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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Zambezi Res | LSE:ZRL | London | Ordinary Share | BMG988411028 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.25 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMZRL RNS Number : 4996R Zambezi Resources Ltd 30 April 2009 30 April 2009 Zambezi Resources Limited (AIM: ZRL; ASX:ZRL) March 2009 Quarterly Report CORPORATE Current Situation Following the continued deterioration in the global financial markets the prime aim of Zambezi Resources Ltd ("Zambezi" or "the Company") during the quarter has been to secure a major financial backer for the Company. On 31 October 2008 the Company's shares were suspended from trading on the ASX pending clarification with regard to the Company's funding arrangements. This was followed by a suspension on the AIM market four days later. On 28 November 2008 the Company reached a standstill agreement with its major creditors which allowed Zambezi to defer the payments of debts until the end of March 2009. This deadline was later extended to the 30 April 2009. A satisfactory agreement with Creditors is expected to be concluded and will be announced to the market at that time. Outlook The Company is continuing discussions with various parties with a view to refinancing the Company. This includes discussions being led by the Company itself and also discussions through intermediaries acting on the Company's behalf. Post securing such financing, the Company will be looking to rationalise its asset portfolio and reprioritise its projects, The Company has reduced its overheads and operating cost by carrying out a substantial reduction in its exploration office in Zambia, substantially reducing its Perth administrative office, retrenched all but three staff in Zambia and is renegotiating salaries and terms of employment with its remaining key staff. The Company has also wound up its exploration services agreement with Glencore International AG ("Glencore") in the Democratic Republic of Congo. The Company notes that the improved market conditions as a result of the improved copper price and financial market conditions. Astron Placement On 28 January 2009, the Company secured an agreement with Astron Limited ("Astron") for a three staged recapitalisation plan which envisaged an initial investment of AUD$580,000 and following shareholder approval, an additional investment of AUD$3.42 million. In addition the Company was to issue an unsecured note for USD$6 million to Astron Limited subject to various conditions including shareholder approvals outlined in the announcement dated 28 January 2009. On 9 March 2009, the Company received shareholder approval for the Astron transaction which was due to settle on 11 March 2009. On 11 March, the Company received a notice from Astron purporting to termination the placement agreement. This notice was refuted by Zambezi and Zambezi provided a notice to Astron that they were willing and able to complete the transaction. As announced on 16 March 2009, the Company terminated the agreement after receiving no formal response from Astron. The Company has reserved all rights with respect to this transaction. OPERATIONS During the Quarter ended 31 March 2009, no field work was carried out on the Company's projects in Zambia. Focus for the quarter centred on compliance with the Company's license holdings in Zambia to meet full regulatory compliance with the new 2008 Zambian Mines Act ("the Act"). All tenure renewals, relinquishments, new applications and transfers have now been addressed by the Zambian Department of Mining and Mineral Development. There remain three licences which have been approved by the cadastral committee but the final formal letter of approval has yet to be received from the Department of Mines. In accordance with the new mining laws, Zambezi and its joint venture partners have carried out substantial reductions in their tenement position while retaining core project areas. To comply with the Act, Zambezi has retained an area of influence over an area of 9,637km2 which contain all the main project areas while retaining direct 100% interest over 4,880km2. Results are still pending from drilling completed on the Kangaluwi Copper Project and the Mulofwe Project with 17,800 analytical results still to be assayed. Of these samples, 9,892 are drill samples from the Kangaluwi program, of which approximately 3,531 have been classified has high priority samples as a result of their interpreted mineralisation. New Tenure Position To comply with the Act, Zambezi has reduced the size of individual licenses to 1000km2 or less and the overall tenure area to 5000km2 or less . To achieve this, retention licenses have been applied for and granted over core project areas. Where the area of the old license has exceeded 1000km2 new licences have been applied for and granted additional to the area retained. To further comply with the Act, licences areas previously held by Zambezi have been relinquished then applied for by Cheowa Resources (Zambezi 49%; Glencore 51%), Chalimbana Resources (Zambezi 49%; Lithic Metals and Energy Limited 51%) and Mpande Limestone Ltd. (Zambezi 45%). The area now directly under Mwembeshi Resources (Zambezi 100%) is 4,880km2 The area under the incorporated Glencore Joint venture covers 1619 km2 and the area under the Lithic Joint venture covers 2756km2. The effective area under influence is now 9255km2 post the reduction of tenure and has thus reduced by 43% over the past year. Zambezi and its joint venture partners have selected the most prospective areas to retain. The tenement reduction program is in accordance with the Act policy requiring a 50% reduction every two years. Zambezi was one of the few exploration companies in Zambia to meet the March 2009 deadline to comply with the Act with respect to tenement tenure. Once all the new tenements have been formally approved, the company will issue a detailed statement disclosing the new tenement position. COPPER PROJECTS At the Cheowa Copper-Gold Project, Glencore met its expenditure commitment of US$16 million in Q4 2008 to earn an initial 51% interest in the project. A Shareholders Agreement to convert the joint venture into an Incorporated Joint Venture was completed between Zambezi and Glencore in December 2008. Glencore now own 51% and Zambezi 49% of Chalimbana Resources Ltd, a Bermudan registered company that owns the assets of the two former joint ventures for the Cheowa Copperbelt/Chalimbana and Cheowa projects. A significant number of drillhole assays are still pending for the Chisawa and Kangaluwi Prospects. These samples will be assayed as a priority pending funding or JV partner. The results of these assays will be used to calculate a 2004 JORC compliant resource estimate for the Chisawa and Kangaluwi Prospects. URANIUM PROJECTS Lithic Metals and Energy Uranium Joint venture. No field work carried out for the quarter, it being the wet season. Subsequent to the quarter end, Lithic Metals and Energy ("Lithic") announced results of initial sampling at the Katoba and Mukwisi prospects in Zambia on 21 April 2009 and this announcement is available on the Lithic website www.lithicme.com. Uranium Mineral Rights joint venture with Rio Tinto. As of 9 March 2009, Rio Tinto Mining and Exploration Ltd gave notice of their wish to withdraw from and terminate the Mulofwe joint venture. The joint venture commenced on 4 September 2007 with Rio Tinto spending US $350,000 toward the joint venture commitment on exploration up until notification of withdrawal. The work carried out by Rio Tinto resulted in several drill ready targets. Follow up and drilling of these targets is planned by Zambezi pending further funding. The Company welcomes enquiries in relation to its projects. For and on behalf of the Board Julian Ford Managing Director 30 April 2009 A full version of this announcement including maps and figures is available on the Company's website www.zambeziresources.com Competent Person Statement The information in this report that relates to Exploration Results is based on information compiled by General Manager Exploration Jay Klopper BSc (Hons). Mr Klopper is a full-time employee of Zambezi Resources, and a Member of the Australian Institute of Geoscientists. Mr Klopper is a Competent Person as defined in the December 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code) and consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. For more information contact: +------------------------------+----------------------------+ | Julian Ford, Managing | Simon Edwards / Adam Lloyd | | Director | Evolution Securities Ltd | | Zambezi Resources | + 44 20 7071 4300 | | (Australia) | | | +61 (08) 9216 9000 | | | +61 (0) 418 949 580 | | +------------------------------+----------------------------+ | | | +------------------------------+----------------------------+ | Fiona Owen | | | Grant Thornton UK LLP | | | +44 20 7383 5100 | | +------------------------------+----------------------------+ ADDITIONAL INFORMATION Zambezi is listed on London's AIM market and the Australian Securities Exchange (ASX & AIM Ticker: ZRL) and currently has two main projects, Cheowa and Kangaluwi. The Company is focused on discovering and developing large Copper-Gold projects in southern Zambia. The Cheowa project is a joint venture with Glencore International AG, who have earned a 51% interest in the project. The Company believes that the Kangaluwi project has the potential to be a world class open pit copper deposit. To date the Company has spent over US$ 10 million on the project and drilled over 50,000 metres, testing 8km's of the 28km's of strike length. The Company also has a Uranium Joint Venture on approximately 50% of its tenement area with Lithic Metals and Energy. This information is provided by RNS The company news service from the London Stock Exchange END MSCILFEFSFIIVIA
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