AfriOre has reported Financial Results for the three and nine month period ended November 30, 2006
AfriOre Limited, the mineral exploration company domiciled in the British Virgin Islands, has announced financial results for the three and nine month period ended November 30, 2006. The company reported a profit for the three month period, of $774,515 or $0.02 per share - basic and diluted, and a loss for the nine month period ended November 30, 2006, of $5,348,106 or $0.11 per share. BVI Company financial results for periods ended August 31, 2006, also showed losses which could be explained with a significant increase in exploration expenditure for Akanani project, which is currently the most important development of AfriOre.
In the nine month period ended November 30, 2006, capital exploration costs amounted to $18,496,230. Exploration expenditure for the Akanani Platinum Project made $7,298,630, with total exploration costs for the nine months period totaling $7,712,973. Another expenditure was a write down of $317,968 on the Dwaalboom Gold Project. For the nine months period last year exploratiion expenditures for Akanani Project made $6,076,429 (for Dwaalboom Gold Project $2,804,468). The continuing positive results at Akanani were justification for the attendant increase in expenditure at Akanani.
AfriOre also reported a foreign exchange loss of $637,101 for the nine month period ended November 30, 2006, if compared to $164,948 for the nine month period ended November 30, 2005. This loss could be connected with the weakening of the South African Rand. It could be also attributable to a Stock Based Compensation expense of $3,685,000, resulting from revaluing of 2,500,000 warrants per the Black-Scholes method, issued in terms of an agreement between AfriOre and the original Black Economic Empowerment Shareholders of Akanani Mining (Pty) Limited.
As it was previously announced, on November 14, 20006 AfriOre entered into a binding letter agreement with Lonmin Plc., whereby Lonmin would offer to acquire AfriOre by means of a cash offer to shareholders of CDN$8.75 per AfriOre share. The board of directors of Afriore has recommended to the AfriOre shareholders that they accept Lonmin’s offer. The transaction between AfriOre and Lonmin was approved by the South African Competition Commission .
The BVI company has announced that it continues to concentrate on exploration on its platinum group metals and gold projects, and to engage in the acquisition, exploration and development of its projects in South Africa.