Placing and Admission to AIM
March 22 2006 - 1:21AM
UK Regulatory
RNS Number:1767A
Finders Resources Limited
22 March 2006
22 MARCH 2006
FINDERS RESOURCES LTD.
PLACING & ADMISSION TO AIM
Finders Resources Ltd ("Finders" or "the Company"), the operator of advanced
copper and gold-silver projects in Indonesia, is pleased to announce the
commencement of trading in its ordinary shares on AIM (ticker: FND).
Highlights:
O Finders has controlling interests in two projects in Indonesia, the Wetar
copper project and the Ojolali gold-silver project.
O Both the Wetar and Ojolali projects comprise near-term mine development
opportunities for the Company with good potential for discovery of additional
Resources.
O Finders has raised #3.5 million (before expenses) through the placing of
17,500,000 shares at 20 pence per share.
O The funds raised will be utilised to carry out the Company's strategy of
developing its current asset base with the objective of becoming a mid-tier
mining company.
O On admission Finders will have a market capitalisation of approximately #10.5
million.
O Westhouse Securities is acting as the Company's broker while RFC Corporate
Finance is acting as Nominated Adviser.
About Finders
Finders was formed to harness the core skills and wide experience of its
founders in exploration project selection, assessment and development to pursue
mineral project opportunities in the Asia-Pacific region.
In its first year of existence, the Company has assessed, acquired and begun
progressing a suite of projects with near term growth and development potential,
comprising:
- A 61% interest in the advanced Wetar Copper Project, a high
grade, open pit copper project with an independently estimated Indicated and
Inferred Resource of 10.7 million tonnes grading 2.4% Cu and 0.6 g/t Au for
+250,000 tonnes of contained copper;
- A 72% interest in the Ojolali Gold-Silver Project, a major system
of low sulphidation epithermal veins, with Inferred Resources of 320,000 oz Au
and 39 M oz Ag; and
- A right to a 13-17% post IPO interest in Geopacific Resources NL,
a Fiji based junior exploration company with a portfolio of gold and copper
exploration prospects, which is in the process of listing on the ASX.
Strategy and use of proceeds
The Company's strategy is to grow through the development of its current assets
and the generation of quality new projects with high growth potential through
the management team's expertise and wide range of local and international
contacts in the minerals industry. The monies raised from the placing will
provide the necessary funding for the Company to pursue this strategy and
realise the potential value from its assets.
The Company's proposed work programme includes:
- The completion of a scoping study for the Wetar project
development by Q2 2006, based on production of 30,000 tonnes of copper per year.
Metallurgical test work using advanced hydrometallurgical technology is
currently under way using samples from drilling conducted by Finders during
2005; and
- Resource definition and exploration drilling, and the completion
of a scoping study for Ojolali development in Q3 2006.
Positive outcomes from these studies would lead to full feasibility studies for
both projects, and probable development.
Chris Farmer, Managing Director, said:
"Finders is well on track to become a mid-tier mining company and the placing
has confirmed that Finders matches the anticipated growth profiles expected by a
number of leading institutional investors.
"We believe that the Wetar Copper Project, with around 550 million lbs of
contained copper, has the potential to become a low cost producer because of the
high grade nature of the deposits which are found at surface. The funds from
the placing will allow the Company to move the project forward towards open pit
development.
"The Ojolali Gold-Silver Project is poised to become a major growth driver for
the Company, with excellent scope to expand and upgrade the existing inferred
resource base of 300,000 oz Au and 40 million oz Ag leading to near term
production."
"With our highly experienced management team and an exciting portfolio of
assets, we believe Finders is ideally placed to provide significant returns and
growth as the projects advance."
Further Details on Resource Estimates
Wetar Copper Project
The Mineral Resource estimates for the Wetar Copper Project (of which Finders is
the operator and holds a 61% interest), comprising the Kali Kuning and Lerokis
deposits, are provided in Table 1 below.
Gross (100%) Attributable (61%)
Category Tonnes Cu Ag As Au Contained Tonnes Contained
(millions) % (g/t) (%) (g/t) Cu ('000t) (millions) Cu ('000t)
Kali Kuning Deposit
Indicated 6.5 2.4 26 0.41 0.67 160 4.0 98
Inferred 0.9 1.9 18 0.29 0.46 18 0.6 11
Total 7.5 2.4 25 0.40 0.64 178 4.6 109
Lerokis Deposit
Indicated 2.9 2.5 33 0.29 0.65 71 1.8 43
Inferred 0.4 1.7 25 0.17 0.54 6 0.2 4
Total 3.2 2.4 32 0.28 0.64 77 2.0 47
Grand Total 10.7 2.4 27 0.36 0.64 255 6.5 156
Table 1. Resource Estimate for Wetar Copper Deposit (at a cut off grade of 0.5%
Cu)
Ojolali Gold-Silver Project
The Mineral Resource estimates for the Ojolali Gold-Silver Project (Finders is
the operator and holds an approximate 72% interest), comprising the Jambi and
Tambang prospects, are provided in Table 2 below.
Gross (100%) Attributable (72%)
Category Tonnes Au Ag Contained Au Contained Ag Tonnes Contained Contained
(millions) (g/t) (g/t) (Moz) (Moz) (millions) Au (Moz) Ag (Moz)
Jambi Prospect
Inferred 2.0 2.39 9 0.16 0.6 1.5 0.11 0.4
Tambang Prospect
Inferred 7.9 0.67 167 0.17 42.4 5.7 0.12 30.6
Total 9.9 1.02 135 0.33 43.0 7.2 0.23 31.0
Table 2. Resource Estimates for the Ojolali Gold-Silver Deposit
The Jambi prospect estimate is based on a simple cross sectional area method of
composite drill intercepts from 92 drill holes and an approximate 0.7 g/t Au
cut-off. The Tambang prospect estimate is based on a simple cross sectional area
method using composite drill intercepts from 20 drill holes and an approximate 1
g/t Au equivalent cut-off (70 g/t Ag = 1 g/t Au). Both estimates used an
assumed density of 2.6.
For further information please contact:
College Hill: Nick Elwes, 020 7457 2020
Finders Resources Ltd: Chris Farmer, cbf@findersresources.com
Website: http://www.findersresources.com
The resource estimates for the Wetar Copper and the Ojolali Gold-Silver Projects
were performed in accordance with the 2004 edition of the Australasian Code for
Reporting Exploration Results, Mineral Resources and Ore Reserves (the "JORC
Code"). The estimates were performed by Dr Phillip Hellman who is a Director of
Hellman & Schofield Pty Ltd ("H&S") and a Fellow of the Australian Institute of
Geoscientists. He qualifies as a Competent Person under the meaning of the JORC
Code and consents to the inclusion of these estimates in this release by Finders
Resources Ltd in the form and context in which they appear.
Pursuant to the definitions in the JORC Code:
- "Mineral Resource" or "Resource" means a concentration or
occurrence of material of intrinsic economic interest in or on the Earth's crust
in such form, quality and quantity that there are reasonable prospects for
eventual economic extraction;
- "Indicated" means that part of a Mineral Resource for which
tonnage, densities, shape, physical characteristics, grade and mineral content
can be estimated with a reasonable level of confidence as determined under the
JORC Code; and
- "Inferred" means that part of a Mineral Resource for which
tonnage, grade and mineral content can be estimated with a low level of
confidence as determined under the JORC Code.
The information in this announcement that relates to Exploration Results and
Mineral Resources (including the information on which the resource estimates
were based) is based on information compiled by Dr Russell Fountain who is a
Fellow of the Australasian Institute of Geoscientists and a Director of Finders.
Dr Fountain has sufficient experience that is relevant to the styles of
mineralisation and types of deposits under consideration and to the activity
that he is undertaking to qualify as Competent Person as defined in the JORC
Code. He consents to the inclusion in this announcement of the matters based on
his information in the form and context in which they appear.
Notes for editors and analysts:
Finders Resources LTD (AIM:FND)
www.findersresources.com
Advanced Projects in Indonesia Wetar Copper Project
* 10.7 Mt @ 2.4% Cu, 0.64 g/t Au, 27 g/t Ag in two deposits at a
cut-off grade of 0.5% Cu
* Independent JORC estimates, 88% indicated
* High grade, low strip ratio, coastal location
* Variety of process route alternatives being investigated
* Exploration potential with known satellite deposit
* 61% Finders with potential for further expenditure-based equity
Ojolali Gold -Silver Project
* Jambi Prospect: CIL or CIP target with Resource of around 150,000
oz Au and low strip ratio
* Tambang Prospect: Current Resource of >39.5 million Oz Ag and
around 170,000 Oz Au
* Bonanza grade veins targeted in under explored mining district
* 72% Finders (on Admission)
Investment Geopacific Resources
* Portfolio of copper-gold and gold projects in Fiji, many existing
ore grade intercepts and 10 drill-ready targets
* Finders has a right to a 13-17% interest after a proposed IPO of
Geopacific on the ASX
Proven Team * Extensive collective experience and expertise in the exploration,
assessment, evaluation and development of mineral projects
* Track record of bringing mines into development (11 in the past 20
years)
* Significant, extended Indonesian experience
Finders Resources Limited * Market capitalisation of approximately #10.5 million at the
Placing Price
* Fast track development and cash generation potential
* Quality team
* Strong exploration upside
Management Team
The team have played an integral role in the establishment of eleven new mining
operations with over 70 years' experience in relation to Indonesian projects.
Dr Russell Fountain (aged 61) BSc, PhD, FAIG
Executive Chairman
Dr Fountain has 40 years of international experience in all aspects of mineral
exploration, project feasibility and project development. Previous senior
positions include President, Phelps Dodge Exploration Corporation; Exploration
Manager, Nord Pacific Ltd and Chief Geologist, CSR Minerals Ltd. Dr Fountain
has had global responsibility for corporate exploration programs with portfolios
targeting copper, gold, nickel and mineral sands and has been accessing and
managing mining opportunities for a significant portion of his career.
Dr Chris Farmer (aged 41) BSc(Hons), MBA, PhD
Managing Director
Dr Farmer has 15 years of international experience in all aspects of
exploration, with an emphasis on international joint ventures and business
development. After graduating from the University of Southampton, he completed
a PhD at the Royal School of Mines in London. Previous positions include
Vice-President Australasia and Chief Geologist, Phelps Dodge Exploration
Corporation; and Senior Geologist with both Highlands Gold (Indonesia) Pty Ltd
and Billiton Indonesia BV. Dr Farmer worked at the Lebong Tandai and Wetar gold
mines in Indonesia, focusing on mine exploration. Elsewhere in the region, he
has worked on gold, copper and base metal exploration projects in the
Philippines, China, India and Australia and has evaluated projects in PNG, Laos,
Korea, Malaysia, Thailand, Mexico, USA, Eastern Europe, South America, Fiji,
Solomon Islands, New Caledonia and Canada.
Mr Stephen de Belle (aged 54) BA, MSc, MTCP, MAICD
Non-Executive Director
Mr de Belle is a non-executive director of the ASX listed Midwest Corporation
Ltd and Principal, Kyle Associates. Previous roles include: Managing Director,
Midwest Corporation Ltd; Chairman, Australian Superannuation Nominees Ltd, Head
of Resources Finance, ABN AMRO Australia; Director, Structured Finance, Barclays
Bank. Stephen has been closely involved with the start-up and operation of iron
ore, coal, base metals, gold and petroleum projects and companies, and has
particular expertise in the development and financing of projects in the
resources and infrastructure sectors both in Australia and overseas. In
Indonesia, Stephen has held senior roles with CSR and Koba Tin, with experience
in Contract of Work negotiations, investment and evaluation.
Mr Steve Lonergan (aged 59) LLB, LLM
Non-Executive Director
Mr Lonergan specialises in corporate and commercial law as a private
practitioner. He is currently General Counsel and Company Secretary of CBH
Resources Ltd and Director and Company Secretary of Paradigm Gold Ltd and has
held similar positions with Savage Resources Ltd and Pancontinental Mining Ltd.
Stephen has also been a Partner for Baker & McKenzie and worked for the
International Air Transport Association, the Department of Defence and
Department of Foreign Affairs. He has been involved in acquisitions and
exploration arrangements in Canada, USA, Peru, Australia, South Asia and Africa.
Mr Ian Neuss (aged 60) BSc(Hons), Dip.Ed, MSc, FAIG, FAICD
Alternate Executive Director
Mr Neuss has over 35 years mining experience including positions as Managing
Director of Outokumpu Mining Australia Pty Ltd and Manager Overseas Exploration
for CSR Ltd. Ian was responsible for commercial operations and exploration,
building both CSR's overseas mining interests, and Outokumpu's minerals
portfolio in Australia that lead to successful joint ventures, financial
investments and mines. Ian has held various positions in Indonesia, including
Exploration Manager for Koba Tin during the 1970s and Project Manager at the
Lebong Tandai gold mine. He has managed exploration and evaluation in Asia,
including identification of and development of gold and base metals mines in
Australia and Indonesia. Whilst with Outokumpu, Ian was also an alternate
Director on the board of Sipa Resources.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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