Half-Year Report 2018
First half-year (January - June) 2018
- The profit after taxes for the first half year 2018 was - 1.1 (- 0.8) MSEK.
- The earnings per share (EPS) for the first half year was -0.02 (-0.04) SEK.
- Equity per share at the end of the period was 0.93 (1.35) SEK.
- The cash balance at end of the period amounted to 9.6 MSEK (0.7) MSEK.
Main events and progress during first half year 2018
Arctic Minerals AB held its Annual General Meeting on 8 May 2018 at Skeppargatan 27 in Stockholm.
- The AGM resolved to determine the income statement and balance sheets and to disclose unrestricted equity in accordance with the Board's proposal. The AGM also decided to grant discharge to the members of the Board and the CEO for the financial year 2017.
- As Board members until the end of the next Annual General Meeting, Peter Walker, Hanne Markussen Eek, Claes Levin, John Pedersen and Krister Söderholm were all reelected. Torsten Börjemalm was re-elected deputy board member. The meeting resolved to appoint Peter Walker as Chairman of the Board. Chartered accountant Sten Håkansson, PWC Stockholm was reelected auditor until the fiscal year 2020.
- The AGM resolved to appoint a nomination committee in accordance with the nomination committee's previous proposal.
- The AGM also resolved to authorize the Board to decide on new shares and / or issue of convertible bonds and / or warrants against cash payment on one or more occasions until the next Annual General Meeting and / or with a clause or set-off or other terms and conditions and thus deviate from the shareholders' preferential rights, entailing an increase in the company's number of shares of no more than 15,000,000.
- Current CEO Tord Cederlund announced his wish to terminate his assignment. He wishes to resign as soon as the board finds a suitable candidate. If the board has not found any such candidate before October 31, 2018, Tord Cederlund still wishes to finish his assignment by that day.
- At the subsequent board meeting in Arctic Minerals AB, Hanne Markussen Eek was appointed vice-chairman with special responsibility for the company's communications in Norway.
On 15 June 2018, Arctic Minerals AB held an extraordinary shareholders' meeting at Skeppargatan 27 in Stockholm.
- The EGM approved the proposal from the Board of Directors of Arctic Minerals AB to implement a directed new issue of 3 076 923 shares to two of the major shareholders, Novatelligence AB, a wholly-owned company of Arctic Mineral's CEO Tord Cederlund, and Longbow Resources Ltd. The issue gave the company SEK 2.0 million before issue costs and will be used to repay existing debt by means of an offset.
- The shares were issued at a subscription price of SEK 0.65 per share. The subscription price was set at the same rate as for those subscribed to in the new issue in January 2018, which was then made in consultation with the financial advisor after negotiations with the subscribers.
- The reason for the deviation from shareholders' preferential rights was to enable the company to eliminate all debt from its balance sheet. In addition to the offset, the company further repaid 1MSEK to Novatelligence AB and is thereafter debt-free. This will make it easier to secure future funding for exploration of the company's extensive (~ 6,000 km2) of exploration reservations in central Finland and in southern Finnish Lapland.
Events after the reporting period (ending June 30, 2018)
9 July, 2018 Arctic Minerals AB announced the appointment of Mr. Risto Pietilä as Exploration Manager.
- Mr Pietilä graduated with an M.Sc in geophysics from the University of Oulu in 1979. He is a member of the Finnish Association of Mining and Metallurgical Engineers.
- Risto Pietilä has over 30 years' international experience as an exploration geophysicist. Between 1980 and 2004 he worked for Outokumpu Oy on exploration and mining projects in Finland and Australia. He has been involved in a number of mineral discoveries, including the high-grade Silver Swan nickel deposit in Western Australia, the Telkkälä nickel deposit in Finland and a VMS deposit in Morocco. Geophysics played a crucial role in all these discoveries.
- Since 2004 Mr Pietilä has held a number of senior positions with the Geological Survey of Finland (GTK), including Divisional Manager of Bedrock and Raw materials, as well as Regional Director of GTK's Northern Finland Office. Most recently, he was Head of the Mineral Processing and Materials Research Unit of GTK, from which position he recently retired.
23 July, 2018 Arctic Gold AB, a subsidiary of Arctic Minerals, filed an application for three additional exploitation permits in the Bidjovagge mine camp in Kautokeino, Northern Norway
- Arctic Gold AB has five exploitation permits (utvinningsretter) covering the known mineral resources in the Bidjovagge mine camp in Kautokeino, Finnmark, in Northern Norway, and covering an area of 4.86 km2.
- Arctic Gold AB has also possessed eight exploration permits covering the lateral continuation of the known deposits. These permits expire 3 August, 2018 and cannot be prolonged as exploration permits
- The Kautokeino municipality in 2013 refused to assess the company's plan for mining development, according to Norwegian law (Plan- og bygningsloven).
- As a consequence of the decision by the municipality, no exploration and development activities have been continued in the Bidjovagge area after 2013.
- The three applied exploitation permits filed 23 July, 2018 cover the former eight exploration permits.
1 August, 2018 Arctic Minerals issued an update on progress in exploration in Finland.
- The company holds a total of 5,874 km2 of exploration reservations in central Finland (the "Raahe-Ladoga Ore Belt") and southern Finnish Lapland (the "Peräpohja Belt"), as well as the mineral rights to the formerly-producing Bidjovagge copper-gold mine in Norway. For details see below on Norrbotten Exploration AB.
- In March 2018 the company engaged the Geological Survey of Finland ("GTK") and the private consulting company, GRM Oy to carry out detailed processing of certain geological, geochemical and geophysical data available from public and other sources covering Arctic Minerals' reservations in the Raahe-Ladoga belt and Peräpohja. Geophysical interpretation comprised the major part of this program. The results of this processing have now been received and have enabled the company to identify a number of targets for follow-up.
Next reporting date
Report for the second half year as well as the full year 2018 will be announced Thursday 21 February 2019.
For complete report see attached file.
Stockholm August 23, 2018
Partner Fondkommission is Arctic Mineral's Certified Adviser.
For more information, contact
Tord Cederlund, CEO
+46 73 6200 997
This information is information that Arctic Minerals AB is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication at 08.00 on 23rd August 2018.
About Arctic Minerals AB
Arctic Minerals AB is junior exploration company. Exploration activities are done through two 100 % owned subsidiaries. Norrbotten Exploration AB held at the end of the half year period 9 reservations in Finland for a total area of 5648 km2. Activities in Norway is handled through Arctic Gold AB, which at the end of June 2018 held exploration permits (undersökelsesretter) for 8 areas with a total of 2.3 km2 and 5 exploitation permits (utvinningsretter) for a total of 4.9 km2 in the area named Bidjovagge, in Kautokeino in Northern Norway.
Norrbotten Exploration AB
In 2017, Norrbotten Exploration AB (NEAB) acquired nine reservations (for exploration) in Finland, situated in two areas - the Raahe-Ladoga belt and Peräpohja Belt (Figure 1). The reservations are valid for 2 years, and they expire during the period March 2019 to August 2019 (Table 1).
A reservation, granted according to the Finnish Mine Act from 2011, does not give access to the land beyond the basic activities also granted by "Allemansrätten", but it allows for data compilation and airborne surveys. However, if an agreement can be made with a landowner during the time under reservation, on-ground activities like geophysical surveying and drilling can also be carried out.
In order to limit cost for subsequent exploration licenses, it is essential to get as focused as possible during the reservation time. Thereafter the exploration licenses shall be investigated as fast as possible.
Arctic Minerals AB