Wishbone Gold plc Interim Results

FOR: WISHBONE GOLD PLC AIM SYMBOL: WSBN PINKSHEETS SYMBOL: WISHY September 30, 2014 Wishbone Gold plc Interim Results LONDON, UNITED KINGDOM--(Marketwired - Sept. 30, 2014) - Wishbone Gold Plc (AIM:WSBN)(PINKSHEETS:WISHY), an exploration and acquisition company focussed on precious metals, is pleased to announce its results for the half year ended 30 June 2014. Highlights -- Continued exploration on Wishbone. -- Share exchange with General Resources Investment Trust ("GRIT") demonstrating institutional support for the strategy. -- Fully underwritten open offer to shareholders producing US$ 813,475 (GBP 490,444) of further funding. -- Appointment of Tabarak Investment Bank; a specialist in debt finance for commodity projects in both trading and mining. Continuing work on acquisitions -- The Board has worked closely with Tabarak over the last few months on various financing structures and are confident in their ability to fund the right type of project. -- The Board continues to evaluate various acquisition opportunities. Existing Tenements Wishbone Gold have initiated a ground radar survey on White Mountains using a new technology, which can examine to a far greater depth than anything currently in use in Australia. Depths of 250 metres have been surveyed using this technology but the actual useable data depends upon conditions. Mantle Mining, which has tenements adjacent to White Mountains, has recently acquired further tenements adjoining White Mountains. Their JORC resource on Granite Castle to the west of White Mountains is well established and we intend to trial the ground radar along strike from Granite Castle on our tenement. Outlook The Board remains confident about the prospects for 2014. Chairman Richard Poulden said: "Wishbone has made significant strides towards its objectives this half year. We have successfully brought on board a substantial institutional investor, GRIT, who have confidence in our management team. With the fire power and back up of both GRIT and Tabarak Investment Bank we are well placed to bring on board both small and large opportunities. We have been working on our acquisition program and will continue to do so. We carry on into the remainder of 2014 with great confidence." Wishbone Gold Plc Executive Chairman's Statement Wishbone Gold Plc, an exploration and acquisition company focused on precious metals, is pleased to announce its results for the half year ended 30 June 2014. Since we only announced our full year results for 2013 on 30th June this year it is only three months since I last wrote to you. In that announcement I updated you on what had happened in the first half of 2014 as well as the results for 2013. A brief re-cap of the first half of 2014 is as follows: -- Continued exploration on Wishbone. -- Share exchange with General Resources Investment Trust ("GRIT") demonstrating institutional support for our strategy. -- Fully underwritten open offer to shareholders producing US$ 813,475 (GBP 490,444) of further funding. -- Appointment of Tabarak Investment Bank; a specialist in debt finance for commodity projects in both trading and mining. Continuing work on acquisitions -- The Board has worked closely with Tabarak over the last few months on various financing structures and are confident in their ability to fund the right type of project. -- The Board continue to evaluate various acquisition opportunities. Existing Tenements We have initiated a ground radar survey on White Mountains using a new technology, which can examine to a far greater depth than anything currently in use in Australia. Depths of up to 250 metres have been surveyed using this technology but the actual useable data depends upon conditions. Mantle Mining, which has tenements adjacent to White Mountains, has recently acquired further tenements adjoining White Mountains. Their JORC resource on Granite Castle to the west of White Mountains is well established and we intend to trial the ground radar along strike from Granite Castle on our tenement. The Market for Gold Gold has recently continued to decline in the short term but many analysts see this as a bottom. The reason for this is the imminent tapering of the QE programs which have been supporting share prices in the west. Financial Overview -- The Group incurred losses of US$ 1,107,714 (30 June 2013: US$ 295,505, 31 December 2013: US$ 662,041) in pursuing the exploration of the tenements it owns in Queensland, several abortive acquisitions (US$ 185,636), general operating expenditures, and also having written down its investment in GRIT to the market value of their stock at the half year end at 57.5p. -- Administrative costs during the half year totalled US$ 366,953 (30 June 2013: US$ 294,588, 31 December 2013: US$ 625,872), which is an indication of the increased level activities now being undertaken by Wishbone Gold. -- At the end of the period under review, Wishbone Gold held cash balances totalling US$ 115,604 (30 June 2013: US$ 292,842, 31 December 2013: US$ 135,074). Some of the proceeds of the placing and open offer were received after the half year end as explained below. Wishbone Gold Plc Executive Chairman's Statement -- The Company announced a conditional placing and open offer on 4 April 2014 which raised a net of US$ 780,792 (GBP 471,272). A total of 33,677,181 new ordinary shares were admitted to trading on AIM on 28 April 2014, inclusive of the commission shares. The issue was underwritten by Black Swan FZE, a company in which Richard Poulden has an interest, and 980,888 commission shares were paid accordingly representing 3% of the amount underwritten. The Company incurred costs totalling US$ 32,682 in relation to the issue, and US$ 583,540 was received after 30 June 2014. -- The Group incurred losses per share of US$ 0.49 cents (30 June 2013: 0.17 cents, 31 December 2013: US$ 0.37 cents). -- At the end of the period net assets increased to US$ 1,385,298 (30 June 2013: US$ 191,349, 31 December 2013: US$ 151,801) as the Group has raised funds to continue to explore its current exploration and evaluation assets and potential future acquisitions. -- The conditional agreement with GRIT became unconditional on 7 March 2014 and Wishbone Gold Plc issued 45,772,693 ordinary shares in exchange for 1,031,360 ordinary shares in GRIT, net of transaction costs of US$ 34,450. The Company initially recorded the investment in GRIT using the market value of GBP 0.02 of its own shares issued on the date of the transaction. During the six month period ending 30 June 2014, an impairment loss of US$ 549,645 was recognised in the consolidated income statement in respect of the investment in GRIT. -- Share options were issued to Clive Hyman, the CFO, on 7 March 2014 over 5 million new ordinary shares in the Company to vest as follows: 2,000,000 immediately on grant, 2,000,000 on 7 March 2015, and 1,000,000 on 7 March 2016. The fair value of the options as at the date of issue was US$ 44,756, which have been recognised within administrative expenses in the consolidated income statement. -- The Company appointed Tabarak Investment Bank as one of its advisors on 2 April 2014. Outlook As I said on the 30th of June, Wishbone has made significant strides towards its objectives this half year. We have successfully brought on board a substantial institutional investor, GRIT, who have confidence in our management team. With the fire power and back up of both GRIT and Tabarak Investment Bank we are well placed to bring on board both small and large opportunities. We have been working on our acquisition program and will continue to do so. Thank you all for your support. Richard O'Dell Poulden, Chairman Wishbone Gold Plc Consolidated Income Statement for the half year from 1 January 2014 to 30 June 2014 Unaudited Unaudited Six Six Audited months ended months ended Year ended 30 June 30 June 31 December Notes 2014 2013 2013 US$ US$ US$ Pre-exploration costs expensed - (917) (19,026) Abortive acquisition costs (185,636) - (17,143) Administrative expenses 2 (366,953) (294,588) (625,872) -------------- -------------- -------------- Operating loss (552,589) (295,505) (662,041) -------------- -------------- -------------- Impairment of investments 5 (549,645) - - Finance costs (5,480) - - -------------- -------------- -------------- Loss on ordinary activities before taxation (1,107,714) (295,505) (662,041) Income tax expense - - - -------------- -------------- -------------- Loss for the period attributable to equity holders of the parent (1,107,714) (295,505) (662,041) -------------- -------------- -------------- Loss per share: US$ US$ US$ Basic and diluted (cents) 3 (0.49) (0.17) (0.37) -------------- -------------- -------------- Wishbone Gold Plc Consolidated Statement of Comprehensive Income for the half year from 1 January 2014 to 30 June 2014 Unaudited Unaudited Six Six Audited months ended months ended Year ended 30 June 30 June 31 December Notes 2014 2013 2013 US$ US$ US$ Loss for the period (1,107,714) (295,505) (662,041) -------------- -------------- -------------- Other comprehensive income/(loss) Other comprehensive income/(loss) that are reclassified to profit or loss in subsequent periods: Exchange differences on translating foreign operations 27,301 (63,298) (66,589) -------------- -------------- -------------- Other comprehensive income/(loss) for the period, net of tax 27,301 (63,298) (66,589) -------------- -------------- -------------- Total comprehensive loss for the period attributable to equity holders of the parent (1,080,413) (358,803) (728,630) -------------- -------------- -------------- Wishbone Gold Plc Consolidated Statement of Financial Position as at 30 June 2014 Unaudited Unaudited Audited 30 June 30 June 31 December Notes 2014 2013 2013 US$ US$ US$ ASSETS: Non-current assets Intangible assets 4 441,793 316,463 408,239 Investments held for resale 5 981,470 - - -------------- -------------- -------------- 1,423,263 316,463 408,239 -------------- -------------- -------------- Current assets Trade and other receivables 355,614 29,526 42,355 Cash and cash equivalents 115,604 292,842 135,074 -------------- -------------- -------------- 471,218 322,368 177,429 -------------- -------------- -------------- -------------- -------------- -------------- Total assets 1,894,481 638,831 585,668 -------------- -------------- -------------- EQUITY AND LIABILITIES: Capital and reserves Share capital 6 419,146 267,888 286,351 Share premium 3,671,758 1,223,583 1,535,399 Share based payments reserve 74,205 29,449 29,449 Foreign exchange reserve (72,166) (96,176) (99,467) Retained earnings (2,707,645) (1,233,395) (1,599,931) -------------- -------------- -------------- Total equity 1,385,298 191,349 151,801 -------------- -------------- -------------- Current liabilities Borrowings - 58,717 164,952 Trade payables 509,183 388,765 268,915 -------------- -------------- -------------- 509,183 447,482 433,867 -------------- -------------- -------------- -------------- -------------- -------------- Total equity and liabilities 1,894,481 638,831 585,668 -------------- -------------- -------------- Wishbone Gold Plc Consolidated Statement of Changes in Equity for the half year from 1 January 2014 to 30 June 2014 Share Based Foreign Share Share Payments Exchange Retained Total Capital Premium Reserve Reserve Earnings Equity US$ US$ US$ US$ US$ US$ Balance at 1 January 2014 286,351 1,535,399 29,449 (99,467) (1,599,931) 151,801 Shares/options issued during the period 132,795 2,136,359 44,756 - - 2,313,910 Retained loss for the period - - - - (1,107,714) (1,107,714) Foreign exchange differences on translation - - - 27,301 - 27,301 ------------------------------------------------------------- Balance at 30 June 2014 419,146 3,671,758 74,205 (72,166) (2,707,645) 1,385,298 ------------------------------------------------------------- Share Based Foreign Share Share Payments Exchange Retained Total Capital Premium Reserve Reserve Earnings Equity US$ US$ US$ US$ US$ US$ Balance at 1 January 2013 267,888 1,223,583 29,449 (32,878) (937,890) 550,152 Retained loss for the period - - - - (295,505) (295,505) Foreign exchange differences on translation - - - (63,298) - (63,298) ------------------------------------------------------------- Balance at 30 June 2013 267,888 1,223,583 29,449 (96,176) (1,233,395) 191,349 ------------------------------------------------------------- Share Based Foreign Share Share Payments Exchange Retained Total Capital Premium Reserve Reserve Earnings Equity US$ US$ US$ US$ US$ US$ Balance at 1 January 2013 267,888 1,223,583 29,449 (32,878) (937,890) 550,152 Shares/options issued during the period 18,463 311,816 - - - 330,279 Retained loss for the period - - - - (662,041) (662,041) Foreign exchange differences on translation - - - (66,589) - (66,589) ------------------------------------------------------------- Balance at 31 December 2013 286,351 1,535,399 29,449 (99,467) (1,599,931) 151,801 ------------------------------------------------------------- Foreign exchange reserve records exchanges differences, which arise on translation of foreign operations with a functional currency other than US Dollars; principally Pounds Sterling and Australian Dollars. Wishbone Gold Plc Consolidated Statement of Cash Flows for the half year from 1 January 2014 to 30 June 2014 Unaudited Unaudited Six Six months months Audited Year ended 31 ended 30 June ended 30 June December 2014 June 2013 2013 Note US$ US$ US$ Cash flows from operating activities Operating loss (552,589) (295,505) (662,041) Reconciliation to cash generated from operations: Foreign exchange gain - - 5,482 Interest expense - - 1,234 Administrative expenses converted into ordinary shares - - 141,970 Decrease/(increase) in receivables 23,567 31,552 (17,226) Increase in payables 240,268 155,108 210,153 Issue of share options 2 44,756 - - -------------- -------------- -------------- Net cash flow from operating activities (243,998) (108,845) (320,428) -------------- -------------- -------------- Cash flows from investing activities Expenditure on exploration activities (33,554) (156,516) (256,165) Cash flows from financing activities Interest paid (5,480) - - Issue of shares for cash 229,935 - - Increase in borrowings - - 162,271 -------------- -------------- -------------- Net cash flow from financing activities 224,455 - 162,271 -------------- -------------- -------------- Effects of exchange rates on cash and cash equivalents 33,627 (30,913) (39,720) -------------- -------------- -------------- Net decrease in cash (19,470) (296,274) (454,042) Cash at bank and in hand less overdrafts at 1 January 135,074 589,116 589,116 -------------- -------------- -------------- Cash at bank and in hand less overdrafts at 30 June 115,604 292,842 135,074 -------------- -------------- -------------- Wishbone Gold Plc Notes to the unaudited interim financial information for the half year from 1 January 2014 to 30 June 2014 1. Basis of preparation These interim financial statements for the six months ended 30 June 2014 have been prepared in accordance with IAS 34 'Interim financial reporting'. The interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2013 which have been prepared in accordance with IFRSs as adopted by the European Union. The operations of Wishbone Gold Plc are not affected by seasonal variations. The directors do not recommend the payment of a dividend (30 June 2013: US$ Nil). Non-statutory accounts The financial information for the six months ended 30 June 2014 set out in this interim report does not comprise the Group's statutory accounts. Audited consolidated financial information for the year ended 31 December 2013 has been extracted from the consolidated financial information on the Group for the year then ended. Abridged accounts for the Company have been filed in Gibraltar. The financial information for the six months ended 30 June 2014 and 30 June 2013 is unaudited. Segmental Analysis Management has determined the operating segments by considering the business from both a geographic and product perspective. For management purposes, the Group is currently organised into one operating division; resource evaluation. This division is the business segment for which the Group reports its segment information internally to the Board of Directors. The Group's operations are predominantly in Australia. 2. Administrative expenses Share options were issued to Clive Hyman, the CFO, on 7 March 2014 over 5 million new ordinary shares in the Company to vest as follows: 2,000,000 immediately on grant, 2,000,000 on 7 March 2015, and 1,000,000 on 7 March 2016. The fair value of the options as at the date of issue was US$ 44,756, which have been recognised within administrative expenses in the consolidated income statement. 3. Loss per share Unaudited Unaudited Audited Six months Six months Year ended ended 30 ended 30 31 December June 2014 June 2013 2013 US$ US$ US$ Retained loss attributable to ordinary shareholders (1,107,714) (295,505) (662,041) ---------------- ---------------- ---------------- Weighted average number of ordinary shares 224,132,039 170,987,327 176,917,694 ---------------- ---------------- ---------------- Basic profit/earnings per share (cents) (0.49) (0.17) (0.37) ---------------- ---------------- ---------------- Basic loss per share have been calculated by dividing the net results attributable to ordinary shareholders by the weighted average number of shares in issue during the period as disclosed in note 6. There are no dilutive potential ordinary shares as at 30 June 2014 and 31 December 2013. Wishbone Gold Plc Notes to the unaudited interim financial information for the half year from 1 January 2014 to 30 June 2014 4. Intangible assets Exploration and evaluation assets US$ Cost Balance at 1 January 2013 187,080 Additions 129,383 -------------------------------------- At 30 June 2013 316,463 Additions 91,776 -------------------------------------- At 31 December 2013 408,239 Additions 33,554 -------------------------------------- At 30 June 2014 441,793 -------------------------------------- 5. Investments held for resale Unaudited Unaudited Audited 31 30 June 30 June December 2014 2013 2013 US$ US$ US$ As at 1 January 1,531,115 - - Impairments recognised in the period (549,645) - - --------------- -------------- -------------- As at end of the period 981,470 - - --------------- -------------- -------------- Investments held for resale relates to a share for share exchange with Global Resources Investment Trust as disclosed in note 6. During the half year, the directors have recognised an impairment loss of US$ 549,645 through the consolidated income statement. 6. Share capital Unaudited Unaudited Audited 31 30 June 30 June December 2014 2013 2013 US$ US$ US$ Authorised: 1,000,000,000 Ordinary shares of GBP 0.001 (US$ 0.0016) each 1,600,000 1,600,000 1,600,000 --------------- --------------- --------------- Unaudited Unaudited Audited 31 30 June 30 June December 2014 2013 2013 US$ US$ US$ Allotted, called up and fully paid: 262,551,235 ordinary shares of GBP 0.001 each (30 June 2013: 170,987,327; 31 December 2013: 183,101,361) 419,146 267,888 286,351 --------------- --------------- --------------- On 2 July 2013, the Company approved the conversion of GBP 207,222.87 of expenses and debts into 11,841,307 ordinary shares to the Directors at a share price of 1.75p on the day to satisfy debts and expenses incurred on behalf of the Company. On 18 December 2013 the Company approved the conversion of GBP 7,500 of expenses into 272,727 shares at the price of 2.75p. On 7 March 2014 the Company issued 45,772,693 ordinary shares in exchange for 1,031,360 ordinary shares in Global Resources Investment Trust, net of issue costs of US$ 34,450. Wishbone Gold Plc Notes to the unaudited interim financial information for the half year from 1 January 2014 to 30 June 2014 6. Share capital (continued) The Company announced a conditional Placing and Open offer on 4 April 2014. A total of new issues, including commission shares, of 33,677,181 new ordinary shares were admitted to trading AIM on 28 April 2014 which raised US$ 780,792 net of expenses of US$ 32,682. 7. Distribution of the Interim Report Copies of this announcement may be obtained from the Company Secretary at the registered office: G1 Haven Court, 5 Library Ramp, Gibraltar. In addition, an electronic version will be available on the Company's website - www.wishbonegold.com. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Wishbone Gold plc Richard Poulden CEO +44 7703 412 817 richard.poulden@wishbonegold.com OR Wishbone Gold plc Clive Hyman CFO +44 20 7382 8372 +44 78 0263 4163 clive.hyman@wishbonegold.com OR Northland Capital Partners Ltd William Vandyk +44 20 7382 1100 OR Northland Capital Partners Ltd Lauren Kettle +44 20 7382 1100 OR Beaufort Securities Limited Saif Janjua + 44 20 7382 8300 OR Beaufort Securities Limited Elliot Hance + 44 20 7382 8416 OR Damson PR Abigail Stuart-Menteth +44 7855 526550 abigail@damsonpr.com -0- Wishbone Gold Plc

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