December 2008 Quarterly Report
January 29 2009 - 4:04AM
UK Regulatory
TIDMZRL
RNS Number : 4372M
Zambezi Resources Ltd
29 January 2009
29 January 2009
Zambezi Resources Limited
(AIM:ZRL; ASX:ZRL)
December 2008 Quarterly Report
CORPORATE
Following the continued deterioration in the global financial markets and
especially the continued decline in the copper price, Zambezi Resources Ltd's
("Zambezi" or "the Company") prime aim during the quarter has been to secure a
major financial backer for the company. The Company reached a standstill
agreement with its major creditors on 31 October 2008 and suspended it's
quotation on the ASX. This was followed by a suspension on the AIM market on 3
November 2008.
On 28 January 2009, the Company secured an agreement with Astron Limited for a
three staged recapitalisation plan which envisages an initial investment of
AUD$580,000 and following shareholder approval, an additional investment of
AUD$3.42 million. In addition the Company will 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.
Further to the above transaction, the Company's prime strategic objective will
be to reassess its strategic direction, being cognisant of the new economic
realities that now exist. There remain substantial resource and mostly copper
opportunities within the African Sub-Saharan region. The Company will remain
focused where it has a competitive advantage.
OPERATIONS
During the quarter ended 31 December 2008, field work on Zambezi's projects in
Zambia was restricted to environmental rehabilitation of drill sites and access
tracks. Focus for the quarter centred on rationalisation and compliance of the
Company's license holdings in Zambia to meet full compliance with the new 2008
Zambian Mines Act. As part fulfilment of this process Licenses PL 225 and PL 226
have been relinquished.
One application for renewal of a portion of Mulungushi PL 224 (Fig 1) has been
granted to date and approved by the Zambian Dept of Mining and Minerals
Development. The remainder are pending approval in early February 2009.
Results are still pending from drilling completed on the Kangaluwi Copper
Project and the Mulofwe Project with 17,800 analytical results still awaited.
COPPER PROJECTS
At the Cheowa Copper-Gold Project, Glencore International AG ("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 Chongwe Copperbelt / Chalimbana and Cheowa projects.
Field work carried out during the December quarter consisted solely of
environmental rehabilitation of drill sites and access. Results of a
prefeasibility study are expected in Q1 2009.
At the 100% owned Kangaluwi Copper Project (PL 214, Figs 1 and 2) field work
consisted of environment rehabilitation of drill pads and access. Data
validation was ongoing and an in-house scoping study for the project was
instigated.
A significant number of drill hole assays are still pending for the Chisawa and
Kangaluwi Prospects. These samples are expected to be assayed in Q1 2009. The
results of these assays will be used to calculate a 2004 JORC compliant resource
estimate for the Chisawa and Kangaluwi Prospects. This is expected to be
completed in H1 2009.
URANIUM PROJECTS
Lithic Metals and Energy Limited ("Lithic") Uranium Joint venture. Field work
continued in Q4 2008 and focused on following up from results of the
interpretation of the extensive high resolution helimagnetic and radiometric
surveys over the Mulungushi, Mpande and Chumbwe licenses. These surveys were
designed to extend high resolution geophysical coverage into these uranium
project areas, and provide vital information on the structural,
lithostratigraphic and radiometric framework of the projects. Lithic are the JV
managers of this exploration work. Results are pending.
No work was done during Q4 2008 on the Uranium Mineral Rights joint venture with
Rio Tinto at the Mulofwe project (see Fig 1). Drilling is planned to be carried
out in Q1 or Q2 2009 on targets identified by field work in 2008.
Downloads of the announcement with figures are available on the Zambezi
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.
The information in this report that relates to the interpretation of geophysical
survey data is based on information compiled by Mr Bill Peters BSc (Hons), who
is a Director and Senior Consulting Geophysicist of Southern Geoscience
Consultants. Mr Peters is a Member of the Australian Institute of Geoscientists,
and a Fellow of the Australasian Institute of Mining and Metallurgy, and is a
Competent Person as defined in the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves. Mr Peters consents to
the inclusion in the report of the matters based on the information in the form
and context in which it appears.
Zambezi sets out below its quarterly cash flow report.
For more information contact:
+----------------------------+
| Julian Ford, Managing |
| Director |
| Zambezi Resources |
| (Australia) |
| +61 (08) 9216 9000 |
| +61 (0) 418 949 580 |
| |
+----------------------------+
| Fiona Owen |
| Grant Thornton UK LLP |
| +44 20 7383 5100 |
| |
+----------------------------+
| Simon Edwards / Adam Lloyd |
| Evolution Securities Ltd |
| + 44 20 7071 4300 |
| |
+----------------------------+
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
+----------------------------------------------------------------------------+
| Name of entity |
+----------------------------------------------------------------------------+
| ZAMBEZI RESOURCES LIMITED |
+----------------------------------------------------------------------------+
+----------------------------+---------------+--------------------------------+
| ARBN | | Quarter ended ("current |
| | | quarter") |
+----------------------------+---------------+--------------------------------+
| 124 462 826 | | 31 December 2008 |
+----------------------------+---------------+--------------------------------+
Consolidated statement of cash flows
+------+--------------------------------+------------------+---------------------+
| Cash flows related to operating | Current quarter | Year to date |
| activities | GBP '000 | (9 months) |
| | | GBP '000 |
+---------------------------------------+------------------+---------------------+
| 1.1 | Receipts from product sales | 10 | 11 |
| | and related debtors | | |
+------+--------------------------------+------------------+---------------------+
| 1.2 | Payments for (a) | (552) | (5,802) |
| | exploration and evaluation | (350) | (1,874) |
| | (b) development | | |
| | (c) production | | |
| | (d) administration | | |
+------+--------------------------------+------------------+---------------------+
| 1.3 | Dividends received | | |
+------+--------------------------------+------------------+---------------------+
| 1.4 | Interest and other items of a | 1 | 51 |
| | similar nature received | | |
+------+--------------------------------+------------------+---------------------+
| 1.5 | Interest and other costs of | | |
| | finance paid | | |
+------+--------------------------------+------------------+---------------------+
| 1.6 | Income taxes paid | 8 | (10) |
+------+--------------------------------+------------------+---------------------+
| 1.7 | Other - Joint Venture Partner | 276 | 3,000 |
| | contributions | | |
+------+--------------------------------+------------------+---------------------+
| | Net Operating Cash Flows | (607) | (4,624) |
+------+--------------------------------+------------------+---------------------+
| | Cash flows related to | | |
| | investing activities | | |
+------+--------------------------------+------------------+---------------------+
| 1.8 | Payment for purchases of: | (1) | (113) |
| | (a)prospects | | |
| | (b)equity investments | | |
| | (c) other fixed assets | | |
+------+--------------------------------+------------------+---------------------+
| 1.9 | Proceeds from sale of: | 132 | 132 |
| | (a)prospects | 1 | 10 |
| | (b)equity investments | | |
| | (c)other fixed assets | | |
+------+--------------------------------+------------------+---------------------+
| 1.10 | Loans to other entities | | |
+------+--------------------------------+------------------+---------------------+
| 1.11 | Loans repaid by other entities | | |
+------+--------------------------------+------------------+---------------------+
| 1.12 | Other (provide details if | | |
| | material) | | |
+------+--------------------------------+------------------+---------------------+
| | Net investing cash flows | 132 | 29 |
+------+--------------------------------+------------------+---------------------+
| 1.13 | Total operating and investing | (475) | (4,595) |
| | cash flows (carried forward) | | |
+------+--------------------------------+------------------+---------------------+
+------+---------------------------------+------------------+---------------------+
| 1.13 | Total operating and investing | (475) | (4,595) |
| | cash flows (brought forward) | | |
+------+---------------------------------+------------------+---------------------+
| | Cash flows related to financing | | |
| | activities | | |
+------+---------------------------------+------------------+---------------------+
| 1.14 | Proceeds from issues of shares, | | 560 |
| | options, etc. | | |
+------+---------------------------------+------------------+---------------------+
| 1.15 | Proceeds from sale of forfeited | | |
| | shares | | |
+------+---------------------------------+------------------+---------------------+
| 1.16 | Proceeds from borrowings | | |
+------+---------------------------------+------------------+---------------------+
| 1.17 | Repayment of borrowings | | (9) |
+------+---------------------------------+------------------+---------------------+
| 1.18 | Dividends paid | | |
+------+---------------------------------+------------------+---------------------+
| 1.19 | Other - Costs of capital | | (7) |
| | raising | | |
+------+---------------------------------+------------------+---------------------+
| | Net financing cash flows | | 544 |
+------+---------------------------------+------------------+---------------------+
| | Net increase (decrease) in cash | (475) | (4,051) |
| | held | | |
| | | | |
+------+---------------------------------+------------------+---------------------+
| 1.20 | Cash at beginning of | 881 | 4,411 |
| | quarter/year to date | | |
+------+---------------------------------+------------------+---------------------+
| 1.21 | Exchange rate adjustments to | 18 | 64 |
| | item 1.20 | | |
+------+---------------------------------+------------------+---------------------+
| 1.22 | Cash at end of quarter | 424 | 424 |
+------+---------------------------------+------------------+---------------------+
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related
entities
+------+--------------------------------------------------+---------------------+
| | Current quarter |
| | GBP '000 |
+---------------------------------------------------------+---------------------+
| 1.23 | Aggregate amount of payments to the parties | |
| | included in item 1.2 | |
+------+--------------------------------------------------+---------------------+
| 1.24 | Aggregate amount of loans to the parties | |
| | included in item 1.10 | |
+------+--------------------------------------------------+---------------------+
| 1.25 | Explanation necessary for an understanding of the transactions |
+------+------------------------------------------------------------------------+
| | Directors' fees & salaries for the quarter. |
| | |
+------+--------------------------------------------------+---------------------+
Non-cash financing and investing activities
+-----+-----------------------------------------------------------------------+
| 2.1 | Details of financing and investing transactions which have had a |
| | material effect on consolidated assets and liabilities but did not |
| | involve cash flows |
+-----+-----------------------------------------------------------------------+
| | |
+-----+-----------------------------------------------------------------------+
+-----+-----------------------------------------------------------------------+
| 2.2 | Details of outlays made by other entities to establish or increase |
| | their share in projects in which the reporting entity has an interest |
+-----+-----------------------------------------------------------------------+
| | |
+-----+-----------------------------------------------------------------------+
Financing facilities available
Add notes as necessary for an understanding of the position.
+-----+---------------------------------+------------------+--------------------+
| | | Amount available | Amount used |
| | | GBP '000 | GBP '000 |
+-----+---------------------------------+------------------+--------------------+
| 3.1 | Loan facilities | | |
| | | | |
+-----+---------------------------------+------------------+--------------------+
| 3.2 | Credit standby arrangements | | |
| | | | |
+-----+---------------------------------+------------------+--------------------+
Estimated cash outflows for next quarter
+-----+---------------------------------------------------+--------------------+
| | | GBP '000 |
+-----+---------------------------------------------------+--------------------+
| 4.1 | Exploration and evaluation | |
| | | |
+-----+---------------------------------------------------+--------------------+
| 4.2 | Development | |
| | | |
+-----+---------------------------------------------------+--------------------+
| | Total | |
+-----+---------------------------------------------------+--------------------+
Reconciliation of cash
+-----+---------------------------------+------------------+--------------------+
| Reconciliation of cash at the end of | Current quarter | Previous quarter |
| the quarter (as shown in the | GBP '000 | GBP '000 |
| consolidated statement of cash flows) | | |
| to the related items in the accounts | | |
| is as follows. | | |
+---------------------------------------+------------------+--------------------+
| 5.1 | Cash on hand and at bank | 424 | 881 |
+-----+---------------------------------+------------------+--------------------+
| 5.2 | Deposits at call | | |
+-----+---------------------------------+------------------+--------------------+
| 5.3 | Bank overdraft | | |
+-----+---------------------------------+------------------+--------------------+
| 5.4 | Other (provide details) | | |
+-----+---------------------------------+------------------+--------------------+
| | Total: cash at end of quarter | 424 | 881 |
| | (item 1.22) | | |
+-----+---------------------------------+------------------+--------------------+
Changes in interests in mining tenements
+-----+------------------+-----------+----------------------+-----------+-----------+
| | | Tenement | Nature of interest | Interest | Interest |
| | | reference | (note (2)) | at | at end of |
| | | | | beginning | quarter |
| | | | | of | |
| | | | | quarter | |
+-----+------------------+-----------+----------------------+-----------+-----------+
| 6.1 | Interests in | PL 225 | 100% | 100% | Nil |
| | mining tenements | PL 226 | 100% | 100% | Nil |
| | relinquished, | | | | |
| | reduced or | | | | |
| | lapsed | | | | |
| | | | | | |
+-----+------------------+-----------+----------------------+-----------+-----------+
| 6.2 | Interests in | | | | |
| | mining tenements | | | | |
| | acquired or | | | | |
| | increased | | | | |
| | | | | | |
+-----+------------------+-----------+----------------------+-----------+-----------+
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights
together with prices and dates.
+------+---------------------------+--------------+-------------+-------------+----------------+
| | Total number | Number | Issue price | Amount paid up |
| | | quoted | per | per security |
| | | | security | (see note 3) |
| | | | (see note | (GBP) |
| | | | 3) (GBP) | |
+----------------------------------+--------------+-------------+-------------+----------------+
| 7.1 | Preference | | | | |
| | +securities(description) | | | | |
+------+---------------------------+--------------+-------------+-------------+----------------+
| 7.2 | Changes during | | | | |
| | quarter | | | | |
| | (a) Increases | | | | |
| | through issues | | | | |
| | (b) Decreases | | | | |
| | through | | | | |
| | returns of | | | | |
| | capital, | | | | |
| | buy-backs, | | | | |
| | redemptions | | | | |
+------+---------------------------+--------------+-------------+-------------+----------------+
| 7.3 | +Ordinary | 197,876,174 | 197,876,174 | | |
| | securities | | | | |
+------+---------------------------+--------------+-------------+-------------+----------------+
| 7.4 | Changes during | | | | |
| | quarter | | | | |
| | (a) Increases | | | | |
| | through issues | | | | |
| | (b) Decreases | | | | |
| | through | | | | |
| | returns of | | | | |
| | capital, | | | | |
| | buy-backs | | | | |
+------+---------------------------+--------------+-------------+-------------+----------------+
| 7.5 | +Convertible | | | | |
| | debt securities | | | | |
| | (description) | | | | |
+------+---------------------------+--------------+-------------+-------------+----------------+
| 7.6 | Changes during | | | | |
| | quarter | | | | |
| | (a) Increases | | | | |
| | through issues | | | | |
| | (b) Decreases | | | | |
| | through | | | | |
| | securities | | | | |
| | matured, | | | | |
| | converted | | | | |
+------+---------------------------+--------------+-------------+-------------+----------------+
| 7.7 | Options(description | 2,190,000 | 3,230,214 | Exercise | Expiry date |
| | and conversion | 4,390,000 | | price (GBP) | 26 July 2009 |
| | factor) | 1,000,000 | | 0.12 | 9 June 2009 |
| | | 140,000 | | 0.14 | 22 June 2010 |
| | | 500,000 | | 0.16 | 10 June 2010 |
| | | 2,080,000 | | 0.175 | 23 December |
| | | 1,850,000 | | 0.20 | 2009 |
| | | 1,000,000 | | 0.20 | 31 August 2011 |
| | | 3,230,214 | | 0.13 | 31 March 2011 |
| | | | | 0.20 | 31 August 2011 |
| | | | | 0.19 AUD | 31 August 2009 |
+------+---------------------------+--------------+-------------+-------------+----------------+
| 7.8 | Issued during | | | | |
| | quarter | | | | |
+------+---------------------------+--------------+-------------+-------------+----------------+
| 7.9 | Exercised during | | | | |
| | quarter | | | | |
+------+---------------------------+--------------+-------------+-------------+----------------+
| 7.10 | Expired during | | | | |
| | quarter | | | | |
+------+---------------------------+--------------+-------------+-------------+----------------+
| 7.11 | Debentures | | | | |
| | (totals only) | | | | |
+------+---------------------------+--------------+-------------+-------------+----------------+
| 7.12 | Unsecured notes | | | | |
| | (totals only) | | | | |
| | | | | | |
+------+---------------------------+--------------+-------------+-------------+----------------+
Compliance statement
1 This statement has been prepared under accounting policies which comply
with accounting standards as defined in the Corporations Act or other standards
acceptable to ASX (see note 4).
2 This statement does /does not* (delete one) give a true and fair view of
the matters disclosed.
Sign here: Chief Financial Officer Date: 29 January 2009
Print name: Lloyd Flint
Notes
1 The quarterly report provides a basis for informing the market how the
entity's activities have been financed for the past quarter and the effect on
its cash position. An entity wanting to disclose additional information is
encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of
interests in mining tenements acquired, exercised or lapsed during the reporting
period. If the entity is involved in a joint venture agreement and there are
conditions precedent which will change its percentage interest in a mining
tenement, it should disclose the change of percentage interest and conditions
precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive
Industries and AASB 1026: Statement of Cash Flows apply to this report.
5Accounting Standards ASX will accept, for example, the use of International
Accounting Standards for foreign entities. If the standards used do not address
a topic, the Australian standard on that topic (if any) must be complied with.
== == == == ==
This information is provided by RNS
The company news service from the London Stock Exchange
END
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