Fourth Quarter Activities and Cashflow Report
July 27 2007 - 5:36AM
UK Regulatory
MURCHISON UNITED NL
ACN 009 087 852
ASX CODE: MUR, AIM CODE: MUU,
Telephone: +618 9322 4071, Fax: +618 9322 4073
ASX, AIM and Media Release
27 July 2007
Highlights
* First phase of West African uranium exploration completed with 2,050 metre RC drilling program
at the Firawa Prospect, Guinea.
* Samples dispatched for analysis in Canada, with results imminent.
* Drilling scheduled to commence at Bir En Nar Prospect, Mauritania within two months.
* West African uranium portfolio further expanded with granting of 6th "Group 4" Uranium
Exploration Permit in Mauritania.
* Murchison now holds 8,200km2 of prospective uranium tenure in Mauritania.
* Additional energy-related resource opportunities currently under review, both in Australia and
internationally.
* 1,500 metre RC drilling program commences at Maroochydore Copper Project, Western Australia (JV
with Aditya Birla Minerals Limited).
* A$7.4M share placement completed to sophisticated investor clients of Hartleys Limited and DJ
Carmichael Pty Ltd.
Summary
During the Quarter, Murchison continued to progress its portfolio of uranium exploration projects in
Guinea and Mauritania, West Africa, with the first drilling programme completed at the Firawa Prospect in
Guinea and planning well advanced for the next phase of exploration activity in Mauritania.
The Company also continued to evaluate new energy-related asset opportunities and to pursue programmes to
add value to its Australian copper project interests in Western Australia and North Queensland.
Republic of Guinea, West Africa
Fig.1 Location of Murchison United's Guinea Projects
http://www.ccnmatthews.com/docs/GuineaProject.jpg
As previously announced, the Company completed an initial 2,050m RC drilling programme at its Firawa
prospect in Guinea during May 2007. Samples were forwarded to Canada for multi-metal analytical
processing. Assay results will be released to the market when available.
Fig.2 Drill rig onsite at Guinea
http://www.ccnmatthews.com/docs/GuineaDrillRig.jpg
A drilling programme has been planned for the Company's Bohoduo prospect in Guinea, which is scheduled to
commence after the end of the wet season. Subject to completion of negotiations to arrange access to a
drill rig, it is expected that drilling will commence during the next 2-3 months.
Republic of Mauritania, West Africa
The Company was granted its sixth "Group 4" uranium exploration licence in Mauritania on 28 June 2007,
increasing its total ground position to 8,200km2.
There are still two applications for exploration permits pending.
During the quarter, a drilling programme was prepared for one of the Company's licences in the Bir En Nar
prospect. Negotiations are in progress to arrange access to a drill rig and it is anticipated that
drilling will commence during the next 2 months.
The Company is also in the process of establishing a permanent office in Nouakchott that will be staffed
by local geologists who will provide assistance to the Company's Technical Director.
Fig.3 Location of Murchison United's Mauritania Projects
http://www.ccnmatthews.com/docs/Mauritania1.jpg
Fig.4 Location of Murchison United's Bir En Nar Project in Mauritania
http://www.ccnmatthews.com/docs/BinEnNar1.jpg
Maroochydore Copper Project, Western Australia
During the quarter, exploration budgets and work programmes were finalised with the Company's Joint
Venture partner, Aditya Birla Minerals (ABY), for ongoing exploration activities at the Maroochydore
Project.
A Reverse Circulation drilling programme comprising 13 holes for 1,500 metres commenced recently which is
designed in part to confirm the existing JORC compliant resource. All RC holes will be drilled within the
existing resource boundary.
Due to the limited availability of the RC drill rig, it may not be possible to complete the full program
in the short term. A six-hole diamond drilling program has also been planned to further confirm the
resource and provide samples for metallurgical test work. The timing of this program is dependent on rig
availability.
Maroochydore has a total estimated JORC compliant Indicated and Inferred Mineral Resource of 51 million
tonnes at a grade of 1% copper and 0.04% cobalt for 0.51 million tonnes of contained copper and 20,000
tonnes contained cobalt (at a 0.5% Cu cut-off). The Company's net attributable interest in this Mineral
Resource is 25.5 mt at 1% copper and 0.04% cobalt for 0.25 mt contained copper and 10,000 tonnes
contained cobalt.
Millenium Leases, Cloncurry - Queensland Australia.
The Company has prepared a drilling programme for the Millenium leases, which will be implemented as soon
as practicable now that funding has been secured through the Company's recent share placement.
The "Millenium" mining leases (ML's 3512, 2761, 2762, 7506 and 7507) are located some 35 kilometres north-
west of Cloncurry in north-west Queensland, Australia. The five adjacent leases include the historical
"Federal" copper mine and cover an area approximately 3.5 kilometres long and 500 metres wide extending
in a northerly direction.
Corporate
On 7 May 2007, a proposed share placement was announced to secure additional funds to progress
Murchison's exploration activities. The first tranche of 40,819,165 shares at A$0.11 was issued on 7 June
2007. A general meeting held in Perth on 13 July 2007 ratified the first tranche and authorised the
Company to issue a further 19,180,835 shares.
The second tranche of the placement was completed on 17 July 2007 with the allotment of 26,852,366 shares
at A$0.11. A total of A$7.4 million was raised, placing the company in a strong position to aggressively
pursue its exploration activities.
Other
Consistent with its core focus on energy assets, Murchison continues to consider other energy-related
resource opportunities, both in Australia and overseas. Discussions to date are preliminary and non-
binding. If and when any proposals become binding, relevant announcements will be released.
Mark Reilly
Managing Director
27 July 2007
Murchison's Nominated Advisor for the AIM market is RFC Corporate Finance Ltd.
Contact: Stuart Laing, Ph: +618 9480 2506
The information in this report that relates to exploration results is based on information compiled by
Mr. Bosse Gustafsson, who is a member of the European Federation of Geologists a Recognised Overseas
Professional Organisation ("ROPO"). Mr Bosse Gustafsson is a full time Executive Director of Murchison
United NL and is responsible for exploration activities in Mauritania and Guinea. Mr Gustafsson has
sufficient experience, which is relevant to the style of mineralisation and the type of deposit under
consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in
the 2004 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserve'. Mr Gustafsson consents to the inclusion in this report of the matters based on their
information in the form and context in which it appears.
The information on Mineral Resources for the Maroochydore project has been reproduced from the public
reporting on the project's Mineral Resource's by the project operator, Aditya Birla Minerals Ltd. This
reported Mineral Resource was signed off for Aditya Birla Minerals Ltd by Mr Ian Glacken of Snowden
Mining Industry Consultants.
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
MURCHISON UNITED NL
ABN Quarter ended ("current quarter")
59 009 087 852 30 JUNE 07
Current quarter Year to date
Cash flows related to operating activities A$'000 (12 months)
A$'000
1.1 Receipts from product sales and related debtors - -
1.2 Payments for (a) exploration and evaluation (444) (830)
(b) development - -
(c) production - -
(d) administration (520) (1,322)
1.3 Dividends received 1
1.4 Interest and other items of a similar nature
received 24 58
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Other (provide details if material)
Net Operating Cash Flows (940) (2,094)
Cash flows related to investing activities
1.8 Payment for purchases of:
(a) prospects (5) (192)
(b) equity investments - -
(c) other fixed assets (19) (23)
1.9 Proceeds from sale of:
(a) prospects - -
(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 (24) (215)
1.13 Total operating and investing cash flows (964) (2,309)
(carried forward)
Consolidated statement of cash flows
1.13 Total operating and investing cash flows (964) (2,309)
(brought forward)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 4,368 5,777
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings - -
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
1.19 Other - Settlement of Guarantee
Net financing cash flows 4,368 5,777
Net increase (decrease) in cash held 3,404 3,468
1.20 Cash at beginning of quarter/year to date 459 395
1.21 Exchange rate adjustments to item 1.20
1.22 Cash at end of quarter 3,863 3,863
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
$A'000
Aggregate amount of payments to the parties included in item 109
1.2
Aggregate amount of loans to the parties included in item 1.10 0
Explanation necessary for an understanding of the transactions
Salaries and rental of office premises
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
Nil
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
Nil
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used
$A'000 $A'000
3.1 Loan facilities Nil N/A
3.2 Credit standby arrangements Nil N/A
Estimated cash outflows for next quarter
$A'000
4.1 Exploration and evaluation 270
4.2 Development 0
Total 270
Reconciliation of cash
Reconciliation of cash at the end of the quarter Current quarter Previous quarter
(as shown in the consolidated statement of cash $A'000 $A'000
flows) to the related items in the accounts is as
follows.
5.1 Cash on hand and at bank 3,863 459
5.2 Deposits at call - -
5.3 Bank overdraft - -
5.4 Other (provide details) - -
Total: cash at end of quarter (item 1.22) 3,863 459
Changes in interests in mining tenements
Tenement Nature of interest Interest at Interest at
reference (note (2)) beginning of end of
quarter quarter
6.1 Interests in mining
tenements
relinquished,
reduced or lapsed
6.2 Interests in mining 286 Uranium exploration 0% 100%
tenements acquired permit covering 1,433
or increased km2 in the Republic of
Mauritania
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 quoted Issue price Amount
per security paid up
(see note 3) per
(cents) security
(see note
3) (cents)
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 securities 353,330,251 353,330,251
2,250,000 - 25 1
7.4 Changes during quarter
(a) Increases through
issues
Issue for cash 40,819,165 40,819,165 11 cents 11 cents
(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 and Exercise Expiry
conversion factor) price date
- (cents)
7,500,000 - 5.5 19/5/10
2,500,000 - 5.5 30/6/10
2,000,000 - 5.5 29/11/10
6,000,000 - 7.5 3/05/10
350,000 - 46.0 1/7/07
7.8 Issued during quarter 6,000,000 - 7.5 3/05/10
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 give a true and fair view of the matters disclosed.
Sign here: ............................................................ Date: 27 July
2007.
Managing Director
Print name: .............Mark Reilly......................
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.
5 Accounting 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.
Murchison United N.L
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