TIDMBHL
RNS Number : 9714K
Bradda Head Lithium Ltd
31 August 2023
31 August 2023
Bradda Head Lithium Ltd
("Bradda Head", "Bradda", or the "Company")
Unaudited Interim Results for the three months ended 31 May
2023
Bradda Head Lithium Ltd (AIM: BHL), the North America-focused
lithium development group, is pleased to announce that it has today
published its unaudited financial results for the three months
ended 31 May 2023, and the Management's Discussion and Analysis for
the same period.
Both of the above have been posted on the Company's website
www.braddaheadltd.com and are also available on SEDARplus (
www.sedarplus.ca/landingpage ).
Financial and operational highlights for the first quarter
-- the Company commenced sonic drilling at the Basin project on
16 March 2023, with up to 25 holes planned at Basin East Extension
("BEE"), Basin East ("BE") and Basin North ("BN");
-- Highlights from the first set of assay results received during May 2023 includes:
- 63.12m @ 954ppm Li in BES-23-03 with 24.32m @ 1,327ppm
- 66.92m @ 1,077ppm Li in BES-23-04, with 18.30m @ 1,602 ppm
- 63.71m @ 944ppm Li in BES-23-05, with 32.93m @ 1,029ppm
- The highest-grade assay received to date of 2,676ppm Li over
1.8m was recorded in hole BES-23-05 at a depth of 109.32m.
-- Concluded a claims dispute mediation with Arizona Lithium
Limited ("AZL"). Following the settlement, AZL will transfer 66
federal lode unpatented mining claims to Bradda Head, and Bradda
Head will transfer 55 federal lode unpatented mining claims to AZL,
increasing the total land package in the Wikieup area to
approximately 46km(2) . The Company expects the transfer of title
to be completed during H2 2023;
-- Completed a maiden drill programme at the Company's San
Domingo pegmatite project on 10 March 2023. Highlights from second
and third/final set of assays include:
- Central Claims
-- 9.54m @ 1.85% Li(2) O, 3.02m @1.49% Li(2) O, and 2.90m @ 3.03% Li(2) O in SD-DH23-037
-- 7.35m @ 0.68% Li(2) O, 4.79m @ 0.87% Li(2) O, 3.20m @ 1.22%
Li(2) O, and 3.21m @ 0.75% Li(2) O in SD-DH23-036
-- 9.85m @ 0.86% Li(2) O in SD-DH23-034
-- 4.02m @ 1.27% Li(2) O in SD-DH23-035
-- 5.94m @ 1.22% Li(2) O in SD-DH23-046
-- 4.72m @ 0.67% Li2O in SD-DH23-038a
- Northern Claims
-- 3.75m @ 2.37% Li2O, 0.85m @ 2.44% Li2O, 1.10m @ 0.82% Li2O,
and 0.67m @ 1.77% Li2O in SD-DH22-025
-- 6.52m @ 1.24% Li2O in SD-DH23-041
-- 2.74m @ 2.12% Li2O in SD-DH23-042
-- 1.77m @ 1.10% Li2O in SD-DH23-040
-- The Company strengthened its land package at the San Domingo
project by acquiring a 100% interest in three inlier lode claims in
the middle of its Central San Domingo claim block, for a total
increase in land area owned by 60 acres;
-- Appointed Panmure Gordon (UK) as joint broker, with Panmure
having a wealth of expertise in the mining and the lithium
space.
Ian Stalker, Chairman of Bradda Head, commented:
"The first quarter of the financial year has been very busy for
the Company. Drilling finished at our San Domingo pegmatite asset,
with promising assay results received which have been used to
design a second drill programme in the district, which commenced
during Q2 2023. We also commenced our fourth drill programme at our
Basin lithium in clay project during March 2023, with very
promising assay results received to date, which include our
highest-grade assay received to date. Post quarter end, drilling at
Basin finished with the results being fed into an upgraded Mineral
Resource Estimate which is anticipated in mid-September 2023.
The pace of development will continue through the the second
half of the year, and we look forward to updating our shareholders
as we receive the exploration results."
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF THE MARKET ABUSE REGULATION (EU No.596/2014) AS IT FORMS PART OF
UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT
2018. UPONTHE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY
INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOWCONSIDERED TO BE
IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE
IN POSSESSION OF INSIDEINFORMATION.
For further information please visit the Company's website:
www.braddaheadltd.com
For further information, please contact:
Bradda Head Lithium Limited +44 (0) 1624 639 396
Ian Stalker, Chairman
Denham Eke, Finance Director
Beaumont Cornish (Nomad)
James Biddle/Roland Cornish +44 20 7628 3396
Panmure Gordon (Joint Broker) +44 20 7886 2500
John Prior
Hugh Rich
Shard Capital (Joint Broker) +44 207 186 9927
Damon Heath
Isabella Pierre
Red Cloud (North American Broker) +1 416 803 3562
Joe Fars
Tavistock (PR) + 44 20 7920 3150
Nick Elwes braddahead@tavistock.co.uk
Adam Baynes
About Bradda Head Lithium Ltd.
Bradda Head Lithium Ltd. is a North America-focused lithium
development group. The Company currently has interests in a variety
of projects, the most advanced of which are in Central and Western
Arizona: The Basin Project (Basin East Project, and the Basin West
Project) and the Wikieup Project.
The Basin East Project has an Indicated Mineral Resource of 21.2
Mt at an average grade of 891 ppm Li and 3.5% K for a total of 100
kt LCE and an Inferred Mineral Resource of 73.3 Mt at an average
grade of 694 ppm Li and 3.2% K for a total of 271 kt LCE. In the
rest of the Basin Project SRK has estimated an Exploration Target
of between 300 to 1,300 Mt of material grading between 600 to 850
ppm Li which is equivalent to a range of between 1 to 6 Mt LCE. The
Group intends to continue to develop its three phase one projects
in Arizona, whilst endeavouring to unlock value at its other
prospective pegmatite and brine assets in Arizona, Nevada, and
Pennsylvania. All of Bradda Head's licences are held on a 100%
equity basis and are in close proximity to the required
infrastructure.
The Mineral Resource statement for the Basin Project was
authored by Martin Pittuck, CEng, MIMMM, FGS who works for SRK
Consulting (UK) Ltd, an independent mining consultancy. Mr. Pittuck
has over 25 years' experience undertaking and reviewing Mineral
Resource estimates and has worked on lithium clay estimates for
over 5 years. Mr. Pittuck consents to the inclusion of the
technical information in this press release and context in which
they appear. Reference is made to the report entitled "Independent
technical report on the Basin and Wikieup Lithium clay projects,
Arizona, USA" dated October 18, 2022 with an effective date of June
10, 2022 was prepared by Martin Pittuck, CEng, MIMMM, FGS, and
Kirsty Reynolds MSci, PhD, FGS and reviewed by Nick Fox MSc, ACA,
MIMMM. The Report is available for review on SEDARplus (
www.sedarplus.ca/landingpage ) and the Company's website
www.braddaheadltd.com .
Bradda Head is quoted on the AIM of the London Stock Exchange
with the ticker of BHL, on the TSX Ventures exchange with a ticker
of BHLI, and on the US OTCQB market with a ticker of BHLIF.
Forward-Looking Statements
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release. This News Release includes certain "forward-looking
statements" which are not comprised of historical facts.
Forward-looking statements include estimates and statements that
describe the Company's future plans, objectives or goals, including
words to the effect that the Company or management expects a stated
condition or result to occur. Forward-looking statements may be
identified by such terms as "believes", "anticipates", "intends
to", "expects", "estimates", "may", "could", "would", "will", or
"plan". Since forward-looking statements are based on assumptions
and address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Although these statements
are based on information currently available to the Company, the
Company provides no assurance that actual results will meet
management's expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Forward looking information in this news release
includes, but is not limited to, following: The Company's
objectives, goals or future plans. Factors that could cause actual
results to differ materially from such forward-looking information
include, but are not limited to: failure to identify mineral
resources; failure to convert estimated mineral resources to
reserves; delays in obtaining or failures to obtain required
regulatory, governmental, environmental or other project approvals;
political risks; future operating and capital costs, timelines,
permit timelines, the market and future price of and demand for
lithium, and the ongoing ability to work cooperatively with
stakeholders, including the local levels of government;
uncertainties relating to the availability and costs of financing
needed in the future; changes in equity markets, inflation, changes
in exchange rates, fluctuations in commodity prices; delays in the
development of projects, capital and operating costs varying
significantly from estimates; an inability to predict and
counteract the effects of COVID-19 on the business of the Company,
including but not limited to the effects of COVID-19 on the price
of commodities, capital market conditions, restriction on labour
and international travel and supply chains; and the other risks
involved in the mineral exploration and development industry, and
those risks set out in the Company's public documents filed on
SEDAR. Although the Company believes that the assumptions and
factors used in preparing the forward-looking information in
this news release are reasonable, undue reliance should not be
placed on such information, which only applies as of the date of
this news release, and no assurance can be given that such events
will occur in the disclosed time frames or at all. The Company
disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law.
Bradda Head Lithium Limited
Management discussion and analysis for the three-month period
ended May 31, 2023
This management's discussion and analysis ("MD&A") reports
on the operating results and financial condition of the Company for
the three-month ended May 31, 2023, and is prepared as of August
31, 2023. The MD&A should be read in conjunction with Bradda
Head Lithium Limited's (the "Company" or "Bradda Head") audited
consolidated financial statements for the year ended February 28,
2023, and the notes thereto which were prepared in accordance with
International Financial Reporting Standards ("IFRS").
All dollar amounts referred to in this MD&A are expressed in
United States dollars except where indicated otherwise.
(a) Overview
Bradda Head Lithium Limited was incorporated on October 28,
2009, in the British Virgin Islands under the British Virgin
Islands Companies Act with registered number 1553975 with the name
Copper Development Corporation. On October 5, 2015, the Company
changed its name from Copper Development Corporation to Life
Science Developments Limited, and on April 18, 2018, the Company
changed its name to Bradda Head Holdings Limited. On September 15,
2021, the Company changed its name to Bradda Head Lithium
Limited.
The Company has one business segment, being mineral exploration.
T he Company is focused on appraising and developing lithium mining
projects within North America and currently has interests in a
variety of projects in the United States.
Corporate and Exploration Highlights
Exploration Highlights
Set forth in this section is a description of the Company's
material mineral projects. All scientific and technical data
contained in this MD&A has been reviewed and approved by Joey
Wilkins, B.Sc., P.Geo., who is Chief Operating Officer at Bradda
Head and a Qualified Person as defined by National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI
43-101").
Arizona Sedimentary Hosted Lithium Projects
Basin Project
On 16 March 2023, the Company commenced sonic drilling at the
Basin project. As part of the 2023 Basin drill programme, the
Company expects to drill up to 25 holes in the coming months at
Basin East Extension ("BEE"), Basin East ("BE") and Basin North
("BN"). The goal of the 2023 Basin drill programme is to increase
coverage over as much of the Project's 17km(2) area as possible. To
date, approximately 1.4km(2) of the area has been drilled, leading
to a Mineral Resource of 371kt of LCE, as noted below.
During the drilling programme the Company will continue to
guarantee that all efforts are focused on ensuring that work is
carried out in these areas with as little disturbance as possible.
Bradda Head is using sonic drilling, which is more environmentally
sensitive as it uses very little water compared to diamond core or
reverse circulation drilling.
During May 2023, the assay results from the first five drill
holes were received. This set of results delivered the highest
grade assays from all four drill programmes to date, and confirms
that lithium bearing clay continues and thickens to the west,
northwest and north into its BEE lease.
Highlights from the first set of assay results includes:
-- 63.12m @ 954ppm Li in BES-23-03 with 24.32m @ 1,327ppm
-- 66.92m @ 1,077ppm Li in BES-23-04, with 18.30m @ 1,602 ppm
-- 63.71m @ 944ppm Li in BES-23-05, with 32.93m @ 1,029ppm
The highest-grade assay received to date of 2,676ppm Li over
1.8m was recorded in hole BES-23-05 at a depth of 109.32m.
The first four drill holes (south of the creek) located in BEE
and BE have continued to demonstrate that the upper clay unit is
significantly higher grade than the lower clay unit, and thickens
to the North and North-west direction into BEE. Drill holes 05, 06
and 07 (the first on the north side of the Creek) confirm this,
have a similar upper clay thickness to drill holes 03 and 04, and
also demonstrate the upper clay thickens to the north, northwest,
and west as well towards Basin West ("BW"). Drill hole 07, on the
western border of BEE and BW, confirms the upper clay unit
continues to thicken to the west, which is very positive for
resource expansion potential into BW. The total upper clay unit is
78m, 67m, 69m, and 79m, thick for an average of 73m, in drill holes
03, 04, 05, and 06 respectively. To put that in context, the
average thickness of the upper clay unit is 34m in all the previous
34 holes that intercepted upper clay in the last 3 drill programmes
(2018, 2021 and 2022).
The Company expects to provide the geological results of the
remaining drill holes and assays when received, and a revised
resource estimate will follow once the drill programme is
completed.
Positive progress is also being made on the metallurgical
testing side of our lithium-bearing clays at Basin. New and
existing technologies are being trialled, which may qualify for
funding grants under the Biden administration's recent clean energy
initiatives.
Basin East 2023 Mineral Resource Estimate
Classification Domain Tonnes Mean Grade Contained Metal
Mt Li (ppm) K (%) LCE (kt) K (Mt)
------- --------- ------ --------- -------
Indicated Upper Clay 16.0 738 3.6 63 0.6
--------------- ------- --------- ------ --------- -------
Upper Clay HG 5.2 1,354 3.0 38 0.2
-------------------------------- ------- --------- ------ --------- -------
Lower Clay - - - - -
--------------- ------- --------- ------ --------- -------
Sub Total 21.2 891 3.5 100 0.7
-------------------------------- ------- --------- ------ --------- -------
Inferred Upper Clay 31.7 767 3.6 129 1.2
--------------- ------- --------- ------ --------- -------
Upper Clay HG 2.3 1,448 3.5 18 0.1
-------------------------------- ------- --------- ------ --------- -------
Lower Clay 39.3 592 2.9 124 1.1
-------------------------------- ------- --------- ------ --------- -------
Sub Total 73.3 694 3.2 271 2.4
-------------------------------- ------- --------- ------ --------- -------
Total 94.5 738 3.3 371 3.1
------- --------- ------ --------- -------
- Mineral Resource statement has an effective date of 13 October 2022.
- A Mineral Resource is reported using a cut-off grade of 300
ppm Li and constraining the model to an optimised open pit shell,
which was generated using the following assumptions: lithium
carbonate metal prices of 18,000 USD/tLCE; State of Arizona royalty
(selling cost) of 6%; operating costs of 5,000 USD/ tLCE or 27 USD/
tore; Li recovery of 75%; mining dilution and recovery of 5% and
95%; and pit slope angle of 45deg.
- Tonnages are reported in metric units.
- Rounding as required by reporting guidelines may result in
apparent summation differences between tonnes, grade and contained
metal content.
- Conversion factor of Li metal to lithium carbonate equivalent (LCE) = 5.323
Wikieup Project
On March 1, 2023, the Company announced the conclusion of a
claims dispute mediation with Arizona Lithium Limited ("AZL"). The
mediation process was initiated by Bradda Head during 2021 (as
disclosed in the AIM Admission document and the Company's Listing
Application for purposes of its listing on the TSX Venture
Exchange). A final binding confidential settlement agreement and
mutual release has been executed. Bradda Head and AZL reached a
mutually agreeable claim exchange, allowing both parties to proceed
with the development of each of their respective lithium projects
in the area.
Following the settlement, AZL will transfer 66 federal lode
unpatented mining claims to Bradda Head, and Bradda Head will
transfer 55 federal lode unpatented mining claims to AZL. The
transfer of the 55 claims to AZL will not have any material effect
on the development of the Company's Wikieup lithium project, with
the Company holding a total land package in Wikieup area of
approximately 46km(2) . As of May 31, 2023, the process of
transfering the claim ownership is still in progress.
The updated claims map can be found on the Company website here:
https://www.braddaheadltd.com/media
Arizona Pegmatite District
San Domingo Project
The second and third (being the final) assay results were
received during March and May 2023 from the maiden drill programme,
which was completed on March 10, 2023, at the Company's San Domingo
pegmatite project. F urther significant intercepts of high grade
lithium bearing minerals have been identified at multiple locations
from the second set of assay results. Lithium bearing minerals
(spodumene and some lepidolite) have been identified in c.60% of
the total holes completed, and importantly the programme has only
tested just over 1% of the 23km(2) that Bradda Head holds at the
San Domingo project.
Out of the planned 7,000m, 7,300m (47 holes completed) have been
drilled with positive results demonstrating high-grade
intersections.
Highlights from second and third/final set of assays
include:
Central Claims
-- 9.54m @ 1.85% Li (2) O, 3.02m @1.49% Li (2) O, and 2.90m @ 3.03% Li (2) O in SD-DH23-037
-- 7.35m @ 0.68% Li (2) O, 4.79m @ 0.87% Li (2) O, 3.20m @ 1.22%
Li (2) O, and 3.21m @ 0.75% Li (2) O in SD-DH23-036
-- 9.85m @ 0.86% Li (2) O in SD-DH23-034
-- 4.02m @ 1.27% Li (2) O in SD-DH23-035
-- 5.94m @ 1.22% Li (2) O in SD-DH23-046
-- 4.72m @ 0.67% Li2O in SD-DH23-038a
Northern Claims
-- 3.75m @ 2.37% Li2O, 0.85m @ 2.44% Li2O, 1.10m @ 0.82% Li2O,
and 0.67m @ 1.77% Li2O in SD-DH22-025
-- 6.52m @ 1.24% Li2O in SD-DH23-041
-- 2.74m @ 2.12% Li2O in SD-DH23-042
-- 1.77m @ 1.10% Li2O in SD-DH23-040
Large spodumene crystals with scattered lepidolite are observed
in all six holes drilled on the Jumbo target. Results from Jumbo
include 9.54m @ 1.85% Li (2) O in SD-DH23-037 and 4.02m @ 1.27% Li
(2) O in SD-DH23-035, both at shallow depths.
Based on the success of Phase 1 at the Northern Claim block, as
detailed above, Phase 2 commenced at the Central Claim block, which
included a detailed soil survey over the 23km(2) San Domingo land
package. The wider soil survey programme was completed in late
February 2023. The soil sampling assay results received during May
2023 are very promising, showing priority targets along the
complete 9km mineralised trend. Bradda Head's geologists have begun
ground-truthing the identified soil anomalies, finding new
spodumene bearing outcrops not previously recorded, and further
strengthening the district scale potential at San Domingo.
In order to further strengthen the land package held at the San
Domingo project, the Company acquired 100% of three inlier lode
claims in the middle of its Central San Domingo claim block, for a
total increase in land area owned by 60 acres. No royalties are
associated with the lode claims or any of Bradda's San Domingo
claims and leases.
The lode claim owners granted written permission for Bradda Head
to drill on their claims prior to acquisition, upon which the final
hole, SD-DH23-046, was drilled into a pegmatite (Lower Jumbo
Target) and encountered abundant visible spodumene, with assays
pending.
The Lower Jumbo mine (which is located on the border of one of
the inlier lode claims) has a 1.5m long spodumene cast in outcrop
and historic mining that reportedly produced c.155 tonnes at a
grade of 5.3% Li(2) O in the 1950's. The acquisition of the inlier
claims allows Bradda Head to fully explore the whole 9km trend
without encumbrance.
Nevada Lithium Brine Projects
Wilson Project
A gravity survey was undertaken over the project with lines run
East-West. The data and depth of basin is consistent with the MT
(magnetotellurics). A decision to drill for brine mineralization is
pending.
Eureka Project
No significant work has been undertaken on this project during
the 3-month period.
Corporate Highlights
On April 26, 2023, the Company announced the appointment of
Panmure Gordon (UK) as joint broker. Panmure have a wealth of
expertise in mining and the lithium space, and the Company looks
forward to working with them as we progress our work programmes
across our portfolio of assets.
Issuance of Stock Options and director share dealings
On April 6, 2023, the Company announced that it awarded a total
of 4,800,000 options to acquire ordinary shares (the "Options") at
an exercise price of GBP0.06 to management and certain Board
members. Options for management and directors, are subject to the
following conditions:
- Options vest immediately;
- The options have no performance or non-performance conditions attached to them;
- Are exercisable for a period of five years from date of issue; and
- The options issued to each participant should lapse upon any
participant no longer being an employee or connected person
remunerated by the Company.
Directors included in the award are detailed in the table
below:
Director Total options Total options Total shares Total diluted
awarded held at May held at May percentage holding
31, 2023 31, 2023 at May 31, 2023
Ian Stalker 1,000,000 18,250,000 3,870,140 5.66%
-------------- -------------- ------------- --------------------
Charlies
FitzRoy 1,000,000 11,000,000 13,265 2.82%
-------------- -------------- ------------- --------------------
Joey Wilkins 1,500,000 1,500,000 - 0.38%
-------------- -------------- ------------- --------------------
Piotr Schabik 250,000 1,000,000 - 0.26%
-------------- -------------- ------------- --------------------
Total 3,750,000 31,750,000 3,883,765 9.12%
-------------- -------------- ------------- --------------------
On April 14, 2023, James Mellon, a director and shareholder of
the Company, acquired 8,000,000 ordinary shares on the open market.
The shares were acquired by Galloway Limited, which is indirectly
wholly owned by James Mellon and of which Denham Eke is a
director.
Director Holding of Number of Number of Total diluted
Existing Ordinary Shares Purchased Ordinary Shares percentage holding
Shares held following at May 31, 2023
Purchase
James Mellon 65,097,004 8,000,000 73,097,004 18.71%
------------------- ------------------ ----------------- --------------------
(b) Selected Financial Information
The following table sets forth selected financial information
with respect to the Company for the 3-month period ended May 31,
2023 and the year ended February 28, 2023. The selected financial
information has been derived from the audited financial statements
for the period indicated. The following should be read in
conjunction with the said financial statements and related notes
that are available on the Company's website -
www.braddaheadltd.com.
The annual financial statements and interim financial statements
are presented in US dollars and are prepared in accordance with
IFRS, See "Summary Financial Data" and "Currency Information".
Period ended May 31, 2023 Year ended February 28, 2023
(Audited) (Audited)
(US$) (US$)
-------------------------- -----------------------------
Statement of Operations:
-------------------------- -----------------------------
Total Operating Expenses (net of other income) (1,143,294) (3,899,858)
-------------------------- -----------------------------
Net Finance income 59,102 12,270
-------------------------- -----------------------------
Net Loss (1,084,192) (3,887,588)
-------------------------- -----------------------------
Loss per Share (cents) (0.278) (1.018)
-------------------------- -----------------------------
Balance Sheet Data:
-------------------------- -----------------------------
Cash & cash equivalents, including cash deposits 4,998,440 7,746,519
-------------------------- -----------------------------
Total Assets 16,630,429 18,198,559
-------------------------- -----------------------------
Total Liabilities 549,059 1,213,619
-------------------------- -----------------------------
Accumulated Deficit (14,535,003) (13,631,433)
-------------------------- -----------------------------
Total Shareholder's Equity 16,081,370 16,984,940
-------------------------- -----------------------------
MANAGEMENT DISCUSSION AND ANALYSIS: QUARTERED MAY 31, 2023
(c) Introduction
(d) This interim Management Discussion and Analysis (the "
interim MD&A ") should be read in conjunction with the audited
financial statements of the Company for the year ended February 28,
2023, and related notes. This MD&A is made as of August 31,
2023.
(e) Results of Operations for the three-months ended May 31, 2023
The Company's net loss after tax for the three-month period to
May 31, 2023 was US$ 1,084,192, compared to a profit of US$ 120,089
for the comparative period ended May 31, 2022. The major expenses
for the three-month period ended May 31, 2023 were operational
expenses incurred on the Company's exploration projects, and are
broken down in the respective projects as follows:
Project Expensed Exploration Expenditure
Three-Month Period Ended May 31, 2023 Three-Month Period Ended May 31, 2022
(Unaudited) (Unaudited)
US$ US$
-------------------------------------- --------------------------------------
Basin Project 249,399 367,757
-------------------------------------- --------------------------------------
San Domingo Project 286,782 56,758
-------------------------------------- --------------------------------------
Wikieup Project 12,274 65,542
-------------------------------------- --------------------------------------
Other projects 3,413 75,769
-------------------------------------- --------------------------------------
TOTAL 551,868 565,826
-------------------------------------- --------------------------------------
During this time period, the Company incurred and capitalised
exploration expenditures of US$ 1,228,739, compared to US$ 607,185
for the comparative three-month period to May 31, 2022.
The capitalied exploration costs for the three-month period
ended May 31, 2023 have been allocated amongst the Company's
exploration projects in approximately the following amounts:
Project Capitalised Capitalised Capitalised Capitalised
exploration costs expenditures for exploration costs expenditires for
licences and permits licences and permits
Three-Month Period Three-Month Period Three-Month Period Three-Month Period
Ended May 31, 2023 Ended May 31, 2023 Ended May 31, 2022 Ended May 31, 2022
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
US$ US$ US$ US$
---------------------- ---------------------- ----------------------- ----------------------
Basin Project 421,013 - 187,714 9,740
---------------------- ---------------------- ----------------------- ----------------------
San Domingo Project 527,432 250,000 42,130 13,062
---------------------- ---------------------- ----------------------- ----------------------
Wikieup Project - - 69,722 -
---------------------- ---------------------- ----------------------- ----------------------
Other Project - 30,294 13,195 271,622
---------------------- ---------------------- ----------------------- ----------------------
TOTAL 948,445 280,294 312,761 294,424
---------------------- ---------------------- ----------------------- ----------------------
The exploration expenditures have been primarily costs
associated with drilling, assaying, resource and mining
consultants, metallurgical testing, environmental studies, project
team fees, acquisition of new leases, and annual renewal of
existing leases.
General and administrative expenses for the three-month period
to May 31, 2023 totalled US$ 1,258,841, compared to US$ 1,205,529
for the comparative three-month period to May 31, 2022. General and
administrative expenses are broken down as follows:
Project General and administrative expenditures
Three-Month Period Ended May 31, 2023 Three-Month Period Ended May 31, 2022
(Unaudited) (Unaudited)
US$ US$
-------------------------------------- --------------------------------------
Auditors' fees 19,600 81,841
-------------------------------------- --------------------------------------
Directors and management fees and
salaries 137,541 132,674
-------------------------------------- --------------------------------------
Legal and accounting 83,613 100,306
-------------------------------------- --------------------------------------
Contractor costs 551,868 565,826
-------------------------------------- --------------------------------------
Professional and marketing costs 204,203 307,328
-------------------------------------- --------------------------------------
Other administrative costs 262,016 17,554
-------------------------------------- --------------------------------------
TOTAL 1,258,841 1,205,529
-------------------------------------- --------------------------------------
During the three-month period to May 31, 2023, there have been
no changes in financial performance or other elements that relate
to non-core business activities and operations.
(f) Cash flows
During the three-month period ended May 31, 2023, the Company
had net cash outflows of US$ 6,790,136, compared to inflows of US$
9,154,462 during the comparative three-month period to May 31,
2022. Net cash outflows for the current 3-month period ended May
31, 2023, include placing cash amounts on short term deposits,
totalling US$ 3,905,582. The cashflows for the two periods are
shown below:
Three-Month Period Ended May 31, 2023 Three-Month Period Ended May 31, 2022
(Unaudited) (Unaudited)
US$ US$
Statement of cashflows
-------------------------------------- --------------------------------------
Cash flows from operating activities (1,581,692) (1,935,866)
-------------------------------------- --------------------------------------
Cash flows from investing activities (1,225,489) (665,856)
-------------------------------------- --------------------------------------
Cash flows from financing activities
* (3,846,480) 11,756,184
-------------------------------------- --------------------------------------
Net cash flows during the period (6,653,661) 9,154,462
-------------------------------------- --------------------------------------
Cash balances at beginning of the
period 7,746,519 7,327,303
-------------------------------------- --------------------------------------
Effect of foreign exchange on cash
balances - (316,171)
-------------------------------------- --------------------------------------
Cash balances at the end of the
period 1,092,858 16,165,594
-------------------------------------- --------------------------------------
* includes US$ 3,905,582 placed on short term deposit.
(g) Liquidity and Capital Resources
As at May 31, 2023, the Company had cash and cash equivalents
(including short term cash deposits) of US$ 4,998,440, and a
working capital surplus of US$ 5,003,874. As of February 28, 2023,
the Company had cash and cash equivalents of US$ 7,746,519, and a
working capital surplus of US$ 7,135,119.
(h) Outstanding Share Data
As of May 31, 2023, the following securities were
outstanding:
Shares 390,609,439
Warrants 81,698,305
------------
Stock options 37,831,304
------------
Fully diluted shares outstanding 510,139,048
------------
The Company's objectives when managing capital are to safeguard
its ability to continue as a going concern, so that it can continue
to provide returns for shareholders, benefits for other
stakeholders and to maintain an optimal capital structure to reduce
the cost of capital.
The capital structure of the Company includes cash and cash
equivalents, equity attributable to equity holders comprised of
contributed equity, reserves and accumulated losses. In order to
maintain or adjust the capital structure, the Company may issue new
shares, sell assets or adjust the level of activities undertaken by
the Company.
The Company monitors capital based on cash flow requirements for
operational, exploration and evaluation expenditures. The Company
has no debt or other borrowings as at the date of this Application.
The Company will continue to use capital market issuances to
satisfy anticipated funding requirements.
The availability of equity capital, and the price at which
additional equity could be issued, is dependent upon the success of
the Company's exploration activities, and upon the state of the
capital markets generally. Additional financing may not be
available on terms favourable to the Company or at all. If the
Company does not receive future financing, it may not be possible
for the Company to advance the exploration and development of its
mineral exploration properties. If the Company is not able to fund
these minimum expenditures, it may not be able to maintain part or
all of its mineral exploration property interests. See "Risk
Factors".
(i) Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet
arrangements.
(j) Transactions with Related Parties
The Company has conducted transactions with officers, directors
and persons or companies related to directors or officers and paid
or accrued amounts as follows:
Edgewater Associates Limited ("Edgewater")
During the three-month period ended May 31, 2023, Directors' and
Officers' insurance was obtained on an arms-length basis through
Edgewater, which is a 100% subsidiary of Manx Financial Group
("MFG"). James Mellon and Denham Eke are Directors of both the
Company and MFG.
During the period, the premium payable on the policy was US$ Nil
(year ended February 28, 2023: US$ 49,318). A total of US$ 1,699
was prepaid as at the period end (February 28, 2023: US$
14,497).
(k) Critical Accounting Estimates
The preparation of financial statements in conformity with IFRS
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses during the
reporting period. Such estimates and assumptions affect the
carrying value of assets, and impact decisions as to when
exploration and development costs should be capitalized or
expensed.
As at May 31, 2023, the Company had incurred capitalised
exploration expenditures, including capitalised licence and permit
costs, of US$ 10,803,005. Changes in management's judgment as to
the prospective nature, assessment of the existence or otherwise of
economically recoverable reserves, technical feasibility and/or
commercial viability of the relevant tenements and the Company's
intentions with respect to the relevant tenements, could affect the
assessment of the recoverable amount.
The Company regularly reviews its estimates and assumptions:
however, actual results could differ from these estimates and these
differences could be material.
Bradda Head Lithium Limited
Unaudited Condensed Consolidated Interim Financial
Statements
For the three-month period ended May 31, 2023
Condensed Interim Consolidated Statement of Comprehensive
Income
for the period ended May 31, 2023
Three-month period ended May 31, 2023 Three-month period ended May 31, 2022
(unaudited) (unaudited)
Notes US$ US$
Expenses
General and administrative 2 (1,258,841) (1,205,529)
Share based payment and
warrant expense 10 (180,622) (1,194,204)
Foreign exchange gain/(loss) 136,475 (310,522)
---------------- ----------------
Operating loss (1,302,988) (2,710,255)
Other income
Warrant fair value
re-measurement 11 146,585 2,830,344
Unrealised gain on Investment 13,109 -
at fair value through profit
or loss
---------------- ----------------
(Loss)/profit before finance
income (1,143,294) 120,089
Finance income 59,102 -
---------------- ----------------
(Loss)/profit before income
tax (1,084,192) 120,089
Income tax expense - -
---------------- ----------------
Total comprehensive
(loss)/profit for the period (1,084,192) 120,089
Basic and diluted
(loss)/profit per share (US
cents) 12 (0.278) 0.04
The accompanying notes are an integral part of these
consolidated interim financial statements.
Condensed Interim Consolidated Statement of Financial
Position
as at May 31, 2023
Notes May 31, 2023 February 28, 2023
(unaudited) (audited)
US$ US$
Non-Current assets
Deferred mining and exploration costs 3 8,410,296 7,461,851
Exploration permits and licences 4 2,392,709 2,112,415
Plant and equipment 8 118,681 79,602
Advances and deposits 6 50,941 104,192
Investment at fair value through profit or loss 104,869 91,761
-------------- --------------
Total non-current assets 11,077,496 9,849,821
-------------- --------------
Current assets
Cash and cash equivalents 3,905,582 7,746,519
Cash deposits 1,092,858 -
Advances and deposits 6 385,624 385,624
Trade and other receivables 6 168,869 216,595
-------------- --------------
Total current assets 5,552,933 8,348,738
-------------- --------------
Total assets 16,630,429 18,198,559
Equity
Share premium 9 30,616,373 30,616,373
Retained deficit (14,535,003) (13,631,433)
-------------- --------------
Total equity 16,081,370 16,984,940
--------------
Current liabilities
Trade and other payables 7 465,443 983,418
Warrant liability 11 83,616 230,201
-------------- --------------
Total current liabilities 549,059 1,213,619
-------------- --------------
Total equity and liabilities 16,630,429 18,198,559
The accompanying notes are an integral part of these
consolidated interim financial statements.
These condensed interim consolidated financial statements were
approved by the Board of Directors on August 30, 2023 and were
signed on their behalf by:
Denham Eke
Director
Condensed Interim Consolidated Statement of Changes in
Equity
for the period ended May 31, 2023
Share premium Retained deficit Total
US$ US$ US$
Balance at March 1, 2023 (audited) 30,616,373 (13,631,433) 16,984,940
Total comprehensive loss for the period
Loss for the period - (1,084,192) (1,084,192)
------------ -------------- --------------
Total comprehensive loss for the period - (1,084,192) (1,084,192)
Transactions with owners of the Company
Equity settled share-based payments (note 10) - 180,622 180,622
------------ -------------- ------------
Total transactions with owners of the Company - 180,622 180,622
------------ -------------- ------------
Quarter ended May 31, 2023 (unaudited) 30,616,373 (14,535,003) 16,081,370
The accompanying notes are an integral part of these
consolidated interim financial statements.
Condensed Interim Consolidated Statement of Changes in
Equity
for the period ended May 31, 2023 (continued)
Share premium Retained deficit Total
US$ US$ US$
Balance at 1 March 2022 (audited) 23,434,385 (11,177,220) 12,257,165
Total comprehensive profit for the period
Profit for the period - 120,089 120,089
------------ -------------- --------------
Total comprehensive income for the period - 120,089 120,089
Transactions with owners of the Company
Issue of ordinary shares (note 9 and note 11) 7,581,351 - 7,581,351
Share issue costs capitalised (note 9) (547,916) - (547,916)
Equity settled share-based payments (note 10) - 1,194,204 1,194,204
------------ -------------- ------------
Total transactions with owners of the Company 7,033,435 1,194,204 8,227,639
------------ -------------- ------------
Quarter ended 31 May 2022 (unaudited) 30,467,820 (9,862,927) 20,604,893
The accompanying notes are an integral part of these
consolidated interim financial statements.
Condensed Interim Consolidated Statement of C ash Flows
for the period ended May 31, 2023
Three-month period ended May 31, 2023 Three-month period ended May 31, 2022
Notes (unaudited) (unaudited)
US$ US$
Cash flows from operating activities
(Loss)/profit before income tax (1,084,192) 120,089
Adjusted for non-cash and non-operating
items:
Depreciation 8 10,921 4,643
Unrealised (gain)/loss on investment (13,109) -
Interest income (59,102) -
Equity settled share based payments
expense 10, 11 180,622 1,194,204
Warrant fair value re-measurement 11 (146,585) (2,830,344)
Unrealised FX gain on cash balances - 316,171
-------------- --------------
(1,111,445) (1,195,237)
Change in trade and other receivables 47,727 10,996
Change in trade and other payables (517,974) (751,625)
-------------- --------------
Net cash flows used by operating
activities (1,581,692) (1,935,866)
Cash flows from investing activities
Amounts paid for deferred mining and
exploration costs 3 (948,445) (312,761)
Amounts paid for licences and permits 4 (280,294) (294,424)
Equipment purchased 8 (50,000) (58,671)
Advances and deposits - cash returned 53,250 -
-------------- --------------
Net cash flows used by investing
activities (1,225,489) (665,856)
Cash flows from financing activities
Cash received from shares and warrants
issued 9, 11 - 12,304,100
Share issue costs paid 9 - (547,916)
Interest income received 59,102 -
Bank deposits not considered cash and (3,905,582) -
cash equivalents (net)
-------------- --------------
Net cash flows from financing
activities (3,846,480) 11,756,184
-------------- --------------
Increase / (decrease) in cash and cash
equivalents (6,653,661) 9,154,462
Cash and cash equivalents at beginning
of period 7,746,519 7,327,303
Effect of foreign exchange on cash
balances - (316,171)
-------------- --------------
Cash and cash equivalents at end of
period 1,092,858 16,165,594
The accompanying notes are an integral part of these
consolidated interim financial statements.
Bradda Head Lithium Limited
Notes to the condensed consolidated interim financial statements
for the period ended May 31, 2023
1 Reporting Entity and basis of preparation
Bradda Head Lithium Limited (the "Company") is a company
domiciled in the British Virgin Islands. The address of the
Company's registered office is Craigmuir Chambers, Road Town,
Tortola, British Virgin Islands. The Company and its subsidiaries
together are referred to as the "Group".
The Company is a lithium exploration Group focused on developing
its projects in the USA.
These interim financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting and should be
read in conjunction with the last annual consolidated financial
statements as at and for the year ended February 28, 2023 ("last
annual financial statements"). They do not include all of the
information required for a complete set of IFRS financial
statements. However, selected explanatory notes are included to
explain events and transactions that are significant to an
understanding of the changes in the Group's financial position and
performance since the last annual financial statements.
The financial information in this report has been prepared in
accordance with the Company's accounting policies and in
consistency with the last annual financial statements. Full details
of the accounting policies adopted by the Company are contained in
the financial statements included in the Company's annual report
for the year ended February 28, 2023, which is available on the
Group's website: www.braddheadltd.com , and on SEDARplus (
www.sedarplus.ca/landingpage ). These unaudited condensed
consolidated interim financial statements should be read in
conjunction with the audited Consolidated Financial Statements for
the year ended February 28, 2023.
2 General and administrative
The Group's general and administrative expenses include the
following:
Three-month period ended May 31, 2023 Three-month period ended May 31, 2022
(unaudited) (unaudited)
US$ US$
Auditors' fees 19,600 81,841
Directors and management fees and
salaries 137,541 132,674
Legal and accounting 83,613 100,306
Contractor costs 551,868 565,826
Professional and marketing costs 204,203 307,328
Other administrative costs 262,016 17,554
-------------- --------------
Total 1,258,841 1,205,529
3 Deferred mine exploration costs
The schedule below details the exploration costs capitalised to
date:
Total
US$
Cost and net book value
At February 28, 2022 (audited) 4,183,744
Capitalised during the year 3,278,107
--------------
At February 28, 2023 (audited) 7,461,851
--------------
Capitalised during the period 948,445
--------------
At May 31, 2023 (unaudited) 8,410,296
Cost and net book value
At May 31, 2023 (unaudited) 8,410,296
At February 28, 2023 (audited) 7,461,851
The recoverability of the carrying amounts of exploration and
evaluation assets is dependent on the successful development and
commercial exploitation or sale of the respective area of interest,
as well as maintaining the assets in good standing. The Group
assessed the DMEC relating to areas for which licenses and permits
are held, for impairment as at May 31, 2023. The Board concluded
that no facts and circumstances have been identified which suggest
the recoverable amount of these assets would not exceed the
carrying amount and, as such, no impairment was recognised during
the period.
During the year ended February 28, 2023, an impairment charge of
US$ Nil was recognised.
4 Exploration permits and licences
The schedule below details the exploration permit and licence
costs capitalised to date:
Total
US$
Cost and net book value
At February 28, 2022 (audited) 1,549,076
Capitalised during the year 582,809
Impairment (19,470)
--------------
At February 28, 2023 (audited) 2,112,415
Capitalised during the period 280,294
--------------
At May 31, 2023 (unaudited) 2,392,709
Cost and net book value
At May 31, 2023 (unaudited) 2,392,709
At February 28, 2023 (audited) 2,112,415
The Group assessed the carrying amount of the licences and
permits held for impairment as at May 31, 2023. The Board concluded
that no facts and circumstances have been identified which suggest
the recoverable amount of these assets would not exceed the
carrying amount and, as such, no impairment was recognised during
the period.
During the year ended February 28, 2023, an impairment charge of
US$ 19,470 was recognised as a result of project licences and
permits that were not renewed.
5 Investment in subsidiary undertakings
As at May 31, 2023, the Group had the following
subsidiaries:
Name of company Place of Ownership Principal activity
incorporation interest
Bradda Head Limited* BVI 100% Holding company of entities
below
Zenolith (USA) LLC USA 100% Holds USA lithium licences
and permits
Verde Grande LLC USA 100% Holds USA lithium licences
and permits
Gray Wash LLC USA 100% Holds USA lithium licences
and permits
San Domingo LLC USA 100% Holds USA lithium licences
and permits
* Held directly by the Company. All other holdings are
indirectly held through Bradda Head Limited
The condensed interim consolidated financial statements include
the results of the subsidiaries for the full interim period from
March 1, 2023 to May 31, 2023, and up to the date that control
ceases.
6 Trade and other receivables and advances and deposits
Non-current
May 31, 2023 February 28, 2023
(unaudited) (audited)
US$ US$
Advances and deposits 50,941 104,192
Current
May 31, 2023 February 28, 2023
(unaudited) (audited)
US$ US$
Prepayments and other debtors 168,869 216,595
Advances and deposits 385,624 385,624
7 Trade and other payables
May 31, 2023 February 28, 2023
(unaudited) (audited)
US$ US$
Trade payables 367,370 904,944
Accrued expenses and other payables 98,073 78,474
------------ ------------
465,443 983,418
8 Plant and equipment
Motor vehicle Total
Cost US$ US$
As at March 1, 2022 (audited) 55,718 55,718
Additions during the year 58,672 58,672
------------ ------------
As at February 28, 2023 (audited) 114,390 114,390
Additions during the period 50,000 50,000
------------ ------------
As at May 31, 2023 (unaudited) 164,390 164,390
Motor vehicle Total
Accumulated depreciation US$ US$
As at March 1, 2022 (audited) (1,548) (1,548)
Depreciation charge for the year (33,240) (33,240)
------------ ------------
As at February 28, 2023 (audited) (34,788) (34,788)
Depreciation charge for the period (10,921) (10,921)
------------ ------------
As at May 31, 2023 (unaudited) (45,709) (45,709)
Carrying amount
As at May 31, 2023 (unaudited) 118,681 118,681
As at February 28, 2023 (audited) 79,602 79,602
9 Share premium
Authorised
The Company is authorised to issue an unlimited number of nil
par value shares of a single class.
Shares Share capital Share premium
Issued ordinary shares of US$0.00 each US$ US$
At February 28, 2022 (audited) 317,413,879 - 23,434,385
Shares issued for cash 73,195,560 - 7,729,904
Share issue costs capitalised - - (547,916)
-------------- -------------- --------------
At February 28, 2023 (audited) 390,609,439 - 30,616,373
At May 31, 2023 (unaudited) 390,609,439 - 30,616,373
On 13 April 2022, the Company completed a fundraise, issuing
73,195,560 ordinary shares for gross proceeds of US$ 12.9 million
and issued 73,195,560 warrants for ordinary shares to participating
shareholders. Refer to note 11.
10 Equity settled share based payments
The cost of equity settled transactions with certain Directors
of the Company and other participants ("Participants") is measured
by reference to the fair value at the date on which they are
granted. The fair value is determined based on the Black-Scholes
option pricing model.
Options and warrants
The total number of share options and warrants in issue as at
the period end is set out below.
Recipient Grant Term Exercise Number at Number Issued Number Lapsed/ Number May 31, 2023 Fair value
Date in Price March 1, 2023 cancelled/expired Exercised (unaudited)
years (audited)
Options US$
Directors and
Participants April 2018 5 US$ 0.15668 1,606,304 - - - 1,606,304 24,028
Directors and
Participants June 2021 5 US$ 0.048 18,000,000 - - - 18,000,000 1,110,556
Directors and
Participants September 2021 5 GBP0.09 3,500,000 - - 3,500,000 314,962
Directors and
Participants April 2022 5 GBP0.18 8,925,000 - - 8,925,000 1,089,312
Directors and
Participants December 2022 5 GBP0.105 1,000,000 - - 1,000,000 273,727
Directors and
Participants April 2023 5 GBP0.060 - 4,800,000 - - 4,800,000 180,622
Warrants
Supplier warrants July 2021 5 GBP0.0550 1,818,182 - - - 1,818,182 124,482
Supplier warrants July 2021 3 GBP0.0825 2,254,545 - - - 2,254,545 8,275
Shareholder
warrants December 2021 2 GBP0.0885 1,185,687 - - - 1,185,687 44,858
Supplier
warrants April 2022 2 GBP0.1350 3,244,331 - - - 3,244,331 284,918
-------------- -------------- -------------- -------------- -------------- --------------
41,534,049 4,800,000 - - 46,334,049 3,455,740
10 Equity settled share based payments (continued)
The amount expensed in the income statement has been calculated
by reference to the fair value at the grant date of the equity
instrument and the estimated number of equity instruments to vest
after the vesting period.
Three-month period ended May 31, 2023 Three-month period ended May 31, 2022
(unaudited) (unaudited)
US$ US$
Share based payments charge 180,622 1,194,204
The inputs used in the measurement of the fair values at grant
date of the equity-settled share-based payment plans issued during
the period are as follows:
April 2023 options
Award date and exercise price
Fair value at grant date GBP0.030
Exercise price GBP0.060
Weight average expected volatility 78.50%
Weighted average expected life (years) 5
Risk-free interest rate (based on comparable companies) 3.82%
Terms of the issued options are as follows:
- 4,800,000 options have been granted that vest fully on grant
date. All un-exercised options expire after a period of 5 years
from admission date. It is assumed that options are exercised
within 5 years from date of grant. The applied volatility is based
on historical volatility.
11 Warrants
The cost of equity warrants granted during the period are
measured by reference to the fair value at the date on which they
are granted. The fair value is determined based on the
Black-Scholes option pricing model.
During the three-month period ended May 31, 2023, no new
warrants were issued.
The total number of warrants in issue as at the period end is
set out below.
Recipient Grant Term Exercise Warrants at Number of Number of Number of Number of Fair value
Date in Price March 1, 2023 Warrants Warrants Lapsed/ Warrants Warrants at
years (audited) Issued cancelled/expired Exercised May 31, 2023
(unaudited)
Warrants US$
Shareholder April
warrants 2022 2 GBP0.2100 73,195,560 - - - 73,195,560 83,616
-------------- -------------- -------------- -------------- -------------- --------------
73,195,560 - - - 73,195,560 83,616
The fair value applied to the shareholder warrants has been
classified as a financial liability. At the date of grant the fair
value of shareholder warrants of US$ 4,748,671 was deducted from
the gross proceeds raised against share premium. At period end, the
warrant liability has been re-measured to fair value, with a
corresponding entry to profit and loss of US$ 146,585 (31 May 2022:
US$ 2,830,344) within Warrant Fair Value Re-Measurement.
Reconciliation of warrant liability fair value:
Fair value
US$
Balance at March 1, 2023 230,201
Fair value re-measurement (146,585)
--------------
Balance at May 31, 2023 83,616
11 Warrants (continued)
April 2022 shareholder warrants
Grant date fair value Award date and exercise
price
Fair value at grant date GBP0.0492
Exercise price GBP0.21
Weight average expected volatility 81.90%
Weighted average expected life (years) 2
Risk-free interest rate (based on comparable
companies) 0.80%
May 31, 2023 fair value Award date and exercise
price
Fair value GBP0.00009
Exercise price GBP0.21
Weighted average expected volatility 79.2%
Weighted average expected life remaining
(years) 0.88
Risk-free interest rate (based on comparable
companies) 4.40%
As part of the fundraise completed during April 2022, all
participating shareholders received a warrant on 1:1 basis for
shares acquired. As a result, 73,195,560 warrants have been issued.
All un-exercised warrants expire after a period of 2 years from
grant date. It is assumed that warrants are exercised within 2
years from date of grant. The applied volatility is based on
historical volatility.
12 Basic and diluted loss per share
The calculation of the basic loss per share is based on the
earnings attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the year.
The calculation of diluted earnings per share is based on the
basic earnings per share, adjusted to allow for the issue of
shares, on the assumed conversion of all dilutive share
options.
An adjustment for the dilutive effect of share options in the
current year has not been reflected in the calculation of the
diluted loss per share, as the effect would have been
anti-dilutive, due the Company recognising a loss for the year.
May 31, 2023 May 31, 2022
(unaudited) (unaudited)
US$ US$
--------------------------------------------------------- ------------ --------------
(Loss)/profit for the period (1,084,192) 120,089
--------------------------------------------------------- ------------ ------------
No. No.
--------------------------------------------------------- ------------ --------------
Weighted average number of ordinary shares in issue 390,609,439 342,690,043
Dilutive element of share options if exercised (note 15) 37,831,304 32,031,304
--------------------------------------------------------- ------------ --------------
Diluted number of ordinary shares 428,440,743 374,721,347
--------------------------------------------------------- ------------ --------------
Basic (loss)/earnings per share (cents) (0.278) 0.04
--------------------------------------------------------- ------------ ------------
Diluted (loss)/earnings per share (cents) (0.278) 0.04
--------------------------------------------------------- ------------ ------------
For the period ended May 31, 2023, the earnings applied are the
same for both basic and diluted earnings calculations per share as
there are no dilutive effects to be applied.
13 Related party transactions and balances
Edgewater Associates Limited ("Edgewater")
During the three-month period ended May 31, 2023, Directors' and
Officers' insurance was obtained on an arms-length basis through
Edgewater, which is a 100% subsidiary of Manx Financial Group
("MFG"). James Mellon and Denham Eke are Directors of both the
Company and MFG.
During the period, the premium payable on the policy was US$ Nil
(year ended February 28, 2023: US$ 49,318). A total of US$ 1,699
was prepaid as at the period end (February 28, 2023: US$
14,497).
14 Commitments and contingent liabilities
The Group has certain obligations to expend minimum amounts on
exploration works on mining tenements in order to retain an
interest in them, equating to approximately US$ 432,029 during the
next 12 months. This includes annual fees in respect of licence
renewals. These obligations may be varied from time to time,
subject to approval and are expected to be filled in the normal
course of exploration and development activities of the
Company.
15 Events after the reporting date
No post balance sheet events have occurred that required
disclosure.
ENDS
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QRFKZGFRLMKGFZG
(END) Dow Jones Newswires
August 31, 2023 06:25 ET (10:25 GMT)
Grafico Azioni Bradda Head Lithium (LSE:BHL)
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