RNS Number:0506A
Kalahari Minerals PLC
21 March 2006
Kalahari Minerals plc
Ticker: KAH
Index: AIM
Sector: Mining & Exploration
Kalahari Minerals plc
Placing of #6 million
Admission to trading on AIM
Overview
* Kalahari ('Kalahari' or 'the Company') is an established mining
exploration/evaluation company with advanced portfolio of copper and uranium
prospects in Namibia
* Raising #6 million through placing of 40,000,000 new Ordinary Shares at
15 pence per share and listing on AIM on 21 March 2006
* Multi-project portfolio at various levels of development from reserve
definition projects to green field exploration
* Copper licences cover the majority of the known, but un-mined, Namibian
portion of the Kalahari Copper Belt
* Husab Project in known uranium province - between Rossing uranium mine
and Langer Heinrich development. 49 per cent. interest provides synergies to
fund assessment and development ground
* Operational areas easily accessible with good infrastructure
* Positive data accumulated from previous exploration - extensive work by
majors
* Highly experienced and balanced team with extensive knowledge of the
resource and financial sectors
Chairman Mark Hohnen said: "I believe we have a very exciting opportunity to
develop both copper and uranium operations in Namibia. The portfolio is at
various stages of development which translates into near term production
potential in tandem with long term blue sky. Importantly, through previous work
we have certain levels of reserve definition which has been popular with the
institutions we have seen. I am very pleased to have been successful in
securing the funds from key institutional investors and look forward to joining
AIM. The money raised will fuel both our current copper development and
exploration programme focused on the highly prospective copper, uranium and gold
prospects."
Contacts
Kalahari Minerals plc Tel: +61 (0) 8 9316 1214
Peter McIntyre Mob: +61 (0)419 930 743
Mark Hohnen Mob: +61 (0)412 919 282
Corporate Synergy Plc
Olly Cairns Tel: +44 (0)20 7448 4400
Ambrian Partners Limited
Richard Chase Tel: +44 (0)20 7776 6400
St Brides Media & Finance Ltd
Isabel Crossley/Hugo de Salis Tel: +44 (0)20 7242 4477
Notes to editors
Kalahari Minerals plc, the mining exploration and evaluation group with a
portfolio of copper and uranium prospects in Namibia, is raising #6 million
before expenses by way of a conditional placing of 4,000,000 new Ordinary Shares
at 15 pence per share and is listing on AIM on 21st March 2006. The funds
raised will be used to continue its project development and exploration
programme to identify the feasibility of commencing one or more mining
operations based on oxide and/or sulphide copper resources, primary or secondary
uranium deposits, or gold deposits discovered by the Company's exploration
efforts. Corporate Synergy plc is Nominated Adviser and Joint Broker to the
Company while Ambrian Partners Limited is Joint Broker.
Kalahari is a mining exploration/evaluation group (the "Group") with a portfolio
of copper and uranium prospects covering approximately 3,000km(2) within western
and eastern central Namibia. Two of the project areas, Dordabis and Witvlei,
are prospective for sediment hosted copper mineralization consistent with the
world class Zambian Copper Belt. The projects contain known copper sulphide
deposits which are already partially defined and at a pre-feasibility stage of
reserve definition and detailed drilling. The Company believes that the
Dordabis project is also prospective for mineralisation of IOCG.
The third project, the Husab Project, is primarily prospective for primary and/
or secondary uranium mineralisation. Significantly, the property is
strategically located between the major Rossing uranium mine and Langer Heinrich
development, which are positioned on significant uranium deposits. The
remaining project, Ubib, is believed to be prospective for gold mineralisation,
and is nearby the operating Navachab gold mine.
Kalahari was incorporated in November 2004 and in February 2005 acquired 100 per
cent. of WAGE, which owns and holds several granted and pending exclusive
prospecting licences in Namibia. In 2005 the Company raised #1.3 million (after
expenses) by the issue of Ordinary Shares and Convertible Loan Notes to fund its
ongoing exploration activities and its preparation for Admission.
The Group's project areas target known copper deposits which have been subject
to extensive work programmes over the past 35 years by major operators including
Anglovaal and General Mining (now part of BHP Billiton). These exploration
programmes have shown that the Group's project areas have significant copper
resources which the Directors believe warrant further exploration.
A primary focus for the Group has been the Koperberg copper project located in
the Dordabis project area, where drill rigs and field crews have been deployed
by the Group since early 2005. The Koperberg deposit has known moderate grade
oxide and sulphide copper mineralisation which remains open to the north. The
Group has an exploration target that is potentially up to 35 kilometres in
length, which it believes to be relatively unexplored due to poor or no
exposure. Numerous partly defined copper deposits are also known to be present
within the Witvlei project area, located approximately 85 kilometres north east
of the Dordabis project area in the KCB. The prospective copper horizon within
the Group's tenure at Witvlei total approximately 45 kilometres of strike.
In addition, the Group has a 49 per cent. interest in a joint venture on the
Husab project area. This area has identified uranium, copper and fluorspar
occurrences, with established drill targets following initial work conducted by
the Group. The region is located between the major Rossing uranium mine and
Langer Heinrich development, operated by Rio Tinto Plc and Paladin Resources Ltd
respectively.
Namibia
Namibia is an independent republic with a surface area of approximately
825,000km2 situated north of South Africa, west of Botswana, and south of Angola
and is bordered in the west by the Atlantic Ocean. It gained independence from
South Africa in 1990 and currently has a stable and democratically elected
government.
Its economy is heavily dependent on the extraction and processing of minerals
for export with mining accounting for approximately 20 per cent. of its gross
domestic product. It has well established mining legislation enforced through
the Ministry of Mines and Energy and is estimated to have earned US$1.36 billion
from the export of diamonds, copper, gold, zinc, lead and uranium during 2004.
The Kalahari Copper Belt ('KBC')
The KCB was identified in the late 1960s with the discovery of numerous copper
sulphide deposits, the majority of which have remained undeveloped. As a result
of this, there is a general lack of detailed follow-up over known areas of
mineralisation. The Namibian portion of the KCB (which extends north eastwards
into Botswana) covers approximately 800km2, and includes sequences analogous to
those hosting the world class deposits of the well-known Zambian Copper Belt.
The KCB has not been systematically explored using modern exploration technology
and with a strategic geological model, is considered to be a significant
advantage to the Group. The Directors believe that the KCB has the potential to
provide significant resources of economic sedimentary hosted oxide and sulphide
copper deposits, together with the potential for the discovery of IOCG and
related mineralised systems.
The Projects
The Group currently has four projects in Namibia: Dordabis, Witvlei, Husab and
Ubib.
Dordabis
The Dordabis project is located approximately 90km southeast of Windhoek in
central Namibia and covers an area of approximately 875km2. It comprises one
Exclusive Prospecting Licence (EPL 3257), held 100 per cent. via its wholly
owned subsidiary, WAGE, and one pending application for Exclusive Prospecting
Licence (EPL 3279). WAGE retains the rights to explore for base and precious
metals within granted sections of the project. WAGE has offered to grant a 2.5
per cent. interest in the Dordabis project to Ms Lucia Hamutenya, the owner of
the land which is the subject of the licence and a further 2.5 per cent.
interest at an independent valuation at the time of proceeding with the project.
The project area is located along the southern dissected margin of a regional
plateau and is characterised by high ranges separated by moderately incised
lowlands.
To date, the Group has focussed its exploration on the Koperberg deposits where
drilling has identified both copper oxide and sulphide zones. This
mineralisation is characteristic of the KCB and drilling shows that the
mineralisation is of moderate grade. The Directors anticipate that ongoing
drilling campaigns will establish a defined mineral resource at Koperberg. The
deposit remains open in several directions, particularly to the north where the
outcrop is obscured by alluvial cover. Approximately 35km of regional strike of
the stratigraphy remains relatively unexplored.
Assays from a Reverse Circulation drilling programme completed in December 2005
at Koperberg confirmed that the deposit is open to the north, with intersections
including 5 metres at 3.43 per cent. Copper and 13 metres at 2.60 per cent.
copper returned from the northern most section drilled. These are among the best
intersections to date from drilling at Koperberg.
The deposit is now at a pre-feasibility stage involving further drilling with
the intention of identifying sufficient resources to support the development of
an economically viable mining project.
In addition, other prospects within the Dordabis project, including Onverwacht,
Protea and Swartberg, have known copper occurrences to investigate, potentially
giving the Group additional regional opportunities to exploit economic
mineralisation.
Witvlei
The Witvlei project is located approximately 150km east of Windhoek and covers
an area of approximately 650km2. It comprises one granted Exclusive Prospecting
Licence (EPL3258) and one pending application for Exclusive Prospecting Licence
(EPL3261) in which Kalahari holds a 100 per cent. interest via its interest in
WAGE. The Company retains the rights to explore for base and precious metals.
The project area is located on the western margin of the Kalahari Basin and is
partly covered by Kalahari sands.
Historic exploration has identified five known copper deposits and numerous
additional prospects associated with approximately 45km of host stratigraphy
within the KCB. Work to date has included surface geochemical sampling,
geophysical surveying, shallow percussion drilling, and diamond drilling.
The Witvlei project is at a stage where confirmation and resource definition
drilling is almost ready to commence and it is anticipated to have commenced by
March 2006.
Husab
The Husab project covers an area of approximately 555km2 within the Namib
Desert. It comprises one granted Exclusive Prospecting Licence (EPL 3138) in
which Kalahari holds a 100 per cent. interest via WAGE. A joint venture
agreement is in place with Extract Resources Namibia (Pty) Ltd ("Extract")
pursuant to which Extract has the right to a 51 per cent. interest in the Husab
project subject to an investment of AU$400,000, following which WAGE will hold
an ongoing 49 per cent. interest. in the project. Peter McIntyre is a director
of Extract.
The licence awards the rights to explore for base and precious metals, rare
metals, nuclear fuel and industrial minerals. A third party has the right to
royalties representing 1.75 per cent. of the gross revenues derived from parts
of the Husab project on particular minerals, pursuant to a joint venture
agreement relating to previous licenses issued over the property.
The licence contains the small-scale historic Ida copper mine and Husab fluorite
mine which were operational during the 1970s. Uranium-bearing alaskites, similar
to those at the Rossing uranium mine, are present in the Ida mine area, and
elsewhere within the project area. The extensive fluorspar veins developed at
the defunct Husab fluorite mine are also known to be uraniferous. The large
scale alaskite (granite) hosted Rossing uranium mine, operated by a subsidiary
of the global resource company Rio Tinto Plc, is located approximately 20km
northwest of Husab. Additionally, the Langer Heinrich calcrete-hosted uranium
deposit, currently being developed by Paladin Resources Ltd, is located
approximately 30km south-east of Husab.
The project area is characterised by low ridges of rock, wide sand and colluvial
cover, and calcrete pans, cut by deeply incised river valleys. It is located
within a significant metallogenic terrain characterised by polymetallic base
metal-uranium-gold mineralisation. The regional geology is dominated by
structural domes, regional scale shear zones and abundant intrusions
significantly enriched in metals, including uranium.
Environmental management plans have been approved and geochemistry and ground
radiometrics commenced in August 2005. Drill targets have been established and
drilling is anticipated to commence in March 2006. The Directors believe that
the Husab region is rich with polymetallic mineral occurrences, including
uranium, which is a commodity in significant international demand. However, the
potential of Husab to host a significant deposit will depend on results of the
future drilling programme.
Ubib
The Ubib project covers an area of approximately 950km2, characterised by
moderate to high ridges of rock exposure separated by wide sand and colluvial
cover and calcrete pans. It comprises one granted Exclusive Prospecting Licence
(EPL3139) in which Kalahari holds a 100 per cent. interest via WAGE, which holds
the right to explore for base, rare and precious metals within the licence. A
third party has the right to royalties representing 1.75 per cent. of the gross
revenues derived from the Ubib project pursuant to a joint venture agreement
relating to the previous licences issued over the property.
Like Husab, the Ubib project is located within a significant metallogenic
terrain characterised by polymetallic base metal-uranium-gold mineralisation.
The regional geology is dominated by structural domes, major regional shear
zones and abundant intrusions with compositions enriched in metals.
A number of prospective zones have been identified by the Group with regional
stream sediment sampling programmes currently in progress. Early results from
this regional programme are positive, and follow up work is currently in
progress over anomalous areas.
Exploration Programme and Strategy
The Group intends to follow a staged exploration programme of drill testing of
sediment hosted copper targets within the Dordabis and Witvlei project areas,
aimed at identifying the feasibility of commencing a mining operation utilizing
identified oxide and/or sulphide copper resources. The Group also intends to
commence targeted, systematic, exploration using modern techniques and
strategies, including the application of IOCG exploration models. Prospects
identified will then form the basis for detailed evaluation.
The Group has specifically established a strategy aimed at short term
development opportunities and longer term evaluation of its major mineral
assets. These include the following:
* To develop and explore the copper oxide potential of its existing projects,
especially Koperberg in the Dordabis Project area and at Witvlei. The
Group's immediate intention is to extend its current oxide resources and
commence an evaluation study of the copper oxide potential to a
pre-feasibility stage.
* To explore and develop further copper sulphide resources - the Group believes
that its tenements capture numerous reported copper sulphide resources.
The sedimentary hosted deposits of the KCB are known to be analogous to those
located in the Zambian Copper Belt and the Directors believe that there are
opportunities for additional deposits in under-explored areas. The Directors
further believe that because of the generally good levels of infrastructure
within Namibia, the opportunities for the successful development of the
mineral assets are significantly enhanced.
* The Group intends to incorporate an IOCG type geological model in
future exploration. This, the Directors believe, will support a broader
exploration strategy aimed at discovering deposits.
* Whilst the Group's primary focus is copper, it intends to vigorously
pursue its uranium joint venture in order to maximize the potential for an
economic discovery.
The Directors believe that the collective experience of the Board and management
team in the copper and uranium industry in Namibia, and elsewhere, combined with
the skills in the areas of corporate finance and management, provide a solid
platform to successfully implement the Company's business strategy.
Directors
Mark Hohnen (Executive Chairman)
Mr. Hohnen (55) joined the board of the Group on its establishment. Mr. Hohnen
has been involved in the mineral business since the late 1970s. He has had
extensive international business experience as chairman/director in a wide range
of industries including mining and exploration, property, investment, software,
and agriculture. Mr. Hohnen is responsible for the financial compliance of the
Group.
Peter McIntyre (Executive Director) - BSc (Eng), MSc (Mngt), FIEAust
Mr. McIntyre (49) has been involved in the mining industry for over 25 years,
which included 15 years with WMC Ltd in Australia. He has been involved with
large base metals and gold projects, from feasibility and development, through
to project management. He has start-up business and project experience in
Australia, Asia and Africa. Mr. McIntyre's has broad exposure across all aspects
of business and corporate management, with a primary focus on key issues
including strategic planning, risk management, asset management and investment
returns. Mr McIntyre is also a director of Extract Resources (Namibia) Pty
Limited.
Glyn Tonge (Non-executive Director) - BSc (Hons), PhD, CBiol, FIBiol, FRI, FRSM
Professor Tonge (59) is currently a partner and director of Vida Capital
Partners LLP, a private equity fund investing across a wide range of industry
sectors. Prior to this he was a director of Baring Brothers & Co Ltd. and Baring
Brothers International Ltd., where he was a director in corporate finance with
global responsibility in the healthcare sector. Prof. Tonge was a senior partner
in an international management consulting company, which included time in South
East Asia advising the governments of Malaysia and Indonesia on the use of
natural resources. Prof. Tonge is also Chairman of the Board of Governors and
Pro Chancellor at Southampton Solent University. He was made a Freeman of the
City of London in 2004 and is a Freeman and Liveryman of the Worshipful Company
of World Traders. Recently he was made a Fellow of the Royal Institution in
London.
The Company intends to appoint a further independent non-executive director
following Admission as soon as it has identified a suitable candidate.
Key Management
Martin Spivey (Manager - Exploration) - M.A.(Hons), BSc (Geol), MAusIMM
Mr. Spivey (47) is a geologist with over 20 years involvement in resource
exploration and development since graduating from Canterbury University in New
Zealand in 1983, he has had wide ranging experience in exploration for Archaean
greenstone hosted and Palaeozoic slate belt style gold mineralisation, nickel
sulphides and laterites, sedex, VHMS, and carbonate hosted base metals
mineralisation, both in Australia and Africa.
Lucia Hamutenya (Business Consultant) - B. Proc.South Africa, Corporate LLM,
U.S.
Ms. Hamutenya is currently a practicing barrister (LP Hamutenya Chambers) in
Windhoek, Namibia, specialising in Corporate Law. She has previously worked with
the Central Bank of Namibia supervising compliance with regulations of
commercial banks. Ms Hamutenya has also worked for ten years in New York, with
the United Nations Centre for Transnational Corporations.
Jon Akerman (Executive Officer - WAGE)
Mr Akerman (62) has a background in geophysics with over 30 years involvement in
petroleum exploration/project management consultancy in Asia-Pacific and South
America (Peru, Bolivia and Venezuela), supervising exploration and development
projects and liaising with relevant state bodies. He has extensive experience in
establishing business relationships in remote locations, and in managing teams/
groups in challenging environments.
Jan Joubert (Geological Advisor & Namibian Representative) - BSc (Geol/Chem),
BSc. Hons. (Geol) MSc (Geol)
Mr Joubert (62), a Namibian national, has 38 years' experience in exploration
and mining in Namibia and South Africa having worked for numerous companies
including, Anglovaal (Sigma Mining), Gold Fields of South Africa, African
Selection Trust, and Palabora Mining Co Ltd. Mr. Joubert provides a wealth of
local knowledge relative to the Group's current and prospective areas of
interest and operations in general. He has a detailed knowledge of the various
settings for the targeted minerals as well as a practical metallurgical testing
background.
* * ENDS * *
This information is provided by RNS
The company news service from the London Stock Exchange
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