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STREAMPLAY STUDIO LIMITED Capital/Financing Update 2004
65841_rns_2004-11-30_7bf469e9-5c12-4e03-b3fd-64f3efbc6865.pdf
Capital/Financing Update
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Suite 34, 18 Stirling Highway, Nedlands WA 6009 PO Box 352, Nedlands WA 6909, Australia A.C.N. 004 766 376 Tel: (08) 9389 8611 Fax: (08) 9389 8612 [email protected] www.gippslanditd.com
Regulatory News Service
London EC2 1HP
United Kinadom
London Stock Exchange Limited
1 December 2004
Pages: 2
Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street SYDNEY NSW 2000
Dear Sir / Madam
PLACEMENT - RAB CAPITAL
The Directors of Gippsland Limited ("Gippsland" or "the Company") are pleased to announce that its UK broker HB-corporate has placed 20 million new shares on behalf of the Company with RAB Special Situations LP, a fund managed by UK-based investment management company RAB Capital plc ("RAB Capital").
The new shares were placed at a price of 3 pence each to raise $£600,000$ (equivalent to approximately A$1.44* million). Following the placement, the new shares represent 12.54% of the Company's 159,528,359 shares on issue.
Additionally, RAB Special Situations LP has been granted 10 million unlisted Options having an exercise price of 4 pence each and an expiry date of 31 December 2007.
The Directors believe that the Company's ability to attract RAB Capital as a cornerstone shareholder has been greatly aided by the recent completion of the 2Mtpa Abu Dabbab Bankable Feasibility Study the results of which Gippsland released to the market on 3 November 2004 and which may be summarised as follows:
- Gross sales revenue in excess of US$500 million over the initial 13 years of its estimated 20-year mine life (based upon tantalum and tin sales alone - feldspar sales revenue excluded)
- Net free cash flow of US$127 million over the initial 13 years of an estimated 20-year mine life
- ♦ IRR 17.4% on all equity basis
- ◆ IRR 29% on basis 80% debt & 20% equity
- ♦ Capital Expenditure US$80.5 million
- $\div$ Capital repayment period 4.5 years
The BFS determined that the project will produce in excess of 650,000 pounds of tantalum pentoxide ("Ta2O5") per year which the Directors recognise will firmly establish the operation as the world's second largest tantalum producer. The project will also produce approximately 2,220 tonnes of tin metal per year.
The Company has to date entered into tantalum off-take heads of agreements for a total of 420,000 pounds of Ta2O5 per year over a 4-year period. Negotiations are presently under way to enter into similar agreements for the balance of $Ta_2O_5$ production.
The Company is currently in negotiation with a number of leading banks in relation to project finance for an estimated start up date of April/May 2006.
The Directors are confident that as a result of the project's zero revenue tax regime and low labour costs together with a diesel fuel cost of approximately US$0.09/litre, Abu Dabbab will set a new global benchmark for tantalum production costs and that the combined Abu Dabbab-Nuweibi resource base of 138Mt will ensure that the benefit of low cost of production will accrue over a mine-life of several decades.
Yours faithfully
respect
R J (Jack) Telford Executive Chairman
For further information please contact:
Jack Telford Gippsland Limited Tel: +61 (0)8 93898611 [email protected] www.gippslandItd.com
$*$ £1.00 = A$2.40
Leesa Peters / Laurence Read Conduit PR Tel: +44 (0)20 7936 9095 [email protected] [email protected]
Bill Sharp / Les Polden HB-corporate Tel: +44 (0)20 7510 8560/8576 [email protected] [email protected]
Note:
In accordance with Listing Rule 5.10 of the Australian Stock Exchange Limited, the geological information in this report that relates to mineral resources and ore reserves is based on information compiled by Gippsland Director Dr John Chisholm, who is a Fellow of the Australasian Institute of Mining and Metallurgy, with over 25 years experience in the mining industry