Cornish Metals' fiscal 2021 op expenses at $1.98M Cornish Metals' fiscal 2021 op expenses at $1.98M
2021-05-17 06:21 ET - News Release
Mr. Richard Williams reports
CORNISH METALS RELEASES FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDING 31 JANUARY 2021 AND POSTING OF ANNUAL ACCOUNTS TO SHAREHOLDERS
Cornish Metals Inc. has released its annual financial statements and management, discussion and analysis (MD&A) for the year ending Jan. 31, 2021. The reports are available under the company's profile on SEDAR and on the company's website and have been posted to shareholders today.
Highlights for the year ended Jan. 31, 2021, and for the period ending May 13, 2021:
- Gross proceeds of $2,352,500 raised from private placement completed in February, 2020, used for proof-of-concept drill program at the South Crofty tin project and for general working capital purposes;
- Discovery of new zone of high-grade copper-tin mineralization at the United Downs exploration project in April, 2020;
- Proof-of-concept drill program at South Crofty completed between June and September, 2020, with promising high-grade tin and copper intersections, confirming the potential to increase the current mineral resource estimate;
- Exercise of 16.1 million warrants during the year ended Jan. 31, 2021, of which 5,222,222 were under an early warrant exercise incentive program, for proceeds of $1,134,500;
- Completion of listing and concurrent financing on the Alternative Investment Market in February, 2021, raising gross proceeds of 8.2 million British pounds ($14.4-million based on Feb. 12, 2021, closing exchange rate) to advance the United Downs exploration project and for general working capital purposes;
- Conversion of Osisko loan note in February, 2021, into two royalty agreements over mineral properties in Cornwall with an accompanying simplified and reduced security package;
- Agreements reached for the leasing of additional mineral rights at the South Crofty tin project and surface land surrounding the New Roskear shaft and binding heads of terms agreed for the disposal of waste material derived from the dewatering of the South Crofty mine;
- Financing options continue to be considered to progress the South Crofty tin project;
- Patrick Anderson appointed chairman of the board in July, 2020, while Grenville Thomas, the previous chairman, remains a director;
- John McGloin appointed as a director to the board in October, 2020.
KEY ANNUAL FINANCIAL METRICS Jan. 31, 2021 Jan. 31, 2020 Total operating expenses $1,986,727 $1,775,705 Loss for the year 1,598,400 4,559,178 Net cash used in operating activities 1,264,568 1,360,091 Net cash used in investing activities 1,646,685 504,507 Net cash provided by financing activities 1,970,752 1,017,247 Cash at end of the financial year 353,601 1,305,253
Outlook
The proceeds from the recently completed AIM listing are to be used to conduct a drill program at the United Downs exploration project, to conduct initial fieldwork on other high-priority exploration targets within transport distance of South Crofty and for general working capital purposes. Management believes that, subject to drilling success, the proceeds from the AIM listing will result in the company being fully financed to the completion of a maiden JORC (Joint Ore Reserves Committee) resource at the United Downs exploration project.
Over the next 12 to 18 months, the company's plans are as follows:
- Commence an 18-month, 9,100-metre initial drilling program at United Downs to advance the project to inferred mineral resource definition, fully financed from the proceeds arising from the AIM listing;
- To test three lodes with a 1,000-metre strike length to a depth of 500 metres in the initial phase. Management believes there are up to seven further mineralized lode structures with a total resource potential of between four million tons and 10 million tons;
- Subject to the outcome of the initial drilling program, to undertake a subsequent infill drilling program at United Downs to advance the project to a feasibility study within three years;
- Evaluate other near-surface, high-potential, exploration targets within transport distance of the planned processing plant site.
In the longer term, the company intends to develop the South Crofty tin project as and when economic conditions and cash flows are supportive. The annual financial statements and management, discussion and analysis are available on the company's website.
About Cornish Metals Inc.
Cornish Metals completed the acquisition of the South Crofty tin and United Downs copper/tin projects, plus additional mineral rights located in Cornwall, United Kingdom, in July, 2016 (see company news release dated July 12, 2016). The additional mineral rights cover an area of approximately 15,000 hectares and are distributed throughout Cornwall. Some of these mineral rights cover old mines that were historically worked for copper, tin, zinc and tungsten.
CONSOLIDATED STATEMENTS OF (LOSS) AND COMPREHENSIVE (LOSS) FOR YEARS ENDED JAN. 31 2021 2020 Expenses Accretion $292,076 $218,408 Advertising and promotion 134,790 406,705 Depreciation 87,034 91,400 Finance cost 9,717 4,072 Insurance 79,270 78,964 Office, miscellaneous and rent 36,708 15,073 Professional fees 305,633 241,021 Generative exploration costs 3,970 6,242 Regulatory and filing fees 30,567 14,074 Share-based compensation 304,204 - Salaries and benefits 702,758 699,746 Total operating (expenses) (1,986,727) (1,775,705) Interest income 4,537 8,162 Foreign exchange (loss) (8,007) (23,439) Unrealized gain on marketable securities 391,797 164,344 Realized gain on marketable securities - 30,019 Write-off (loss) of deferred financing fees - (582,617) Impairment (loss) of royalties - (1,500,000) Impairment (loss) of exploration and evaluation assets - (879,942) (Loss) for the year (1,598,400) (4,559,178) Foreign currency translation 89,032 149,996 Total comprehensive (loss) for the year (1,509,368) (4,409,182) Basic and diluted (loss) per share (0.01) (0.05)
We seek Safe Harbor.
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