Final Results

RNS Number : 3065J

Erris Resources PLC

29 March 2018

 

Erris Resources Plc / EPIC: ERIS.L / Market: AIM / Sector: Mining

29 March 2018

Erris Resources plc ("Erris" or the "Company")

Final Results

Erris Resources, the European focused mineral exploration company with a portfolio of zinc prospects in Ireland and gold projects in Sweden, is pleased to announce its final audited results for the 15- month period ended 31 December 2017.

Overview

·    Successfully admitted to trading on AIM on 21 December 2017 having raised £4 million

·    Targeting the rapid advancement of a previously producing Irish zinc project and Swedish gold projects

·    Portfolio located in low risk jurisdictions with favourable and supportive mining codes

·    Industry partnerships: Canadian royalties company Osisko Gold Royalties invested at IPO to become an 18.9% shareholder and Canadian mid-tier mining company Centerra Gold continues to fund Swedish portfolio development within a strategic alliance agreement

·    Defined development programme underway in Ireland to test the extensions of the previously producing Abbeytown mine and test regional targets

·    US$1.85m work programme funded by Centerra Gold underway to advance a portfolio of gold projects in Sweden

·    Advanced strategy to generated and advance other value accretive opportunities - applied for eighteen new contiguous prospecting licences for zinc in an area east of Galway, County Galway (the "Galway Project")

·    Proven team with international project development success

The Company's Annual Report and Financial Statements for the period ended 31 December 2017 will be posted to shareholders today and will be available on the Company's website https://www.errisresources.com/.

Chairman's Statement

I am pleased to report on the inaugural results since Erris Resources was admitted to AIM on 21 December 2017.  Having raised £4 million, before expenses, through a Placing of 16,000,000 new ordinary shares, we are now focused on advancing our prospective portfolio of 100% owned zinc assets in Ireland and gold projects in Sweden, as well as generating and acquiring additional exploration opportunities that the Board believe have the potential to add value to the business.  This has been demonstrated post period end by the identification and application for additional licences for prospective licences in Galway, Ireland with zinc potential.

We are fortunate to have the support of two Canadian mining Companies, Osisko Gold Royalties and Centerra Gold, which have recognised our potential to make commercial discoveries, thereby endorsing both our business model and team.  Osisko Gold Royalties is a cornerstone shareholder, holding 18.9% of issued share capital.  Furthermore, we have a strategic alliance agreement with Centerra Gold, which sees it funding a portfolio of gold and base metal properties within a common area of interest in northern Sweden.  This currently covers three gold projects, providing Erris Resources with exposure to significant upside in the event of discovery with no corporate dilution.  The most recent of these projects, Brännberg, was elected by Centerra Gold in January 2018, bringing the planned expenditure by Centerra Gold in 2018 to a total US$1,850,000.

Drilling and other work including ground magnetic, electromagnetic and induced polarisation surveys, surface sampling, mapping, is underway across the portfolio.   In Ireland, at the 100% owned Abbeytown zinc project in County Sligo, we are also rapidly advancing work on the ground.  Having completed in-fill soil geochemistry surveys, in late February 2018 we commenced the Phase One 5,000m drill programme at the first of four high priority target areas.   The Abbeytown zinc project covers an historic lead-zinc -silver mine situated within an active limestone quarry, where ore was extracted on an industrial-scale between 1951 and 1961, initially as an open pit, and then as an underground mine.  We are very excited about this project and look forward to providing updates on our progress.

In Sweden, we received results of drill programmes undertaken in the second half of 2017 at the Klippen and Käringberget gold projects. These were encouraging as they highlighted broad zones of mineralisation and, together with new geophysical data collected early in 2018, generated a new set of targets to be drill tested.  Subsequently, we signed a contract with Northdrill Oy for 2,750m of drilling at the Klippen gold project, comprising 15-18 holes covering approximately 4.0km of strike length, extending the previous drilling to the northwest by 2.1km and to the northeast by 350m.  This is expected to be completed in the second quarter of 2018 after which we will move onto the Käringberget and Brännberg projects.

The Board firmly believes that exploration is the lifeblood of the resource sector. However, discovery rates have dropped in recent years due to reduced spending on exploration; we hope to reverse this trend.  As a discovery driven exploration company with a focus on base and precious metals, we aim to delineate resources that can be part of the next generation of mines.  With this in mind, we continue to seek value accretive opportunities in favourable mining jurisdictions.  Post period end, we applied for 18 new contiguous prospecting licences in an area east of Galway, Ireland, covering 673km² and located in an unexplored setting analogue to and approximately 40km west of the Tynagh deposit, and are also evaluating other prospects.

As we come to the end of the first quarter and look ahead to the rest of 2018, Erris Resources is in a strong position.  We have three active exploration programmes underway and are reviewing several new opportunities.  As a result, we expect to generate a steady news flow during the remainder of the year.

Finally, I would like to thank our shareholders for their continued support and our dedicated team and partners for their commitment to the development of Erris Resources.

Jeremy Martin

Non-Executive Chairman

Strategic Review

Company Overview

Erris is a mineral exploration and development company with six prospecting licences in Ireland and 18 exploration permits in Sweden.  In Ireland the licences total 159km2, including the historic Abbeytown deposit, and are focussed principally on economic zinc mineralisation, with ancillary lead, silver and copper potential.  In Sweden, the 18 licences are grouped into seven project areas totalling 313km2, primarily focussed on gold.

Erris has been validated by major industry partners both at a project level and at the corporate level. Osisko Gold Royalties Ltd (market capitalisation of approximately C$2.0 billion) has a 1 per cent. royalty on the Abbeytown Project and Erris's Swedish licences and became a 18.91 per cent shareholder at the IPO. At the project level, Centerra Gold Inc. (market capitalisation of approximately C$2.1 billion) has a JV agreement with Erris where project expenditure of US$1,000,000 by Centerra on each project over two years will earn it a 51 per cent. interest in each project, with Erris retaining a 49 per cent. interest without having to invest any additional funds.  In 2017, Centerra optioned two licences and spent US$400,000 on each of these two DPAs plus a further US$250,000 on generative exploration.  In 2018, it has already optioned a third DPA at Brännberg and has committed to spending a total of US$1,850,000 during the year.

Company Strategy

Erris's business model can best be defined as seeking to create significant shareholder value through the process of discovering new ore deposits. Well-managed exploration success finding commercially viable deposits can create capital value even in a period of weak metal prices.  The Directors believe that Erris's business model maximises the chance of making commercial discoveries in an efficient manner, as follows:

Technically-led team - The Directors and senior management team have significant exploration experience, with a track record of deposit discovery from first principal through to resource definition, advanced studies and mine development.  In addition, the team has experience of sourcing the funding required for mining projects via its capital markets expertise and joint venture pedigree.

European jurisdictions -               The Erris Resources portfolio comprises mineral licences in areas with proven metallogenic potential, an active mining industry, low political risk, and transparent permitting processes. Erris Resources has a zinc project in Ireland and gold projects in Sweden. New targets in Europe are currently being assessed.

Prospective Property Portfolio -  The current portfolio includes the Abbeytown Project, a 15 km trend of discrete lead-zinc-silver prospects, barely explored since the 1980s, wholly reinterpreted after several years of fieldwork, systematic data integration and fresh geological thinking. In Sweden, Erris Resources has a portfolio of gold and polymetallic projects in northern Sweden.  The Group are actively looking for new opportunities to expand its portfolio and in February announced that it had applied for eighteen new prospecting licences in an area east of Galway, County Galway, Ireland.

Dynamic Work Programme - Erris has over 10,000 metres of diamond drilling planned for 2018. At the Abbeytown Project in Ireland, a 5,000-metre exploration programme has begun. In Sweden, Phase Two diamond drilling is ongoing at Klippen (gold). A summer drilling campaign will cover Phase Two at Käringberget (zinc-copper-gold), and Phase One drilling at Brännberg. Existing and new targets will continue to be worked up via geochemical, geophysical and geological programmes running throughout the year.

Operational review & outlook

Ireland

The Abbeytown Project consists of six prospecting licences covering a total of 159 km² originally granted in 2013 for a period of six years (subject to periodic renewals), most recently having been renewed on 22 November 2017 for the remainder of the licence periods after the minimum collective expenditure threshold of €90,000 was met for the licences.

Erris has collated and synthesised the historic data and carried out additional exploration work including regional soil sampling, digitising, re-modelling, sampling, re-interpretation and drilling four diamond holes. Erris now believes that Abbeytown is a carbonate hosted replacement deposit, similar to Harberton Bridge or Kilbricken in the Irish Midlands. At Abbeytown, there appears to be strong geochemical zonation with a copper zone at the base, a lead-rich lower zone through to a zinc-lead middle zone and a pyrite-calcite upper zonation or cap. Erris believes the copper mineralisation probably occurs proximal to the source or structure feeding hydrothermal fluids whereas the zinc is precipitated at lower temperatures more distal to the feeder zone.

Erris has drilled four historic holes ER001-ER004, three of which yielded encouraging results and confirmed the previous mineralisation while allowing Erris to develop a new exploration model in the absence of previous core drilling.   The Company has costed a total potential of 21,700m of diamond drilling over an eighteen-month period at the Abbeytown Project.  Erris plans to drill 5,000m during the Phase 1 drilling programme.

The drilling allocations for the target areas are as follows and will be dependent on the results from the initial Phase 1 drill programme:

Project Area		Total potential metres	Planned			Contingent
Abbeytown		9,200m	2,000m			7,200m
Lugawarry/Streamstown		6,500m	1,500m			5,000m
Skreen		6,000m	1,500m			4,500m
TOTAL		21,700m	5,000m			16,700m

Sweden

Erris holds and operates a portfolio of Exploration Permits in Sweden that is funded through the Strategic Alliance with Centerra Gold. The three most strategically important projects are Klippen, Käringberget and Brännberg. Erris also holds other granted or pending permits on early stage targets which have little or no previous exploration work. These include Storklinten, Orrträsket, Skarvsjö, and Gunnarbäcken.

Centerra Gold made elections in respect of Klippen, Käringberget and Brännberg. On each project Centerra is expected to invest US$1,000,000 over two years to earn 51 per cent., of which US$400,000 is spent in Year One, and the remaining US$600,000 is invested in Year Two. Klippen and Käringberget entered into Year Two of the agreement in 2018, and Brännberg into Year One. Centerra Gold will also invest $250,000 in generative exploration in 2018, taking the total to US$1,850,000.

The Klippen project       

Work by Erris identified an area of interest with 3.6 km of strike length on which Centerra agreed to fund a drill programme as part of their earn-in.  While Klippen has been the subject of multiple exploration programmes in the past, the approach has not been systematic, and the results of different programmes were not effectively tied together by past operators. The Directors believe Erris has compiled and reviewed a great deal of geochemical, geophysical and geological information over the project and have developed promising targets for further investigation.

The Phase 1 drill programme involved drilling of nine angled holes totalling 1,800m with fences of holes to test mineralisation under the previous shallow drilling and trenching which had economic gold intersections. No historic core survives so further drilling is required to update the geological and exploration model. The Phase 1 drill programme and ancillary work was completed in 2017 and cost US$400,000.  Centerra has confirmed that it intends to fund an additional US$600,000 in expenditures on the project in 2018, which will include additional exploration drilling.

The Käringberget project            

Käringberget is an early stage exploration project. Indications from regional dataset interpretation, geochemistry and alteration mapping and geological and mineralisation observations and similarities with deposits in the area clearly suggest the presence of a mineralising system and good potential for deposit development.

Erris is in the process of completing a work programme to test the zoned alteration and geochemical anomaly at Käringberget. In 2017 Centerra funded a drilling programme to test the zone of anomalous gold and silver rock chip geochemistry and extensive silica-pyrite alteration.  As at Klippen, the work on data collation, geological interpretation, review, and planning is underway. The integrated results from the 2017 work programme have encouraged  Centerra to confirm that it will fund an additional US$600,000 in expenditures on the project in 2018, which will include geophysical surveys and additional exploration drilling.

The Brännberg project 

Erris Resources views Brännberg as a high priority target given that previous drilling had a high success rate. Twenty one shallow historic holes have been drilled at the property and mineralisation is open at depth and along strike.  In January 2018 Centerra elected Brännberg as a DPA, and under the terms of the agreement it may invest US$1,000,000 in exploration funding over two years to earn a 51% interest.

It is clear that Brännberg has not had systematic exploration carried out on the project area in the past. Despite the incomplete work, the cumulative data and the current understanding of controlling features on gold mineralisation in the Skellefteå district makes Brännberg a prospective target.

Financial Review

Erris Resources Plc was incorporated on 21 June 2017.  On 1 December 2017, Erris Resources Plc acquired the entire issued share capital of Erris Resources (Exploration) Ltd by way of a share for share exchange.  This transaction has been treated as a group reconstruction and has been accounted for using the reverse merger accounting method.  Accordingly, the financial information for the current period and comparatives have been presented as if Erris Resources (Exploration) Ltd had been owned by Erris Resources Plc throughout the current and prior periods.

Notwithstanding that the company is a UK Plc admitted to trading on AIM, the company presents its accounts in its functional currency of Euros, since the majority of exploration expenditure is denominated in this currency.

The Group is still at an exploration stage and not yet producing minerals, which would generate commercial income.  Under the terms of the Centerra Strategic Alliance Agreement, the group earns a 10% Management Fee on all committed expenditures, which amounted to €0.11m in the period compared with €0.02m in 2016. However, the Group is not expected to report overall profits until it disposes of or is able to profitably commercialise its exploration and development projects.

During the period the Group made an operating loss of €0.55m compared with a profit of €0.49m for the year ended 30 September 2016.  This is primarily due to the costs incurred in association with the IPO in the current period, whilst the prior period included the one-off sales of 1% net smelter royalties over its projects in Ireland and Sweden to Osisko that generated revenues of C$0.75m (€0.5m).   Exceptional costs include €0.34m of costs related to the IPO, which were paid primarily to third party providers.  It also includes a non-cash accounting charge of €0.07m related to the expensing of share options valued under the Black-Scholes method.

The Total Net assets of the Group increased to €5m at 31 December 2017 from €1.13m at 30 September 2016, due primarily to the funds raised at the IPO.  Intangible assets increased to €1.04m from €0.72m due to ongoing exploration at the Group's Ireland and Sweden projects.  Included within Current Liabilities are the net expenditures under the Strategic Alliance Agreement with Centerra Gold, which show total reimbursed costs for the year of €0.79m (2016: €0.26m) and a year-end creditor that arises due to timing of €0.07m (2016: €0.08m).  Other current liabilities increased from €0.065m to €0.27m and relate primarily to IPO fees that were settled immediately after the period end.

The closing cash balance for the Group of €4m, which is significantly higher than €0.5m in the prior year, following the fund raise of £4m before expenses by way of issuing 16,000,000 new shares at a price of 25 pence per share in the December 2017 IPO on the AIM market.

On behalf of the board

Mr J Martin

Director

28 March 2018

Group Statement of Comprehensive Income for the Period Ended 31 December 2017

			15 months					12 months
			ended					ended
			31 December					30 September
			2017					2016
Continuing operations	Notes		€					€
Revenue	4		111,676					21,914
Cost of sales				(53,005)					(14,741)
Gross profit			58,671					7,173
Administrative expenses				(204,725)					(13,643)
Other operating income			-					497,860
IPO costs				(340,044)				-
Share options charge				(70,955)				-
Operating (loss)/profit	7			(557,053)				491,390
Finance income	10		54					2
(Loss)/profit before taxation				(556,999)				491,392
Tax on (loss)/profit	11		27,720						(58,368)
(Loss)/profit for the financial period	27			(529,279)				433,024
Other comprehensive income			-					-
Total comprehensive income for the period				(529,279)				433,024
Earnings per share from continuing operations	12
Basic (cents per share)				(2.65)				2.91
Diluted (cents per share)				(2.65)				2.61
Total (loss)/profit and comprehensive (loss)/income for the period is attributable to the owners of the parent company

			31 December 2017					30 September 2016
	Notes		€					€
Non-current assets
Intangible assets	13		1,047,708					724,476
Property, plant and equipment	14		77					2,496
			1,047,785					726,972
Current assets
Trade and other receivables	18		200,956					3,482
Cash and cash equivalents			4,090,143					546,194
			4,291,099					549,676
Total assets			5,338,884					1,276,648
Current liabilities
Borrowings	21		1,139					2,568
Current tax liabilities			30,648					58,368
Trade and other payables	20		241,556					4,387
Amounts owed to joint ventures	22		64,968					85,517
			338,311					150,840
Net current assets			3,952,788					398,836
Total liabilities			338,311					150,840
Net assets			5,000,573					1,125,808
Equity
Called up share capital	25		351,133					183,932
Share premium account			4,151,045					673,889
Other reserves	26		759,687					-
Retained earnings	27			(261,292)				267,987
Total equity			5,000,573					1,125,808

Group Statement of Changes in Equity for the Period Ended 31 December 2017

		Share capital			Share premium account			Other reserves			Retained earnings			Total
	Notes	€			€			€			€			€
Balance at 1 October 2015		182,729			663,059			-				(165,037)			680,751
Period ended 30 September 2016:
Profit and total comprehensive income for the period		-			-			-			433,024			433,024
Issue of share capital	25	1,203			10,830			-			-			12,033
Total transactions with owners recognised directly in equity		1,203			10,830			-			-			12,033
Balance at 30 September 2016		183,932			673,889			-			267,987			1,125,808
Period ended 31 December 2017:
Loss and total comprehensive income for the period		-			-			-				(529,279)			(529,279)
Issue of share capital	25	182,044			4,369,081			-			-			4,551,125
Issue costs	25	-				(218,036)			-		-				(218,036)
Credit to equity for equity settled share-based payments	24	-			-			70,955			-			-
Merger reserve			(14,843)			(673,889)			688,732		-			-
Total transactions with owners recognised directly in equity		167,201			3,477,156			759,687			-			4,404,044
Balance at 31 December 2017		351,133			4,151,045			759,687				(261,292)			5,000,573

		Share capital		Share premium account			Retained earnings			Total
	Notes	€		€			€			€
As at 21 June 2017		-		-			-			-
Loss and total comprehensive income for the period		-		-				(365,634)			(365,634)
Issued on incorporation	25	1								1
Issued on acquisition of subsidiary	25	169,088								169,088
Issue of share capital	25	182,244		4,369,081			-			4,551,325
Issue costs	25	-			(218,036)			-			(218,036)
Balance at 31 December 2017		351,333		4,151,045				(365,634)			4,136,744

Group Statement of Cash Flows for the Period Ended 31 December 2017

					2017						2016
	Notes	€			€			€			€
Cash flows from operating activities
Cash (used in)/generated from operations	33					(407,068)					598,252
Net cash (outflow)/inflow from operating activities						(407,068)					598,252
Investing activities
Exploration expenditure			(320,812)						(168,418)
Exploration expenditure utilising funds from Strategic Alliance Agreement			(907,265)						(286,406)
Interest received		54						2
Net cash used in investing activities						(1,228,023)						(454,822)
Financing activities
Proceeds from issue of shares		4,494,806						12,034
Share issue costs			(218,036)					-
Proceeds from borrowings		-						7,121
Repayment of borrowings			(1,429)						(4,553)
Funds received from Strategic Alliance Agreement		886,715						371,923
Net cash generated from financing activities					5,162,056						386,525
Net increase in cash and cash equivalents					3,526,965						529,955
Cash and cash equivalents at beginning of period					546,194						17,480
Effect of foreign exchange rates					16,984							(1,241)
Cash and cash equivalents at end of period					4,090,143						546,194

Notes to the Financial Statements for the Period Ended 31 December 2017

1	Accounting policies
	Company information
	Erris Resources Plc ("the company") is a public limited company which is listed on the AIM Market of the London Stock Exchange domiciled and incorporated in England and Wales. The registered office address is 29-31 Castle Street, High Wycombe, Buckinghamshire, United Kingdom, HP13 6RU. The company name was changed from Erris Resources (Exploration) Plc to Erris Resources Plc on 1 December 2017 by a special resolution. The group consists of Erris Resources Plc and all of its subsidiaries.
1.1	Basis of preparation
	These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRIC interpretations as adopted for use in the European Union and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, (except as otherwise stated).
	The financial statements are prepared in euros, which is the functional currency of the company and the group's presentation currency, since the majority of exploration expenditure is denominated in this currency. Monetary amounts in these financial statements are rounded to the nearest €.
	The consolidated financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
	These group and company financial statements for the period ended 31 December 2017 are the first financial statements of Erris Resources Plc and the group prepared in accordance with IFRS.   For all periods up to and including 30 September 2016, the financial statements for Erris Resources (Exploration) Ltd were prepared in accordance with UK GAAP. The accounting policies explain the principal adjustments made by the group and company in restating the former UK GAAP financial statements.  A reconciliation of the statement of financial position as at 1 October 2015 and the financial statements for the year ended 30 September 2016 are shown at note 35.
1.2	Basis of consolidation
	The consolidated financial statements incorporate those of Erris Resources Plc and all of its subsidiaries (ie entities that the group controls when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity).
	Erris Resources Plc was incorporated on 21 June 2017.  On 1 December 2017, Erris Resources Plc acquired the entire issued share capital of Erris Resources (Exploration) Ltd by way of a share for share exchange.  This transaction has been treated as a group reconstruction and has been accounted for using the reverse merger accounting method.  Accordingly, the financial information for the current period and comparatives have been presented as if Erris Resources (Exploration) Ltd had been owned by Erris Resources Plc throughout the current and prior periods. All financial statements are made up to 31 December 2017. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Subsidiaries are fully consolidated from the date on which control is transferred to the group.  They are deconsolidated from the date on which control ceases.

The following selected notes are extracted from the full Annual Report:

13	Intangible fixed assets
	Group		Ireland Exploration and Evaluation costs				Sweden Exploration and Evaluation costs				Total
			€				€				€
	Cost
	At 1 October 2015		457,736				95,607				553,343
	Additions - group funded		85,525				85,608				171,133
	At 30 September 2016		543,261				181,215				724,476
	Additions - group funded		207,491				115,741				323,232
	At 31 December 2017		750,752				296,956				1,047,708
	Amortisation and impairment
	At 1 October 2016 and 31 December 2017		-				-				-
Carrying amount
At 31 December 2017		750,752				296,956				1,047,708
At 30 September 2016		543,261				181,215				724,476
Intangible assets comprise capitalised exploration and evaluation costs (direct costs and fixed salary / consultants costs) of the Ireland Zinc Projects and the Sweden Gold Projects (excluding the amounts recovered from Centerra Gold as per note 22.)
The company had no intangible fixed assets at 31 December 2017 or 30 September 2016.

22	Amounts owed to Strategic Alliance partner
				Group				Company
				2017		2016		2017		2016
				€		€		€		€
	Amounts owing to Centerra Gold Inc			64,968		85,517		-		-
	On 1 January 2016, the company entered into a strategic alliance with Centerra Gold over an Area of Interest ("AOI") in Northern Sweden within which Erris holds exploration permits over seven areas totalling 253km2.  Under the terms of this agreement, Centerra have the right to make an election ("Election") in respect of any or all of the designated project areas ("DPA" or "DPAs") in the AOI and on any rights subsequently acquired by Erris during the first two years after initial grant of the permit.  On 20 December 2016, Centerra made Elections in respect of two DPAs.  Under the terms of the agreement, Centerra must spend US$400,000 on drilling on each of those two DPAs within the subsequent twelve months and US$600,000 on each of those two DPAs within the following 12 months.  If Centerra spends the aggregate US$1,000,000 on each DPA, they will earn a 51% stake in that DPA. During the period, Centerra has spent a total of €907,265 (2016 : €286,406), comprising reimbursed costs of €795,591(2016 : €264,492) and paid management fees of €111,674 (2016 : €21,914). In accordance with the terms of the agreement, amounts received but not yet expensed are repayable to Centerra.
	A summary of the funding received from and costs incurred on behalf of Centerra is analysed as follows :
				Funding from Centerra		Exploration expenditure		Management and consultancy fees		Net
	Generative			307,617		279,404		52,247		24,034
	Klippen			282,274		247,808		31,098		3,368
	Käringberget			296,824		268,379		28,329		116
	Brännberg			-		-
				886,715		795,591		111,674		20,550
	In the prior period, all funding received (€371,923) and expenditure incurred (€286,406) related to generative projects.

32	Cash (used in)/generated from group operations
		2017			2016
		€			€
	(Loss)/profit for the period after tax		(529,279)			433,024
	Adjustments for:
	Taxation (credited)/charged		(27,720)			58,368
	Investment income		(54)			(2)
	Foreign exchange gains on cash equivalents		(16,984)			1,241
	Equity settled share based payment expense	70,955			-
	Non-cash consideration for shares	-			99,784
	Movements in working capital:
	(Increase)/decrease in trade and other receivables		(140,290)			2,370
	Increase in trade and other payables	236,304			3,467
	Cash (used in)/generated from operations		(407,068)			598,252
	Cash flows from operating activities include an adjustment of NIL (2016 : €99,784) for non-cash consideration for services.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

*ENDS*

For further information visit www.errisresources.com or contact:

Merlin Marr-Johnson	Erris Resources plc	[phone]
David Hart/Liz Kirchner	Allenby Capital (Nominated Adviser)	[phone]
Erik Woolgar	Shard Capital (Joint Broker)	[phone]
Andy Thacker	Turner Pope Investments (TPI) Ltd (Joint Broker)	[phone]
Isabel de Salis/Gaby Jenner	St Brides Partners (Financial PR)	[phone]

Notes
Erris Resources plc (EPIC: ERIS.L) is an AIM quoted, European focussed, discovery driven exploration company that has an established portfolio of zinc assets in Ireland and gold projects in Sweden, which it is looking to further build on.  Led by a highly qualified team with extensive corporate and sector experience and supported by Canadian mining majors, Osisko Gold Royalties, which has an 18.9% interest in the Company, and Centerra Gold KB Inc., a wholly owned subsidiary of TSX listed Centerra Gold Inc., Erris' strategy is to create shareholder value through commercial discovery of base or precious metal assets in proven mineral districts and in favourable European jurisdictions.

 

END

 

 

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