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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 April - 30 June 2009
Key Points
Kareevlei Wes
* Funding for Trial Mining close to being finalised.
Orapa
* Joint Venture with Nowak terminated and negotiations underway for a new
joint venture partner.
Corporate
* Fundraising in final stages.
* Surplus assets of the Company continue to be liquidated to strengthen
financial position whilst not impacting on the ability to commence trial
mining at short notice.
* Potential deals assessed during the Quarter.
South Africa
* Kareevlei Wes Project, Kimberley Region, South Africa
(100% owned and operated by Tawana)
As reported during the March quarter, the Company had previously concluded an
agreement with Risk Free Investments 2 (Proprietary) Limited t/a Agio Diamond
Investments ("Agio") for the sale of a 26% interest in Tawana`s Kareevlei
Project for Rand 12Million (approximately A$1.7million at current exchange
rates). Agio defaulted in regards to the purchase price and a High Court Summons
was executed. The Company believes that the matter will be resolved in favour
of the company.
* St. Augustines Kimberlite Project, Kimberley, South Africa
(Operated by Tawana; Tawana 30% equity in Vecto Trade 436 (Pty) Ltd)
As reported during the January quarter, the Company is still pursuing parties
concerning further future work on the Project.
Prospecting activities over the northern portion of the Prospecting Right will
continue in order to evaluate the area associated with the old St Augustine
kimberlite mine area once the Company has raised the necessary funds to do so.
Botswana
* Orapa Project, Botswana
(Tawana 100%, Nowak Investments Pty Ltd earning 51%)
As reported during the March quarter, Tawana has cancelled the previous Joint
Venture with Nowak and is in discussions with a number of interested parties
concerning further evaluation of this highly prospective tenement.
Australia
* South Yarra Office
The South Yarra Office was leased during the quarter which has resulted in a
major drain on operating overheads being eliminated without any disruption to
corporate activity.
Corporate
Over the past quarter, there has been substantial cost reduction in the
corporate overheads of Tawana.
Corporate operating expenses have been continuously reduced and continuous
attention is being directed on costs to ensure that cash is directed to actual
or potential projects to continue to safeguard asset values.
Funding
The ability of the company to continue as a going concern is dependent on
obtaining additional funding to finance ongoing activities and costs, including
future production, mine development and exploration activities.
The Company is in advanced negotiations with advisers in relation to a capital
raising involving a placement and underwritten rights issue. The details of the
capital raising are expected to be released within a fortnight.
Tawana continues to look at the sale of all surplus plant assets to strengthen
its financial position.
As a potential contingency, the company is pursuing alternate sources of funding
and is also holding discussions with various groups regarding possible joint
ventures on the company`s projects.
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.
Rule 5.3
Appendix 5B - 2nd Quarter
Mining exploration entity quarterly report
Name of entity
Tawana Resources N.L.
ABN
69 085 166 721
Quarter ended ("current quarter") 30 June 2009
Consolidated statement of cash flows
Current Year to date
Cash flows related to operating quarter (6 months)
activities $A`000 $A`000
1.1 Receipts from product sales - -
and related debtors
1.2 Payments for
(a) exploration and (80) (110)
evaluation
(b) development - -
(c) production - -
(d) administration (112) (156)
1.3 Dividends received
1.4 Interest received
1.5 Interest and other costs of
finance paid
1.6 Income taxes paid
1.7 Other (provide details if - 6
material)
(VAT Refund from SARS)
Net Operating Cash Flows (192) (260)
Cash flows related to
investing activities
1.8 Payment for purchases of:
(a) prospects - -
(b) equity investments - -
(c) other fixed assets - -
1.9 Proceeds from sale of:
(a) prospects -
(b) equity investments - -
(c) other fixed assets 23 50
1.10 Loans to other entities - -
1.11 Loans repaid by other
entities - -
23 50
Net investing cash flows
1.13 Total operating and
investing cash flows (170) (211)
(carried forward)
Current Year to date
quarter (6 months)
$A`000 $A`000
1.13 Total operating and
investing cash flows
(brought forward) (170) (211)
Cash flows related to
financing activities
1.14 Proceeds from issues of
shares, options, etc. -
1.15 Proceeds from sale of
forfeited shares - -
1.16 Proceeds from borrowings - 200
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
1.19 Other (provide details if
material) - -
Net financing cash flows - 200
Net increase (decrease) in
cash held (170) (11)
1.20 Cash at beginning of
quarter/year to date 172 13
1.21 Exchange rate adjustments to
item 1.20 - -
1.22 Cash at end of quarter 2 2
Payments to directors of the entity and associates of the
directors
Payments to related entities of the entity and associates of the
related entities
Current
quarter
$A`000
1.23 Aggregate amount of payments to the parties
included in item 1.2 16
1.24 Aggregate amount of loans to the parties
included in item 1.10 Nil
1.25 Explanation necessary for an understanding of the
transactions
Director fees
Non-cash financing and investing activities
2.1 Details of financing and investing Nil
transactions which have had a material
effect on consolidated assets and
liabilities but did not involve cash flows
2.2 Details of outlays made by other entities Nil
to establish or increase their share in
projects in which the reporting entity has
an interest
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount Amount used
available $A`000
$A`000
3.1 Loan facilities Nil Nil
3.2 Credit standby arrangements Nil Nil
Estimated cash outflows for next quarter
$A`000
4.1 Exploration and evaluation 0
4.2 Development 0
Total 0
Reconciliation of cash
Reconciliation of cash at the end Current Previous
of the quarter (as shown in the quarter quarter
consolidated statement of cash $A`000 $A`000
flows) to the related items in the
accounts is as follows.
5.1 Cash on hand and at bank 2 172
5.2 Deposits at call - -
5.3 Bank overdraft - -
5.4 Other (provide details) - -
Total: cash at end of quarter 2 172
(item 1.22)
Changes in interests in mining tenements
6.1 Interests in Tenement Nature of Interest Interest
mining reference interest at at end of
tenements note (2) beginning quarter
relinquished, of
reduced or quarter
lapsed
6.2
Interests in
mining
tenements
acquired or
increased
The "Nature of interest" (items 6.1 and 6.2) includes options in respect of
interests in mining tenements acquired, exercised or lapsed during the reporting
period. If the entity is involved in a joint venture agreement and there are
conditions precedent which will change its percentage interest in a mining
tenement, it should disclose the change of percentage interest and conditions
precedent in the list required for items 6.1 and 6.2.
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights
together with prices and dates.
Total Number Issue Amount
number quoted price per paid up
security per
security
7.1 Preference
+securities
(description) Nil Nil
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns of
capital, buy-
backs, redemptions
7.3 +Ordinary
securities 117,138,854 117,138,854 Various Various
7.4 Changes during
quarter
(a) Increases 3,375,720 3,375,720 $0.07 $0.07
through issues
(b) Increase
through exercise
of options
7.5 +Convertible debt
securities
(description)
6,666,667 - $0.03 $0.03
7.6 Changes during
quarter
(a) Increases 6,666,667 - $0.03 $0.03
through issues
(b) Decreases
through securities
matured, converted
7.7 Options
(description and Exercise Expiry
conversion factor) price date
42,430,053 13,240,053 various various
7.8 Issued during
quarter Nil Nil
7.9 Exercised during
quarter Nil Nil
7.10 Expired during
quarter Nil Nil
7.11 Debentures
(totals only) Nil Nil
7.12 Unsecured notes
(totals only)
Nil Nil
Compliance statement
1 This statement has been prepared under accounting policies which comply
with accounting standards as defined in the Corporations Act or other
standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: (Director) Date:
Print name: Euan Luff 31st July, 2009
Notes
1 The quarterly report provides a basis for informing the market how the
entity`s activities have been financed for the past quarter and the effect
on its cash position. An entity wanting to disclose additional information
is encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of
interests in mining tenements acquired, exercised or lapsed during the
reporting period. If the entity is involved in a joint venture agreement
and there are conditions precedent which will change its percentage
interest in a mining tenement, it should disclose the change of percentage
interest and conditions precedent in the list required for items 6.1 and
6.2.
3 Issued and quoted securities. The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive
Industries and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards. ASX will accept, for example, the use of
International Accounting Standards for foreign entities. If the standards
used do not address a topic, the Australian standard on that topic (if any)
must be complied with.
31 July 2009
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 31/07/2009 11:21:01 Supplied by www.sharenet.co.za
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