Tawana - Press Release
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")
Annual General Meeting
26 May 2006
I am very pleased to report that our company has made significant progress
during the last 12 months and we are now positioned to leverage off the hard
work of Wolf"s team as we move to trial mine KV2 at Kareevlei Wes and commence
bulk testing at Blacktop in the second half of this year.
Tawana successfully completed an underwritten rights issue, raising $7.5 million
before costs. Tawana"s shareholder base has been strengthened with South African
and Australian institutions participating in the underwritten rights issue,
further endorsing the Company"s goal of advancing its kimberlite assets. It is
pleasing that some $3.5 million of the issue has been taken up by South African
The proceeds from the rights issue and sale of the laboratory freehold underpins
the funding of a focused two year work program which includes further work on
assessing the economics of our kimberlite projects, drilling Falcon targets and
accelerating regional exploration in the Pilbara.
Other operational highlights include BHP Billiton"s commitment to fund 70% of
the costs associated with drilling the Falcon targets after re-interpreting the
Daniel Project data which identified a number of new structures and targets.
Following the close of the meeting, Wolf and Basil will give you a presentation
outlining the Company"s two year work program.
Trial mining at the Eastern Gravels project demonstrated that the distribution
of high quality diamonds was broad in nature, with typically erratic
concentrations identified. The next stage of the project would be to implement
a large scale operating trial. Tawana is seeking to secure the involvement of
an operator having the plant, equipment and staff to mine at a rate that can
confirm the project economics.
To support the transition from exploration to trial mining, your Board has
strengthened the management team with the appointment of Basil Tambanis who has
joined us as Corporate Operating Officer. He is an experienced corporate adviser
with strong ties to the resource sector and financial markets. Prior to entering
the equity capital markets, Basil spent eight years in the mining sector
managing the construction and commissioning of a variety of mining projects.
Basil brings the capacity to pursue corporate opportunities and to maintain a
close link with our shareholders and other stakeholders, leaving Wolf and the
technical team to concentrate on enhancing our exploration work.
Visiting us today is Thabo Makweya, the chief executive of Seven Falls, our BEE
partner in South Africa. In welcoming Thabo, I would like to acknowledge the
fundamental contribution that he and his people make to facilitating our
programs in South Africa.
Over the past 15 or so months, Wolf has spent about five months overseas on the
Company"s behalf, raising funds, securing the JSE listing, completing the Tawana
DeBeers Pilbara and laboratory deal, revitalizing the Daniel kimberlite program,
and advancing the Kareevlei project. I believe the fruits of this labour are now
beginning to form, and that we can look forward to an interesting 2006. On your
behalf, I thank Wolf and the Tawana team for their efforts.
26 May 2006
For enquiries contact:
Mobile: 0961 428 398446
Andrew H Smith
Investor Relations Manager
Telephone 0961 08 8276 8794
Facsimile 0961 08 8357 5052
Mobile 0417 265 205
South African Sponsor to Tawana:
PricewaterhouseCoopers Corporate Finance (Pty) Limited
All press releases and announcements may be inspected on the Company"s web site:
26 May 2006
Date: 26/05/2006 08:31:04 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department