TIDMPDZ
RNS Number : 8053N
Prairie Mining Limited
31 October 2016
PRAIRE MINING LIMITED
NEWS RELEASE | 31 October 2016
SEPTEMBER 2016 QUARTERLY REPORT
HIGHLIGHTS:
Acquisition of Debiensko Hard Coking Coal Project
-- Acquisition of fully permitted, "mine ready" project of significant global scale.
-- Transformational acquisition marking Prairie's entry into the
hard coking coal sector, complementing Prairie's advanced Jan
Karski Mine, and creating a multi-project coal development company
based in Poland to supply European industry.
-- Strategic location in the steelmaking heartland of Europe
where approximately 80% of current coking coal usage is
imported.
-- Debiensko comes with a 50-year mining concession, established
on-site facilities including rail, road and power infrastructure,
comprehensive historical drilling data and all environmental
consents.
-- As a brownfield development project, significant historical
capital investment positions Debiensko to become a meaningful,
near-term regional hard coking coal producer.
-- Through this acquisition, Prairie acquires a highly
experienced team of Polish mining specialists including engineers,
mine managers, mine planners, geologists, surveyors and
environmental specialists that brings substantial synergies to
expedite permitting and development of Prairie's flagship Jan
Karski Mine.
Jan Karski Mine (formerly Lublin Coal Project)
-- Discussions with strategic partners, EPC contractors, global
project finance banks and potential offtakers continue following
the excellent results of the pre-feasibility study published in
March 2016.
-- Permitting process for the Mining Concession application continues including:
o Completion of the draft Deposit Development Plan.
o Substantial progress on procedures related toenvironmental
permitting and local land rezoningContinued land acquisition
process aimed at securing access to the planned surface
infrastructure sites for project development.
o Application progressing for a power grid connection for the
Jan Karski Mine with the regional power distributor.
o Advancement of the planned railway spur line connection to the
national railway network which was officially included in the
Lublin Regional Development Strategy.
-- Hydrogeological analysis continued in order to provide
enhanced hydrogeological data for the ESIA.
Other:
-- Coal is widely recognised to be the best performing commodity
in 2016, with prices forecast to stabilise at higher levels over
the medium term. Since the start of the year, hard coking coal
prices have increased by more than 180%, semi-soft coking coal by
more than 85% and thermal coal by almost 100%.
-- Coking coal continues to be classified by the European
Commission as the third most economically important "critical raw
material" for the European economy.
-- As at 30 September 2016, Prairie has cash on hand of A$16.8
million and is in a strong financial position to progress with its
planned development activities.
NEXT STEPS:
-- Undertake a work program to review all historic data at
Debienkso including 3D geological modelling, and release a maiden
JORC Resource Estimate.
-- Commence a focused in-fill drill program to increase JORC
indicated resources to support feasibility studies for
Debiesnko.
-- Confirm potential of premium hard coking coal quality through
detailed analysis and coal quality benchmarking.
-- Deliver a re-engineered mine plan to produce a feasibility
study to international standards with a focus on near term
production on Debiensko.
-- Continue to advance financing discussions with strategic
partners, EPC contractors, global project finance banks and
potential offtakers to structure a development financing package
for the Jan Karski Mine.
-- Progress the Mining Concession process for the Jan Karski
Mine, including the rezoning of land for mining use and the ESIA
for the project and submission of these to the relevant authorities
for approval. Once approved the Company will formally lodge its
Mining Concession application for the Jan Karski Mine.
-- Other required project development activities including land
acquisition at the Jan Karski Mine.
-- Study activity across the Jan Karski Mine specifically aimed
at improving knowledge of hydrogeological conditions and confirming
the definitive shaft site location.
For further information contact:
Ben Stoikovich Artur Kluczny Sapan Ghai
Chief Executive Group Executive Communications
Officer - Poland
+44 207 478 3900 +48 22 351 73 80 +44 7557 055 166
info@pdz.com.au
Debiensko HARD Coking Coal Project
As announced on 11 October 2016 Prairie Mining Limited
("Prairie" or "Company") acquired the Debiensko Hard Coking Coal
Project ("Debienkso" or "Project"), a fully permitted, hard coking
coal project located in the Upper Silesian Coal Basin in the south
west of the Republic of Poland was acquired by the Company. The
Project is located approximately 40km from the city of Katowice and
30km from the Czech Republic.
Debiensko is bordered by the Knurow-Szczyglowice mine in the
north west and the Budryk mine in the north east, both owned and
operated by Jastrz bska Spó ka W glowa SA ("JSW"), Europe's leading
producer of hard coking coal.
The Debiensko mine was originally opened in 1898 and was
operated by various Polish mining companies until 2000 when mining
operations were suspended due to a major government led
restructuring of the coal sector caused by a downturn in global
coal prices. In early 2006 New World Resources Plc ("NWR") acquired
Debiensko and commenced planning in order for the Project to comply
with Polish mining standards and with the aim of accessing and
mining hard coking coal seams. In 2007, the Minister of Environment
of Poland approved the development plan and in 2008 granted NWR a
50-year mine license for Debiensko.
Revised Development Approach
Following detailed technical due diligence by Prairie, the
Company is confident that a revised development approach would
allow for the early mining of profitable coal seams, whilst
minimising upfront capital costs. This is likely to include
focusing on a smaller area of Debiensko to target coal seams that
are more readily accessible. Prairie has proven expertise in
defining commercially robust projects and applying international
standards in Poland.
Prairie has reported an Exploration Target for this target area
in accordance with the JORC Code (2012).
Exploration Target Range
Extensive drilling was carried out historically at Debiensko and
historical resources published to Polish reporting standards
(non-JORC). Prairie's Exploration Target has been estimated for the
following seams 401/1, 401/2, 402/1, 403/1, 403/2, 404/3, 404/5,
404/9, 405, 406/1, 407/2, 407/3, 408/1, 408/3, 408/5 and 409/1. To
allow for possible geological and modelling uncertainty a deduction
of 20% has been applied to give the range of tonnages reported
below.
The tonnages in Table 1 below are for the seams that have been
assessed and for which there has been insufficient exploration to
be considered as resources at this time. The figures therefore
represent the potential which is dependent on further exploration
and a work program to review all historic data at Debienkso.
Table 1: Exploration Target Range
----------------------------------------------------------------------------------------------------------------------
Depth Exploration Target Tonnage Range (Mt)
---------------------------------------------------------------------------- ----------------------------------------
All seams to depth approx. 1,100 m* 120 Mt - 150 Mt
---------------------------------------------------------------------------- ----------------------------------------
Depth 1,100 - 1,250 m 90 Mt - 110 Mt
---------------------------------------------------------------------------- ----------------------------------------
Total 210 Mt - 260 Mt**
---------------------------------------------------------------------------- ----------------------------------------
Quality*** Moisture Ash Volatile Matter Sulphur FSI
------------------------------ ----------- ----------- ------------------ --------------------- -----------------
Weighted Average Whole
Exploration Target Range
(+/-20%) 0.7 - 1.1 6.3 - 9.5 18.1 - 27.1 0.6 - 0.8 5 1/2 - 8
------------------------------ ----------- ----------- ------------------ --------------------- -----------------
* Depths are from surface - c250 m above datum
**Figures are reported to the nearest 10 Mt which is deemed appropriate for this level of
estimation
***Figures are reported to one decimal place which is deemed appropriate for this level of
estimation
The potential quantity and grade of the exploration targets are conceptual in nature and there
has been insufficient exploration to define a Mineral Resource and it is uncertain if further
exploration will result in the determination of a Mineral Resource.
----------------------------------------------------------------------------------------------------------------------
Potential Coal Quality
Historical coal quality analysis completed at the Project, and
based on Polish reporting standards, has demonstrated coal
qualities indicative of internationally traded benchmark premium
hard coking coals.
Table 2 below gives the potential range of weighted average seam
qualities on an air dried basis. It was standard practice, at the
time of sampling, to include dirt partings up to 5 cm in thickness
in the coal sample, however, if the percentage ash was greater than
12% the sample was washed before further analysis. Partings greater
than 5 cm in thickness were not analysed.
Table 2: Potential Debiensko Coal Qualities
---------------------------------------------------------------------
Quality* Exploration Target Exploration Target Weighted Average
Range to 1,100 Range from 1,100 Whole Exploration
m to 1,250 m Target Range (+/-
20%)
--------- ------------------ ------------------ ------------------
Moisture 0.6 - 1.7 0.7 - 1.6 0.7 - 1.1
--------- ------------------ ------------------ ------------------
Ash 5.2 - 15.9 4.8 - 14.9 6.3 - 9.5
--------- ------------------ ------------------ ------------------
Volatile 20.3 - 27.1 17.8 - 26.1 18.1 - 27.1
Matter
--------- ------------------ ------------------ ------------------
Sulphur 0.4 - 1.2 0.4 - 1.1 0.6 - 0.8
--------- ------------------ ------------------ ------------------
FSI 6 - 7 1/2 5 - 8 5 1/2 - 8
--------- ------------------ ------------------ ------------------
*Figures are reported to one decimal place which is deemed
appropriate for this level of estimation
The above potential ranges of weighted average seam qualities
are comparable to qualities of internationally traded benchmark
Medium Volatile Matter and Low Volatile Matter coals. This is
illustrated in Table 3.
Table 3: Coking Coals Comparison including Debiensko
Weighted Average Range to 1,250m
----------------------------------------------------------------------------------------------------
Quality Debiensko Goonyella Peace Peak Downs Blue Creek JSW-Zofiowka JSW-Jas
River Mos
(Poland) (Australia) (Canada) (Australia) (USA) (Poland) (Poland)
(+/- 20% Mid Vol Mid Vol Low Vol Low Vol Type 35 Type
weighted 35
ave. range)
--------- ------------- ------------ --------- ------------ ---------- ------------ ---------
6.3 -
Ash 9.5 8.9 8.0 10.0 8.4 8.5 7.8
--------- ------------- ------------ --------- ------------ ---------- ------------ ---------
Volatile 18.1 -
Matter 27.1 23.8 27.5 20.5 19.0 22.2 21.4
--------- ------------- ------------ --------- ------------ ---------- ------------ ---------
0.6 -
Sulphur 0.8 0.52 0.70 0.60 0.60 0.55 0.56
--------- ------------- ------------ --------- ------------ ---------- ------------ ---------
5 1/2
FSI - 8 8 7 8 1/2 7 7 7 1/2
--------- ------------- ------------ --------- ------------ ---------- ------------ ---------
Infrastructure
As part of the transaction, Prairie has acquired approximately
15Ha of land and all related facilities critical to the development
of the Project. Significant historical capital investment positions
Debiensko to become a meaningful and near term regional hard coking
coal producer.
With existing site facilities and necessary infrastructure
including power, water, rail and road in addition to the mining
concession, environmental consent and local planning all being in
place, the Project is considered "development-ready".
The Debiensko mine was previously connected to the main Polish
rail network and a currently inactive railway siding is still in
place and in sound condition. Poland is served by 23,420 kilometres
(14,550 mi) of railway tracks using standard international gauge,
and provides rail connections to major regional end users of coking
coal and for export. Further, asphalt roads surround and connect
the Debiensko mine site to the major road network.
Debiensko Next Steps and Work Program
Prairie is currently undertaking a detailed review of historic
exploration, geophysical survey, drilling, coal quality, and
development data acquired through this transaction including 3D
geological modelling in order to establish a maiden hard coking
coal resource in accordance with the JORC Code (2012). Once
established, the Company will undertake a focused infill core
drilling program to support JORC-compliant resource estimates which
will form the basis for upcoming feasibility studies
With Debienkso, Prairie has successfully acquired a full project
team of Polish mining specialists who are part of the existing
Debiensko team. Since, under Polish Law, Debiensko is a fully
permitted mine site, Prairie now retains the employment of a mine
manager and chief engineer amongst other crucial positions who will
integrate with Prairie's world class team to re-engineer the
Project.
JAN KARSKI MINE (formerly Lublin Coal Project)
Mining Concession Application & Project Permitting
Prairie is currently working towards completing a mining
concession application which, in Poland, comprises the submission
of a Deposit Development Plan ("DDP"), an Environmental Social
Impact Assessment ("ESIA") that is to be approved by regional
authorities and approval of a spatial development plan (rezoning of
land for mining use). The DDP is a Polish standard mine
technical-economic study as prescribed in the Polish mining
regulations. Under Polish law, the environmental consent decision
must be obtained prior to granting of the mining concession. The
environmental consent decision is issued by a specialised
environmental authority (the Regional Director for Environmental
Protection).
Deposit Development Plan
The DDP has been completed and has been submitted to local
Polish experts for their review and optimisation. The DDP is then
expected to be submitted for final review and approval by the
relevant government authorities in early 2017.
The DDP is a standard mine technical and economic study as
prescribed by Polish mining regulations. The DDP is required to
document the proper management and extraction of resources and will
be submitted to the relevant Polish government mining authority for
their review prior to the grant of a mining concession at the Jan
Karski Mine.
The DDP includes economic assumptions based on the project's
pre-feasibility study ("PFS") published in March 2016 (refer to
announcement dated 8 March 2016) and is required to meet specific
Polish geological standards as well as conforming with existing
Polish mining regulation requirements.
As part of preparation of the DDP, the final selection of the
site for mine surface infrastructure has been confirmed and will be
used in both the spatial development permitting and the application
for the environmental consent decision for the Jan Karski Mine.
Environmental and Social Impact Assessment
The ESIA for the Jan Karski Mine, which is currently
progressing, will provide the relevant authorities with sufficient
information to award the environmental consent decision. Prairie is
currently on track to complete all environmental requirements and
submit its ESIA to the regional authorities and expects to receive
the Environmental Decision over the Jan Karski Mine's mining area
in 2017.
The ESIA is an extensive study that includes a wide range of
environmental monitoring programs, field surveys, ecosystem
sensitivity assessments, socio-economic surveys and a detailed
community study and stakeholder engagement plan.
Land Rezoning
As part of the PFS and DDP, Prairie finalised the site location
for the Jan Karski Mine, which was selected based on geological,
mining, transport and commercial considerations. In relation to the
site location, commencement of the spatial planning procedure has
been initiated following substantial progress in acquiring land for
the planned mine site.
OTHER
Prairie Downs Metals Project ("BMP")
During the quarter, Prairie altered the terms of the farm-in
agreement ("Farm-In Agreement") with Marindi Metals Limited
("Marindi") for the sale of the BMP. Under the terms of the Farm-In
Agreement, Marindi can earn a 100% interest in the BMP by electing
to pay Prairie in three cash instalments as follows: (i) $0.5
million (received on 27 May 2015); (ii) $0.325 million (received 30
September 2016); and (iii) $0.325 million on or before 31 March
2017.
The Farm-In Agreement allows Prairie to focus 100% of its time
and resources on its Polish coal operations. Upon completion,
Prairie will retain a 2.5% Net Smelter Royalty.
Financial Position
As at 30 September 2016, the Company had cash reserves of
approximately A$16.8 million, placing the Company in a strong
position to complete its planned development activities.
EXPLORATION TENEMENT INFORMATION
On 1 July 2015, Prairie announced that it had secured the
Exclusive Right to apply for, and consequently be granted, a mining
concession for the Jan Karski Mine.
As a result of its geological documentation for the Lublin
deposit being approved, Prairie is now the only entity that can
lodge a mining concession application over the Jan Karski Mine
within a three (3) year period.
The approved geological documentation covers an area comprising
all four of the original exploration concessions granted to Prairie
(K-4-5, K-6-7, K-8 and K-9) and includes the full extent of the
targeted resources within the mine plan for the Project. Prairie's
geological documentation did not include the Sawin-Zachód
concession which may be added at a later date.
As at 30 September 2016, the Company has an interest in the
following tenements:
Location Tenement Percentage Interest Status Tenement Type
------------------------ ----------------------------- -------------------- -------- -----------------------------
Jan Karski Mine, Poland Lublin Coal Project Mine 100 Granted Exclusive Right to apply for
Plan Area a mining concession
Jan Karski Mine, Poland Kulik (K-4-5) 100 Granted Exploration
Jan Karski Mine, Poland Cycow (K-6-7) 100 Granted Exploration
Jan Karski Mine, Poland Syczyn (K-8) 100 Granted Exploration
Jan Karski Mine, Poland Kopina (K-9) 100 Granted Exploration
Jan Karski Mine, Poland Sawin-Zachód 100 Granted Exploration
Prairie Downs, WA E52/1758 100* Granted Exploration
Prairie Downs. WA E52/1926 100* Granted Exploration
------------------------ ----------------------------- -------------------- -------- -----------------------------
* The Company has entered into a farm-in agreement to assign and
divest up to 100% interest in the Prairie Downs Project
Subsequent to the end of the quarter, the Company completed the
acquisition of Debiensko in Poland which has a 50-year mining
concession.
Competent Person Statements
The information in this announcement that relates to Exploration
Targets is based on, and fairly represents information compiled or
reviewed by Mr Jonathan O'Dell, a Competent Person who is a Member
of The Australasian Institute of Mining and Metallurgy. Mr O'Dell
is a full time consultant of the Company. Mr O'Dell has sufficient
experience that 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 defined in the 2012
Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Mr O'Dell consents to
the inclusion in the report of the matters based on his information
in the form and context in which it appears.
Forward Looking Statements
This release may include forward-looking statements. These
forward-looking statements are based on Prairie's expectations and
beliefs concerning future events. Forward looking statements are
necessarily subject to risks, uncertainties and other factors, many
of which are outside the control of Prairie, which could cause
actual results to differ materially from such statements. Prairie
makes no undertaking to subsequently update or revise the
forward-looking statements made in this release, to reflect the
circumstances or events after the date of that release.
Appendix 1 - Exploration Target Additional Information
Sources of Information
Seam thicknesses and depths are derived from the historical
borehole cards (strip logs), overlying and adjacent mine workings
and the New World Resources Karbonia (NWRK) database. Information
on seam quality is taken from the official Polish Government
approved "Geological Documentation", which was approved by the
State in 2009. There are 9 deep boreholes within the concession. In
addition data from 15 boreholes and mine workings in the
surrounding area have been used in the model. Co-ordinates are in
Poland 2000, zone 6 system.
Site Visits
The site was visited by the Competent Person and other members
of the Prairie Team on 6 September 2016.
Topography, Elevation, Vegetation and Climate
The Upper Silesian Coal Basin is located in the south-western
part of Poland and towards the border with the Czech Republic. The
concessions are located in a relatively flat-lying area at
elevations of between 230 - 320 mASL (metres above sea level). The
Bierawka River flows northwards through the area eventually joining
the Odra River.
The dominant land use comprises of arable land and partly
forested areas with mature and immature trees making up some 80% of
the area. The remaining area is largely rural housing with small
villages and industrial/post industrial (mining) development.
The climate in Poland is influenced by both European maritime
and Eastern Europe continental air masses. The region in the south
west of Poland can be categorised as having a cool continental
climate. The warmest months are from May to September, with
temperatures ranging 10(0) C to 25(0) C. The coldest months are
usually from November to March with temperatures in the range 7(0)
C to -7(0) C.
History of Exploration
The Upper Silesian Coal Basin has a long history of exploration
and exploitation with work starting in the 18(th) Century
culminating with the drilling of nine deep boreholes between 1982
and 1989. Within the Debiensko Licence area the upper coals in the
Upper 300 Series have been extensively worked providing good
structural control.
Historical Tonnage Estimates
The area was assessed in the Geological Documentation carried
out in 2009 under the official Polish system for seams 401 to 410
to a depth of 1,400 m. More recently in 2014 and 2015, the previous
owner also delineated resource and reserve estimates for the
Debienkso deposit based on the historical Polish Government
approved Geological Documentation. However, Prairie has opted to
estimate tonnages for a smaller area of the Debiensko Project that
has the potential to be more readily accessible for early
mining.
Geological Setting and Coal Seams
The Debiensko Licence area is situated in The Upper Silesian
Coal Basin which contains a thick, up to 8,500 m, sequence of Upper
Carboniferous sediments. These have been subject to folding and
faulting during the Variscan Orogeny. The upper surface of the
Carboniferous sediments now forms an angular unconformity overlain
by strata with ages varying from Permian to Quaternary. Igneous
intrusions occur in some parts of the Basin but are not known in
the area of Debiensko.
The sediments of the 400 Series are mudstone/claystone/siltstone
dominated with occasional fine to medium grained sandstones from a
few to several 10s of metres in thickness. Seam roofs and floors
are generally mudstone/claystone. There are over 30 seams within
the series varying from a few centimetres to several metres in
thickness. This Estimation has focussed on 16 of the thicker and
more laterally consistent seams.
Structural Geology
The structure of the Coal Measures within the Debiensko licence
is generally well known from overworking The seams dip south east
at 2 to 15 degrees.
Assessment of Coal Seams
Geological modelling
GEOVIA MINEX(TM) modelling software was used to undertake
modelling as it is particularly adept at modelling stratiform
deposits such as coal. The model was based on the NWRK database
which contains all necessary borehole data (collar location, seam
depth and thickness, coal quality data). Prairie has conducted spot
checks on the data base to ensure data veracity. 3D modelling
procedure was conducted in following stages: 1. Raw data loading
and validation; 2.Interpolation of borehole data; 3. Seam structure
and coal quality modelling; 4. Fault modelling (3D faulting with
various throws); 5. Final model validation; 6. Target estimation.
For basic modelling fault location and throw was adopted from
latest deposit documentation. The basic Minex model provides
information relating to coal extent, quality and quantity and
allows a Resource to be reliably estimated.
Constraints/Cut Offs
For the estimation of the Exploration Target the following
constraints have been used -
-- a minimum clean coal seam thickness of 1 m
-- depth cut off at c 1,250 m
-- exclusion pillar under Czerwlonka-Leszczyny
-- coal to the south of the Belski Fault (200 m downthrow south) has been excluded
-- Seams designated Polish Type 36 (meta coking coal) have been excluded
Future Exploration
Prairie Mining has programmed to drill up to five additional
boreholes (including a shaft centreline borehole) to improve
confidence in seam continuity and confirm quality. Prairie Mining
will also conduct a full review and verification of the data and
seam correlations.
+Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas exploration entity
quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97,
01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
Name of entity
-------------------------------------------
Prairie Mining Limited
-------------------------------------------
ABN Quarter ended ("current
quarter")
--------------- ------------------------
23 008 677 852 30 September 2016
--------------- ------------------------
Consolidated statement Current quarter Year to date
of cash flows $A'000
(3 months)
$A'000
--------------------------------------- ---------------- -------------
1. Cash flows from operating
activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation (835) (835)
(b) development - -
(c) production - -
(d) staff costs (573) (573)
(e) administration
and corporate costs (178) (178)
1.3 Dividends received - -
(see note 3)
1.4 Interest received 93 93
1.5 Interest and other - -
costs of finance paid
1.6 Income taxes paid - -
1.7 Research and development - -
refunds
Other (provide details
if material):
1.8 (a) investor relations (60) (60)
---------------- -------------
Net cash from / (used
1.9 in) operating activities (1,553) (1,553)
----- -------------------------------- ---------------- -------------
2. Cash flows from investing
activities
2.1 Payments to acquire:
(a) property, plant
and equipment - -
(b) tenements (see - -
item 10)
(c) investments - -
(d) other non-current - -
assets
2.2 Proceeds from the disposal
of:
(a) property, plant
and equipment - -
(b) tenements (see
item 10) 325 325
(c) investments - -
(d) other non-current - -
assets
2.3 Cash flows from loans - -
to other entities
2.4 Dividends received - -
(see note 3)
2.5 Other (provide details - -
if material):
---------------- -------------
Net cash from / (used
2.6 in) investing activities 325 325
------- ------------------------------ ---------------- -------------
3. Cash flows from financing
activities
3.1 Proceeds from issues
of shares - -
3.2 Proceeds from issue - -
of convertible notes
3.3 Proceeds from exercise - -
of share options
3.4 Transaction costs related
to issues of shares,
convertible notes or
options - -
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related
to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details - -
if material)
---------------- -------------
3.10 Net cash from / (used
in) financing activities - -
------- ------------------------------ ---------------- -------------
4. Net increase / (decrease)
in cash and cash equivalents
for the period
Cash and cash equivalents
4.1 at beginning of period 18,062 18,062
Net cash from / (used
in) operating activities
4.2 (item 1.9 above) (1,553) (1,553)
Net cash from / (used
in) investing activities
4.3 (item 2.6 above) 325 325
4.4 Net cash from / (used
in) financing activities
(item 3.10 above) - -
Effect of movement
in exchange rates on
4.5 cash held (1) (1)
---------------- -------------
Cash and cash equivalents
4.6 at end of period 16,833 16,833
------- ------------------------------ ---------------- -------------
5. Reconciliation of cash Current quarter Previous
and cash equivalents $A'000 quarter
at the end of the $A'000
quarter (as shown in
the consolidated statement
of cash flows) to the
related items in the
accounts
---- ---------------------------- ---------------- ---------
5.1 Bank balances 5,333 10,062
5.2 Call deposits 11,500 8,000
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
---------------- ---------
Cash and cash equivalents
at end of quarter (should
5.5 equal item 4.6 above) 16,833 18,062
---- ---------------------------- ---------------- ---------
6. Payments to directors of the entity Current quarter
and their associates $A'000
----------------
Aggregate amount of payments to
these parties included in item
6.1 1.2 (179)
----------------
6.2 Aggregate amount of cash flow
from loans to these parties included
in item 2.3 -
----------------
6.3 Include below any explanation necessary
to understand the transactions included
in items 6.1 and 6.2
---- --------------------------------------------------------
Payments include executive remuneration (including
bonuses), director fees, superannuation and
provision of a fully serviced office.
--------------------------------------------------------------
7. Payments to related entities of Current quarter
the entity and their associates $A'000
----------------
7.1 Aggregate amount of payments to -
these parties included in item
1.2
----------------
7.2 Aggregate amount of cash flow
from loans to these parties included
in item 2.3 -
----------------
7.3 Include below any explanation necessary
to understand the transactions included
in items 7.1 and 7.2
---- --------------------------------------------------------
Not applicable.
--------------------------------------------------------------
8. Financing facilities Total facility Amount drawn
available amount at at quarter
Add notes as necessary quarter end end
for an understanding $A'000 $A'000
of the position
--------------- -------------
8.1 Loan facilities - -
--------------- -------------
8.2 Credit standby arrangements - -
--------------- -------------
8.3 Other (please specify) - -
--------------- -------------
8.4 Include below a description of each facility
above, including the lender, interest rate
and whether it is secured or unsecured.
If any additional facilities have been entered
into or are proposed to be entered into
after quarter end, include details of those
facilities as well.
---- ------------------------------------------------------------
Not applicable.
------------------------------------------------------------------
9. Estimated cash outflows $A'000
for next quarter
---- ------------------------------ --------
9.1 Exploration and evaluation (500)
9.2 Development -
9.3 Production -
9.4 Staff costs (500)
Administration and corporate
9.5 costs (150)
9.6 Other (provide details if -
material)
--------
9.7 Total estimated cash outflows (1,050)
---- ------------------------------ --------
10. Changes in Tenement Nature Interest Interest
tenements reference of interest at beginning at end
(items 2.1(b) and location of quarter of quarter
and 2.2(b)
above)
----- ---------------------- -------------- ------------- -------------- ------------
10.1 Interests - - - -
in mining
tenements
and petroleum
tenements
lapsed, relinquished
or reduced
----- ---------------------- -------------- ------------- -------------- ------------
10.2 Interests - - - -
in mining
tenements
and petroleum
tenements
acquired
or increased
----- ---------------------- -------------- ------------- -------------- ------------
Farm-In Agreement for the Prairie Downs Base Metals Project
("BMP")
During the quarter, Prairie altered the terms of the farm-in
agreement ("Farm-In Agreement") with Marindi Metals Limited
("Marindi") for the sale of the BMP. Under the terms of the Farm-In
Agreement, Marindi can earn a 100% interest in the BMP by electing
to pay Prairie in three cash instalments as follows: (i) $0.5
million (received on 27 May 2015); (ii) $0.325 million (received 30
September 2016); and (iii) $0.325 million on or before 31 March
2017.
The Farm-In Agreement allows Prairie to focus 100% of its time
and resources on its Polish coal operations. Upon completion,
Prairie will retain a 2.5% Net Smelter Royalty.
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Sign here:
............................................................ Date:
31 October 2016
(Director/Company secretary)
Print name: Dylan Browne
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 that wishes
to disclose additional information is encouraged to do so, in a
note or notes included in or attached to this report.
2. If this quarterly report has been prepared in accordance with
Australian Accounting Standards, the definitions in, and provisions
of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this
quarterly report has been prepared in accordance with other
accounting standards agreed by ASX pursuant to Listing Rule 19.11A,
the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities,
depending on the accounting policy of the entity.
To view a full copy of this announcement including all figures
and illustrations, please see refer to the Company's website at
www.pdz.com.au
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEAXEEDSAKFFF
(END) Dow Jones Newswires
October 31, 2016 03:00 ET (07:00 GMT)
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