Central Asian Minerals and Resources PLC
LSE : CMRP

May 26, 2011 02:00 ET

Audited Results for the year ended 31 December 2010

                                                                                                    26 May 2011
                                                                                                   IM00B61FM981
                                   Central Asian Minerals and Resources PLC
                                          ("CAMAR" or the "Company")
                                                       
                              Audited Results for the year ended 31 December 2010

Chairman's Statement

CAMAR was established as an investment vehicle in 2009 to identify investment opportunities within the minerals
and  resources  sector, principally within the developing countries of Central Asia. The Directors  anticipated
that the principal minerals on which the Company would focus would be precious metals and, in particular, gold.
In  order  to  preserve the Company's cash resources, CAMAR proposed to acquire stakes in target  companies  in
return for the provision of the services, expertise and advice of its Directors.

In  pursuit  of its investment strategy, on 20 February 2010, the Company entered into an agreement  with  Gulf
International Minerals Limited ('Gulf Canada'), which, together with Altin-Topkan, was then the joint owner  of
Aprelevka, a mining company which is licensed to operate and is currently operating the Aprelevka gold mine  in
Tajikistan.  Pursuant  to an agreement with Gulf Canada, CAMAR provided the services of  Christine  Melian  and
Thomas  Marti,  both of whom were at the time directors of the Company, in order to protect  and  further  Gulf
Canada's interest in the jointly-owned company and Aprelevka's licence to operate the Aprelevka Mine.

In  September 2010, the Company raised £1.02 million in a fundraising. On 21 October 2010, the Company  entered
into a loan agreement with Gulf Canada whereby the Company agreed to provide Gulf Canada with an unsecured term
loan  facility  of  up  to  US$750,000 at an interest rate of 3 per cent.  above  the  base  rate  of  National
Westminster  Bank  plc. On 21 December 2010, this loan was assigned to Gulf UK and amended to  become  interest
free.

In  March 2011, certain investors subscribed for a total of 1,533,199 Shares at a price of 60p per share. Every
two Ordinary Shares issued in the Subscription have one 2011 Warrant attached entitling the holder to subscribe
for  one additional Ordinary Share at a price of 75p per share. The proceeds of the Subscription, amounting  to
approximately £919,920 (gross of expenses), will be used to provide additional working capital for the Company.

In  performing  its duties under the Gulf Canada Agreement, CAMAR was able to undertake a direct assessment  of
the  Aprelevka  Mine  and its potential. The Company believed that the Aprelevka Mine's reserves  of  gold  and
silver  could  generate material returns for the owners of the mine if that resource is efficiently  exploited.
The Company therefore agreed to acquire Gulf International Minerals Limited, ('Gulf UK'), which now owns the 49
per  cent. interest in Aprelevka previously owned by Gulf Canada, in order to secure a share of those  possible
returns for Shareholders.

The  Directors  understand that at the time that the Gulf Canada Agreement was entered into,  Gulf  Canada  was
primarily  focused on refinancing itself and was unable either to actively manage its interest in the Aprelevka
Mine or to purchase necessary equipment. The Directors therefore considered that securing a direct interest  in
the  Aprelevka  Mine  through the acquisition of Gulf UK, rather than an indirect interest  by  exercising  its
option  to  acquire  shares in Gulf Canada, would provide greater benefit to Shareholders. Accordingly  it  was
announced  on  24  March 2011 that the Company had entered into a conditional agreement to acquire  the  entire
issued  share capital of Gulf UK. The consideration paid for the Acquisition was £2,303,448 which was satisfied
by  the  issue of 4,188,087 ordinary shares, representing 42.3 per cent. of the Company's issued share capital,
to Gulf Canada.

On  26 April 2011, when the acquisition of Gulf UK was completed, CAMAR ceased to be an Investment Vehicle  and
is  now solely focused on the successful development and exploitation of the Aprelevka Mine. The Directors  are
confident that the mine has the potential to produce material benefits to the Company and its shareholders  and
we look forward to updating you in due course.

Oliver John Vaughan
Chairman

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2010

                                                                            Year ended            Year ended
                                                                           31 December           31 December
                                                                                  2010                  2009
                                                                                   US$                   US$
                                                                                           
 
 Revenue                                                                       157,000                     -
                                                                                                            
 Administrative expenses                                                    (1,205,038)              (30,809)
                                                                                                            
                                                                                                            
                                                                                                            
 Operating loss                                                             (1,048,038)              (30,809)
                                                                                                            
 Interest receivable                                                               612                     -
 Finance costs                                                                  (1,075)                 (254)
                                                                                                            
 Loss on ordinary activities before tax                                     (1,048,501)              (31,063)
                                                                                                            
 Tax expense                                                                         -                     -
                                                                                                            
                                                                                                            
                                                                                      
                                                                                                            
 Loss for the year and total comprehensive loss for the year                (1,048,501)              (31,063)
                                                                                                            
                                                                                                            
                                                                                      
                                                                                                              
 Loss per share                                                                                             
 Basic                                                                          (0.41)                (0.11)
 Diluted                                                                        (0.41)                (0.11)
                                                                                                              
                                                                                                              
                                                                                                            
All losses for the year are attributable to the equity shareholders of the company.

All operations are continuing operations.


STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2010

                                                                                 As at                 As at
                                                                           31 December           31 December
                                                                                  2010                  2009
                                                                                   US$                   US$
 ASSETS                                                                                    
 Non-current assets                                                                                           
 Property, plant and equipment                                                 300,080                    -
                                                                                                              
                                                                                                              
                                                                                                              
 Current assets                                                                                               
 Trade and other receivables                                                   791,964               326,938
 Cash and cash equivalents                                                     498,485               173,153
                                                                                                              
                                                                                                              
                                                                                                    
 LIABILITIES                                                                 1,290,449               500,091
 Current liabilities                                                                                          
 Trade and other payables                                                     (119,513)             (500,000)
                                                                                                              
                                                                                                              
                                                                                                            
 Net current assets                                                          1,170,936                    91
                                                                                                              
                                                                                                              
 NET ASSETS                                                                  1,471,016                    91
                                                                                                              
                                                                                                              
 SHAREHOLDERS' EQUITY                                                                                         
 Called up share capital - equity                                                    -                     -
 Share premium account                                                       2,550,580                31,154
 Retained earnings                                                          (1,079,564)              (31,063)
                                                                                                              
                                                                                                              
 TOTAL EQUITY                                                                1,471,016                    91
                                                                                                              
                                                                                                              
                                                                                                              
The Directors do not recommend the payment of a dividend (2009: nil)

The  information  above has been extracted from the audited financial statements of the Company  for  the  year
ended 31 December 2010, in respect of which the Company's auditors have issued an unqualified audit report.

The Directors of the Company are responsible for the content of this announcement.

Enquiries:

Central Asian Minerals and Resources PLC                                                    01624 679 000
Christine Melian or John Leech

St Helens Capital Partners LLP                                                              020 7368 6959
Mark Anwyl or Duncan Vasey

Contact Information

  • Central Asian Minerals and Resources PLC