Quarterly Report 30 June 2009

 

TIDMDWY 
 
RNS Number : 9271V 
Dwyka Resources Limited 
20 July 2009 
 

DWYKA RESOURCES LIMITED (ASX:DWY.AX; AIM:DWY.L) 
 
 
 
 
Highlights during the Quarter 
 
 
Corporate 
 
 
  *  Takeover offer made for AIM-listed Minerva Resources Plc ("Minerva") on the 
  basis of 1 Dwyka share for every 5 Minerva shares 
 
 
 
  *  Offer for Minerva declared wholly unconditional on 14 July 2009 with 80.9% 
  acceptances 
 
 
 
  *  Cash balance at 30 June 2009 GBP6.3 million (AUD12.8 million) 
 
 
 
Muremera Nickel Project in Burundi 
 
 
  *  Drilling commences at 3 highest priority targets near Kabanga 
 
 
 
  *  Renewal of Muremera project licence secured 
 
 
 
TAKEOVER OFFER FOR MINERVA 
 
 
On 23 June 2009, Dwyka announced the making of a takeover offer to acquire all 
of the issued and to be issued share capital of Minerva, on the basis of 
offering one Dwyka share for every five Minerva shares (the "Offer"). The Offer 
was recommended by the Board of Minerva and valued the entire issued capital of 
Minerva at approximately GBP1.8 million and each Minerva share at approximately 
1.2 pence. 
 
 
Minerva's principal assets are a portfolio of gold and platinum licences located 
in Ethiopia, although it also has other mineral interests in Sierra Leone. 
 Having considered in excess of 40 potential acquisition opportunities in the 
preceding 18 months, the Dwyka Directors believed that the acquisition of 
Minerva, together with the combination of Minerva's assets, Dwyka's in-house 
experience and Dwyka's financial resources, had strong commercial logic, and 
strategic drivers, including the following: 
 
 
  *  Gold represents a resource commodity that is likely to remain in high demand and 
  retain mid to long-term pricing. A further investment in gold would fit with 
  Dwyka's other assets. 
 
 
 
  *  The acquisition of Minerva would increase Dwyka's gold exposure on the African 
  continent and provide a means of raising the profile and prospects for Dwyka's 
  existing gold assets. Additionally the Minerva assets would shift the Company's 
  primary focus from being an explorer to becoming a developer. 
 
 
 
  *  Dwyka believed the acquisition of Minerva would represent an opportunity to 
  define a JORC resource in the near term based on the work performed by Minerva 
  to date and thereafter to grow the resource through further exploration with the 
  aim of establishing a low cost gold mining operation. 
 
 
 
  *  Minerva's Tula Kapi Prospect and Guji, Gudeya Guji and Dina Prospects had a 
  simple geological structure and metallurgy which would potentially reduce the 
  costs of exploration and future extraction of ore. 
 
 
 
  *  The historical work and the subsequent results achieved by Minerva were 
  sufficiently far advanced to provide Dwyka with an opportunity to accelerate 
  scoping and feasibility studies with a view to developing a producing gold mine. 
 
 
 
  *  The legislative environment in Ethiopia was recognised as being one of more 
  conducive in Africa towards foreign investment and mining operations. 
 
 
 
  *  The acquisition of Minerva would potentially provide a significantly shorter 
  lead time to first gold production for Dwyka and a share-based takeover offer 
  represented the most effective route for Dwyka to achieve this, preserving 
  Dwyka's cash reserves. 
 
 
 
Since the end of the Quarter, Dwyka announced on 15 July 2009 that it had 
received acceptances in respect of 80.9% of the Minerva issued share 
capital ("Minerva Shares") and that it had declared the Offer wholly 
unconditional.  Following that announcement, the previous Board of Minerva 
resigned and was replaced with a Board comprised wholly of Dwyka appointees.  At 
this point in time, the Offer remains open for acceptance until 28 July 2009 
and, should Dwyka receive acceptances in respect of a total of 90% of the 
Minerva Shares, it will be entitled to compulsorily acquire the outstanding 
Minerva Shares so as to become the 100% owner of Minerva. As Dwyka is now the 
owner of more than 75% of the Minerva Shares, Minerva will be de-listed from AIM 
in accordance with the AIM Rules. It is expected that this de-listing will occur 
on 23 July 2009. 
 
 
Subsequent to the end of the quarter, Dwyka management has worked to finalise 
and commence a work programme for the Minerva assets. Details of this work 
programme will be announced shortly. 
 
 
MUREMERA PROJECT 
 
 
During the previous Quarter, Dwyka announced that it had secured 100% ownership 
of the Muremera Nickel Project ("Project") through its wholly owned subsidiary 
Danyland Limited and that it had identified the three highest priority targets 
in its exploration programme for drilling. Those targets, located approximately 
10km from the Barrick/Xstrata Kabanga Project ("Kabanga"), currently the world's 
largest undeveloped nickel sulphide project, were identified from the intensive 
VTEM surveys undertaken to date and were generated from VTEM signatures 
consistent with massive sulphide bodies that may have a nickel signature. 
Drilling commenced during the quarter. 
 
 
Renewal documentation in relation to the Project licence was submitted during 
the quarter to the Burundi authorities and, subsequent to the end of the 
quarter, it was confirmed that the renewal had been granted.  The Decree which 
formally grants the renewal is due to be delivered.  As a result, the current 
exploration licence is valid for a further period of two years. 
 
 
SWAZIGOLD PROJECT 
A project review which will allow Dwyka to determine whether Dwyka will continue 
to sole fund further exploration of the project (to increase its ownership 
level) or pursue other joint venture mechanisms to progress the project to the 
next stage is almost complete. A decision regarding future funding of this 
project should be forthcoming shortly. 
 
 
Application was made during the quarter for the renewal of the SwaziGold Project 
licence. The renewal remains pending but is expected to be confirmed shortly. 
 
 
 
 
 
 
 
 
 
 
MELISSA STURGESS 
Chief Executive Officer 
 
 
 
 
 
 
Enquiries: 
 
 
Melissa Sturgess 
Dwyka Resources Limited 
[phone] or [e-mail] 
 
 
In the United Kingdom 
Richard Brown 
Ambrian Partners Limited 
[phone] 
 
 
Press enquiries 
Charlie Geller/Leesa Peters 
Conduit PR 
[phone] or [phone] 
 
 
or visit http://www.dwyresources.com 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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