| URU METALS LIMITED |
| Interim Results for Period Ended 30 September 2020 |
URU Metals Limited
Chairman’s Statement
For the Period Ended 30 September 2020
I am pleased to present to our shareholders and stakeholders the consolidated financial statements of the Group for the six months ended 30 September 2020.
As the renewable energy revolution gains traction, nickel and platinum group elements are playing an important role in the storage of energy. This bodes well for the Zebediela project, which as noted by the Company in its announcement of 16 October 2020, is ranked as one of the top ten Class 1 nickel sulphide resources globally (Mudd, & Jowitt, (2014). A detailed assessment of global nickel resource trends and endowments. Economic Geology, 109(7), 1813-1841).
During the Period under review, the focus has been on advancing the environmental impact studies related to the mining right application, which has proceeded smoothly. The final environmental impact report is expected to be submitted to the South African Department of Mineral Resources and Energy (DMRE) in Q1 2021, which will pave the way for the DMRE to issue the Mining Right, thus granting the Company the right to mine the 9 billion pounds of nickel resource as well as to mine and explore for Platinum Group Elements and associated minerals for 30 years.
Highlights
The highlights of our progress during the six months ended 30 September 2020 and to the date of this report can be summarised as follows:
The Company submitted an application to convert its existing Prospecting Rights to a Mining Right to the South African Department of Mineral Resources (DMRE) in the prior fiscal year. The application was accepted also in the prior year. The application triggered the need for the Company to apply for Environmental Authorisation (EA) to develop an open pit mining operation to extract the nickel resource. The EA requires the submission of an Environmental Impact Report (EIR), which consists of various specialist studies to understand the impact of the future operation. These have since been completed and a draft submission of the EIR has been submitted to the DMRE.
The area to the immediate east of the existing nickel resource was partly drilled in 2017 and drill results contained nickel and platinum group elements (PGE’s) at a higher grade than that found in the Company’s existing NI43-101 compliant resource. The Company believes this target area could be the up-dip extension of Ivanhoe Mines’ 800 m deep Platreef project. Ivanhoe’s Platreef Project is located immediately west and adjacent to URU’s Zebediela Project.
Convertible Loan Note
On 6 May 2020, the Company issued a Convertible Loan Note for $250,000 to Boothbay Absolute Return Strategies LP (“Boothbay”). The Convertible Loan Note can be increased by Boothbay to $500,000 prior to the maturity of the Loan Note on 31 May 2021. The Loan Note is unsecured, matures on 31 May 2021 or such later date as the Company may in its sole discretion determine.
Private Placements
On 6 May 2020, the Company raised approximately £200,000 through the subscription for 235,294 depositary interests of no par value each in the Company (“Ordinary Share”) at a price of 85 pence each per new Ordinary Share. Each New Ordinary Share has an attached warrant with an exercise period of 18 months and are exercisable at 85 pence each.
The Company also agreed to issue 470,588 new Ordinary Shares at 85 pence each per new Ordinary Share to Alegana Enterprises Limited (a company controlled by J. Zorbas) in lieu of unpaid director fees and salaries. Each new Ordinary Share has an attached warrant with an exercise period of 18 months and are exercisable at 85 pence each .
Post-Period Events
On 25 November 2020, the Company raised £280,600 through the subscription for 122,000 new Ordinary Shares in the share capital of the Company at a price of 230 pence per share.
On 26 November 2020, the Company issued 32,858 new Ordinary Shares at a price of 245 pence each, being the closing mid-market price of the Company’s shares on 25 November 2020, to several persons discharging managerial responsibilities in the Company (the “PDMR Shares”) for a notional value of £80,500 in aggregate. The PDMR Shares have been issued to Jay Viera (9,388 shares), Kyle Appleby (9,388 shares) and Marrelli Support Services Inc. (14,082 shares), for the services of Jing Peng as CFO to Marrelli Support Services Inc. in lieu of unpaid directors fees and salary that were due for payment in cash.
The Company also issued 5,380 new Ordinary Shares at a notional price of 230 pence each, being the placing price of the equity raising announced on 25 November 2020, to an adviser of the Company in lieu of fees that were due in cash.
Outlook
URU continues to believe that the long-term fundamentals of the base minerals industries remain positive and will be working hard in the coming year to unlock the value of our projects for our shareholders. The Company maintains its core strategy to develop its nickel assets, as the Board anticipates growing demand and price appreciation for nickel in the short to medium term.
Jay Vieira
Non-executive Chairman
29 December 2020
