Purchase of Whim Creek SX-EW Plant Completed
23 Dezember 2009 - 11:57AM
UK Regulatory
TIDMFND
RNS Number : 6288E
Finders Resources Limited
23 December 2009
For Release: 23rd December 2009
FINDERS RESOURCES LIMITED (ASX & AIM Code: FND)
Purchase of Whim Creek SX-EW Plant Completed
Finders Resources Limited ("Finders") is pleased to announce that it has today
purchased outright the Whim Creek SX-EW plant from a subsidiary of Straits
Resources Limited ("Straits").
As previously reported, Finders held an option to acquire the Whim Creek plant
at a price of A$5,000,000 payable in Finders' shares. To complete the
transaction, Finders has today issued to Straits 12,696,801 fully paid ordinary
shares at 39.38 cents per share, and paid the A$250,000 option fee to Straits by
the issue of a further 724,638 shares at 34.5 cents per share. The share issue
prices are, respectively, the 20 day VWAP (volume weighted average price) from
today's option exercise date, and the 5 day VWAP from the option Heads of
Agreement date. The issue of these shares was approved by Finders shareholders
at the Finders AGM on 24th November 2009.
These new shares, when added to Straits' existing shareholding, give Straits a
10.06% interest in Finders.
The Whim Creek SX-EW plant is capable of producing 18,000 tonnes of copper
cathode per annum and is well suited to Finders' needs at its Wetar Copper
Project in Indonesia. The recently completed definitive feasibility study for
the Wetar Copper Project incorporates use of the Whim Creek plant.
The Whim Creek plant is currently located at Straits' Whim Creek mine in Western
Australia. Finders will commence the dismantling of the Whim Creek plant in
January 2010 - a process that is expected to take around three months to
complete - and will then prepare for its subsequent relocation to Wetar Island.
Finders' Chairman, Russell Fountain, commented that "Aquisition of the Whim
Creek SX-EW plant represents a major advance towards development of the full
scale Wetar Copper Project, by providing certainty of both supply and timing for
key components for the development, as well as significant cost savings compared
to the purchase of new equipment. We also appreciate the confidence in the
project shown by Straits Resources in their willingness to accept Finders shares
in full payment for the transaction."
The new capital structure is as follows:
+-------------+----------+-------------+-------------+------------+-------------+
| |
+-------------+
| |Exercise | Expiry | Number | Number | Number |
| | Price | Date | previously | Issued | now on |
| | | | on Issue | | Issue |
+-------------+----------+-------------+-------------+------------+-------------+
| |Exercise | Expiry | Number | Number | Number |
| | Price | Date | previously | Issued | now on |
| | | | on Issue | | Issue |
+-------------+----------+-------------+-------------+------------+-------------+
| Listed | | | 180,306,570 | 13,421,439 | 193,728,009 |
| Fully | | | | | |
| Paid | | | | | |
| Ordinary | | | | | |
| Shares | | | | | |
+-------------+----------+-------------+-------------+------------+-------------+
| Unlisted | AUD | 13 | 500,000 | - | 500,000 |
| Options | 68.75 | June | | | |
| | cents | 2010 | | | |
+-------------+----------+-------------+-------------+------------+-------------+
| | AUD 30 | 16 | 500,000 | - | 500,000 |
| | cents | April | | | |
| | | 2012 | | | |
+-------------+----------+-------------+-------------+------------+-------------+
| | AUD 30 | 16 | 500,000 | - | 500,000 |
| | cents | April | | | |
| | | 2014 | | | |
+-------------+----------+-------------+-------------+------------+-------------+
| | AUD 30 | 8 May | 2,000,000 | - | 2,000,000 |
| | cents | 2014 | | | |
+-------------+----------+-------------+-------------+------------+-------------+
| | AUD 37 | 23 | 250,000 | - | 250,000 |
| | cents | June | | | |
| | | 2014 | | | |
+-------------+----------+-------------+-------------+------------+-------------+
| | AUD 37 | 28 | 625,000 | - | 625,000 |
| | cents | June | | | |
| | | 2014 | | | |
+-------------+----------+-------------+-------------+------------+-------------+
| | AUD 37 | Earlier | 500,000 | - | 500,000 |
| | cents | of | | | |
| | | expiry | | | |
| | | of a | | | |
| | |consultancy | | | |
| | | agreement | | | |
| | | and 29 Jun | | | |
| | | 14 | | | |
+-------------+----------+-------------+-------------+------------+-------------+
| | AUD 37 | 29 | 250,000 | | 250,000 |
| | cents | August | | | |
| | | 2014 | | | |
+-------------+----------+-------------+-------------+------------+-------------+
| | AUD 37 | 14 | 1,000,000 | - | 1,000,000 |
| | cents | September | | | |
| | | 2014 | | | |
+-------------+----------+-------------+-------------+------------+-------------+
| | | | 6,125,000 | - | 6,125,000 |
+-------------+----------+-------------+-------------+------------+-------------+
| | | | Value | Value | Value |
| | | | previously | issued | now on |
| | | | on issue | | issue |
+-------------+----------+-------------+-------------+------------+-------------+
| Unlisted | | | AUD | AUD | AUD |
|Convertible | | | | | |
| Notes | | | | | |
+-------------+----------+-------------+-------------+------------+-------------+
| | AUD 36 | 19 | 2,323,972 | - | 2,323,972 |
| | cents | January | | | |
| | | 2012 | | | |
+-------------+----------+-------------+-------------+------------+-------------+
For further information please contact
+------------------+-------------------------+--------------------------------------+
| Finders Resources Ltd: |
+-----------------------------------------------------------------------------------+
| Russell Fountain | Non-Executive Chairman | +61 2 9211 8299 |
+------------------+-------------------------+--------------------------------------+
| Chris Farmer | Managing Director | info@findersresources.com |
+------------------+-------------------------+--------------------------------------+
| Financial PR: |
+-----------------------------------------------------------------------------------+
| Doug Macdonald | Capital Group (in | +61 424 255 959 |
| | Australia) | |
+------------------+-------------------------+--------------------------------------+
| Nick Elwes | College Hill (in the | +44 20 7457 2020 |
| | UK) | |
+------------------+-------------------------+--------------------------------------+
| RFC Corporate Finance Ltd - Nomad: |
| Rob Adamson Managing Director +61 2 9250 0000 |
| Stuart Laing Executive Director +61 8 9480 2500 |
| |
+-----------------------------------------------------------------------------------+
| FinnCap - Finders' Broker for the AIM market: |
+-----------------------------------------------------------------------------------+
| Mathew Robinson | Corporate Finance | +44 (0) 20 7600 1658 |
| | Director | |
+------------------+-------------------------+--------------------------------------+
| Joe Lunn | Analyst | +44 20 7600 1658 |
+------------------+-------------------------+--------------------------------------+
Background on Finders Resources
Finders, listed on AIM and ASX, is the operator of the Wetar Copper Project
(94% and earning), and the Ojolali Gold-Silver Project (72% with option), both
located in Indonesia.
At the Wetar Project, as part of a definitive feasibility study, a demonstration
SX-EW plant with 5t per day copper cathode capacity was commissioned in February
2009 and is permitted to process 100,000t of ore from the Kali Kuning deposit.
The demonstration plant is producing LME Grade A copper cathode. The Company is
targeting commercial production of 23,000 tonnes per year copper cathode,
subject to permitting and project funding.
At the Ojolali Project, Finders controls what it considers to be a major new
epithermal gold district, and has been undertaking an extensive exploration
program comprising detailed drilling to establish an initial mining resource,
supported by extensive surface geophysical and geochemical surveys. Finders
believe that the Ojolali project has strong potential to generate cash flow
through open pit CIL/CIP development of the gold resource at the Jambi Oxide
gold deposit.
For further information on results previously reported and a full resource
statement please visit our website www.findersresources.com.
Competent Person Statement
Geological and Mineral Resource information in this announcement and comments
relating to exploration potential and the project in general are based on
information compiled by Dr Russell Fountain, who also accepts responsibility for
the data on which the Mineral Resource is based. Dr Fountain is a Director of
Finders and a Fellow of the Australasian Institute of Geoscientists. Dr Fountain
has sufficient experience that is relevant to the styles of mineralisation and
types of deposits under consideration and to the activity that he is undertaking
to qualify as Competent Person as defined in the JORC Code. He consents to the
inclusion in this announcement of the matters based on his information in the
form and context in which they appear.
Disclaimer
This announcement may or may not contain certain "forward-looking statements".
All statements, other than statements of historical fact, which address
activities, events or developments that Finders believes, expects or anticipates
will or may occur in the future, are forward-looking statements. Forward-looking
statements are often, but not always, identified by the use of words such as
"seek", "anticipate", "believe", "plan", "estimate", "targeting", "expect", and
"intend" and statements that an event or result "may", "will", "can", "should",
"could", or "might" occur or be achieved and other similar expressions. These
forward-looking statements reflect the current internal projections,
expectations or beliefs of Finders based on information currently available to
Finders. Statements in this document that are forward-looking and involve
numerous risks and uncertainties that could cause actual results to differ
materially from expected results are based on the Company's current beliefs and
assumptions regarding a large number of factors affecting its business. Actual
results may differ materially from expected results. There can be no assurance
that (i) the Company has correctly measured or identified all of the factors
affecting its business or the extent of their likely impact, (ii) the publicly
available information with respect to these factors on which the Company's
analysis is based is complete or accurate, (iii) the Company's analysis is
correct or (iv) the Company's strategy, which is based in part on this analysis,
will be successful. Finders expressly disclaims any obligation to update or
revise any such forward-looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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