Announcements

Financial Statement for Year Ended 30th June 2021

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Chairman’s Statement for the Year ended 30 June 2021

The Directors of IMC Exploration Group plc (“IMC” or the “Company”) are pleased to present the audited financial results for IMC for the twelve months to 30th June 2021.  The consolidated financial statements appearing below (which do not form the full statutory Report and Accounts of the Company) are taken from the Directors’ Report and Financial Statements for the year ended 30 June 2021 posted to shareholders.

The last year has been a very eventful time for IMC, both on the corporate and exploration fronts.  Further work on our spoils and tailings’ project has been carried out.  Additional trial pits were excavated proving greater depths than expected at West Avoca and indicating the presence of a larger tonnage of spoils and tailings than had originally been estimated in the CSA Global Report (2019). The gold assays from these trial pits combined with the expected increase in tonnage indicates the existing gold Exploration Target at West Avoca will represent further potential. Significantly elevated copper, lead and silver grades are also present.

IMC will commission an update of the existing West Avoca Exploration Target with the objective of upgrading it to an Inferred Resource.  This will complement the JORC-compliant CSA Global commissioned IMC Mineral Resource Estimate (‘MRE’) on East Avoca where an inferred resource of ca. 20,000 gold oz. was reported.

Further, gold mineralisation was confirmed in appraisal drilling at North Wexford.  Zones of gold mineralisation were present throughout rhyolites.   During appraisal drilling on its North Wexford gold project, IMC intersected a 47m mineralised acid volcanic horizon (mainly rhyolites) at depths up to 50m deeper than historical drilling. Gold mineralisation occurred over five closely-spaced intervals (ranging from 0.9 – 1.4m wide) with a maximum grade of 0.4 g/t Au over a 1m interval.

These grades are in line with those reported previously from historic drill hole GQ1, 0.5 g/t Au over 18.6m.  The alteration associated with the rhyolites is extensive and indicative of a strong mineralising system that is prospective for both gold and base metals. Rocks intersected also confirmed base metal potential.

The drilling results from our North Wexford licence reinforces the highly prospective geology of IMC’s licences in this area and supports IMC’s strategy of understanding the gold mineralisation with the objective of establishing a gold resource.

With copper prices recently reaching an all-time high, climate change initiatives to the fore and copper a vital component to drive the green economy, IMC will be part of this new, green future with its copper project in Avoca.  IMC’s Avoca licence area in Co. Wicklow contains the historic Avoca copper mine.  This mine is estimated to have contained 16 million tonnes of 0.6% copper which was exported as a concentrate that contained ”payable grades of gold and silver” (Williams et al., 1986).  In addition, in situ zinc and lead mineralisation is present at West Avoca over a minimum strike length of ca. 300m. 

When this mine ceased operations in 1982, (owing mainly to the low price of copper prevailing at that time) significant amounts of ore were left in place.  IMC has reassessed historical records along strike to the south-west from the Avoca mine, and interprets there to be a 1.2 km minimum strike length that has either been only partially tested or else has specific targets remaining to be drill tested.

At the north-eastern end of the 1.2 km strike length outlined by IMC, historical drilling encountered 13.3m grading 3.7% Zn, 1.8% Pb and 5.3m grading 1.9% Cu.  At the south-western end, historical assays include 5.8m grading 0.5% Cu with 0.9m grading 0.5 g/t Au.  Widely-spaced drillholes within the 1.2km strike extent have assayed 10m grading 1.1% Cu and 9.0m grading 10.25% Zn and 4.78% Pb.  Gold grades of up to 0.4 g/t Au over 4.5m have been recorded and represent a highly positive ‘credit’ when taken in consideration with the high copper and zinc grades.

IMC is currently drilling in West Avoca adjoining the historic Avoca Copper mine.  IMC intersected zinc, lead and copper mineralisation its first drill hole in West Avoca.  This drillhole encountered four zones of massive and semi-massive sulphide.  Further drill holes are planned to assess the extent and continuity of copper, gold, zinc and lead mineralisation along strike from the historic Avoca mine.  Historical mineralised intercepts in this area include West Avoca area include 10m grading 1.1% copper and 9m grading 10.3% zinc and 4.8% lead.

SLR Consulting Ireland recently completed a Competent Persons’ Report (‘CPR’) on properties held by IMC.  The historical production from the Avoca mine and the in-situ copper resource at Avoca is remarkable.  Historical production from the Avoca Mine is estimated to have totalled 16 million tonnes grading c.0.6% Cu from banded vein and disseminated sulphides hosted by the upper Ordovician Duncannon Group.  The total in situ copper resource at Avoca is reported to have exceeded 100 million tonnes at 0.2% copper.

As announced to the market on 15 April 2021, IMC has conditionally agreed to purchase the Karaberd Mine, a gold mine located in Lori Marz, northern Armenia, which IMC’s representative has recently visited as part of the due diligence process.

IMC considers that the acquisition of the Karaberd Mine and the development of the Karaberd ore-crushing facility will serve the existing strategic direction of IMC while expanding the geographic scope of its operations.  The Directors believe it will also be transformational for the Company, taking it from being an exploration company to being a mining production company with a source of cash-flow.

This is an excellent time for copper, and for IMC with the historic Avoca copper mine on our licence area.  The price of copper having recently reached an all-time high, this is a particularly opportune time to explore the under-exploited Avoca copper mine. This exploration work is currently underway. In addition, we expect to conclude the acquisition of the Karaberd mine in due course, following completion of IMC’s extensive geological, legal and financial investigations.

Accordingly, we expect that 2022 will be a milestone year for the Company and, in addition to completing the Karaberd purchase, the Company is also reviewing further projects including discussions with a major international company on how best to extract the mineral resources in IMC’s Avoca spoils and tailings’ heaps in an eco-friendly and cost-effective manner.

I look forward to updating shareholders with further intelligence on developing the Company’s existing Irish licences and on the progress of the Armenian mine acquisition as and when this is appropriate and necessary.

Eamon P. O’Brien,
Executive Chairman,
Dublin, 28th October 2021

IMC Exploration Group Public Limited Company

Consolidated Statement of Comprehensive Income

for the year ended 30th June 2021

Continuing Operations                                                                                                 

    2021 2020
Administrative expenses   (294,996) (251,947)
       
Operating Loss for the period   (294,996) (251,947)
       
Finance Income   - -
Amount written off Intangible Assets                                      (43,484) -
Amount written off investment   - -
    __________ __________
       
Loss for period before tax   (338,480) (251,947)
       
Income tax expenses   2,047 -
    _________ _________
Total comprehensive loss for the period   (336,433) (251,947)
    ========= =========
       
Loss attributable to:      
Equity holders of the Company   (336,433) (251,947)
    ========= =========
       
Total Comprehensive Loss attributable to:      
Equity holders of the Company   (336,433) (251,947)
    ========= =========
Earnings per share      
From continuing operations      
Basic and Diluted loss per share (cent)   0.1 0.1

All activities derived from continuing operations. All losses and total comprehensive losses for the period are attributable to the owners of the Company.

The Company has no recognised gains or losses other than those dealt with in the statement of comprehensive income.

The Financial statements were approved by the Board of Directors on 14th October 2021 and signed on its behalf by:

On behalf of the board

Eamon O’Brien                                                           Andrew Laz Fleming 

Director                                                                       Director          

IMC Exploration Group Public Limited Company

Consolidated Statement of Financial Position

for the year ended 30th June 2021

    2021 2020
Assets      
Intangible assets   435,803 472,487
Property, plant and equipment   2,754 1,291
Investments   - -
    __________ __________
Total Non-Current Assets   438,557 473,778
    __________ __________
       
Current Assets      
Trade and other receivables   13,696 112,864
Cash and cash equivalents   52,123 (34,767)
    __________ __________
Total Current Assets   65,819 78,097
    __________ __________
       
Total Assets   504,376 551,875
    ========= =========
       
Equity      
Share Capital   349,589 322,839
Share premium   4,164,633 3,925,015
Retained deficit   (4,237,559) (3,901,126)
    __________ __________
Attributable to owners of the Company   276,663 346,728
    __________ __________
Total Equity   276,663 346,728
    __________ __________
       
Liabilities – Current      
Trade and other payables   227,713 203,100
Current tax liabilities   - 2,047
    __________ __________
Total Liabilities   227,713 205,147
    __________ __________
Total Equity and Liabilities   504,376 551,875

The Financial statements were approved by the Board of Directors on 14th October 2021 and signed on its behalf by:

On behalf of the board

Eamon O’Brien                                                               Andrew Laz Fleming

Director                                                                                    Director

IMC Exploration Group Public Limited Company

Consolidated Statement of Changes in Equity

for the year ended 30th June 2021

  Share Capital € Share Premium € Retained Losses € Total €
Balance at 30 June 2019 293,107 3,645,171 (3,649,179) 289,099
  ___________ __________ _________ _______
Total comprehensive income for the period        
Loss for the period - - (251,947) (251,947)
  __________ ___________ __________ _________
         
Total comprehensive income for the period -   (251,947) (251,947)
Transactions with owners, recorded directly in equity        
contributions by and distributions to owners        
Shares issued 29,732 296,224 - 325,956
Share issue costs - (16,380) - (16,380)
  __________ ___________ __________ _________
Total transactions with owners 29,732 279,844 - 309,576
  __________ ___________ __________ _________
         
         
Balance at 30 June 2020 322,839 3,925,015 (3,901,126) 346,728
  __________ ___________ __________ _________
         
Total comprehensive income for the period        
Loss for the period - - (336,433) (336,433)
  __________ ___________ __________ _________
         
Total comprehensive income for the period -   (336,433) (336,433)
         
Transactions with owners, recorded directly in equity contributions by and distributions to owners        
Shares issued 26,750 269,558 - 296,308
Share issue costs - (29,940) - (29,940)
  __________ ___________ __________ _________
Balance at 30 June 2021 349,589 4,164,633 (4,237,559) 276,663
  __________ ___________ __________ _________

Net equity is attributable to the holder of the ordinary shares in the Group.

The financial statements were approved by the board of Directors on 14th October 2021 and signed on its behalf by:

On behalf of the board

Eamon O’Brien                                                      Andrew Laz Fleming

Director                                                               Director

IMC Exploration Group Public Limited Company

Consolidated Statement of Cash Flows

for the year ended 30th June 2021

    2021 2020
Cash flows from operating activities      
       
Loss for the year   (336,433) (251,947)
       
Adjustments for:      
Intangible Assets Write Off   43,484 -
Income Tax recognised in profit and loss   (2,047) -
Depreciation   905 431
    ________ ________
       
Cash from operations before changes in working capital   (294,091) (251,516)
       
Movement in trade and other receivables   99,168 (73,490)
Movement in trade and other payables   24,613 12,436
    _________ _________
       
Net cash flow from operating activities   (170,310) (312,570)
       
Cash flows from investing activities      
Interest received   - -
Proceeds from sale of investments   - -
Taxation   - -
Acquisitions and disposals   (9,168) (1,370)
    _________ _________
       
Net cash (used in) investing activities   (9,168) (1,370)
    _________ _________
Cash flows from financing activities      
Proceeds from the issue of new shares   266,368 309,576
Finance income/(expense)   - -
    _________ _________
       
Net cash generated by financing activities   266,368 309,576
    _________ _________
       
Movement in cash and cash equivalents   86,890 (4,364)
       
Cash and cash equivalents at beginning of year   (34,767) (30,403)
    _________ _________
Cash and cash equivalents at end of year   52,123 (34,767)

The financial statements were approved by the Board of Directors on 14th October 2021 and signed on its behalf by:

On behalf of the board

Eamon O’Brien                                                             Andrew Laz Fleming

Director                                                                         Director

The Directors of IMC, after due and careful enquiry, accept responsibility for the contents of this announcement.

About IMC Exploration

IMC Exploration Group plc (IMC) is currently listed on the London Stock Exchange market (Ticker: IMC). IMC has a Mineral Resource that is classified as ‘inferred’ and has been reported in accordance with the JORC Code (2012). IMC holds properties in southeast Ireland that are highly prospective for gold, copper and other base metals. These include the world famous historic Avoca copper mine.

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Contact details

IMC Exploration Group plc,
70 Ballybough Road,
Ballybough,
Dublin 3, Ireland

Telephone: +353 872819215
Email: info@imcexploration.com

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