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KORAB RESOURCES LIMITED — Capital/Financing Update 2011
May 8, 2011
65198_rns_2011-05-08_aee10dab-a3ae-46c2-8e69-a89df5d0ea8a.pdf
Capital/Financing Update
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KORAB RESOURCES LIMITED KORAB HOUSE
www.korab.com.au
Monday, 9 May 2011
MELROSE GOLD MINES (MGH) IPO PRIORITY OFFER LETTER
Please find attached in Appendix “A” (pages 7 to 8) “Priority Offer Letter” sent today to Korab Resources Limited (“Korab”) shareholders who held Korab shares on 6[th] May 2011 (“Record Date”).
BACKGROUND
As announced to the market on 21 April 2011, Melrose Gold Mines Limited (“MGH”) has lodged its IPO prospectus which can be downloaded from MGH website. Link to MGH website is located on the home page of Korab website at www.korabresources.com.au
MGH holds large number of gold projects at various stages of development and exploration located in Western Australia and the Northern Territory. The most advanced of these is the Melrose project which has gone through the scoping study stage and where MGH plans to complete definitive feasibility study within 12 months from listing on ASX. Other advanced projects are Wonganoo and Darlot East prospects where previous drilling has discovered gold mineralisation. For a map showing location of all projects please see map on page 4.
MELROSE GOLD MINES (MGH) IPO PRIORITY OFFER
Korab shareholders who wish to apply for MGH shares to be issued under the IPO prospectus have priority ahead of other applicants. Korab shareholders priority entitlement is 10,000 MGH shares, or 1 MGH share for each 6 Korab shares held, whichever is greater.
INDICATIVE TIMETABLE
| INDICATIVE TIMETABLE | |
|---|---|
| Date of Prospectus | 21 April 2011 |
| Opening Date | 21 April 2011 |
| Record Date for Priority Offer Entitlements | 6 May 2011 |
| Priority Offer Closing Date | 27 May 2011 |
| Closing Date | 10 June 2011 |
| Shares Expected to be Allotted | 22 June 2011 |
| Holding Statements Expected to be Dispatched | 23 June 2011 |
| Trading of Shares on ASX Expected to Commence | 28 June 2011 |
ASX KOR Last price AU¢ 21.5
The above dates are indicative only. The Directors of Melrose Gold Mines Ltd reserve the right to extend the Offer or close the Offer early without prior notice, which may have a consequential effect on other dates. Applicants are encouraged to apply for Shares as soon as possible after the Offer opens.
MELROSE GOLD MINES PROJECTS
BERLIN C6S.BE Last price € 0.16
Melrose Project (Eastern Goldfields, WA)
Uranium Australia 90% of uranium, Melrose 10% of uranium and 100% of all commodities other than uranium.
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Mineral resource of 340,000 ounces AU in measured, indicated and inferred categories
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Deposits are located on granted mining leases
Issued capital 88 million shares
Market capitalisation AU$ 19 million € 14 million
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- Mineralisation open at depth and along strike
Melrose gold project is located in the Eastern Goldfields of Western Australia and contains a JORC code compliant resource of approximately 340,000 ounces of gold in measured, indicated and inferred categories (see table below).
LEVEL 1, SUITE 6, 100 MILL POINT ROAD, SOUTH PERTH, WA, 6151 AUSTRALIA PO BOX 195, SOUTH PERTH, WA, 6951 AUSTRALIA TEL (08) 9474 6166 FAX (08) 9474 6266 ACN 082 140 252
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KORAB RESOURCES LIMITED KORAB HOUSE
www.korab.com.au
| JORC Code compliant | resource at Melrose (Above 0.5 g/t cut-off) | resource at Melrose (Above 0.5 g/t cut-off) | ||
|---|---|---|---|---|
| Category | Zone | Ore Mass (t) | Grade (g/t) | Ounces |
| Measured | Boundary | 652,154 | 1.73 | 36,262 |
| Indicated | Boundary | 2,662,763 | 1.73 | 148,506 |
| Inferred | Boundary | 703,209 | 1.36 | 30,822 |
| Bungarra | 2,144,332 | 1.56 | 107,385 | |
| Stirling | 404,000 | 1.31 | 17,000 | |
| TOTAL RESOURCE | 6,566,458 | 1.61 | 339,975 |
MGH has received approvals for a drilling program at Melrose project. This program will consist of diamond holes to be drilled within Boundary, Bungarra and Hurleys deposits. The aim of the program is to improve resource classification, test for extensions to known resource and to provide samples for metallurgical and geotechnical studies necessary for pit and process design. All necessary equipment and personnel are currently on stand-by and the program will commence either just prior to the listing of MGH on ASX or immediately after.
Wonganoo Project (Eastern Goldfields, WA)
Melrose 100% of gold, Uranium Australia 100% of all commodities other than gold.
- High grade zone of gold anomalism extending over 1.5 km confirmed by shallow drilling and soil sampling
At Wonganoo project (adjoining the Melrose project) a wide zone of soil gold anomalism has been drilled to assess potential for additional resource in proximity to the Melrose gold deposits. This drilling program has discovered high grade gold mineralisation at Freemans which is extending over 1.5 km strike length with similar tenor to the nearby Bronzewing gold mine . Following the closing of its IPO prospectus, MGH will commence reverse circulation (RC) drilling program to test this target (and the nearby Eclipse target) at depth. The Wonganoo RC drilling program is to be run in conjunction with the diamond drilling program at the nearby Melrose project and will commence either just prior to the listing of MGH on ASX or immediately after.
Ashburton Downs Project (Pilbara, WA)
Melrose 100% of gold, Korab 10% of uranium and 100% of all commodities other than gold and uranium, Uranium Australia 90% of uranium.
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Porphyry and hydrothermal gold and copper mineralisation
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Target anomalies extending over 27 km strike and are associated with a major fault
ASX KOR Last price AU¢ 21.5
BERLIN C6S.BE Last price € 0.16
Issued capital 88 million shares
Market capitalisation AU$ 19 million € 14 million
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- Largest target anomaly is 10km by 3 km
Following the closing of MGH’s IPO prospectus, MGH and Korab intend to commence Mobile Metal Ion (MMI) sampling program at the Ashburton Downs copper/gold project where MGH owns 100% rights to gold. Ashburton Downs project where Korab and MGH have a joint venture, is located in the Pilbara in Western Australia and has potential for hydrothermal gold and copper mineralisation associated with four large-scale alterations suggesting widespread hydrothermal activity. For details please se diagram on page 6. These alterations extend over a distance of 27 km. The largest of the anomalies has a surface expression of 10 km long by up to 3 km wide and is associated with a major structure. Past exploration has been limited to evaluation of the small area located in the vicinity of multiple outcropping gossans. Similarly to the Melrose project drilling program, all necessary equipment and personnel required for this MMI sampling program are currently on stand-by and the program will commence either just prior to the listing of MGH on ASX or immediately after.
Darlot East Project (Eastern Goldfields, WA)
Melrose 100% of all commodities.
LEVEL 1, SUITE 6, 100 MILL POINT ROAD, SOUTH PERTH, WA, 6151 AUSTRALIA PO BOX 195, SOUTH PERTH, WA, 6951 AUSTRALIA TEL (08) 9474 6166 FAX (08) 9474 6266 ACN 082 140 252
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www.korab.com.au
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KORAB RESOURCES LIMITED KORAB HOUSE
- Wide zone of gold anomalism conformed by first-pass drilling and lag sampling indicates potential for structurally controlled deposits formed synchronously with the 3 million ounce Darlot gold deposit located just 3km due west
Another gold exploration project is Darlot East project located near Leinster in the Eastern Goldfields. The project is located just 3 km east of the Darlot and Centenary gold mines. For details of geology and project location see diagram on page 4. At the Darlot East project independent consultants have identified exploration targets for structurally controlled deposits that formed synchronously with the 3 million ounce Darlot gold deposit. Previous work which included first-pass drilling, rock-chip and soil sampling has confirmed a wide zone of gold anomalism. This target will be drilled in conjunction with the Melrose diamond drilling and Wonganoo RC drilling programs and will commence either just before or after listing of MGH on ASX
Information about other projects where MGH intends to actively explore for gold is listed in Melrose Gold Mines Limited prospectus which can be downloaded from MGH website.
CONTACT
Andrej K. Karpinski - Executive Chairman, in Australia: (08) 9474 6166, International: +61 8 9474 6166
ABOUT KORAB RESOURCES LIMITED
Korab Resources Ltd is an Australian mining and exploration company based in Perth with operations in Australia and Europe. Korab’s quarrying and mining projects include rock phosphate and magnesium. The company also manages exploration projects in Western Australia and the Northern Territory. More information about Korab’s projects can be sourced from our website at www.korabresources.com.au Korab’s shares are listed on Australian Securities Exchange (ASX) and trade on Australian Securities Exchange (ASX) and on the Berlin Stock Exchange (Berliner Börse).
Competent Person: The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Andrew Hawker, who is an independent geological consultant and is a member of The Australasian Institute of Mining and Metallurgy. Andrew Hawker has in excess of 5 years 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 defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Andrew Hawker consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
ASX KOR Last price AU¢ 21.5
BERLIN C6S.BE Last price € 0.16
Issued capital 88 million shares
Market capitalisation AU$ 19 million € 14 million
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LEVEL 1, SUITE 6, 100 MILL POINT ROAD, SOUTH PERTH, WA, 6151 AUSTRALIA PO BOX 195, SOUTH PERTH, WA, 6951 AUSTRALIA TEL (08) 9474 6166 FAX (08) 9474 6266 ACN 082 140 252
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KORAB RESOURCES LIMITED KORAB HOUSE
www.korab.com.au
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Melrose Gold Mines Limited (MGH) Project Locations
ASX KOR Last price AU¢ 21.5
BERLIN C6S.BE Last price € 0.16
Issued capital 88 million shares
Market capitalisation AU$ 19 million € 14 million
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Darlot East Project – potential for structurally controlled deposit formed synchronously with the 3 million ounces Darlot deposit and mine
LEVEL 1, SUITE 6, 100 MILL POINT ROAD, SOUTH PERTH, WA, 6151 AUSTRALIA PO BOX 195, SOUTH PERTH, WA, 6951 AUSTRALIA TEL (08) 9474 6166 FAX (08) 9474 6266 ACN 082 140 252
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ASX KOR Last price AU¢ 21.5
BERLIN C6S.BE Last price € 0.16
Issued capital 88 million shares Market capitalisation AU$ 19 million € 14 million
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KORAB RESOURCES LIMITED KORAB HOUSE
www.korab.com.au
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Melrose and Wonganoo Projects: 340,000 ounces in measured, indicated and inferred resources, at Bungarra and Boundary deposits. Deposits open along strike and at depth. Large scale gold anomalies at Boundary North, Hurleys, Freemans, Eclipse and Red Cloud (previously explored by shallow drilling) which will be drill tested immediately following the IPO.
LEVEL 1, SUITE 6, 100 MILL POINT ROAD, SOUTH PERTH, WA, 6151 AUSTRALIA PO BOX 195, SOUTH PERTH, WA, 6951 AUSTRALIA
TEL (08) 9474 6166 FAX (08) 9474 6266 ACN 082 140 252
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ASX KOR Last price AU¢ 21.5
BERLIN C6S.BE Last price € 0.16
Issued capital 88 million shares Market capitalisation AU$ 19 million € 14 million
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KORAB RESOURCES LIMITED KORAB HOUSE
www.korab.com.au
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Ashburton Downs Project – Porphyry gold exploration targets associated with hydrothermal activity.
LEVEL 1, SUITE 6, 100 MILL POINT ROAD, SOUTH PERTH, WA, 6151 AUSTRALIA PO BOX 195, SOUTH PERTH, WA, 6951 AUSTRALIA TEL (08) 9474 6166 FAX (08) 9474 6266 ACN 082 140 252
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KORAB RESOURCES LIMITED
KORAB HOUSE LEVEL 1, SUITE 6, 100 MILL POINT ROAD, SOUTH PERTH WA 6151
PO BOX 195 SOUTH PERTH WA 6951 AUSTRALIA, Tel (08) 9474 6166 Fax (08) 9474 6266 www.korabresources.com.au ACN 082 140 252
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AAA BBB CCC LIMITED DDDDDDD A/C PO BOX 9999 ANYTOWN NSW 0000
Priority Offer Entitlement No.: SAMPLE Priority Shares: 7777777 Priority Offer Closing Date: 27 May 2011
Dear Shareholder,
I am pleased to confirm your Priority Entitlement to participate in the Initial Public Offer (the “Offer”) of Shares to be issued by Melrose Gold Mines Limited (the “Company”) under the Prospectus dated 21[st] April 2011. Korab Resources has secured Priority Entitlement for Korab Eligible Shareholders who can apply ahead of other applicants.
As a result of this Priority Entitlement there may be a limited opportunity for investors who are not Korab Shareholders to participate in this Offer, depending on the number of Shares applied for by Korab Shareholders.
To take advantage of your Priority Entitlement please use the application form in the Prospectus quoting your Priority Offer Entitlement Number which is shown in the top right corner of this letter together with your Priority Shares.
Electronic version of the Prospectus may be downloaded from Melrose Gold Mines website at www.melrosegold.com.au. You may request printed copy of the Prospectus by calling (08) 9474 6166 or by emailing your details to [email protected].
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Insert your Priority Offer
Entitlement Number here
Insert your Priority
Shares here
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Applications under the Priority Entitlement can only be made with the Priority Offer Entitlement Number, and applicants will need to apply for a minimum of 10,000 Shares. You must complete the Application Form in the same name as your Shareholding in Korab.
The Company reserves the right to reject Applications for less than 10,000 Shares. Priority Offer for Korab Shareholders will close on 27 May 2011, subject to the right of the Company to close the Priority Offer early.
Korab has secured for you electronic funds transfer (EFT) facility which you may use in place of a cheque to pay your Application Monies.
IF YOU WISH TO USE EFT, YOU MUST QUOTE YOUR PRIORITY OFFER ENTITLEMENT NUMBER AS YOUR PAYMENT REFERENCE .
If you use EFT please fax your Application Form together with proof of EFT to: (08) 9474 6266, or email them to [email protected], or mail them to the address shown on the Application Form. Melrose Gold Mines bank account details for EFT are shown at the bottom of this page.
You can apply for as many shares as you wish above your Priority Entitlement. Application which is in excess of your Priority Entitlement will be accepted in full if there are sufficient remaining Shares within the total 24,300,000 Shares allocated to Eligible Korab Shareholders. If there are insufficient remaining Shares, Melrose Gold Mines’ Directors reserve the right to scale back that portion of your application which is in excess of your Priority Entitlement. Any scale back will be on a pro rata basis, but will apply only to that portion of your Application which is in excess of your Priority Entitlement.
INFORMATION ABOUT MELROSE GOLD MINES LTD
Melrose Gold Mines was spun-off from Korab Resources in 2010. It is a Western Australian based mineral exploration company committed to exploring and developing quality gold assets. The Company is particularly focused on developing its Melrose Project which contains gold mineral resources (340,000 ounces in inferred, indicated and measured categories) compliant with the JORC code. The Company’s objectives include building upon the known JORC resources contained at the Melrose Project and to advance them towards production rapidly.
Melrose Gold Mines is also focused on exploring other projects which are located in the Yandal Greenstone Belt, Gascoyne and Ashburton regions of Western Australia and the Pine Creek region in the Northern Territory. These include projects at Melrose, Wanganoo, Darlot East, Ashburton Downs, Capricorn, Gascoyne (Western Australia), Batchelor and Green Alligator (the Northern Territory).
Melrose Gold Mines offers investors a well-rounded opportunity to invest in a company with quality gold exploration projects offering a strong blend of corporate and exploration skills and experience.
Please study the Prospectus carefully and seek professional advice, if necessary, to make an informed decision.
Yours faithfully
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Bank: NAB Limited Account Name: Melrose Gold Mines Share Issue Account BSB: 086-006 Account Number: 17712-2484 Reference Number: SAMPLE
Andrej K. Karpinski Executive Chairman 9 May 2011