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BREAKTHROUGH MINERALS LIMITED — Capital/Financing Update 2011
Apr 20, 2011
64579_rns_2011-04-20_739e4a4c-b816-4dd1-af49-ad121f36aa7b.pdf
Capital/Financing Update
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Suite 2001, Level 20 Australia Square 264 George Street Sydney NSW 2000 Tel 61 2 9252 5766 Fax 61 2 9247 8966 www.atomicresources.com.au [email protected]
21 April 2011
Company Announcements Office Australian Securities Exchange Limited
Dear Sir/Madam
ATOMIC ENTERS INTO AGREEMENTS FOR THE EXPLORATION AND POTENTIAL DEVELOPMENT OF PROSPECTIVE COAL AREAS IN THE SONGWE AREA IN TANZANIA
Atomic Resources Ltd (Atomic) is pleased to announce it has entered into agreements to acquire coal leases in the Songwe-Kiwira Coalfield, which lies just to the north of Lake Nyasa in southwest Tanzania (refer figure).
The Colonial Development Corporation (1957) and British Mining Consultants Limited (1988) have described coal occurrences in this region. There are identifiable coal outcrops in the area, which will be the subject of an exploration-drilling program by Atomic commencing in May 2011. There is potential for outlining significant resources of open cut and underground thermal coal, which could substantially increase the Company’s current resources in Tanzania. Should this investigation prove successful, these resources may provide a suitable fuel for a coal fired power station planned for the area.
Figure 1.0: Songwe-Kiwira location
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Atomic has committed to the payment of a non-refundable US$500,000 exclusive option fee to secure these leases with the owners. If the due diligence proves the expected resources in the target area, a payment of US$9.5 million in cash and shares has been agreed for a 70% ownership of a joint venture vehicle to develop the coal properties.
The Chairman of Atomic, Graeme Robertson said " This arrangement and the prospect for substantial coal resources in the region will directly benefit the status of Atomic's expansion as a major coal producer to support the power generation and industrial growth of Tanzania and its neighbouring countries, and will provide mineable reserves in support of the Company's subsidiary mining operation in the Ngaka coalfield, which is due to commence production from June this year. Although the Songwe coal is higher ash than Ngaka, it will provide ideal feedstock for power generation and allow our current Ngaka operations to focus on higher priced industrial markets and export opportunities."
Yours sincerely
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Graeme Robertson
Executive Chairman
About the company:
Atomic Resources Limited is an Australian-based exploration and resource development company with major thermal coal assets in Tanzania. Our operating arm in Tanzania is Tancoal Energy Limited, which was formed by a Joint Venture between Atomic Resources Limited and the National Development Corporation of Tanzania (NDC) .
Forward-Looking Statements
Certain statements made during or in connection with this statement, including, without limitation, those concerning exploration targets, contain or comprise certain forward-looking statements regarding Atomic’s exploration operations, economic performance and financial condition. Although Atomic believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in metals prices and exchange rates and business and operational risk management. Atomic undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events other than required by the Corporations Act and ASX Listing Rules.
For further information please contact:
Shareholder Enquiries Jonathan Warrand Executive Director & CFO Atomic Resources Limited Tel: (02) 9252 5766 www.atomicresources.com.au