Diversified explorer Moreton Resources has declared its first full-year profit of $11.3 million despite having no producing operations.

The explorer (ASX:MRV) told investors the windfall came from its acquisition of the Granite Belt silver mine – assets worth $13.3 million – for just $10,003.

But cash in the bank at the end of June was only $1.3 million.

Shareholders weren’t impressed, pushing shares down 9 per cent to 1c on Friday morning after Moreton also said it would be undertaking a rights issue to raise another $2.2 million.

The company needs the cash to continue commissioning the Granite Belt project, advance its South Burnett coal project and undertake a strategic review of its projects.

Moreton finally received the mining lease for Granite Belt after several delays over issues with the mine.

Granite Belt, near the town of Texas in South East Queensland, has been sitting idle since 2014 when it was abandoned after the failure of its last operator Alcyone Resources.

Moreton Resources (ASX:MRV) shares dipped 9 per cent on Friday morning.
Moreton Resources (ASX:MRV) shares dipped 9 per cent on Friday morning.

Since acquiring the project in 2016, Moreton has been working towards a restart of the mine.

Moreton was expecting to produce around 90,000 ounces of silver each month by the end of January, but the mine – which was previously in the spotlight over contamination fears – was delayed over excess pond sludge and issues with the environmental approval.

The company has been contacted for comment.