Cradle Arc (AIM: CRA), the African focused base and precious metals exploration and production company, announces its unaudited interim results for the six month period ended 30 June 2018.
The Interim Results will also be made available on the Company's website at www.cradlearc.com.
- Company's shares admitted to trading on AIM on 24 January 2018
- Mining activities in the open pit have progressed well with increasing access to deeper transitional and supergene ores, following a significant amount of waste stripping
- Production re-started in April 2018 with three mining units being brought into operation over the period in accordance with the Company's Accelerated Development Plan
- A 12 month ramp up programme at the process plant began in June, designed to put the plant on a sound operational footing for future production
- Intermittent equipment breakdowns and outages at the processing plant have hampered contained copper output, but are being addressed and are expected to be mitigated over time, with additional funding being sought to improve and rehabilitate the current facilities and establish an inventory of certain key spare parts
- Independent JORC (2012) Mineral Resource estimate for Mowana revised up 37% now comprising a Measured and Indicated resource of 55.0Mt at 1.17% Cu for 640,000 tonnes of contained copper
Post Period End:
- Disposal of non-core Kerboulé Gold Project in Burkina Faso for nominal consideration in July 2018
- In August 2018, agreement reached to redeem certain outstanding convertible loan notes on a staged basis and £2.4m (gross) fundraise via accelerated exercise of certain outstanding warrants and a subscription and debt rescheduling completed to provide additional working capital headroom
- SP Angel Corporate Finance LLP appointed as broker to the Company
- Appointment of Roy Pitchford as Non-Executive Chairman and Michael Golding as a Non-Executive Director on 5 September 2018
- Joint Venture signed with Indiana Resources Ltd to advance the Kossanto West Gold Project in western Mali
- Two prospecting licences to the north of Mowana renewed with a potential total of 36km strike potential across the existing mining and renewed prospecting licences combined
Kevin van Wouw, CEO of Cradle Arc, commented: "During this reporting period, the Company has undertaken a number of important and necessary activities to ensure that the Company is best positioned to deliver on its strategy of future growth.
"Following the enlarged group's admission to trading on AIM, an in depth review of all mining activities was implemented leading to a revised mine and accelerated development plan with a strategic objective to progress to higher grade and increased levels of production.
"In spite of continued sporadic interruptions being experienced at the processing plant, we have made good progress with our open pit mining activities with a large amount of waste stripping completed and are focussed on getting Mowana on a sound and sustainable footing."