Quarterly Activities Report

RNS Number : 2602B

Harvest Minerals Limited

06 October 2015

 



OCTOBER 06 2015

Quarterly Activities Report

Harvest Minerals Limited is pleased to provide a summary of its activities for the quarter ended 30 September 2015.

During the September quarter the Company completed some major steps towards its progression to become a Brasilian based fertilizer producer.

HIGHLIGHTS

·    Announcement of maiden JORC inferred resource at the Sergi potash project;

·    Announcement of a high grade K₂O discovery at the Arapua project;

·    Completion of the unmarketable sale process;

·    Divestment of the redundant Azul tin asset; and

·    A successful admission to the AIM market of the London Stock Exchange.

Sergi Project

Harvest announced on 23 July 2015 (please see full announcement for details) that it had recorded a JORC Inferred Mineral Resource totaling 105.3 MT grading 21.3% KCl, including all the sylvinite and carnallitite layers and using a cut-off grade of 13% KCl at its Sergi Potash Project.

Based on these exciting results the Company is planning to commence further resource definition work.

Arapua Project

Harvest announced on 3 September 2015 (please see full announcement for details) that it had made an exciting K₂O discovery at its Arapua project.  Harvest is focusing on Arapua as the potential to develop a "Direct Application Natural Fertiliser" product.  Work continues at this project and further results will be announced in due course.

CORPORATE MATTERS

During the quarter and as part of the process to list on the AIM market of the London Stock Exchange, Harvest successfully completed the sale of those shareholdings of less than a marketable parcel.

Additionally, consistent with its intentions on focusing on its Brazilian fertilizer assets, Harvest announced on 13 July 2015 that it had divested its Azul tin asset.

On 7 September 2015, Harvest successfully commenced trading on the AIM market of the London Stock Exchange.

This listing is the result of many months of intensive work and is a major step forward in the Company's development and its ability to access broader pools of capital going forward.

Commenting on the quarters activities, Executive Chairman Brian McMaster noted:

 "Harvest has come a very long way in a very short time.  The Company told the market it intended to list in London and pursue its assets with vigour and to date it has met every deadline and expectation.  The Board and Management look forward to continuing to deliver for shareholders in the next quarter and beyond."

ENDS

Enquiries:

Harvest Minerals Limited	Brian McMaster, Chairman	Tel:  [phone]
Strand Hanson Limited (Nominated & Financial Adviser)	Rory Murphy James Spinney Ritchie Balmer	Tel:  [phone]
Mirabaud Securities LLP (Broker)	Rory Scott	Tel:  + 44 (0) 20 7878 3360

COMPETENT PERSON STATEMENT

The technical information in this release which relates to the Mineral Resource, Exploration Targets and exploration results is based on compiled and reviewed data by Mr. Paulo Brito. Mr. Brito is a consulting geologist for Harvest Minerals Limited and is a Member of AusIMM-The Minerals Institute, as well as, a Member of Australian Institute of Geoscientists. Mr. Brito has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Brito consents to the inclusion in the report of the matters based on their information in the form and context in which it appears. Mr. Brito accepts responsibility for the accuracy of the statements disclosed in this release.

Sergi Project

The Company confirms that it is not aware of any new information or data that materially affect the information included in the original announcements.  All material assumptions and technical parameters underpinning the Mineral Resource Estimate and the Exploration Target in those previous ASX releases continue to apply and have not materially changed.

Arapua Project

The Company confirms that it is not aware of any new information or data that materially affect the information included in the original announcements.  All material assumptions and technical parameters underpinning the Exploration Target in those previous ASX releases continue to apply and have not materially changed.

APPENDIX 1: HARVEST MINERALS TENEMENT SCHEDULE

Tenement	Location	Interest at Beginning of Quarter	Interest at End of Quarter	Acquired During the Quarter	Disposed of During the Quarter
Azul Tin 800.708/77	Brazil	100%	-	-	100%
Capela Potash Project 878.103/2008 878.104/2008 878.105/2008 878.106/2008 878.107/2008 878.108/2008	Brazil	51%	51%	-	-
Arapua Fertilizer Project 831.787/2007 832.447/2009 832.448/2009 832.451/2009 831.144/2010 831.145/2010 831.146/2010 831.275/2010	Brazil	100%	100%	-	-
Sergi Potash Project 878.109/2008 878.110/2008 878.111/2008 878.045/2009	Brazil	100%	100%	-	-

Summary of Exploration and Evaluation Expenditure Incurred per Project:

Project	Current Quarter Payments $A'000
Capela Project	14
Arapua Fertilizer Project	82
Sergi Potash Project	96
Total	192

Appendix 5B

Mining exploration entity quarterly report

Name of entity

Harvest Minerals Limited

ABN		Quarter ended ("current quarter")
12 143 303 388		30 September 2015

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter $A'000	Year to date 3 Months $A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for         (a) exploration and evaluation (b)  development (c)  production (d)  administration	(192) (643)	(192) (643)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	3	3
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other
	Net Operating Cash Flows	(832)	(832)
	Cash flows related to investing activities
1.8	Payment for purchases of:    (a)prospects (b)equity investments (c) other fixed assets
1.9	Proceeds from sale of:           (a)prospects (b)equity investments (c)other fixed assets
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows	-	-
1.13	Total operating and investing cash flows (carried forward)	(832)	(832)

1.13	Total operating and investing cash flows (brought  forward)	(832)	(832)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc. net of costs	312	312
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other (provide details if material) -       Fundraising (costs)	(56)	(56)
	Net financing cash flows	256	256
	Net increase (decrease) in cash held	(576)	(576)
1.20	Cash at beginning of quarter/year to date	1,538	1,538
1.21	Exchange rate adjustments to item 1.20	37	37
1.22	Cash at end of quarter	999	999

 

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

		Current quarter $A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	$84k
1.24	Aggregate amount of loans to the parties included in item 1.10
1.25	Explanation necessary for an understanding of the transactions
	Payment for Directors consulting fees and Directors fees - $45k Payments for serviced office, accounting and administrative services in Brazil - $29k Re-imbursement for corporate advisory - $10k

 

Non-cash financing and investing activities

2.1	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
	-

2.2	Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
	-

 

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available $A'000	Amount used $A'000
3.1	Loan facilities
3.2	Credit standby arrangements

 

Estimated cash outflows for next quarter

		$A'000
4.1	Exploration and evaluation	160
4.2	Development	-
4.3	Production	-
4.4	Administration	500
	Total	660

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter $A'000	Previous quarter $A'000
5.1	Cash on hand and at bank	999	885
5.2	Deposits at call	-	653
5.3	Bank overdraft	-	-
5.4	Other (provide details)	-	-
	Total: cash at end of quarter (item 1.22)	999	1,538

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed	Azul Tin - Brazil 800.708/77	Relinquished	100%	-
6.2	Interests in mining tenements acquired or increased

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1	Preference +securities  (description)
7.2	Changes during quarter (a)  Increases through issues (b)  Decreases through returns of capital, buy-backs, redemptions
7.3	+Ordinary securities	442,671,666	442,671,666
7.4	Changes during quarter (a)  Increases through issues -       Rights issue shortfall -       Placement to sophisticated investors -       Part consideration for the purchase of Capela Project (b)  Decreases through returns of capital, buy-backs	30,228,243 15,000,000 40,000,000
7.5	+Convertible debt securities (description)
7.6	Changes during quarter (a)  Increases through issues:  (b)  Decreases through securities matured, converted
7.7	Options  Unlisted	6,000,000		Exercise price 5 cents	Expiry date 31 December 2015
7.8	Issued during quarter
7.9	Exercised during quarter
7.10	Expired during quarter Unlisted
7.11	Debentures (totals only)
7.12	Unsecured notes (totals only)

Compliance statement

1          This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act.

2          This statement does give a true and fair view of the matters disclosed.

Sign here:         ...Jonathan Hart.........................................       Date: 6 October 2015

(Company Secretary)

Notes

1          The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position.  An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2          The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period.  If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3          Issued and quoted securities  The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

4          The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

5          Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities.  If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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END

 

 

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