2025 results: slimmer loss, bigger cash buffer, and a clear pivot
Medcaw Investments has posted its audited numbers for the year to 31 December 2025 and, more importantly, set out a decisive strategic shift into gold through a reverse takeover (RTO) of the Eagle Lake Gold Project in Ontario, Canada. Trading in the shares is temporarily suspended while the AIM admission document is prepared and the RTO process runs its course.
Financially, the company narrowed its loss, tightened operating costs, and finished the year with a stronger cash position. Strategically, it has reoriented from general investing towards natural resources in Tier 1 jurisdictions, with a proposed switch from the Main Market to AIM to better match its growth plans.
Medcaw’s 2025 numbers at a glance
The headline result is a much smaller loss before tax, helped by the absence of prior-year impairments and a waiver of accrued director fees. There is still no revenue – this is a pre-revenue vehicle – but the cost base has been trimmed and liquidity looks healthier going into the RTO.
| Metric | FY25 | FY24 |
|---|---|---|
| Loss before tax | £144,478 | £432,360 |
| Basic and diluted loss per share | 0.65p | 1.95p |
| Administrative expenses | £118,485 | £267,097 |
| Impairment | £nil | £196,141 |
| Net finance line | £25,993 charge | £30,878 income |
| Cash and cash equivalents (year-end) | £320,829 | £72,286 |
| Net assets/(liabilities) | £(256,073) | £(163,304) |
Positives: costs are down, there was an operating cash inflow of £196,834, and year-end cash rose to £320,829. Negatives: the balance sheet shows net liabilities of £256,073 and the auditor flagged a going concern emphasis of matter. That’s not unusual for a small cap in transition, but it does underline the importance of the upcoming fundraise.
Convertible loan notes: the funding bridge to transaction day
On 10 September 2025, Medcaw issued unsecured Convertible Loan Notes (CLNs) with a total principal value of £550,000 to fund corporate and transaction costs. At year-end, the balance sheet shows a CLN liability of £524,284 and a Convertible Loan Note reserve of £51,709. In plain English: the CLNs brought in financing and, because they are convertible, there is an accounting split between debt and equity components.
The cash flow statement shows £51,709 under proceeds from CLNs, and overall cash rose by £248,543 during the year. The key takeaway is that the CLNs have provided runway to pursue the RTO. Investors should watch for the conversion terms and how these interact with the placing when the Admission Document lands – those details are not disclosed here.
Pivot to gold: Eagle Lake RTO in Ontario, a Tier 1 jurisdiction
Medcaw has signed binding heads of terms to acquire 90% of Wedgetail Mining Ltd, which holds the Eagle Lake Gold Project – 95 contiguous claims covering around 1,986 hectares in the Kenora Mining Division of Ontario, Canada. The board describes the belt as historically underexplored and prospective for orogenic gold mineralisation. Ontario is widely viewed as mining-friendly, with established infrastructure and regulatory clarity – that’s a box ticked on jurisdiction risk.
Deal terms and structure you need to know
- Consideration: £4.17 million.
- Cash component: £170,000.
- Share component: £4.0 million via 266,666,667 new shares at 1.5p per share.
- Structure: Reverse Takeover of a 90% interest; cancellation of the Main Market listing and admission to AIM; plus a placing to fund initial exploration and working capital.
- Rule 9 Waiver: may be required under the Takeover Code due to the size and share issuance. Details not disclosed yet.
Why it matters: this is a full strategic reset. Medcaw shifts from being an investing shell to becoming a gold exploration play. The move to AIM should give better access to specialist natural resources investors and more flexible capital formation. The share issue is large, so dilution will be a key focus – the current share count is not disclosed here, so we’ll have to wait for the Admission Document to gauge the impact.
Trading suspension and what comes next
Medcaw’s shares are temporarily suspended pending publication of the AIM Admission Document and completion of the RTO. The company says the RTO is progressing to plan. The Admission Document will include the Notice of General Meeting and the full terms of the transaction, the placing details, and the key technical information on Eagle Lake.
Near-term milestones to watch:
- Publication of the AIM Admission Document (timing not disclosed).
- Placing size and price to fund exploration and working capital.
- General Meeting to approve the RTO and re-admission to AIM.
Risks and realities: what the RNS does and doesn’t say
- Going concern: the auditor issued an unqualified opinion with an emphasis of matter on going concern. Translation: the business needs successful completion of the RTO and associated funding to support its plans.
- Balance sheet: net liabilities of £256,073 at year-end underline the reliance on new capital.
- Financing costs: the net finance charge of £25,993 reflects the cost of funding; further costs may emerge depending on CLN terms and the placing – not disclosed here.
- Project stage: Eagle Lake is described as prospective for orogenic gold but the RNS provides no resource, drill data, or economic studies. Expect technical disclosures in the Admission Document.
- Execution risk: RTOs can slip. The company notes progress but gives no timetable.
My take: a cleaner slate and a credible jurisdiction, with funding the swing factor
On the numbers, 2025 was about tidying up: lower admin costs, no impairments, and a significantly reduced loss per share to 0.65p. The cash position of £320,829 is a marked improvement, helped by the CLN financing, but it’s not enough to advance a gold project without fresh equity – hence the planned placing.
Strategically, this is a bolder and more coherent story. Gold retains its defensive allure in choppy markets, and Ontario is as close to “Tier 1” as it gets. If the terms in the Admission Document stack up – on valuation, work programme, and capital structure – Medcaw could re-emerge on AIM with a focused exploration mandate and a more natural investor audience.
The flip side is straightforward: the company is pre-revenue, carries net liabilities, and relies on a successful RTO and fundraise to move forward. Dilution and CLN mechanics matter here. Until we see the full Admission Document and placing terms, the risk-reward is hard to pin down precisely. For now, the direction of travel looks sensible, the jurisdiction is strong, and the board sounds confident. Delivery will come down to price, pace, and drill-ready plans at Eagle Lake.
