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TAW - Tawana - Interim Financial Report for the half year ended 30 June 2009

Release Date: 11/09/2009 13:54:35      Code(s): TAW
TAW - Tawana - Interim Financial Report for the half year ended 30 June 2009    
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")                                                     
TAWANA RESOURCES N.L.                                                           
ABN: 69 085 166 721                                                             
Appendix 4D                                                                     
Interim Financial Report for the half year ended 30 June 2009                   
(previous corresponding period: half year ended 30 June 2008)                   
To be read in conjunction with the 31 December 2008 Annual Report.              
In compliance with Listing Rule 4.2A                                            
DIRECTORS` REPORT                                                               
Your directors present their report on the consolidated entity consisting of    
Tawana Resources N.L. and the entities it controlled at the end of, or during,  
the half year ended 30 June 2009.                                               
Directors                                                                       
The following persons were directors of Tawana Resources N.L. during the whole  
of the half-year and up to the date of this report:                             
Euan Luff            Chairman                                                  
                                                                                
 Stirling Horne       Non-Executive          Appointed 31 July                  
                      Director               2009                               

 Harry Hill           Non-Executive          Appointed 21 August                
                      Director               2009                               
                                                                                
Wolf Marx            Managing Director      Retired 31 January                 
                                             2009                               
                                                                                
 Brian Phillips       Non-Executive          Resigned 27 July 2009              
Director                                                  
                                                                                
 Neil Barrie          Executive Chairman     Resigned 31 July 2009              
                                                                                
Nonkqubela Mazwai    Non-Executive          Resigned 21 August                 
                      Director               2009                               
                                                                                
Review of Operations                                                            
Background                                                                      
Tawana was incorporated as a public company on 16 November 1998 in Australia.   
Operating through its various subsidiaries, the Company is involved in the      
exploration for, and evaluation of, diamondiferous kimberlites and alluvials,   
primarily in South Africa and Botswana. The Company`s objective is to establish 
viable ore reserves and turn such projects into profitable operations.          
Recently the company has expanded it`s interests in evaluating other resources, 
primarily manganese, gold, copper, coal and iron ore.  To date none of the      
projects investigated met the company`s criteria.                               
Tawana listed on ASX (as a primary listing) in April 2001 and JSE (as a         
secondary listing) in November 2005.  The Company`s head office is located in   
Melbourne, Australia.                                                           
A brief overview of Tawana`s diamond projects, which are all located in         
prospective areas, follow.                                                      
Current Status of Projects in South Africa                                      
Kareevlei Wes Project, Kimberley Region                                         
(Operated by Tawana; 100% owned by Tawana.)                                     
On 27 October 2008 the Directors of Tawana announced the conclusion of 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).  The above mentioned payment was not forthcoming on the due date.  In   
December 2008 Tawana commenced legal proceedings in the South African Supreme   
Court for full payment of the amount in question. The Company has obtained a    
judgment against Agio and is presently trying to execute upon the judgment.     
The Company is pursuing additional sources of funding.                          
The Company is also holding discussions with different groups regarding possible
joint ventures on this Project.                                                 
Tawana Alluvial Project, Lime Acres District, Kimberley Region                  
(Operated by Tawana; 100% owned by Tawana).                                     
The Tawana Alluvial Project area encompasses two alluvial deposits, the Feeder  
Channel and the Eastern Gravels, which extend from 300 meters from the De Beers 
owned Finsch Mine for a distance of approximately 18 kilometres from the mine.  
These deposits resulted from the discovery by Tawana during early exploration of
targets generated by BHP Billiton.                                              
The proposed next stage for the Tawana Alluvial Project is a large scale        
operating trial mining. As a precursor to this, it is proposed to investigate   
the most effective methods to extract diamonds from the channels and to         
determine the most effective processing methods. The Company has not activated  
this proposal and will not do so until it has the required funds.  The Company  
has limited expenditure commitments to maintaining this tenure.  The Company is 
also trying to find a joint venture partner to conduct the trial mining work on 
this tenement.                                                                  
St. Augustines Kimberlite Project, Kimberley Region                             
(Operated by Tawana; Tawana 30% equity in Kimberley Diamond Mining and          
Exploration (formerly Vecto Trade 436 (Pty) Ltd)                                
It was a condition of the Access Agreement granting Vecto Trade 436 (Pty) Ltd   
(now called Kimberley Diamond Mining and Exploration) ("KDME") access rights to 
St Augustine that if no kimberlite intersected in the Southern section of the St
Augustine area, that KDME would abandon that section and concentrate exploration
efforts on the Northern section of the area.                                    
The results of Phase 2 drilling show that no kimberlite intersects in the       
Southern section, and accordingly KDME is contractually bound to withdraw from  
the Southern Section.                                                           
Prospecting activities over the northern portion of the Prospecting Right will  
continue when the Company has the required funds in order to evaluate the area  
associated with the old St Augustine kimberlite mine area.                      
Lexshell Alluvial Project, Kimberley Region                                     
(Tawana 50% and operator / Guma Resources 50%)                                  
The project is held under a Mining Right by Lexshell 366 Mining (Pty) Limited   
("the Holder"). Tawana and Guma have entered into a Contractor`s Agreement with 
the Holder which will enable Tawana to assess the economic potential of the     
deposit and if warranted mine the diamonds on behalf of the joint venture       
partners. The Holder will retain a 12% share of revenue after State royalties   
and cost of sales.                                                              
The project is located on a palaeo-channel of the Vaal/Harts River adjacent to  
established alluvial diamond mines.                                             
The section of the Vaal/Harts River alluvials in which this project is located  
is noted for the prolific production of large, high quality diamonds. Mining has
taken place here for about 100 years and the area still hosts one of the largest
alluvial diamond mines in the world.                                            
No work has been conducted on this project in recent times.                     
Current Status of Projects in Botswana                                          
Orapa Diamond Project                                                           
(100% owned by Tawana)                                                          
In April 2007 the Company was granted a new prospecting licence over an area of 
approximately 57 square kilometres, covering 8 kimberlites in the Orapa         
kimberlite field in Botswana. Applications for this Prospecting Licence were    
submitted by a number of companies on a competitive basis. The Prospecting      
Licence is held in the name of Seolo Pty Ltd, a 100% owned Botswana registered  
subsidiary of Tawana.                                                           
The Orapa kimberlite field is located in north eastern Botswana, and includes   
the Orapa, Letlhakane and Damtshaa diamonds mines, which produce in excess of 13
million carats of diamonds per year. The Orapa kimberlite field is one of the   
largest diamondiferous kimberlite fields in the world, containing 79 known      
kimberlites, of which the majority has been proven to be diamondiferous. Orapa  
is one of the largest producing kimberlites in the world and is 113 hectares in 
surface area.                                                                   
In 2008 Tawana entered into a joint venture agreement with Nowak Investment     
(Pty) Limited to explore the Company`s prospects.                               
On 7 May 2009 Tawana terminated the joint venture with Nowak Investment (Pty)   
Limited.  Since that time Tawana has been endeavouring to find a joint venture  
partner to continue exploration of the Project.                                 
Current Status of Projects in Australia                                         
Tawana currently has no active involvement in exploration in Australia. The     
status of projects in Australia is as follows:                                  
Flinders Island / Venus Bay Projects, South Australia                           
(80% owned by Tawana and 20% owned by Orogenic Exploration/Flinders Mines       
Limited (formerly 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%.                                  
No field work was conducted on the Flinders Island Project in the last 6 months.
Similar to Venus Bay, better understanding of the sub-surface geology is        
considered critical to explain previously recovered kimberlite indicator        
minerals and diamonds.                                                          
Eyre Peninsula Project (Venus Bay area), South Australia                        
(80% owned by Tawana and 20% owned by Orogenic Exploration/Flinders Mines       
Limited (formerly Flinders Diamonds Ltd ("FMS") earning in.)                    
Tawana and Orogenic entered into a joint venture agreement with 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%.                                                    
In the Venus Bay area a review of the previous exploration results has provided 
a significant improvement on the understanding of the sub-surface geology, and  
which now highlights an untested area on the western side of the exploration    
licence.                                                                        
No field work was conducted on the Flinders Island Project in the last 6 months.
Similar to Venus Bay, better understanding of the sub-surface geology is        
considered critical to explain previously recovered kimberlite indicator        
minerals and diamonds.                                                          
Auditors` Independence Declaration                                              
A copy of the auditors` independence declaration as required under section 307C 
of the Corporations Act 2001 is set out on the following page.                  
This report is made in accordance with a resolution of directors.               
Euan Luff                                                                       
Chairman                                                                        
Melbourne                                                                       
11-September-2009                                                               
AUDITOR`S INDEPENDENCE DECLARATION                                              
11th September 2009                                                             
The Board of Directors                                                          
Tawana Resources NL                                                             
Suite 1, 1233 High Street                                                       
ARMADALE  VIC  3143                                                             
Dear Board Members                                                              
AUDITOR`S INDEPENDENCE DECLARATION                                              
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF TAWANA      
RESOURCES NL                                                                    
In accordance with section 307C of the Corporations Act 2001, I am pleased to   
provide the following declaration of independence to the directors of Tawana    
Resources NL.                                                                   
As lead audit partner for the review of the financial report of Tawana Resources
NL for the half-year ended 30 June 2009, I declare that to the best of my       
knowledge and belief, there have been no contraventions of:                     
i)   the auditor independence requirements of the Corporation Act 2001 in       
    relation to this review; or                                                 
ii)  any applicable code of professional conduct in relation to this review.    
Yours sincerely                                                                 
Jeffrey Luckins                                                                 
Director                                                                        
Webb Audit Pty Ltd                                                              
Appendix 4D for the Half Year Ended 30 June 2009                                
Results for announcement to the market                                          
Current Reporting Period - Half year Ended 30 June 2009                         
Previous Reporting Period - Half year Ended 30 June 2008                        
Revenues                 Increased 32.62% to $58,077                            
Loss after tax                                                                  
attributable to members  Decreased 62.47% to ($476,256)                         
Net loss for the half year                                                      
attributable to members       Decreased 62.47% to ($476,256)                    
Dividends (distribution)                                                        
                      Amount                 Franked Amount                     
                      per Security           per Security                       
Final dividend         n/a                    n/a                               
Previous                                                                        
corresponding period   n/a                    n/a                               
Net Tangible Asset per Security (cents per security)                            
As at 30 June 2009                            5.15                              
As at 30 June 2008                            5.30                              
Record date for determining entitlements to the dividend, (in the case of a     
trust, distribution                 n/a                                         
Explanation of the above information:                                           
Refer to the Directors` Report - Review of Operations.                          
 CONSOLIDATED INCOME STATEMENT                                                  
 FOR THE HALF YEAR ENDED 30 JUNE 2009                                           

                                   Consolidated Entity                          
                            Notes  30 June 2009   30 June 2008                  
                                   $              $                             

 Revenue                           16,903         29,232                        
 Other income                      41,174         14,559                        
                                                                                
Auditors remuneration             (61,563)       (24,545)                      
 Corporate costs                   (177,794)      (174,713)                     
 Depreciation                      (94,628)       (97,715)                      
 Employee benefits expense         (97,961)       (246,536)                     
Exploration expenses              -              (531,023)                     
 impaired                                                                       
 Finance costs                     (4,043)        -                             
 Occupancy costs                   (65,527)       (102,205)                     
Other expenses                    (32,817)       (135,986)                     
                                                                                
 PROFIT/(LOSS) BEFORE              (476,256)      (1,268,932)                   
 INCOME TAX                                                                     
INCOME TAX EXPENSE                -              -                             
 PROFIT/(LOSS) ATTRIBUTABLE        (476,256)      (1,268,932)                   
 TO MEMBERS OF THE PARENT                                                       
 ENTITY                                                                         

                                   Cents          Cents                         
 Loss per share for loss from                                                   
 attributable to the ordinary                                                   
equity holders of the company:                                                 
 Basic loss per share              (0.418)        (1.115)                       
 Diluted loss per share            (0.418)        (1.115)                       
                                                                                
The accompanying notes form part of these financial                            
 statements.                                                                    
 CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2009                                  
                                    Consolidated Entity                         
Note    30 June 2009  31 December                   
                                                  2008                          
                                    $             $                             
                                                                                
CURRENT ASSETS                                                                 
 Cash and cash equivalents          2,104         18,090                        
 Trade and other                    37,644        30,996                        
 receivables                                                                    
Inventories                        76,151        81,268                        
                                                                                
 TOTAL CURRENT ASSETS               115,899       130,354                       
                                                                                
NON-CURRENT ASSETS                                                             
 Trade and other                    82,490        82,095                        
 receivables                                                                    
 Investments in associates          16,640        16,640                        
Property, plant and                396,185       495,222                       
 equipment                                                                      
 Exploration & evaluation           6,257,014     5,883,355                     
                                                                                
TOTAL NON-CURRENT ASSETS           6,752,329     6,477,312                     
                                                                                
                                                                                
 TOTAL ASSETS                       6,868,228     6,607,666                     

                                                                                
 CURRENT LIABILITIES                                                            
 Trade and other payables           571,147       424,389                       
Borrowings                         200,000                                     
                                                  -                             
 Provisions                         35,096        40,575                        
                                                                                
TOTAL CURRENT LIABILITIES          806,243       464,964                       
                                                                                
 NON-CURRENT LIABILITIES                                                        
 Trade and other payables                         80,689                        
-                                           
 Provisions                         28,555        28,299                        
                                                                                
 TOTAL NON-CURRENT                  28,555        108,988                       
LIABILITIES                                                                    
                                                                                
                                                                                
 TOTAL LIABILITIES                  834,798       573,952                       

                                                                                
 NET ASSETS                         6,033,430     6,033,714                     
                                                                                

 EQUITY                                                                         
 Issued capital                     34,945,032    34,708,732                    
 Reserves                           (2,330,633)   (2,570,305)                   
Accumulated losses                 (26,580,969)  (26,104,713)                  
                                                                                
 TOTAL EQUITY                       6,033,430     6,033,714                     
                                                                                

 The accompanying notes form part of these financial                            
 statements.                                                                    
 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                    
FOR THE HALF YEAR ENDED 30 JUNE 2009                                           
              Consolidated Entity                                               
              Issued     Reserve      Accumulated   Total                       
              Capital                 Losses                                    
$          $            $             $                           
                                                                                
 Balance at   33,339,335 (2,148,733)  (22,278,557)  8,912,045                   
 31 December                                                                    
2007                                                                           
 Shares       555,903                               555,903                     
 issued net                                                                     
 of costs                                                                       
Options                 198,991                    198,991                     
 issued                                                                         
 Net loss                             (1,268,932)   (1,268,932)                 
 for half                                                                       
year                                                                           
 Currency                (2,046,695)                (2,046,695)                 
 translation                                                                    
 differences                                                                    
Balance at   33,895,238 (3,996,437)  (23,547,489)  6,351,312                   
 30 June                                                                        
 2008                                                                           
                                                                                
Shares       813,494                               813,494                     
 issued net                                                                     
 of costs                                                                       
 Net loss                             (2,557,224)   (2,557,224)                 
for half                                                                       
 year                                                                           
 Currency                1,426,132                  1,426,132                   
 translation                                                                    
differences                                                                    
 Balance at   34,708,732 (2,570,305)  (26,104,713)  6,033,714                   
 31 December                                                                    
 2008                                                                           

 Shares       236,300    -            -             236,300                     
 issued net                                                                     
 of costs                                                                       
Options      -          110,098      -             110,098                     
 issued                                                                         
 Net loss     -          -            (476,256)     (476,256)                   
 for half                                                                       
year                                                                           
 Currency     -          129,574      -             129,574                     
 translation                                                                    
 differences                                                                    
Balance at   34,945,032 (2,330,633)  (26,580,969)  6,033,430                   
 30 June                                                                        
 2009                                                                           
 The accompanying notes form part of these financial                            
statements.                                                                    
 CONSOLIDATED CASH FLOW STATEMENT FOR THE                                       
 HALF YEAR ENDED 30 JUNE 2009                                                   
                                    Consolidated Entity                         
30 June 2009  30 June 2008                  
                                    $             $                             
                                                                                
 CASH FLOWS RELATED TO OPERATING                                                
ACTIVITIES                                                                     
 Receipts from customers            10,961        42,492                        
 Payments to suppliers and          (135,203)     (566,036)                     
 employees                                                                      
Interest received                  5,942         2,981                         
                                                                                
 NET OPERATING CASH FLOWS           (118,300)     (520,563)                     
                                                                                
CASH FLOWS RELATED TO INVESTING                                                
 ACTIVITIES                                                                     
 Proceeds from sales of plant and   41,174        31,409                        
 equipment                                                                      
Payment for exploration &          (137,359)     (263,372)                     
 evaluation expenses                                                            
                                                                                
 NET INVESTING CASH FLOWS           (96,185)      (231,963)                     

                                                                                
 CASH FLOWS RELATED TO FINANCING                                                
 ACTIVITIES                                                                     
Proceeds from Director`s loan      -             25,467                        
 Proceeds from issues of            -             555,903                       
 securities                                                                     
 Proceeds from borrowings           200,000       -                             
Share money received held in       -             80,000                        
 trust                                                                          
                                                                                
 NET FINANCING CASH FLOWS           200,000       661,370                       

                                                                                
 NET INCREASE/(DECREASE) IN CASH    (14,485)      (91,156)                      
 AND CASH EQUIVALENTS                                                           

 Cash and cash equivalents at the   18,090        149,862                       
 beginning of the half year                                                     
 Effects of exchange rate changes   (1,501)       (1,298)                       
on cash and cash equivalents                                                   
                                                                                
 CASH AND CASH EQUIVALENTS AT THE   2,104         57,408                        
 END OF THE HALF YEAR                                                           

                                                                                
 The accompanying notes form part of these financial                            
 statements.                                                                    
NOTES TO THE FINANCIAL STATEMENTS                                               
30 JUNE 2009                                                                    
Note 1. Basis of Preparation                                                    
The general purpose financial report for the interim half year reporting period 
ended 30 June 2009 has been prepared in accordance with Accounting Standard AASB
134 Interim Financial Reporting and the Corporations Act 2001.                  
This half year financial report does not include all notes of the type normally 
included in an annual financial report and therefore cannot be expected to      
provide as full an understanding of the financial performance, financial        
position and financing and investing activities of the entity as the full       
financial report.                                                               
Accordingly, this report is to be read in conjunction with the annual report for
the year ended 31 December 2008 and any public announcements made by Tawana     
Resources N.L. during the interim reporting period in accordance with the       
continuous disclosure requirements of the Corporations Act 2001.                
The accounting policies adopted are consistent with the most recent Annual      
Financial Report for the year ended 31 December 2008.                           
Accounting Standards include Australian equivalents to International Financial  
Reporting Standards (A-IFRS).  Compliance with A-IFRS ensures that the financial
statements and notes of the entity comply with International Financial Reporting
Standards.                                                                      
Note 2. Dividends                                                               
The company resolved not to declare any dividends in the half year ended 30 June
2009.                                                                           
Note 3. Segment Information                                                     
 Geographical Segments                                                          
 30 June 2009                       Australia      Africa                       
                                    Half-year      Half-year                    
$              $                            
 30 June 2009                                                                   
 Segment sales                      5,848          11,055                       
 Other revenue                      -              41,174                       
External Sales                     5,848          52,229                       
                                                                                
 Expenses                                                                       
 Segment expenses                   (306,354)      (170,847)                    
Total segment expenses             (306,354)      (170,847)                    
                                                                                
 Loss before income tax             (300,506)      (118,618)                    
                                                                                

 30 June 2008                       Australia      Africa                       
                                    Half-year      Half-year                    
                                    $              $                            
Revenue                                                                        
 External Sales                     26,416         2,816                        
 Intersegment  sales                -              177,158                      
 Other revenue                      14,559         -                            
Total Revenue                      40,975         179,974                      
                                                                                
 Expenses                                                                       
 Segment expenses                   (1,100,982)    (211,741)                    
Intersegment expenses              (177,158)      -                            
 Total segment expenses             (1,278,140)    (211,741)                    
                                                                                
 Loss before income tax             (1,237,165)    (31,767)                     

                                                                                
 Geographical Segments (Continued)                                              
 30 June 2009                       Eliminations   Total                        
Half-year      Half-year                    
                                    $              $                            
 30 June 2009                                                                   
 Segment sales                      -              16,903                       
Other revenue                      -              41,174                       
 External Sales                     -              58,077                       
                                                                                
 Expenses                                                                       
Segment expenses                   (57,132)       (534,333)                    
 Total segment expenses             (57,132)       (534,333)                    
                                                                                
 Loss before income tax             (57,132)       (476,256)                    

                                                                                
 30 June 2008                       Eliminations   Total                        
                                    Half-year      Half-year                    
$                 $                         
 Revenue                                                                        
 External Sales                     -              29,232                       
 Intersegment  sales                (177,158)      -                            
Other revenue                      -              14,559                       
 Total Revenue                      (177,158)      43,791                       
                                                                                
 Expenses                                                                       
Segment expenses                   -              (1,312,723)                  
 Intersegment expenses              177,158        -                            
 Total segment expenses             177,158        (1,312,723)                  
                                                                                
Loss before income tax             -              (1,268,932)                  
Note 4. Contingent Liabilities and Assets                                       
At report date claims from suppliers and former employees for past services     
remain unresolved, however Tawana has provided for claims and is confident that 
no further adjustment to the accounts is necessary.                             
Otherwise there has been no change in contingent liabilities and assets since   
the last annual reporting date.                                                 
Note 5. Issued Capital & Options Reserve                                        
30 June 2009              31 December 2008                      
                No.          $            No.           $                       
 Issued and Paid Up Capital                                                     
 Fully Paid     117,138,854  34,945,032   113,763,134   34,708,732              
Ordinary                                                                       
 Shares                                                                         
 (Issued                                                                        
 Capital)                                                                       

 Options Reserve                                                                
 Options over   42,430,053   546,529      22,930,053    436,431                 
 Fully Paid                                                                     
Ordinary                                                                       
 Shares                                                                         
 (Reserves)                                                                     
                                                                                
Total                       35,491,561                 35,145,163              
                                                                                
 During the half year ended 30 June 2009, the following movements               
 in equity occurred:                                                            
Shares                                                                         
 3,375,720      Issued to BEE partner to satisfy South African BEE              
                requirements                                                    
                                                                                
Options                                                                        
 19,500,000     Issued to Directors and Consultants                             
Note 6. Events Subsequent to Reporting Date                                     
On 10 August 2009 the Company announced it had entered into funding arrangements
with Cygnet Capital Pty Ltd (Cygnet) on the following terms:                    
1. Placement of $500,000 by issuing 100,000,000 shares at $0.005 to             
Sophisticated Investors (s708) to be split into two tranches; and               
2. Underwriting of a rights issue to raise $1,085,694 by way of a 1:1 non-      
renounceable rights issue at $0.005.                                            
On 25 August 2009 the first tranche of 17,560,414 placement shares was issued   
within the Company`s 15% capacity to raise $87,802, with the balance of the     
placement shares being subject to shareholder approval at a meeting to be       
convened shortly.                                                               
It is intended that the rights issue will occur shortly following completion of 
the second tranche of the placement shares, and subscribers to the placement    
will be entitled to participate in the rights issue. New capital raised will be 
applied towards rationalizing existing assets and reviewing new opportunities.  
Cygnet will be granted 50 million options with a period of 3 years and an       
exercise price of 1 cent per share as part of its fee on completion of the      
rights issue.                                                                   
On 27 July 2009 Mr Brian Phillips resigned as Non-executive Director. On 31 July
2009 Mr Neil Barrie resigned as Executive Chairman and Mr Sterling Horne was    
appointed as Non-executive Director. On 21 August 2009 Mr Harry Hill was        
appointed as Non-executive Director and Mrs Nonkqubela Mazwai resigned as Non-  
executive Director.                                                             
Otherwise no matters or circumstances have arisen since the end of the reporting
period, not otherwise disclosed in this report, which significantly affected or 
may significantly affect the operations of the economic entity, the result of   
those operations or the state of affairs of the economic entity in subsequent   
financial years.                                                                
Note 7. Going Concern                                                           
For the half-year ended 30 June 2009, Tawana Resources N.L. incurred a loss of  
$476,256, a net decrease of cash flows of $14,485 and had a negative working    
capital balance of $690,344. As a result of these matters, there is significant 
uncertainty whether the group will continue as a going concern and therefore,   
whether it will realise its assets and settle its liabilities and commitments in
the normal course of business and at the amounts stated in the financial report.
This financial report has been prepared on a going concern basis on the         
assumption that the group is dependent on the successful sourcing of additional 
funds. Subsequent to balance date, as disclosed in Note 6 Events Subsequent to  
Reporting Date the Company has entered into funding arrangements that will      
enable it to raise more capital. These arrangements still remain subject to     
regulatory approval. For these reasons, the Directors believe that the          
assumption of a going concern basis in the preparation of this financial report 
is appropriate. The financial report does not include any adjustments relation  
to the recoverability or classification of recorded assets, or to the amounts of
classification or liabilities that might be necessary should the group not be   
able to continue as a going concern.                                            
DIRECTORS` DECLARATION                                                          
The directors` of the company declare that:                                     
1. The financial statements and notes, as set out on pages 7 to 13:             
    (a)  comply with Accounting Standard AASB 134: Interim Financial Reporting  
and the Corporations Regulations; and                                  
    (b)  give a true and fair view of the economic entity`s financial position  
         as at 30 June 2009 and of its performance for the half-year ended on   
         that date.                                                             
2. In the directors` opinion there are reasonable grounds to believe that the   
company will be able to pay its debts as and when they become due and payable.  
This declaration is made in accordance with a resolution of the Board of        
Directors.                                                                      
Euan Luff                                                                       
Chairman                                                                        
Dated 11-September-2009                                                         
INDEPENDENT AUDITOR`S REVIEW REPORT TO THE MEMBERS OF TAWANA RESOURCES NL       
ACN 008 728 425                                                                 
Report on the Interim Financial Report                                          
We have reviewed the accompanying half-year financial report of Tawana Resources
NL and controlled entities, which comprises the balance sheet as at 30 June     
2009, income statement, statement of changes in equity and cash flow statement  
for the half-year ended on that date, the accounting policies, other selected   
explanatory notes and the directors` declaration.                               
Director`s Responsibility for the Interim Financial Report                      
The directors of the company are responsible for the preparation and fair       
presentation of the interim financial report in accordance with the Australian  
Accounting Standards (including the Australian Accounting Interpretations) and  
the Corporations Act 2001. This responsibility includes establishing and        
maintaining internal controls relevant to the preparation and fair presentation 
of the half year financial report that is free from material misstatement,      
whether due to fraud or error; selecting and applying appropriate accounting    
policies; and making accounting estimates that are reasonable in the            
circumstances.                                                                  
Auditor`s Responsibility                                                        
Our responsibility is to express a conclusion on the half-year financial report 
based on our review. We conducted our review in accordance with Auditing        
Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report  
Performed by the Independent Auditor of the Entity in order to state whether, on
the basis of the procedures described, we have become aware of any matter that  
makes us to believe that the interim financial report is not in accordance with 
the Corporations Act 2001 including: giving a true and fair view of the         
consolidated entity`s financial position as at 30 June 2009 and its performance 
for the half-year ended on that date and complying with Accounting Standard     
AASB134 Interim Financial Reporting and the Corporations Regulations 2001. As   
the auditor of Tawana Resources NL and controlled entities, ASRE 2410 requires  
that we comply with the ethical requirements relevant to the audit of the annual
financial report.                                                               
A review of a half-year financial report consists of making enquiries, primarily
of persons responsible for financial and accounting matters, and applying       
analytical and other review procedures. A review is substantially less in scope 
than an audit conducted in accordance with Australian Auditing Standards and    
consequently does not enable us to obtain assurance that we would become aware  
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.                                                
Independence                                                                    
In conducting our review, we have complied with applicable independence         
requirements of the Corporations Act 2001.                                      
Conclusion                                                                      
Based on our review, which is not an audit, we have not become aware of any     
matter that makes us believe that the half-year financial report of Tawana      
Resources NL and controlled entities is not in accordance with the Corporations 
Act 2001, including:                                                            
    (i)  giving a true and fair view of the consolidated entity`s financial     
         position as at 30 June 2009 and of its performance for the half-year   
ended on that date; and                                                
    (ii) complying with AASB134: Interim Financial Reporting and the            
         Corporations Regulations 2001.                                         
Inherent Uncertainty Regarding Continuation as a Going Concern                  
Without qualification to the opinion expressed above, attention is drawn to the 
following matter. As a result of the matters described in Note 7 to the         
financial statements on page 13, there is significant uncertainty whether the   
consolidated group will be able to continue as a going concern and therefore    
whether it will realise its assets and extinguish its liabilities in the normal 
course of business and at the amounts stated in the financial report.           
Jeffrey Luckins                                                                 
Director                                                                        
Webb Audit Pty Ltd                                                              
Dated in Melbourne, Australia on this 11th day of September 2009                
Sponsor                                                                         
PricewaterhouseCoopers Corporate Finance (Pty) Ltd                              
Date: 11/09/2009 13:54:33 Supplied by www.sharenet.co.za                     
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