Herencia Resources plc
("Herencia" or the "Company")
HALF-YEARLY FINANCIAL REPORT
For the six months ended 30 June 2016
Herencia Resources plc is pleased to announce the unaudited half-yearly accounts of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2016.
CHAIRMAN'S STATEMENT
I am pleased to advise that following the period under review, on 28 July 2016, the Company announced the execution of a formal purchase agreement with Golden Rim Resources Limited ("GMR") for the sale of its 70% ownership in the Paguanta zinc, silver and lead Project in northern Chile. The total consideration was US$1.5 million in cash and US$880k in GMR equity, and GMR agreeing to pay up to US$2.1 million (approximately £1.5 million) towards various contingent liabilities. As announced on 16 September 2016, the Company has used these funds to repay the majority of its creditors which places substantial constraints on the Company's current working capital position, however the Company is in funding discussions with interested parties and remains open to explore other funding options.
Other activities during the period include:
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The approval by shareholders at the Annual General Meeting held on 29 June 2016 to subdivide each Ordinary Share into 1 ordinary share of 0.01p and a deferred share of 0.09p.This will allow the issue of shares as a source of funding which has otherwise been unavailable since the last equity raise in September 2015;
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Securing funding arrangements by way of Secured Convertible Facilities totalling US$750,000 with two of our major shareholders, the Australian Special Opportunity Fund ("Lind Partners") and Oriental Darius Co. Ltd ("Oriental"). The shareholders have been very supportive and a total of US$350,000 has been drawn down under this facility to date with a further US$400,000 that can be advanced at the discretion of the Shareholders;
-
Undergoing a process of restructure including the Board to re-establish Herencia as a viable junior exploration and development company; and
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Continue to actively pursue opportunities for the Picachos Project.
Finally, I would like thank my fellow directors and our small and dedicated team in Chile for their efforts in securing the successful sale of the Paguanta Project and also to our shareholders for their continued support.
Hon. John Moore AO Chairman
29 September 2016
Please refer to the project announcements at the Company's website (www.herenciaresources.com) for further information on the Company operations.
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For further information please contact:
Graeme Sloan, Herencia Resources plc
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+61
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8 9481 4204
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Katy Mitchell/Nick Prowting WH Ireland Limited (NOMAD)
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+44
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161 832 2174
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Jon Belliss, Beaufort Securities Limited (UK)
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+44
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207 382 8300
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CONSOLIDATED STATEMENTS OF COMPRHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2016
|
6 months
ended 30 June
|
6 months
ended 30 June
|
12 months
ended 31 December
|
|
2016
|
2015
|
2015
|
|
Notes
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
£
|
£
|
£
|
|
Revenue
|
-
|
-
|
-
|
|
Cost of sales
|
-
|
-
|
-
|
|
Gross profit
|
-
|
-
|
-
|
|
Administration expenses
|
(424,907)
|
(1,052,305)
|
(2,173,197)
|
|
Impairment of exploration & evaluation assets
|
-
|
-
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(10,908,123)
|
|
Foreign exchange gains/(losses)
|
2,924,686
|
(487,302)
|
(896,004)
|
|
Operating profit/(loss)
|
2,499,779
|
(1,539,607)
|
(13,977,324)
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|
Finance revenue
|
4
|
173
|
227
|
|
Income/(loss) before tax
|
2,499,783
|
(1,539,434)
|
(13,977,097)
|
|
Income tax expenses
|
-
|
-
|
-
|
|
Income/(loss) for the period
|
2,499,783
|
(1,539,434)
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(13,977,097)
|
|
Other comprehensive income/(loss)
|
|
Exchange differences on translating foreign operations
|
(2,347,698)
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117,341
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81,414
|
|
Other comprehensive income/(loss), net of tax
|
(2,347,698)
|
117,341
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(81,414)
|
|
Total comprehensive income/(loss) for the period, net of tax
|
152,085
|
(1,422,093)
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(13,895,683)
|
|
Income/(loss) attributable to:
|
|
Equity holders of the Company
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2,478,140
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(1,465,600)
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(13,741,247)
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|
Non-controlling interests
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21,643
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(73,834)
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(235,850)
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2,499,783
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(1,539,434)
|
(13,977,097)
|
|
Total comprehensive income/(loss) attributable to:
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Equity holders of the Company
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128,291
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(1,333,104)
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(13,616,067)
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Non-controlling interests
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23,794
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(88,989)
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(279,616)
|
|
152,085
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(1,422,093)
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(13,895,683)
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Income/(loss) per share
Income/(loss) per ordinary share - basic and diluted
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2
|
0.06p
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(0.04)p
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(0.36)p
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The results shown above relate entirely to continuing operations.
STATEMENTS OF FINANCIAL POSITION AT 30 JUNE 2016
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30 June
|
30 June
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31 December
|
|
2016
|
2015
|
2015
|
|
Notes
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(unaudited)
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(unaudited)
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(audited)
|
|
£
|
£
|
£
|
|
ASSETS
|
|
Non current assets
|
|
Receivables
|
66,523
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257,871
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432,202
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Intangible assets and goodwill
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4
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4,796,012
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16,184,652
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4,719,602
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Property, plant and equipment
|
5
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30,108
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65,972
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41,437
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4,892,643
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16,508,495
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5,193,241
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Current assets
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|
Cash and cash equivalents
|
55,236
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141,877
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207,183
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|
Trade and other receivables
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83,219
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273,622
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253,272
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Other assets
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17,334
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16,664
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41,736
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Assets held for resale
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6
|
1,167,260
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-
|
-
|
|
1,323,049
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432,163
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502,191
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Total assets
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6,215,692
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16,940,658
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5,695,432
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LIABILITIES
Non current liabilities
|
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Provisions
|
7
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-
|
48,739
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46,566
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Loans and borrowings
|
8
|
147,278
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-
|
-
|
|
147,278
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48,739
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46,566
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Current liabilities
|
|
Trade and other payables
|
855,119
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641,697
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1,290,721
|
|
Provisions
|
7
|
83,643
|
32,182
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72,738
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|
Loans and borrowings
|
8
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499,623
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150,000
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250,000
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|
Liabilities held for resale
|
6
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390,646
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-
|
-
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1,829,031
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823,879
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1,613,459
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Total liabilities
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1,976,309
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872,618
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1,660,025
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Net Assets
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4,239,383
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16,068,040
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4,035,407
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EQUITY
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|
Share capital
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10
|
4,266,609
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3,634,982
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4,266,609
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Share premium
|
10
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23,412,246
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23,298,661
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23,412,246
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Share based payments reserve
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761,360
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761,360
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761,360
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Translation reserve
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(3,843,319)
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(1,486,154)
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(1,493,470)
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Shares to be issued
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-
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299,698
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-
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Other reserve
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8
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33,606
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112,048
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-
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Retained losses
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(23,903,277)
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(14,217,818)
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(26,381,417)
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Capital and reserves attributable to equity holders
|
727,225
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12,402,777
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565,328
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Minority interests in equity
|
9
|
3,512,158
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3,665,263
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3,470,079
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Total equity and reserves
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4,239,383
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16,068,040
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4,035,407
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CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2016
|
6 months ended
30 June
|
6 months ended
30 June
|
12 months ended
31 December
|
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Notes
|
2016
|
2015
|
2015
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
£
|
£
|
£
|
|
Net cash outflow from operating activities
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(477,681)
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(732,550)
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(1,089,785)
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Cash flows from investing activities
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Interest received
|
4
|
173
|
227
|
|
Part proceeds from sale of Paguanta
|
6
|
158,577
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-
|
-
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Payments for property, plant and equipment
|
5
|
-
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-
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(3,197)
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Net funds used for investing in exploration
|
4
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(348,002)
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(325,262)
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(445,722)
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Net cash used by investing activities
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(189,421)
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(325,089)
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(448,692)
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Cash flows from financing activities
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Proceeds from issue of shares
|
-
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-
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512,000
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|
Proceeds from director loans
|
8
|
270,735
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150,000
|
250,000
|
|
Proceeds from convertible loans
|
8
|
244,420
|
-
|
-
|
|
Issue Costs
|
-
|
-
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(65,856)
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|
Net cash generated from financing activities
|
515,155
|
150,000
|
696,144
|
|
Net decrease in cash and cash equivalents
|
(151,947)
|
(907,639)
|
(842,233)
|
|
Cash and cash equivalents at the beginning of the period
|
207,183
|
1,049,516
|
1,049,516
|
|
Cash and cash equivalents at the end of the period
|
55,236
|
141, 877
|
207,183
|