Wrap Text
Quarterly Activities report for the quarter to 31 March 2015
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
(“the Company” or “Tawana”)
Quarterly Activities Report
For the quarter to 31 March 2015
PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE REFER TO
TAWANA WEBSITE FOR THE COMPLETE ANNOUNCEMENT.
Highlights
Mofe Creek Iron Ore Project (the Project)
Project Studies - Mine, Logistics, Infrastructure and Approvals
- A number of significant milestones were achieved in the advancement of the Mineral
Development Agreement (MDA) including:
o The President of the Republic of Liberia, Ellen Johnson Sirleaf officially appointing an
Inter-Ministerial Concessions Committee (IMCC) to negotiate Tawana’s Mofe Creek
MDA; and
o A formal presentation of Tawana’s Mofe Creek Iron Ore project to the IMCC in
Monrovia, was successfully concluded in April 2015.
Environmental and Community
- Resumption of site-based activities within Liberia and the subsequent remobilisation of all
expatriate staff to Monrovia and the Project area to advance corporate and field activities.
- As part of the Environmental and Social Impact Assessment, the Company commenced an
independent and targeted campaign of local community consultation and briefing meetings
with stakeholders located within the proposed future mining areas.
Exploration and Leases
- Local field teams remobilised to site and geological mapping and rock-chip sampling of
high-priority targets within the wholly-owned southern MEL1223/14 tenement commenced.
- Four high-priority target areas were defined within MEL1223/14 from remote-sensing data.
Corporate
- Tawana is currently in discussions with Liberian iron ore developers/producers regarding
potential infrastructure development options and solutions for the Project. These
discussions are reflective of the Company’s MDA proposal, an early start-up productio
scenario, and the longer-term sustained operational paradigm, as outlined in the Scoping
Study1.
- Expressions of interest have been received to purchase the Company’s total shareholding
and loan account in Diamond Resources (a 100% -owned subsidiary of Tawana Resources
NL).
- The Company conducted international promotional roadshows in the United Arab Emirates
and Hong Kong in March, and in London in April.
- As at 31 March 2015, Tawana Resources held $2.2 million in cash.
The Company is continuing to implement low cost, value-accretive activities including the
advancement of the MDA, targeted exploration activities and critical-path dependent ESIA
baseline studies, as part of the Pre-Feasibility Study (PFS) deliverables.
Mofe Creek Iron Ore Project
Studies
Mofe Creek Preliminary Feasibility Study
The Company has strategically advanced discussions associated with the potential
design and verification of a simple, “fit-for-purpose” transhipment harbour, for the
management of an efficicent and sustainable transhipment operation of up to 8 Mtpa.
Ongoing meetings with selected parties with transhipment expertise and appropriate
vessel design/capacity, will progress further in the coming months, as part of the PFS
and MDA approvals process.
Preliminary discussions with haulage and road/civil construction groups have
commenced, and will form part of a due process of defining the optimal route, design
and operation of an independent haul road – from the mining hub(s) to the coastal
transhipment port location (nominally located 32km by road), from the centroid of the
Mofe Creek project. The new tenement (MEL 1223/14) has the added advantage of
being closer to the proposed haul road corridor and nominated coastal port location,
and is traversed by the national highway.
The Company acquired detailed radar satellite topographic imagery over the entire
Mofe Creek project area including planned mine location(s); infrastructure corridors
between mining hubs and the proposed coastal port location site, including the port
receival and export conveyors.
The digital elevation model, which represents a more accurate survey of the earth’s
surface without the masking effects of vegetation, provides better topographic control
over the Project area for PFS-level engineering studies.
The DEM data has provided the added bonus of enhancing and defining topographic
highs associated with potentially new iron ore anomolies, which when observed in
conjunction with the aeromagnetics data, complements future exploration targets.
Mineral Development Agreement (MDA)
A number of significant milestones were achieved in the advancement of the MDA
during the quarter.
In February 2015, the President of the Republic of Liberia, Ellen Johnson Sirleaf
officially appointed an IMCC to negotiate Tawana’s Mofe Creek MDA.
2
The role of the IMCC in the MDA process is to oversee and coordinate the entire
investment concessional review process and its due diligence functions, for the benefit
of all parties. All natural resource concession agreements in Liberia, including mining
concessions, are negotiated by the IMCC.
The IMCC meeting held in April, was chaired by the Liberian National Investment
Committee Chairman, and further constituted by a co-chair from the Ministry of Lands,
Mines, and Energy, the Ministry of Justice, and deputy ministers from the Ministries of
Labour and Finance. The presentation was also attended by government department
representatives and members of the Inter-Ministerial Technical Committee (IMTC), and
was very well received.
This presentation represented a key milestone in the advancement of the MDA and was
a significant achievement for the Company.
The IMCC presentation and corresponding negotiations regarding the technical,
commercial, financial and socio-economic and labour aspects of the MDA, represent a
critical step forward in the advancement and conclusion of Tawana’s MDA.
Health, Safety, Environmental and Community
There were no Lost Time Injuries (LTI’s) reported during the Quarter.
The remobilisation of Liberian and expatriate staff into Liberia and the Project area
occurred during March to advance corporate, project and field-based activities.
Tawana effectively structured and implemented an Ebola Management Plan, as a sub-
set of the Company’s Risk and Event Management Plan, which was incorporated into
the site remobilisation plan.
Liberian consultants Earth Environmental Consulting completed a suite of an
independent site visits and field work in preparation for the development and
compilation of a project brief to the Environmental Protection Agency for the newly
acquired southern tenement (MEL1223/14).
Ebola Virus Disease Update
As previously stated, the Company remobilised Liberian and expatriate staff in March
as a result of significant improvements and ongoing proactive management of the Ebola
Virus Disease (EVD) by the Government of Liberia, supporting countries, health
organisations and NGOs. Case numbers had drastically reduced during the quarter, with
only one new case confirmed in March, following a period of 27 days “Ebola-free”
within Liberia prior to this case being diagnosed.
At the time of writing this report, Liberia was aiming to be declared “Ebola-free” by
May 15, 2015 – thereby representing 42 days free of any new or confirmed Ebola cases
within country. This will be a great outcome for the country, and an opportunity for
Tawana to assist with the development of a greenfields project to support the
economic recovery of the nation.
Environmental and Social Impact Assessment (ESIA)
The Company commenced an independent and targeted campaign of local community
consultation and briefing meetings with stakeholders during the quarter. Through the
consultation process, meetings were held with national and regional government
3
authorities, non-governmental organisations and community stakeholders. These
meetings formed the basis of the Scoping Report and ESIA Terms of Reference
document, defining the ESIA content and process.
In addition to fulfilling environmental regulatory requirements, the community
consultation meetings were an important aspect of the Company’s commitment to
establishing and maintaining an open and ongoing relationship with stakeholders.
A geochemistry sampling programme of existing drill samples is also underway, as part
of the ESIA baseline for future mine waste and process tailings chemistry analysis.
Monitoring and recording of baseline ground water and weather station data has
remained ongoing throughout the quarter.
Exploration
The Company completed a geological review of existing targets within its wholly owned
northern MEL12029 exploration license and commenced low-cost exploration activities,
including geological mapping to define new targets within the newly acquired, wholly
owned southern MEL1223/14 tenement.
On the basis of the initial review of the northern license, the Zaway North-West target
was highlighted as the Company’s highest priority exploration target and an initial 19-
hole programme for 1,640m was defined. A drilling plan has been prepared to maximise
the potential to add new resource tonnes as well as provide valuable geotechnical and
metallurgical diamond core for future test-work.
A total of 16 drill holes have been defined over Zaway North-West to test width, depth
and strike potential of the high-grade friable itabirite exposed in road and drill pad
cuttings over a combined 3.5km strike length. An additional 3 holes were defined at
the Zaway Main deposit, where previous drilling, not included within the maiden
resource estimate (refer ASX release 31 March 2014)2, has confirmed mineralisation is
still open to the south.
Field staff commenced low-cost mapping and rock-chip sampling using the hand-held
XRF analyser within the southern license MEL1223/14 to define additional high-priority
exploration targets.
Field work concentrated on four discrete target areas defined from remote sensing
data and further enhanced by the aforementioned high-resolution digital elevation
model which better defined topographic features.
Corporate
Cash
As at 31 March 2015, Tawana Resources held $2.2 million in cash. Refer to the
Appendix 5B (ASX website) for principal movements in cash for the quarter.
Appropriate fiscal management programs and policies continue to be monitored and
implemented to minimise expenditure both at a corporate and project level. The
Company will continue to implement low cost, value-accretive activities in the coming
quarter, which will include the advancement of the MDA, targeted exploration
activities and ESIA/PFS strategic activities.
4
The Executive Chairman and CEO conducted international roadshows in March and
April, meeting with potential strategic partners and investors in the United Arab
Emirates, London and Hong Kong. The Company presented to a significant number of
interested funds and institutional investors during these visits, along with conducting
meetings with potential parties that would consider product off-take and/or provide
pre-operational funding linked to off-take agreements.
Meetings were also conducted with potential Build, Own and Operate (BOO) and Turn-
key Project developers, for the design, operation and/or maintenance of processing
plants and logistical infrastructure arrangements. Whilst preliminary in their content
and definition, the opportunity to BOO and/or turn-key specific components of the
mining, processing, logistics and/or transshipment aspects of the Project, has the
potential to minimise up-front capital expenditure and simplify the funding needs of
the Project.
Tawana is progressing discussions with current and future iron ore
developers/producers within Liberia, regarding potential infrastructure options and
solutions for both an integrated development plan for a northern Liberian port and/or
a rail option, along with the use of existing working infrastructure.
Divestment of Non-Core Assets
Closure of the Botswana entity is ongoing with PWC preparing de-registration
documents.
BlueRock Diamonds have expressed a desire to purchase the Company’s total
shareholding and loan account in Diamond Resources (a 100% -owned subsidiary of
Tawana Resources NL).
About Tawana (ASX & JSE: TAW)
Tawana Resources NL is an iron ore focused ASX and JSE-listed Company with its
principal project in Liberia, West Africa. Tawana’s 100% owned Mofe Creek project
(“the Project”) is a new discovery in the heart of Liberia’s historic iron ore district,
located 20km from the coast and 85km from the country’s capital city and major port,
Monrovia.
Tawana is committed to becoming a mid-tier iron ore producer through the development
of the Mofe Creek project, which covers 475km2 of highly prospective tenements in Grand
Cape Mount County. The Project hosts high-grade friable itabirite mineralisation which can
be easily upgraded to a superior quality iron ore product in the 64-68% Fe grade range, for
which there is consistent global demand, attracting significant price premiums.
Wayne Richards
Executive Chairman and Chief Executive Officer
Tel +61 8 9489 2600
Detailed information on all aspects of Tawana’s projects can be found on the
Company’s website www.tawana.com.au
5
30 April 2015
Sponsor:
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Competent Persons Statement
The information in this report that relates to Exploration Results and Resources is based on information compiled by
Len Kolff, who is a member of the Australian Institute of Geoscientists. Len Kolff is a full-time employee of the
Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012
Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Len
Kolff consents to the inclusion of the matters in this report based on his information in the form and context in
which it appears.
The information in this Report relating to the Mofe Creek Resource Estimate and Scoping Study are extracted from
the 31 March 2014 Maiden Resource and 3 July 2014 Scoping Study announcements. The Company is not aware of any
new information or data that materially affects the information included in the original market announcements. The
Company confirms that the form and context in which the Competent Person's findings are presented have not been
materially modified from the original market announcements.
Forward Looking Statement
This report may contain certain forward looking statements and projections regarding estimated, resources and
reserves; planned production and operating costs profiles; planned capital requirements; and planned strategies and
corporate objectives. Such forward looking statements/projections are estimates for discussion purposes only and
should not be relied upon. They are not guarantees of future performance and involve known and unknown risks,
uncertainties and other factors many of which are beyond the control of Tawana Resources NL. The forward looking
statements/projections are inherently uncertain and may therefore differ materially from results ultimately
achieved.
Tawana Resources NL does not make any representations and provides no warranties concerning the accuracy of the
projections, and disclaims any obligation to update or revise any forward looking statements/projects based on new
information, future events or otherwise except to the extent required by applicable laws. While the information
contained in this report has been prepared in good faith, neither TAW or any of its directors, officers, agents,
employees or advisors give any representation or warranty, express or implied, as to the fairness, accuracy,
completeness or correctness of the information, opinions and conclusions contained in this presentation.
Accordingly, to the maximum extent permitted by law, none of TAW, its directors, employees or agents, advisers,
nor any other person accepts any liability whether direct or indirect, express or limited, contractual, tortuous,
statutory or otherwise, in respect of, the accuracy or completeness of the information or for any of the opinions
contained in this presentation or for any errors, omissions or misstatements or for any loss, howsoever arising, from
the use of this presentation.
Notes
1 : Full details of the Scoping Study referred to in this announcement were initially released to the ASX in an
announcement dated 3 July 2014, and should be read in conjunction with this announcement. All material
assumptions underpinning the Scoping Study, production targets and forecast financial information derived from the
production targets as well as any cautionary statements and disclosures as required under the ASX Listing Rules and
2012 JORC Code are set out in the announcement dated 3 July 2014 and continue to apply and have not materially
changed.
2 : For more information on the Resource estimate, refer to ASX announcement dated 31 March 2014. Tawana
Resources is not aware of any new information or data that materially effects the information included in the said
announcement.
Appendix 1 | Tawana Resources NL Tenements
Tenement Location Structure
MEL-12029 100% Tawana Resources through its 100% owned
Liberia
Mofe Creek Liberian subsidiary
6
MEL-1223/14 100% Tawana Resources through its 100% owned
Mofe Creek Sth Liberia Liberian subsidiary
Mining Tenements disposed: Nil
Beneficial percentage interests held in farm-in or farm-out agreements: Nil
Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed: Nil
7
Appendix 5B
Mining exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10
Name of entity
Tawana Resources NL
ABN Quarter ended (“current quarter”)
69 085 166 721 31 March 2015
Consolidated statement of cash flows
Current quarter Year to date
Cash flows related to operating activities $A’000 (3 months)
$A’000
1.1 Receipts from product sales and related debtors - -
1.2 Payments for (a) exploration & evaluation (221) (221)
(b) development - -
(c) production - -
(d) administration (394) (394)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature
received 12 12
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Other R&D tax refund - -
Net Operating Cash Flows (603) (603)
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 - -
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other (provide details if material) - -
Net investing cash flows - -
1.13 Total operating and investing cash flows
(carried forward) (603) (603)
8
1.13 Total operating and investing cash flows
(brought forward) (603) (603)
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 - -
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
1.19 Other – share issue costs - -
- -
Net financing cash flows
Net increase (decrease) in cash held (603) (603)
1.20 Cash at beginning of quarter/year to date 2,803 2,803
1.21 Exchange rate adjustments to item 1.20 47 47
2,247 2,247
1.22 Cash at end of quarter
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 1.2 178
1.24 Aggregate amount of loans to the parties included in item 1.10 -
1.25 Explanation necessary for an understanding of the transactions
Directors salaries, fees and superannuation
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated
assets and liabilities but did not involve cash flows
N/A
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the
reporting entity has an interest
N/A
9
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used
$A’000 $A’000
3.1 Loan facilities - -
3.2 Credit standby arrangements - -
Estimated cash outflows for next quarter
$A’000
4.1 Exploration and evaluation 285
4.2 Development -
4.3 Production -
4.4 Administration 412
Total 697
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as Current quarter Previous quarter
shown in the consolidated statement of cash flows) to $A’000 $A’000
the related items in the accounts is as follows.
5.1 Cash on hand and at bank 1,223 1,787
1,024 1,016
5.2 Deposits at call
- -
5.3 Bank overdraft
- -
5.4 Other (provide details)
2,247 2,803
Total: cash at end of quarter (item 1.22)
Changes in interests in mining tenements
Tenement Nature of interest Interest at Interest at
reference (note (2)) beginning end of
of quarter quarter
6.1 Interests in mining
tenements relinquished,
reduced or lapsed
6.2 Interests in mining
tenements acquired or
increased
10
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 Number quoted Issue price per Amount paid up per
security (see note security (see note 3)
3) (cents) (cents)
7.1 Preference - -
+securities
7.2 Changes during
quarter
7.3 +Ordinary securities 1,475,250,387 1,475,250,387
7.4 Changes during
quarter
(a) Increases through
issues
(b) Decreases
through returns of
capital, buy-backs
7.5 +Convertible debt
securities
7.6 Changes during
quarter
7.7 Options Exercise price Expiry date
Unlisted options 1,250,000 - $0.05 10 November 2015
Unlisted options 21,500,000 - $0.036 30 April 2015
Unlisted options 26,500,000 - $0.015 12 December 2016
Unlisted options 10,000,000 - $0.046 12 December 2016
Unlisted options 10,000,000 - $0.018 12 December 2016
Unlisted options 1,000,000 - $0.039 20 January 2017
Unlisted options 10,000,000 - $0.0001 30 August 2015
Unlisted options 10,000,000 - $0.0001 30 August 2016
Unlisted options 10,000,000 - $0.0001 30 August 2017
7.8 Issued during quarter 10,000,000 - $0.0001 30 August 2015
10,000,000 - $0.0001 30 August 2016
10,000,000 - $0.0001 30 August 2017
7.9 Exercised during - - - -
quarter
7.10 Expired during 3,500,000 - $0.015 12 December 2016
quarter 5,000,000 - $0.036 30 April 2015
7.11 Debentures - -
7.12 Unsecured notes - -
11
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 5).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: ............................................................ Date: 30 April 2015
Company secretary
Print name: Michael Naylor
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 6: Exploration for and Evaluation of Mineral
Resources and AASB 107: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Financial
Reporting 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.
== == == == ==
12
Date: 30/04/2015 09:13:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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