Universal Project Locations
Perth, May 1, 2009 AEST (ABN Newswire) - Universal Resources Limited (ASX:URL) is an Australian public listed company with substantial tenement holdings in two of Australia's major base and precious metal provinces: the Mt Isa Inlier in Queensland and the Lachlan Fold Belt in NSW.
Universal's major asset is the Roseby Copper Project, one of Australia's largest undeveloped open pit copper resources with 128.54 million tonnes of JORC compliant resources containing 878kT of copper and 239kOz of gold.
A detailed feasibility study (DFS) of a 5 million tonnes per annum (Mtpa) mine, concentrator and associated infrastructure was completed in September 2008. That study indicated the Project was both technically feasible and economically viable based on the financial assumptions used in the study.
With the almost total collapse of credit markets around the world by late 2008, there was an associated major decline in metal prices, including copper. As a result, the Company deferred financing and development of the Project.
Recent improvements in metal prices may be a precursor to improved economic conditions generally and particularly in global credit markets.
The Roseby Project is in a fortunate position relative to many competing projects seeking development finance: it has a completed feasibility study, is located in Australia, with its stable political and social environment, a highly skilled mining workforce, well established infrastructure and the extremely favourable geological setting in the Mt Isa Inlier, host to many world class ore bodies, including deposits of copper, copper-gold, lead-zinc-silver and phosphate.
CORPORATE
Capital Raising
On 14 January 2009 the Company announced its intention to raise additional funds for working capital purposes by way of a fully underwritten non-renounceable rights issue to existing shareholders on the basis of one new share for every two shares held on the record date, at an issue price of 1c per share. The issue was successfully completed on 25 February 2009 and raised A$1,720,112 before costs.
The funds raised by the issue are to be used for working capital and should, along with other measures being implemented, ensure the Company can survive through the current global financial crisis.
Converting Notes
Following restructuring of the Converting Notes (Notes) in late 2008, there are, as of 1 January 2009, two classes of Notes:
i) Notes bearing a 5% interest coupon, payable quarterly in cash, including;
- 500 Notes maturing on 24 June 2009;
- 12,180 Notes maturing on 27 June 2009;
ii) 139,500 Notes bearing a 10% interest coupon and maturing on 30 June 2011.
Interest is payable quarterly in either cash or shares at an issue price equal to 90% of the volume weighted average price (VWAP) of the Company's shares traded on ASX on the five trading days prior to the end of the quarter.
All Notes have a face value of A$100.00. They are unlisted and unsecured.
March Quarter interest totalled A$359,605 of which A$32,646 was paid in cash and A$326,959 was paid in shares, resulting in the issue of 36,765,872 new shares.
Issued Capital
At the conclusion of the rights issue and the payment of interest on the Converting Notes, the issued capital of the Company is as follows:
FPO SharesPre-rights issue 344,022,378Issued pursuant to the rights issue 172,011,189Issued in payment of interest 36,765,872TOTAL 552,799,439OptionsDirectors and employee options 18,835,000
Note: these options expire on various dates up to 23 December 2013. All options have an exercise price of 15c per share.
Payment Due To Oz Minerals Limited
The Company has been negotiating with Oz Minerals Limited (OML) to defer payment of the final cash payment of A$2 million for the completion of the purchase of the Roseby Copper Project. Legal documentation and finalisation of the terms of the agreement are at an advanced stage and this matter is expected to be completed during the June Quarter.
Expenditure Reductions
With an expectation that the current economic and market conditions are likely to continue until at least late 2009 and possibly well into the first half of 2010, the directors have taken a number of measures to reduce Company expenditures, including:
- A reduction of A$20,000 per annum in fees paid to non-executive directors;
- A decision not to appoint a replacement director for Mr Jim Walls, who died in office last year;
- A reduction of A$50,000 pa in combined salary/directors fees for Mr Ingram, the Chairman and Managing Director;
- A reduction of A$40,000 pa in combined salary/directors fees for Mr Hoyle, the Executive Director, Technical;
- A reduction in the annual contract fees paid to Mosman Management Pty Ltd for accounting, financial and Company Secretarial services;
- A reduction in staff numbers from six to four;
- Farming-out of non-core exploration projects;
- Reduction in exploration, feasibility and development expenditures where possible; and
- Minimising of general administrative costs wherever possible.
Most of these measures were effective from 1 October 2008.
Future Directions
Universal believes that the Roseby Copper Project is an extremely valuable asset, the preservation of which is vital to the future of the Company. Development opportunities for the Project are being pursued and evaluated with vigour.
Whilst credit markets remain difficult, the directors believe that financial market conditions are showing some tentative signs of recovery. A number of financial organisations have opened discussions with the company with a view to providing finance for the development of the Roseby Copper Project. The company is pursuing these discussions. However, it is important to realise that market conditions remain difficult and successful financing of the Roseby Project is likely to take some time to complete.
For the complete Universal Resources Quarterly Report, please see the link below;
http://www.abnnewswire.net/media/en/docs/60571-ASX-URL-445304.pdf
About Altona Mining Limited
Altona is a cashed up ASX listed company with a record of shareholder returns. It is focussed on the Cloncurry Copper Project in Queensland, Australia.
The Cloncurry Copper Project has resources containing some 1.65 million tonnes of copper and 0.43 million ounces of gold. The first development envisaged is the 7 million tonnes per annum Little Eva open pit copper-gold mine and concentrator.
| ||
|
