Half Yearly Report

RNS Number : 0296P

Great Western Mining Corp. plc

28 September 2011

 

28 September 2011

Great Western Mining Corporation plc

Interim Results for the Six Months Ended 30 June 2011

Great Western Mining Corporation plc, ("GWM" or the "Company") the Nevada-focused development and exploration company, is pleased to announce its unaudited interim results for the six months ended 30 June 2011.

Highlights:

·     £1,015,718 raised by the placing of 9,233,800 new shares in January 2011

·     Initiation of ground magnetic and induced polarisation geophysics programme commenced in June 2011 

·     Local support network identified and under negotiation. Good facilities and transport links already in place.

·     Board Strengthened with appointment of Non Exec Director, Christopher Hall

·     Aeromagnetic data and ASTER (satellite) image studies of the land surrounding GWM's 2 claims sites, acquired

·     Exploration claims increased to 896 following examination of the above data

Post Period Highlights:

·     Successful Admission to AIM, raising £980,000 by the placing of 8,901,773 shares

·     Identification of the extension of the Golconda fault within the Company's property

·     Publication of a Competent Person's Report highlighting a number of significant mineral occurrences

·     Submitted application to begin drilling programme

"These six months were ones of strong progress for GWM and we were pleased with the momentum gained in the lead up to our AIM listing. The Company is on a strong footing going forward to the next stage of our project. We now look forward to updating shareholders further as we look to begin our drilling programme, and drive towards uncovering what we believe to be highly extensive assets."

Melvyn Quiller

Chief Executive

Enquiries to:

Great Western Mining Corporation plc

Emmett O'Connell, Executive Chairman,

Tel: [phone]

Libertas Capital

Tim Cofman/Neil Pidgeon

Tel: [phone]

Hansard (Financial PR)

Nicholas Nelson/Guy McDougall

Tel: [phone]

CHAIRMAN'S STATEMENT

The first half of 2011 has been a time of considerable progress for the Company. Our application for admission to the Alternative Investment Market (AIM) of the London Stock Exchange has recently been accepted. It is anticipated that this will assist in attracting additional institutional interest in the Company's shares.

As the number of Irish shareholders have increased over the past year your Directors are presently applying for a listing to the Enterprise Securities Market (ESM) of the Dublin Stock Exchange. A wide base of shareholders provides greater liquidity and name recognition in your Company's shares.

Business Description

GWM commenced operations in 2006 with 21 mineral claims in Mineral County, Nevada growing to 896 covering over 7,300 hectares today.

Prospecting on two of the Company's initial claim areas covering approximately half of GWM's total claimed area (the Black Mountain and Huntoon claim groups) has shown widespread occurrences of high grade copper, believed to be suitable for exploration by open pit mining and heap leaching. It is possible that these areas may also contain economic concentrations of Silver. Our near neighbour to the East, ESO Uranium Ltd. Of the Toronto Exchange, is continuing its exploration for uranium on lands bordering ours.

A competent person's report was commissioned as part of the AIM admission process last month; this highlights a number of significant mineral occurrences on our Company's claims.

GWM also acquired aeromagnetic data and ASTER (satellite) image studies of the land surrounding its two claim sites mentioned above which, during 2011, resulted in the staking of four separate claim areas, dubbed the Golconda Thrust Area, bringing the total land claimed to 896. This area was found to lie along the Golconda Thrust fault which spans Nevada and has given rise to large scale silver production from the Candelaria Mining District with over 2300 tonnes being mined during a period lasting 130 years until 1997.

Activity over the past six months

The first six months of 2011 was a period of substantial progress for the Company. GWM's focuses were in pinpointing what we believe to be our most prized assets and in negotiating locally in the pursuit of a fully functional, reliable local support network. This includes a shortlist of engineers, physicists and chemists who have tendered for our work. A mining engineering company in Mina, Nevada has been approached and demonstrated a willingness and the capacity to provide trucks, labour and mining machinery at a reasonable cost. One of our first roles will be to improve, where required, the rough Jeep trails which currently exist between the main tarmac road and GWM's claimed areas.

Water is available via existing wells in the Huntoon Valley enabling the immediate commencement of work, The Company has also completed the installation of its own solar powered well in Marietta, which is to GWM at its operational base camp.

The Company has built relationships with two laboratories in Colorado which have processed past samples. One lab is licensed to handle Uranium and both have shown willingness and the capacity to continue processing GWM's samples.

The nearest airport to GWM's site is at Mammoth Town which is 30 miles from GWM's site. Mammoth Town is of reasonable size with accommodation and vehicle hire including four-wheel drive vehicles. An air strip also exists at Marietta which is not at present of a serviceable standard.

Following the acquisition of data and preliminary survey work including aeromagnetic and ASTER image studies, preliminary sampling and metallurgical testing, the Company identified eight targets for further investigation. The Company believes these eight targets are very permissive for the discovery of bulk-tonnage disseminated copper and silver deposits at moderate depths. An Induced Polarity (I-P) and Gravity program over the eight target areas is nearing completion as this announcement is written.

It is important to reiterate that the work undertaken to date is not sufficient to produce a JORC compliant mineral resource estimate. The Company intends to carry out a drilling and exploration programme to allow such an estimate to be prepared. The Induced Polarity (I-P) and Gravity program is a major step towards our end goal.

As mentioned above, we have also been busy building our support network. With solid partnerships and agreements developed, we are confident that the optimum support network is now in place.

The Company strengthened its technical and geological expertise with the addition of Mr. Christopher Hall B.Sc., M.Sc. to its Board of Directors and look forward to his participation as a non-executive director. Mr Hall has worked for over thirty five years in the mining and mining finance and consultancy. He is a Chartered Engineer and has a degree in Geology and subsequent MSc in Mining Geology  and Mineral Exploration.  Mr Hall is currently a Non-Executive Chairman of Stratex International PLC, the AIM-quoted exploration and Development Company. He is currently a consultant to Grant Thornton LLP (UK), where he vets new resources clients and performs the initial and continuing technical oversight of AIM listed resource clients. He also works as an independent mining finance consultant. He has proved a great addition to our team.

After six months of solid progress, the Company is now heading into the exciting stage of its development, and shareholders will be kept informed as developments emerge. "Where the drill bit bites the rock".

Emmett O' Connell

Chairman

Melvyn Quiller

Chief Executive

Great Western Mining Corporation PLC

Consolidated Statement of Comprehensive Income

Six months ended 30 June 2011

	unaudited	unaudited	audited
	6 months ended	6 months ended	Year ended
	30-Jun-11	30-Jun-10	31-Dec-10
	€	€	€
Turnover	0	0	0
Administration expenses	(287,370)	(60,437)	(325,723)
Exploration costs written off	0	0	0
	________	________	________
Operating loss	(287,370)	(60,437)	(325,723)
Other finance costs	(1,498)	(330)	0
	______	______	______
Loss on Ordinary Activities	(288,868)	(60,767)	(325,723)
Corporation tax expense	0	0	(1,535)
	______	______	______
Loss for the Period	(288,868)	(60,767)	(327,258)
Loss per share
Basic	(€0.77)	(€0.22)	(€1.16)
Diluted	(€0.77)	(€0.22)	(€1.16)

Great Western Mining Corporation PLC

Consolidated Statement of Financial Position

As at 30 June 2011

	unaudited	unaudited	audited
	30-Jun-11	30-Jun-10	31-Dec-10
	€	€	€
Assets
Non current assets
Intangible assets - Exploration & Evaluation costs	907,517	760,500	797,657
	_______	_______	_______
Total Non Current Assets	907,517	760,500	797,657
Current assets
Trade & other receivables	0	5,585	0
Cash & cash equivalents	559,125	113,347	6,361
	_______	_______	_______
Total current assets	559,125	118,392	6,361
	_______	_______	_______
Total assets	1,466,642	879,432	804,018
	_______	_______	_______
Equity & liabilities
Equity
Called up share capital	374,874	282,536	282,536
Share premium account	2,657,785	1,602,234	1,602,234
Retained losses	(1,763,230)	(1,207,871)	(1,474,362)
	_______	_______	_______
Total equity - attributable to the owners of the Company	1,269,429	676,899	410,408
Non-current liabilities
Trade & other payables	0	0	0
Current liabilities
Trade & other payables	197,213	202,533	393,610
	_______	_______	_______
Total liabilities	197,213	202,533	393,610
	_______	_______	_______
Total equity & liabilities	1,466,642	879,432	804,018
	_______	_______	_______

Great Western Mining Corporation PLC

Consolidated Statement of Cashflows

Six months ended 30 June 2011

	unaudited	unaudited	audited
	6 months ended	6 months ended	Year ended
	30-Jun-11	30-Jun-10	31-Dec-10
	€	€	€
Cashflows from operating activities
Net loss before interest & tax	(287,370)	(60,437)	(327,258)
Adjustments for:
Income tax expenses recognised in P&L	0	0	1,535
(Increase)/Decrease in receivables	0	36	35
Increase/(decrease) in liabilities	(196,397)	169,330	360,407
Income taxes received	0	0	4,051
	________	________	________
Cash generated from operations	(483,767)	108,929	38,770
Cashflows from financing activities
Proceeds from issue of share capital	1,147,889	0	0
Investing activities
Expenditure on exploration activities	(109,860)	(54,604)	(91,761)
Interest received/(payable)	(1,498)	(330)	0
	________	________	________
Net cash from / (used) in investing activities	1,036,531	(54,934)	(91,761)
	________	________	________
Net (decrease)/increase in cash	552,764	53,995	(52,991)
Cash at beginning of period	6,361	59,352	59,352
	______	______	______
Cash at end of period	559,125	113,347	6,361

Great Western Mining Corporation PLC

Consolidated Statement of Changes in Equity

	Share Capital	Share Premium	Retained Losses	Total
	€	€	€	€
At 1 January 2010	282,536	1,602,234	(1,147,104)	737,666
Proceeds of share issue	0	0	0	0
Loss for the period	0	0	(60,767)	(60,767)
	______	______	______	______
At 30 June 2010	282,536	1,602,234	(1,207,871)	767,899
Proceeds of share issue	0	0	0	0
Loss for the period	0	0	(266,491)	(266,491)
	______	______	______	______
At 31 December 2010	282,536	1,602,234	(1,474,362)	410,408
Proceeds of share issue	92,338	1,055,551	0	1,147,889
Loss for the period	0	0	(288,868)	(288,868)
	______	______	______	______
At 30 June 2011	374,874	2,657,785	(1,763,230)	1,269,429
	______	______	______	______

Notes to the Interim Financial Statements

1.    Segmental Analysis

The Group is engaged in one business segment only, exploration of mineral resource projects. Therefore only an analysis by geographical segment has been presented. The Group has geographic segments in Ireland and Nevada.

The segment results for the period ended 30^th June 2011 are as follows:

	Ireland	Nevada
Loss for period to 30 June 11	€	€
Segment loss for period	0	(288,868)
	______	______
	0	(288,868)
	______	______

2.    Loss per share

The basic and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:

Loss per share	30-Jun-11	30-Jun-10	31-Dec-10
	€	€	€
Loss for period	(288,868)	(60,767)	(327,258)
Weighted average number of ordinary shares
for the purpose of basic earnings per share	37,487,428	28,253,628	28,253,628
	______	______	______
Basic loss per ordinary shares (in cent)	(0.77)	(0.22)	(1.16)
	______	______	______

Diluted earnings per share

The earnings used in the calculation of the diluted earnings per share are the same as those for the basic earnings per share as outlined above.

Notes to the Interim Financial Statements (continued)

3.    Intangible assets - Exploration costs

	Exploration
	& Evaluation	Total
	Assets
	€	€
Cost
At 1 January 2011	797,657	797,657
Additions	109,860	109,860
	______	______
At 30 June 2011	907,517	907,517
	______	______

Notes to the Interim Financial Statements (continued)

4.    Share Capital

	30-Jun-11	30-Jun-10	31-Dec-10
	€	€	€
Authorised Equity
100,000,000 ordinary shares of €0.01 each	1,000,000	1,000,000	1,000,000
	______	______	______
	1,000,000	1,000,000	1,000,000
	______	______	______
Issued Capital
Share Capital	374,874	282,536	282,536
Share Premium	2,657,785	1,602,234	1,602,234
	______	______	______
	3,032,659	1,884,770	1,884,770
	______	______	______

On 2 February 2011, the Company placed 9,233,800 new ordinary shares of nominal value of €0.01 each in the capital of the Company at a price of Stg£0.11 per share, raising Stg£1,015,718 million (approximately €1.1 million).

The financial information has been prepared under International Financial Reporting Standards using accounting policies consistent with those in the last Annual Report.

No dividends were paid or proposed in respect of the six months ended 30 June 2011.

ENDS

 

END

 

 

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