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Perth, June 4, 2009 AEST (ABN Newswire) - Jameson Resources Limited (ASX:JAL) is pleased to announce that it has agreed to place 6,770,000 shares at A$0.25 (a premium to the 30 day VWAP) to predominantly overseas based institutional investors to raise approximately A$1,692,500 ("the Placement"). The Placement provides the first tranche of working capital required for the recommissioning of the Basin Coal Mine ("Basin" or the "Project") in British Columbia.
Chess Capital Partners Pty Ltd ("Chess Capital Partners") will act as lead managers to the Placement.
The funds raised will be used to continue with the recommissioning study and to provide working capital. The Placement is to be made available to investors under section 708 of the Corporations Act and as such no disclosure document is required.
Recommissioning Study Update
Norwest Corporation ("Norwest"), a leading international consulting group is undertaking the recommissioning study on behalf of Jameson on the Basin Coal Mine. The objective of the study will be to develop a project implementation schedule to recommission the project as a low cost open pit coal mine under the existing 250,000 tonnes per annum.
The Basin Coal Mine has an existing NI43-101 resource of 19 million tonnes of raw thermal coal. The resource is confined to the 17 metre (average) main seam (over 5 times the Australian coal seam average) extending over a 1.5km strike length. An upgrade of the existing resource base is currently underway and will be incorporating both the along strike extension of the main seam and also a second coal seam (7 metres thick) which lies in the existing pit design beneath the main coal seam. Resources and initial reserve calculations will be undertaken to JORC reporting standards. Significant exploration upside remains both along strike and down dip.
NI43-101 Compliant Resource Table (McKnight Report)
Category In-Situ Tonnes----------------------------------------------Measured (Surface Mineable) 18,100,000Indicated (Surface Mineable) 900,000Measured and Indicated Resource 19,000,000----------------------------------------------
Previous operators Compliance Energy Corporation consistently produced clean coal with specifications, after washing, of: calorific value of 6,080 kcal/kg (adb), 12-16% ash, total moisture content of 10%, and 0.5% sulphur. Samples taken by Norwest for coal quality and specification test work are currently undergoing analysis at Birtley Laboratories in Calgary. The revised coal specifications will be used for marketing studies for both domestic and overseas markets.
Alternative haulage routes identified as part of the study will significantly reduce the transportation distance to the rail load out facility. The proposed route bypasses all population centres and comprises 50km of forestry roads and 60km of an all weather highway. Discussions with three independent rail networks to haul the coal to Vancouver are underway.
Initial estimates on the capital expenditure requirements to recommission the existing 250,000tpa wash plant facility are in line with initial expectations. Estimated timeframe to recommission the existing plant is 4 months.
Prospective buyers of thermal coal include international utilities and local cement manufacturers. Recent discussions with both potential overseas and domestic off-take partners have confirmed interest in the thermal coal produced from the Basin Coal Mine.
Jameson anticipates completion of its re-commissioning study of the Project in August 2009. Pending decision to mine, the Company is aiming to commence production on a 250,000 tonnes per annum trial mining plan with staged expansion under the existing mining permit up to 1 million tonnes per annum.
The Jameson Board believes that the Basin Coal Mine Project, has the potential to develop into a +1mtpa coal operation and should deliver significant upside for Jameson shareholders.
A video presentation of the Basin Coal Project is available on the Company website:
http://www.jamesonresources.com.au
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