| Fri 29 Jan 2010, 12:14 | | TAW - Tawana - Quarterly Activities and Cash Flow Report |
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TAW
TAW
TAW - Tawana - Quarterly Activities and Cash Flow Report
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
ISIN: AU000000TAW7
Share code on the Australian Stock Exchange Limited: TAW
ISIN: AU000000TAW7
("Tawana" or "the Company")
Quarterly Activities and Cash Flow Report
1 October 2009 - 31 December 2009
29 January 2010
BOTSWANA
Orapa Project
(Tawana 100%)
Tawana Resources NL ("Tawana") is pleased to announce that it has entered into a
joint venture agreement with Firestone Diamonds plc ("Firestone") a diamond
mining and exploration company, over its kimberlite exploration and evaluation
projects in Botswana, which includes 8 kimberlites in the Orapa kimberlite
field. Under this agreement Firestone has the opportunity to earn initially up
to a 70% interest in any kimberlites in the prospecting licenses controlled by
Tawana.
Firestone is an international diamond mining and exploration company with
operations in Botswana and South Africa. Firestone is the largest holder of
mineral rights in Botswana`s diamondiferous kimberlite fields, controlling over
25,000 square kilometres around the major Orapa and Jwaneng mines and the entire
Tsabong kimberlite field.
Highlights
* Firestone to acquire an interest in Tawana`s kimberlite projects in
Botswana:
- Firestone can earn 70% by carrying out costs for the first stage bulk
sampling;
- Tawana has the option to fund its remaining 30% interest from that
point and in the event it does not its interests shall reduce to 15%.
* Orapa prospecting license:
- contains 8 kimberlites and covers 57 square kilometers;
- located close to Debswana`s Damtshaa Mine;
- 26 kilometers from Firestone`s BK11 mine development project;
- review of historical data due to be completed in January 2010.
* Francistown prospecting licenses
- cover an area of 1,500 square kilometers;
- located in the right geological setting for discovery of
diamondiferous kimberlites;
- Firestone`s review of historical data due to be completed in Q1 2010.
SOUTH AFRICA
Kareevlei Wes Project, Kimberley Region, South Africa
(100% owned and operated by Tawana)
The Company is still pursuing Risk Free Investments 2 (Proprietary) Limited t/a
Agio Diamond Investments ("Agio") through the court system in South Africa to
recover damages for breach of contract when it didn`t proceed with the Joint
Venture Agreement with the Company in 2008.
During the past three (3) quarters the Company has been pursuing the possibility
of a joint venture partner to further evaluate this tenement by trial mining.
St. Augustines Kimberlite Project, Kimberley, South Africa
(Operated by Tawana; Tawana 30% equity in Vecto Trade 436 (Pty) Ltd)
No exploration work was carried out during the quarter.
AUSTRALIA
Flinders Island Project, South Australia
(80% owned by Tawana and 20% owned by Orogenic Exploration/Flinders Diamonds Ltd
earning in)
Flinders Island is situated 28 km west of the Eyre Peninsula of South Australia.
Tawana and Orogenic entered into a joint venture agreement with Flinders Mines
Limited (FMS) in April 2007 under the terms of which FMS is able to earn a 70%
interest in the project by spending $2 million on the combined Flinders Island
and Eyre Peninsula Projects. In the event that FMS earns 70% interest in the
project, Tawana`s interest will reduce to 15%.
FMS advised Tawana that it had conducted geophysical surveys over the island and
had identified a number of targets which it intended to drill test.
CORPORATE
Operating expenses have been reduced substantially and this will continue
whenever possible.
Julian Babarczy has been appointed a Director of the Company.
FUNDING
On 8 December 2009 the Company announced a 1 for 1 pro-rata non-renounceable
rights issue of up to 262,331,772 fully paid ordinary shares in the capital of
the Company (including provisions for options exercises) (New Shares) at $0.005
per New Share to Eligible Participants (as defined in the Offer Document)
(Rights Issue).
The Rights Issue closed for acceptances at 5.00 pm AEDT for ASX and 5.00 pm
Johannesburg time for JSE on 13 January 2010. The Company received valid
acceptances for 151,898,275 New Shares raising $759,491.37.
The shortfall under the Rights Issue is approximately 72,273,444 ordinary
shortfall shares. As the Rights Issue is underwritten all New Shares not
applied for under the Rights Issue will be issued to Cygnet Capital Pty Ltd or
its nominees at an issue price of $0.005 per share in accordance with the
Underwriting Agreement dated 7 December 2009 between the Company and Cygnet
Capital Pty Ltd.
The injection of funds raised through the Rights Issue has strengthened the
financial position of the Company.
Contact:
Euan Luff
Tel: +61 (0)3 9224 1000
Tawana Resources- a world class diamond and mineral exploration company listed
on the Australian and Johannesburg Stock Exchanges committed to the principles
of enhancing shareholder value through being ethically, socially and
environmentally conscious corporate citizens.
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 29/01/2010 12:14:02 Produced by the JSE SENS Department.
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