Net losses widen for Lexington Gold
Carolinas-focussed gold exploration and development company Lexington Gold reported a net loss from continuing operations of $0.7m (£0.49m) in its final results on Tuesday, against its prior-year loss of $0.5m.
The AIM-traded firm said total assets were $5.5m at year-end on 31 December, up from $0.4m a year earlier, while its net cash position improved to $2.9m from $0.01m.
Total liabilities stood at $0.09m at the end of 2020, narrowing from $0.36m at the end of 2019.
Lexington Gold’s board described 2020 as a “transformational year” for the company, in which it completed the acquisition of majority interests in four gold exploration projects in North and South Carolina and was readmitted to trading on AIM in November.
In conjunction with readmission, the company completed a £3.33m fundraising, a rebranding and name change, the restructuring of its share capital through a one-for-10 share consolidation, and the appointment of a “highly experienced” board.
It began exploration activities on its Carolina gold projects immediately following readmission, which continued post-year end.
On 25 November, the company completed its acquisition of Global Asset Resources (GAR) which, via its wholly-owned US subsidiary, holds a 51% interest in and operationship of four gold exploration projects in the US states of North and South Carolina.
The acquisition constituted a reverse takeover under the AIM rules.
“In line with the company's stated strategy, the directors believe that the acquisition of GAR represents an excellent opportunity to create long-term shareholder value through the identiﬁcation and exploration of gold deposits within a well-mineralised but under-explored Super Terrane in North and South Carolina in the United States,” the board said of the company’s outlook.
At 1322 BST, shares in Lexington Gold were up 3.84% at 3.89p.