East Kambalda Project
Perth, April 29, 2009 AEST (ABN Newswire) - Terrain Minerals Limited (ASX:TMX) announce a rights issue raised ~A$550,000 in February 2009. 11,064,250 shares were issued at a price of 5c per share. The Rights Issue was fully underwritten by a Singapore based supporter group.
To fund ongoing mine development studies, further exploration, working capital and the increased costs associated with the evaluation of the IRM takeover bid; the TMX board has announced additional capital raising plans including a ~A$500,000 placement and a Standby Facility of A$3m over 5 years.
The company plans to raise a further ~A$500,000 through a rights issue to shareholders on similar terms to the placement.
Board of Directors
The chairman, Ross Gillon; together with non-executive director, David Zohar, resigned from the board on 4 March, 2009.
Paul Dickson was appointed non-executive director on 27 February, 2009 and Dick Sandner accepted the position of chairman of the board of directors on 24 March, 2009.
Mr Dickson has wide experience as a stockbroker and with capital raising. He is currently a director of Bligh Capital (Melbourne) Pty Ltd, which provides a range of services including capital raisings And general corporate advice for small-cap companies. Mr Sandner is a lawyer with thirty years senior management, corporate and mine development experience. He is the past president of the Minerals Council of Australia - Victorian Division.
Takeover Bid by Iron Mountain Ltd
On 10 March 2009 Iron Mountain Ltd (IRM) announced to the ASX a hostile, unsolicited, all scrip takeover bid for all the shares of TMX. The terms of the bid are; one IRM share for two TMX shares.
IRM is a company associated with Mr Zohar, a previous director of TMX. Mr Zohar resigned from the TMX board one week before the bid was announced.
TMX has recommended no action until the formal bid has been considered. IRM's Bidder's Statement was not released to ASIC and the company until 24 April, 2009. At that date the respective share prices were:
- TMX: 5.4c
- IRM: 7.1c
BUNDARRA PROJECT
An Aboriginal Heritage clearance survey has been completed over the known drill target areas.
A final report is expected before the end of April 2009.
A Letter of Intent has been signed to mine 240,000t @ 2.03g/t gold (14,300 oz) from the Celtic deposit in partnership with a mining contractor. Subject to final agreements, including toll treatment arrangements, production is planned for the second half of 2009.
Pit Optimisation Studies are planned for the Great Western (473,000t @ 2.7g/t gold (40,900 oz)) and Wonder North (2,540,000t @ 2.1g/t gold (172,600 oz)) deposits (Figure 1), ahead of proposed mine production in 2010.
EAST KAMBALDA PROJECT
The consultant's interpretation and final report has been received for the orientation IP and EM geophysical surveys completed over the Aztec Dome in late 2008 (Figure 3).
Five IP and/or EM anomalies have been located at the southern end of the Aztec Dome (Figure 5). Three of the anomalies (A, D, & C) are coincident with interpreted gravity/magnetic targets prospective for Kambalda style nickel deposits. Historic drilling of one of these target zones (A) intersected wide (up to 40m) zones of disseminated sulphides with nickel values up to 0.3%. A fourth anomaly (B) is adjacent to a major regional structure, the Parkeston Dyke, and is considered to be prospective for gold mineralisation.
It is planned to complete the IP and EM coverage of the Aztec Dome area ahead of drill planning.
The proposed sale of the Coogee gold deposit was terminated in March 2009 following the failure of the purchaser's funding arrangements.
Since the termination of the Coogee sale agreement the company has received a number of approaches regarding the gold deposit. TMX is currently reviewing the various development options including a sale of the deposit and developing a mining operation.
DODGERS WELL PROJECT
TMX has entered into an Option to Purchase Agreement over P37/6950, covering the majority of the historic Dodgers Well mining centre. The company can acquire 100% interest in the tenement through the payment of A$50,000 in cash or shares by December 2009.
Additional ground (PLA37/7741 & 7742) has been applied for by TMX covering the balance of historic workings at Dodgers Well (Figure 6).
Dodger's Well is located 30 kms from TMX's major Bundarra gold project (JORC Resource 4.96mt @ 2.0g/t gold (321,000 oz) (Figure 1). Both projects occur on the western margin of the Bundarra batholith (Figure 2).
Historic production from the Dodger's Well mining centre is 1,395t @ 44.5g/t gold (1,994 oz). The results of recent rock chip sampling by TMX along the Sheffield/Junction/Champion line located anomalous samples over a distance >1 km, including 21.8g/t gold, 19.1g/t gold, 4.8g/t gold and 3.94g/t gold.
Initial rock chip sampling, at the Myrtle/Glen Lyon group of workings, by TMX revealed values up to 22.8g/t gold. The gold is associated with a zone of brecciation and detailed investigations of breccia samples have identified epithermal textures. The results of further sampling of the breccia zone included 92.0g/t gold and 37.8g/t gold.
A geological consultant has recently completed a structural mapping program over the area. Northern extensions to the Myrtle/Glen Lyon line of workings were identified with rock chip assays up to 2g/t gold and further sampling at the Sheffield workings confirmed the existence of high grades with rock chip samples up to 136 g/t gold.
The project has the potential to host high grade gold mineralisation and be developed with TMX's Bundarra project. More detailed mapping and sampling programs are planned ahead of drilling programs.
EXPENDITURE
Exploration expenditure in the March quarter amounted to A$128,500. Cash reserves at 31 March 2009 were A$400,000, plus bonds of A$334,000; a total of A$734,000.
Anticipated exploration expenditure in the June quarter amounts to A$55,500.
Further information regarding Terrain's projects and exploration programs can be found on the Company's website, http://www.terrainminerals.com.au
For the Complete Terrain Minerals Quarterly Report, please see the link below;
http://www.abnnewswire.net/media/en/docs/60550-ASX-TMX-444732.pdf
About Terrain Minerals Limited
Terrain Minerals Ltd (ASX:TMX) is a West Australian based minerals exploration company focused on the world class mineral provinces in Western Australia. Terrain is actively looking for opportunities within other states of Australia and internationally.
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