Alliance News) - Gold exploration and development company KEFI Minerals PLC said Monday its annual loss widened sharply due to higher operating costs and an equity sharing agreement with Lanstead Capital LP.
KEFI Minerals reported a pretax loss of GBP6.3 million for 2017, widening significantly from GBP1.2 million in 2016.
The company's operating loss totalled GBP3.9 million, from GBP974,000 last year, and included GBP865,000 in project finance transaction costs, compared to nothing the previous year.
KEFI Minerals booked a GBP2.3 million loss on the change in the value of its financial assets following an equity sharing agreement.
During the period, KEFI Minerals completed a fundraise, which saw a subscription by Lanstead Capital subject to a sharing agreement that "allowed KEFI to potentially benefit financially from positive share price performance, whilst limiting the financial downside risk from a negative share price performance."
The number of shares issued to Lanstead under the agreement was fixed up-front at 82.4 million shares.
"Whilst the share price underperformed, the Lanstead sharing agreement underpinned the company's expenditure for 2017 and KEFI received a total of GBP1.9 million from Lanstead during 2017," KEFI Minerals said.
The mining company currently is not revenue producing. It will not pay a dividend for 2017 but said it had long term plans "to become a successful dividend-paying explorer and developer".
"2017 was a challenging year, but we now stand with assets, relationships and people that provide a great platform to deliver shareholder value by developing profitable mines in Ethiopia and Saudi Arabia," said Chairman Harry Anagnostaras-Adams.
"Our primary focus remains on our flagship Tulu Kapi Gold Project for which we have now assembled the proposed full project funding consortium including contractors, equity and non-equity capital," he continued.
Shares in KEFI Minerals were down 2.9% at 2.65 pence on Monday.
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Kefi Gold & Copper