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Reabold Resources full-year loss narrows

By BFN News | 08:48 AM | Thursday 30 June, 2016


Reabold Resources (RBD) narrowed its full year loss to £104,000, in line with expectations. The company announced on 18 September 2015 the placement by the company of 40,000,000 new shares of 0.1p each in the company at a price of 0.5p per share, raising £200,000 for working capital purposes. On 8 January 2016, the company announced an additional placement of 40,000,000 new shares of 0.1p each at a price of 0.5p per share, raising £200,000 for working capital purposes. MOGUL VENTURES CORP The Company holds fibe million shares in Mogul Ventures, a private company focused on natural resources in Mongolia, principally in tin. Reabold's holding in Mogul amounts to a 4.2% undiluted, and 4.1% fully diluted interest. On 20 February 2015, Mogul entered an amended and restated arrangement agreement with Knowlton Capital, a TSX-V listed company, for the acquisition by Knowlton of all of the issued and outstanding shares of Mogul. The arrangement agreement superseded a letter of intent dated 23 May 2014 and a definitive agreement dated 22 August 2014. The arrangement agreement constituted a reverse takeover of Knowlton, the completion of which was subject to a number of conditions, including approval by the TSX-V, Knowlton's shareholders and Mogul's shareholders. On 29 April 2016, Knowlton announced the termination of the Arrangement Agreement with Mogul to pursue another reverse take-over transaction. In November 2015, Mogul issued a convertible debenture in the amount of CAD $200k with a term of 1 year, an annual coupon of 3% and convertible to Mogul equity at CAD $0.25 per share. In Q4 2015, Mogul conducted a drilling program to collect samples for metallurgical test work at Mogul's Oortsog Ovoo tin-polymetallic project, which is expected to be completed by the end of Q2 2016. Mogul believes the programme will be important in significantly de-risking the project and securing funding towards its development. Notwithstanding the termination of the transaction with Knowlton, the management and key stakeholders in Mogul remain positive towards Mogul's future in the public markets under improved market conditions. FINANCIAL RISK MANAGEMENT The Company's continuing operations expose it to foreign currency, credit and liquidity risks. The company was exposed to price risk during the year on its investment in unlisted shares. The board's strategy in managing the market price risk inherent in the company's equity investment is determined by the requirement to meet the company's investment objective. The directors manage these risks by regular reviews of the investment within the context of current market conditions. The size of the company means that it is unnecessary and impractical for the directors to delegate the responsibility of monitoring financial risk management to a sub-committee of the board. FINANCIAL REVIEW The net assets as at 31 December 2015 were £624,000 (2014: £424,000). As of 31 December 2015, the company had cash of £481,000. OUTLOOK Having successfully raised further capital and the added support from two new strategic shareholders, the board is moving forward positively to drive shareholder value through the investment strategy. Whilst the board believes there are positive cyclical investment opportunities in resources stocks, they may be subject to significant volatility in financial markets and commodity prices, as well as other potential risk areas, including operational, geological, environmental, sovereign issues and access to capital. The board will evaluate investment opportunities in other sectors as they arise. The board is positive towards the outlook for quality investment opportunities. At 8:48am: (LON:RBD) Reabold Resources Plc share price was 0p at 0.75p Story provided by StockMarketWire.com

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