19th May 2014 14:21
LONDON (Alliance News) - Tertiary Minerals PLC Monday reported a narrower first-half loss after massively cutting its administrative expenses, while Executive Chairman Patrick Cheetham said the company is well placed to make further progress in the second-half of the year.
In a statement, Tertiary Minerals said it made a GBP84,134 loss in the six months ended March 31, compared with a GBP253,718 loss in the corresponding period a year earlier.
The loss was comprised of administration expenses of GBP152,104, including a share-based payments credit of GBP13,850, pre-licence (reconnaissance) costs totalling GBP7,100 and interest income of GBP2,362. In the comparative period, administration expenses amounted to GBP236,278.
The loss is stated after crediting a non-cash amount of GBP72,708, which is a gain in fair value between the company's independently valued liability, under the equity swap agreement, on September 30, 2013 and the settlement of the agreement on November 8, 2013. The share-based payment is a net non-cash item relating to the issue of warrants in this period and the expiry in this period of warrants which were issued in previous years.
"We believe the company is well placed to make further progress during the second half of the financial year and we look forward to advising shareholders of this progress on a regular basis," Cheetham said in a statement.
"Undoubtedly the news highlights of the year so far have been the result of drilling on the MB Fluorspar Project in Nevada, USA, and the definition of a maiden JORC compliant Mineral Resource that has far exceeded the board's expectations from this first drill programme," the chairman said.
"At 38.4 million tonnes grading 10.4% CaF2 (fluorspar) the MB Mineral Resource more than doubles the amount of fluorspar now contained in the company's reported Mineral Resources at its three fluorspar projects in Sweden, Norway and Nevada. Importantly, it also anchors the company's ambition to be a supplier of fluorspar to the two largest fluorspar buying regions outside of China - North America and Europe - where fluorspar (CaF2) is an essential raw material of fluorine in the chemical, steel and aluminium industries," he said.
The company has started metallurgical testwork on the MB project drill samples and is planning a programme of follow up drilling.
"Mineralisation remains open in all directions and at depth. A number of holes are likely to test deeper in the Central Area, where recent holes ended in higher grade mineralisation, and laterally in potentially shallow mineralised positions. It is a very exciting time for this project as the true size of the deposit, already large, is yet to be revealed," the Chairman said.
"Whilst the MB Project has provided the news, important work has been continuing in Sweden on the more advanced Storuman Fluorspar Project where the company is continuing with pre-feasibility studies and preparing an application for a Mining Concession which I anticipate will be submitted shortly. This has involved a series of government and public meetings where the project has enjoyed strong support," Cheetham said.
Tertiary Minerals shares were Monday quoted at 6.53 pence, down 3.2%.
By Samuel Agini; [email protected]; @samuelagini
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