THIRD QUARTER ACTIVITY REPORT SUMMARY

Transcription

1 24 MUMFORD PLACE BALCATTA WA 6005 ph (08) fax (08) A.C.N THIRD QUARTER ACTIVITY REPORT Acquisition of Walkabout Resources completed ASX Release 30 APRIL 2011 Drilling underway in Botswana at Takatokwane Project First hole intersects coal at 80m and 104m Placement of $1.65M completed after quarter end SUMMARY ACQUISITION Nimrodel completed the 100% acquisition of Walkabout Resources Pty Ltd at the end of the quarter. The Company has been focused throughout the quarter on completing this acquisition as well as planning for the exploration priorities for the remainder of EXPLORATION Over the next 6 months the Company will be primarily focused on completing a JORC classified resource at the Takatokwane Project in Botswana as well as preliminary exploration at the Lindi Project in Tanzania and the Specimen Reef and Buckaroo Projects in Australia. Drilling has commenced at Takatokwane and the first hole intersected coal at 80m for 3.7m and again at 104m for 16.5m. CORPORATE The Company closed the quarter with just over $790,000 in cash. Subsequent to the quarter end the Company secured a placement of $1.65M before associated costs. 1

2 ACQUISITION OF WALKABOUT Nimrodel concluded the 100% acquisition of Walkabout Resources Pty Ltd at the end of the quarter, the terms of which were set out in the executed Implementation Agreement and announced to the market on 13 December The Nimrodel shareholders unanimously approved the acquisition at a general meeting held on 3 March All of the Walkabout shareholders approved the completion of the transaction whereby Nimrodel acquired 100% of the issued share capital of Walkabout on the following terms: The initial consideration consisted of 26,550,600 Nimrodel shares and 26,550,600 Nimrodel options. These were issued to the Walkabout shareholders on a pro rata basis. Half of the Nimrodel options are exercisable at $0.03 on or before 31 October 2011, a quarter at $0.05 on or before 31 October 2012 and the final quarter at $0.10 on or before 31 October A further 8,850,200 shares and 8,850,200 options (on the same terms as above) will be issued pro rata to the Walkabout shareholders, should either: a) a Joint Venture Agreement with Water Plus Pty Ltd (100% owner of the Limpopo Project ¹) be signed; or b) 2 identified licence applications near the Takatokwane asset in Botswana are granted to Walkabout. In addition to the above, certain Performance Shares have been issued based on the criteria laid out in the table below: Performance Criteria Achieve 500Mt aggregate Inferred JORC coal resources on any 2 projects Achieve 200Mt aggregate Indicated JORC coal resources on any 2 projects Fulfillment of JV arrangements to achieve 70% earn in to the Takatokwane Project Fulfillment of JV arrangements to achieve 70% earn in to the Limpopo Project ¹ Deferred Consideration $1.5M of shares calculated at 85% of 15 day VWAP $1.5M of shares calculated at 85% of 15 day VWAP $1.0M of shares calculated at 85% of 15 day VWAP $1.0M of shares calculated at 85% of 15 day VWAP ¹ Negotiations on finalizing the JV, associated with the Limpopo Project, have broken down and it appears unlikely at this stage that a suitable agreement, satisfactory to both parties, will be executed in the short term. As part of the deal Nimrodel has agreed to certain financial obligations as part of acquiring Walkabout and to help conclude the negotiated interests of Walkabout. 1. the issue of $300,000 of shares and $200,000 in cash to Wizard Investments (Pty) Limited for the rights to earn 70% of Wizard Investments, the 100% owner of the Takatokwane Project; 2. the issue of $300,000 of shares for the rights to earn 65% of the Specimen Reef Project in accordance with the Specimen Reef JV; 3. payment of an introduction fee for Botswana acquisitions of up to a maximum of $100,000 in cash or VWAP shares; 2

3 4. payment of approximately $250,000 in consultants fees by way of cash or shares calculated at an issue price of 85% of the 15 day VWAP of Nimrodel shares as traded on the ASX immediately prior to the execution date of this Agreement; and 5. repayment of Walkabout directors loans in the amount of approximately $30,010. The repayment of loans will be satisfied by the issue of Nimrodel shares and calculated at a deemed issue price of 3 cents per share. At the date of this quarterly report only the shares associated with items 2 and 5 above have been issued. Item 1 is awaiting the imminent finalisation of the shareholders agreement, whereby Nimrodel, via its 100% owned subsidiary Walkabout, acquires 70% interest in Wizard Investments (Pty) Ltd. Wizard is the 100% owner of the Takatokwane licence. Almost 80% of the consultants fees obligations (item 4) have been settled in cash. BOTSWANA Formerly the British protectorate of Bechuanaland, Botswana adopted its new name upon independence in Four decades of uninterrupted civilian leadership, progressive social policies, and significant capital investment have created one of the most dynamic economies in Africa. Mineral extraction, principally diamond mining, dominates economic activity. Botswana has maintained one of the world's highest economic growth rates since independence in Through fiscal discipline and sound management, Botswana transformed itself from one of the poorest countries in the world to a middleincome country with a per capita GDP of $13,100 in Two major investment services rank Botswana as the best credit risk in Africa. 3

4 There is a real short term supply deficit of power in Botswana. The country currently imports over 50% of its power from South Africa alone and this supply line is being turned off by the South Africans over the next 3 years. Nimrodel is ideally placed to take advantage of this supply deficit in the short term, as well as access to the export market in the longer term dependent on the timing of major rail and road infrastructure projects currently under consideration. Takatokwane Project The Takatokwane Project consists of one Prospecting Licence (PL 35/2007) 100% owned by Wizard Investments Pty Ltd. Walkabout has entered into an earn-in agreement to acquire 70% of the shares of Wizard Investments by completing a pre-feasibility study before October The shareholders agreement necessary to cement this arrangement is currently being finalized. At Takatokwane there are 3 coal seams within sandstones and mudstones of the Ecca Group of the Karoo Stratigraphic System. Previous sparse drilling (some 43 holes at 4km spacing) has indicated that the upper 2 seams could contain some 300 Mt at a depth of less than 200 metres, with a further endowment beyond that depth. The Company secured a diamond drilling rig and drilling commenced on Friday 15 April The results of the first hole were announced to the market on 19 April 2011 and further results will be announced to the market as they become available. The first hole bore a strong correlation to previous drilling information and confirmed the presence of multiple seams of shallow, well-defined coal. The short term intention is to conclude the formal 70% acquisition of Wizard and proceed with the 2,130m drilling program currently underway at the project. This will provide the necessary information to identify and declare an initial JORC classified resource before the end of TANZANIA Lindi Project Two licences, 100% owned by Nimrodel, are located in the Mandawa Basin of south-eastern Tanzania, south and north-west of the coastal village of Lindi and importantly a sixty kilometre sealed road links Lindi to the southern port of Mtwara. Rocks underlying the licences are composed of Cretaceous and Jurassic marine and continental sediments which outcrop in the Namunda-Mputa plateau. These sediments contain dinosaur fossils which were excavated by German and English palaeontologists at the beginning of the twentieth century. Nimrodel believes that its land position in the Mandawa Basin has good potential for both coal and uranium. The preliminary exploration program has commenced with an independent geologist currently in country undertaking a basin study. These results will be used to develop a drilling program to include a number of prioritized stratigraphic drill holes to investigate the Cretaceous sediments for both coal and uranium. 4

5 AUSTRALIA Specimen Reef Project - Tasmania A joint venture is to be formed with Resource Star Ltd around 3 tenements located north and south of the Savage River iron ore mine. Resource Star Ltd is the holder of EL 11/2005 and Nimrodel is the holder of EL 19/2009 and EL 20/2009. The three tenements are the subject of the proposed JV agreement whereby Nimrodel can earn up to 65% of the 3 tenements via an unincorporated Joint Venture. The historic gold workings at Specimen Reef are located within EL 11/2005 which abuts the northern boundary of the Savage River Mine. Gold was first discovered at Specimen Reef in A small underground mining operation was established, accessing the reef on three levels. Thereafter, there has been no recorded sub-surface exploration in EL 11/2005 for the next one hundred years. A modest drill program was conducted in and around the old workings in One of these drill holes intersected 910 grams per tonne of gold over an estimated true width of 0.2 metres at a down-hole depth of 140 metres. The drill log from this hole also described minor copper in the form of chalcopyrite. In 1998 a petrological examination of this gold intersection identified the uranium mineral brannerite in carbonate veins. These metal showings, namely the iron oxide, copper, gold and uranium, together with the tectonic setting, the Proterozoic age and the metamorphism of the host rocks strongly suggest the presence of an iron-oxide, copper, gold (IOCG) type deposition system. Such systems contain copper, gold and uranium deposits, the giant Olympic Dam mine being the prime example. Preparations are now underway to develop a drilling program at the Specimen Reef Project. This program will initially target gold, copper and uranium mineralization identified by the historic drilling in Avoca Project - Tasmania The EL is located in the historic mining district of Rossarden. The district has variously been mined and explored for tungsten, tin uranium, coal and base metals. A significant feature of the geology of the district is the underlying and outcropping Devonian age granite with high uranium content. This tenement incorporates about 20 kilometres of the St. Pauls and South Esk rivers extensive drainage system. The tenement is west of and downstream of the nearby and outcropping Royal George Devonian Granite batholith which hosts the historic Royal George tin mine (1911 to 1922). 5

6 Buckaroo Project NSW The Buckaroo Project (611km²) is situated in central New South Wales approximately 80km east of the operating mining district of Cobar. It covers greater than 20km strike length of the highly prospective Girilambone Group sediments to the north of the high grade Girilambone and Tritton copper deposits. Figure 1 shows the location of the Buckaroo project area and the existing mines and exploration projects in the region. Fig 1 Project Location Map Reconnaissance work continues on site with mapping of the tenement combined with a full review of historical data. During some reconnaissance work conducted during the aborted October 2010 drilling campaign some old workings were discovered. The Company is re-assessing the data and mapping the area of interest around the recently discovered old workings and is putting together a more comprehensive exploration campaign for the remainder of CORPORATE ACTIVITIES A General Meeting of shareholders was held on 3 March 2011 and the resolutions put before this meeting were passed on a show of hands thereby approving the acquisition of Walkabout. The acquisition was completed at the end of the quarter. On the 15 March 2011 the Company released its half year financial report to 31 December

7 The Company closed the quarter with $790,000 in the bank, albeit before any cash outflows associated with the Walkabout acquisition. On completion of the acquisition of Walkabout and the issue of the initial acquisition shares the total number of shares on issue was 194,928,920. Subsequent to the quarter end 4,750,333 have been issued as part of the Walkabout acquisition obligations and a further 27,500,000 shares will be issued as part of the placement secured this week. The Top 20 shareholders at the date of this report are attached. Enquiries: Damian Delaney - MD Mobile: +61(0) damiand@nimrodel.com.au Competent Persons Statements The information in this announcement that relates to exploration results of the Takatokwane Project is based on data compiled by Mr Alan Golding who is a is a member of the South African Geological Society, the South African Institute of Engineering Geologists and a Fellow of the Geological Society of London. Mr Golding has sufficient experience relevant to the style of mineralisation and the type of deposit under consideration to qualify as a competent person as defined in the 2004 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Golding consents to the inclusion in this announcement of the matters based on his information in the form and contexts in which they appear. The information in this announcement that relates to exploration results of the tenement EL11/2005 is based on data compiled by Mr Murray Surtees who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Surtees has sufficient experience relevant to the style of mineralisation and the type of deposit under consideration to qualify as a competent person as defined in the 2004 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Surtees consents to the inclusion in this announcement of the matters based on his information in the form and contexts in which they appear. The information in this report that relates to exploration of the Buckaroo Project is based on information compiled by Tim Monks who is a consultant of Nimrodel Resources Limited and is a member of the AusIMM. Mr. Monks has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as described by the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Monks consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. 7

8 NIMRODEL RESOURCES LIMITED Rank Name Units % of Units 1. MR NIKOLAJS ZUKS 20,750, MR ALLAN MULLIGAN 7,834, NOWN PTY LTD 7,833, BRYWALL PTY LTD <WALLACE PROPERTY A/C> 7,500, MR JUMALIEV IMANBEK ASANKULOVICH 6,803, FATS PTY LTD 6,500, ADAMS REWARD PTY LTD 5,833, SAYERS INVESTMENTS (ACT) PTY LIMITED <THE SAYERS INVEST NO 2 A/C> 5,500, MELBOURNE BUSINESS CONSTRUCTION GROUP PTY LTD <GEORGE THEONAS INVEST A/C> 3,750, RED ROCK RESOURCES PLC 3,750, ABDYKAPAROV CHYNBEK 3,396, AS & JR LIBBIS PTY LIMITED <LIBBIS FAMILY A/C> 3,000, MISS MARIE KAROLINE LUBLINKHOF 2,850, CAPE BIRCHINGTON PTY LTD <DELANEY SUPER FUND A/C> 2,800, NOTOCHORD PTY LTD 2,722, ST BARNABAS INVESTMENTS PTY LTD <THE MELVISTA FAMILY A/C> 2,535, NUMBER 7 INVESTMENTS PTY LTD <SUPERANNUATION FUND A/C> 2,520, MR MICHAEL CHARLES MANN + MRS NADA MANN <MCM SUPER FUND A/C> 2,500, JONELLEN PTY LTD <QUARTERS SUPERFUND A/C> 2,400, STARLET COURT PTY LTD <MUSGRAVE SUPER FUND 20. A/C> ORDINARY FULLY PAID SHARES OF TOP 20 Total Remaining Holders Balance 2,000, ,778, ,903,