Kasbah Resources Limited (ASX:KAS)
Perth, July 23, 2009 AEST (ABN Newswire) - Kasbah Resources Limited (ASX:KAS) is pleased to provide this update as to the company's progress in Morocco. The company's prime exploration focus during the quarter continues to be its Achmmach Tin Project.
CORPORATE
Extension to Achmmach Option Agreement
On May 27 Kasbah announced that Madame Amina Benkhadra, the Minister for Energy and Mines, Water and the Environment had approved an extension to the Memorandum of Agreement between ONHYM and Kasbah for the Achmmach Tin Project in Morocco.
With this extension, the deadline for completion of a Feasibility Study on the Achmmach Tin Project now becomes June 2011.
Under this agreement and on completion and submission of a Feasibility Study to ONHYM (the Office National des Hydrocarbures et Des Mines) Kasbah can exercise its exclusive option to acquire 100% of the Achmmach Tin Project, in the El Hajeb region of Morocco. The agreement also has provision for Kasbah, at its election, to utilise a further 12 months from June 2011 to optimise the study if required.
On exercise of the option ONHYM will transfer the Achmmach mining permits to Kasbah in return for payments of US$1M on transfer and thereafter, annual payments of US$1M for 4 years. The total transfer price is US$5M plus a 3% net smelter royalty.
Entitlement Issue
On May 28 Kasbah announced a 1:1 non-renounceable rights issue to raise approximately A$2.655m through the issue of approximately 88,500,000 new fully paid ordinary shares at an issue price of 3 cents per ordinary share.
The purpose of the rights issue is to fund the Meknes Zone Indicated Resource (MZI) drilling programme.
The rights issue was closed on 26 June with 100% take up of the 88,500,000 from existing shareholders raising the full A$2.655m before costs.
Capital Structure
Table 1 summarises the capital structure and equities Kasbah Resources Limited has on issue after the entitlement issue.
Table 1
Kasbah - Capital Structure Post Entitlement Issue
----------------------------------------------Fully paid Ordinary Shares 177,000,006Performance Shares 15,000,003Unlisted Options exercisableat various prices between 20-35cps 21,270,000----------------------------------------------
Major Shareholders
Table 2 summarises the major shareholders of Kasbah Resources Limited after the entitlement issue.
Table 2
Kasbah - Major Shareholders, After Entitlement Issue
---------------------------------------------- Shares %----------------------------------------------Resource CapitalFund III 18,000,000 10.17African Lion 2 Fund 18,000,000 10.17Merrill Lynch(Australia) Nominees 15,160,387 8.57Societe Generale(Australia) 12,000,000 6.78----------------------------------------------
For the complete Kasbah Resources Quarterly Activities Report for June 2009, please click the link below:
http://www.abnnewswire.net/media/en/docs/61092-ASX-KAS-453695.pdf
Contact
Wayne Bramwell
Managing Director
Tel: +61-8-9463-6651
Email: info@kasbahresources.com
Peter Youd
Company Secretary
Tel: +61-8-9463-6651
Email: info@kasbahresources.com
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