Vancouver, Canada – Leading Edge Materials Corp. (“Leading Edge Materials”) or (the Company”) (TSXV:LEM) (OTCQB: LEMIF) announces its year end results for the period ending Oct 31 2017. All amounts in this release are in Canadian dollars.
During the last financial year the company has achieved a number of milestones.
Blair Way, President and CEO, stated “The Company had an active year and made excellent progress to achieve the company objectives and goals. We are looking forward to an even busier 2018.”
Selected Financial Data
The following selected financial information is derived from the audited consolidated financial statements of the Company prepared in accordance with IFRS.
|Year Ended October 31,|
|Basic and diluted loss per share||(0.03)||(0.07)||(0.06)|
|Dividends per share||Nil||Nil||Nil|
|Total non-current liabilities||(8,330,321)||(8,072,937)||(6,151,407)|
Financial Condition / Capital Resources
During the fiscal year ended October 31, 2017 (“fiscal 2017”), the Company incurred a net loss of $2,920,028 compared to a loss of $3,454,894 during the year ended October 31, 2016 (“fiscal 2016”), a decrease in loss of $534,866. The decreased loss is primarily attributed to the recognition of share-based compensation of $1,505,250 in fiscal 2016, compared to $nil in fiscal 2017, on the granting and vesting of share options. The decrease in share-based compensation was partially offset by an increase of $710,033 in general and administrative expenses and the $126,030 impairment of certain exploration and evaluation assets in fiscal 2017.
During fiscal 2017 the Company completed private placement financings of 4,004,222 units at $0.45 per unit and 3,636,364 units at $0.55 per unit for total gross proceeds of $3,801,900. In addition the Company issued 1,026,916 common shares on the exercise of share options and warrants for $427,491. The Company has allocated the net proceeds from these placements and option and warrant exercises to conduct testwork toward the production of high-purity graphite at the Woxna graphite project, to further lithium and cobalt exploration activities and for general corporate requirements. Proceeds from the placements will allow an accelerated work program during fiscal 2017.
During fiscal 2016 the Company issued 145,000 common shares on the exercise of share options for $14,500. No equity financings were completed during fiscal 2016.
Summary and Outlook
The company had a successful 2017 and anticipates an active 2018. The company progressed the value adding works on the Woxna graphite project which will continue in 2018. The drill program on the company’s Bergby lithium project revealed promising results and the project will be further advanced in 2018. The research and development work on the Norra Kärr REE project presented new opportunities for optimization and it is anticipated this will be the subject of further research in 2018.
The Company maintains the Woxna plant in an operation ready status running it on an as needed basis to provide feedstock product for value added test work. The Company is working with potential customers to identify products from the Woxna graphite project. The Company continues to work to position as a supplier of choice in terms of price, supply security and quality to the European graphite market.
Process development research on Norra Kärr completed under the European Commission funded EURARE project achieved significant technical milestones. Research culminated with a new and optimized hydrometallurgical flowsheet which be further progressed in 2018 to better understand potential commercial byproduct streams.
The Bergby lithium project remains a new lithium discovery at a very shallow depth, and it is anticipated that the project will be advanced with metallurgical testwork utilizing core material retained during the drill program.
The company continues to seek out prospective battery material projects in Europe and will provide updates as the information becomes available.
Effective December 15, 2017 Mr. Nick DeMare resigned as a director of the Company. Mr. DeMare remains as the Company’s Chief Financial Officer.
The Company completed the listing application and received final approval to trade Leading Edge Materials (the “LEM Common Shares”) on Nasdaq First North which began on January 22, 2018. The LEM Common Shares trade on Nasdaq First North under the symbol “LEMSE”.
The qualified person for the Company’s projects, Mr. Blair Way B.S. (Geology) M.B.A., a Fellow of the Australasian Institute of Mining and Metallurgy, the Company’s President and CEO, has reviewed and verified the contents of this document.
The Company’s consolidated financial statements for the year ended October 31, 2017 and related management’s discussion and analysis are available on the Company’s website at www.leadingedgematerials.com or under its profile on SEDAR at www.sedar.com
This is information that Leading Edge Materials Corp is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on January 29, 2018, at 1:15 PM Vancouver time.
On behalf of the Board,
Blair Way, President & CEO
For further information, contact: 1.604.685.9316 or email@example.com
About Leading Edge Materials
Leading Edge Materials was formed with our sights firmly focused on the material demands of a once-in-a-generation revolution, as the world shifts to the efficient production, storage and preservation of low carbon energy. From the lithium batteries in our electric vehicles to our ability to generate energy from the sun, wind and waves LEM is focused on the green energy markets. With a focus on Europe and assets in innovation-rich Scandinavia, Leading Edge Materials is ideally placed to play a pivotal role in the sustainable supply of critical technology materials. Remium Nordic AB is the company’s Certified Adviser (“CA”) as part of the listing requirements for Nasdaq First North.
About Nasdaq First North
Nasdaq First North is regulated as a multilateral trading facility, operated by the different exchanges within Nasdaq Nordic (Nasdaq First North Denmark is regulated as an alternative marketplace). It does not have the legal status as an EU-regulated market. Companies at Nasdaq First North are subject to the rules of Nasdaq First North and not the legal requirements for admission to trading on a regulated market. The risk in such an investment may be higher than on the main market.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release.
Forward-Looking Information. This news release may contain forward-looking statements and information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Such statements include but are not limited to, the Company’s expectations regarding the benefits of the listing on the Nasdaq First North; the Company’s ability to fulfil the customary conditions set out in the conditional acceptance letter from Nasdaq Stockholm AB; unexpected geological conditions; the Company’s expectations regarding exploration activities to advance critical material projects for energy storage markets, delays in obtaining or failure to obtain necessary permits and approvals from government authorities. Although such statements are based on management’s reasonable assumptions, there are risk factors which could cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.