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VERITY RESOURCES LIMITED — Interim / Quarterly Report 2013
Jul 17, 2013
66020_rns_2013-07-17_dfaef4ea-a040-410c-a25a-ac944440b1bc.pdf
Interim / Quarterly Report
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ASX
CODE:
BML
==> picture [215 x 62] intentionally omitted <==
**TO: COMPANY
ANNOUNCEMENTS
OFFICE ASX
LIMITED**
**DATE:
17
JULY
2013**
QUARTERLY REPORT TO 30 JUNE 2013
**Cash
at
Bank
as
at
30
June
2013
is
$181,000**
An
Appendix
5B
is
attached.
**Summary
of
Activities**
-
Non-‐Renounceable
Rights
Issue
Prospectus
was
dispatched
to
eligible
shareholders. -
Subscriptions
by
shareholders
totaled
$43,126
with
a
shortfall
of
$709,415.00
from the
Issue. -
The
Board
is
now
reviewing
funding
options
and
implementing
a
cost
and
operations review
immediately. -
**Despite
communications
by
BML
with
the
Department
of
Mines
(“DOM”)
and requests
for
a
status
update,
no
formal
advice
from
the
DOM
was
received
during the
quarter
with
respect
to
the
approval
or
otherwise
of
the
Company’s
Retention Licence
applications
(
over
former
Prospecting
Licences
(PLs)
110/94,
111/94
and 54/98).**
-
The
granting
of
the
Retention
Licences
over
areas
of
these
three
PLs
is
a
condition precedent
for
the
commencement
of
the
Farm-‐In
Joint
Venture
Agreement
with
BCL Limited
of
Botswana
(as
previously
advised
to
the
ASX). -
The
Department
of
Geological
Survey
formally
advised
BML
that
it
has
rejected
the (FIRST
TERM)
renewal
application
for
PL158/2009
Lepokole
and
PL360/2008 Mmadinare
during
the
quarter. -
Mapping
and
soil
sampling
was
completed
on
PL’s
59/2008
Shashe
South.
Details:
**Rights
Issue
and
Funding**
During
June
2013
a
Non-‐renounceable
Rights
Issue
prospectus
was
sent
to
eligible shareholders.
On
15
July
2013
the
Company
notified
the
ASX
that
4,312,642
shares
were subscribed
for
at
1
cents
raising
$43,126.
The
shortfall
was
70,941,485
shares.
**Retention
Licences
for
areas
over
PLs
110/94,
111/94
and
54/98**
During
the
quarter,
members
of
the
BML
Board
and
local
BML
management
visited
the Department
of
Mines
(“DOM”)
for
an
update
on
the
status
of
the
Company’s
applications
for Retention
Licences
over
the
area
covered
by
former
PLs
110/94,
PL111/94
and
PL54/98.
The
- See
chapter
19
for
defined
terms.
17/12/2010
Appendix
5B
Page
1
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**ASX
CODE:
BML**
approval
of
the
Licences
is
a
condition
precedent
to
the
commencement
of
a
Farm-‐In
Joint Venture
with
BCL
Limited
of
Botswana.
Despite
our
visit
and
subsequent
correspondence
to
the
DOM,
no
formal
advice
has
been received
as
at
the
end
of
the
June
2013
quarter.
Verbally
the
DOM
has
advised
that
it
is
still reviewing
the
licence
applications.
If
these
Retention
Licences
are
granted,
BCL
Limited,
under
the
joint
venture
agreement,
will spend
an
initial
US$4
million
on
a
drilling
program
to
earn
40%
of
the
projects
over
these areas.
BCL
has
the
option
to
continue
to
fund
the
projects
to
the
completion
of
a
Bankable
Feasibility Study
(“BFS”)
to
earn
a
70%
interest.
At
that
point
BCL
will
have
the
off-‐take
rights
at
commercial
prices,
to
any
ore
mined.
It
is planned
to
truck
ore
to
the
BCL
smelter
operations
at
Selebi
Phikwe
for
processing,
which
is situated
55km
to
the
southwest
of
our
project.
BML
will
retain
a
30%
interest
after
the
BFS
is
completed,
at
which
time
the
management
of the
projects
will
be
transferred
to
BCL.
**EXPLORATION
ACTIVITIES
BY
Prospecting
Licence
(PL)
in
the
March
2013
quarter.**
PL59/2008
During
the
quarter
BML
completed
a
ground
soil
geochemical
sampling
program
over
PL 59/2008.
Our
consultant
Geologist,
Mr.
Peter
Temby,
prepared
a
summary
report
of
activities
and history
on
this
PL
which
was
lodged
with
the
Department
of
mines
as
part
of
the
Company’s Licence
renewal
application.
**EXPLORATION
PL59/2008**
1.Introduction.
PL59/2008
was
granted
to
Botswana
Metals
Limited
on
the
1[st] January
2008.
The
tenement
is strategically
in
place
to
exploit
the
north
east
extension
of
Maibele
North
Ni-‐Cu-‐PGM
prospect and
the
northerly
anomalies
identified
on
PL46/2004.
Location
of
the
tenement
is
shown
in figure
1.
- See
chapter
19
for
defined
terms.
17/12/2010
Appendix
5B
Page
2
ASX
CODE:
BML This
report
summarises
work
carried
out
on
the
tenement
to
30[th] June
2013.
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- See
chapter
19
for
defined
terms.
17/12/2010
Appendix
5B
Page
3
ASX
CODE:
BML
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**2.
Exploration** .
Previous
work
includes
a
stream
sediment
geochemical
program
carried
out
by
Clutha-‐MHB
JV in
1989,
Tau
imagery
of
the
Geotem
survey
and
further
soil
sampling
carried
out
by
A-‐Cap
from 1990.
The
Maibele
NE
extension
was
confirmed
by
VTEM
survey
carried
out
by
BML
early 2011.
Preliminary
mapping
was
also
carried
out
on
satellite
imagery
which
clearly
showed
the
strike extensions
of
the
Maibele
North
host
amphibolite-‐ultramafics
suite
to
the
NE
into
PL59/2008.
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Figure
3.
Amphibolite
belts
along
strike
of
Maibele
North
on
PL59/2008
WORK COMPLETED TO 30[TH] JUNE 2013
In
2012-‐13
work
carried
out
over
PL59/2008
included
mapping
of
an
area
interpreted
to
be
an extension
of
the
Maibele
North
host
sequence
to
the
Ni-‐Cu
mineralisation
(see
Figure
4).
Soil sampling
was
also
carried
out
over
parts
of
this
extension.
Soils
were
analysed
by
hand
held
Innovex
portable
XRF
machine
which
produce
semi-‐ quantitative
results
that
are
adequate
to
pick
up
anomalous
responses
associated
with mineralisation.
Plots
and
intrepretation
of
the
copper,
nickel,
zinc,
lead
and
iron
responses
in the
soils
are
shown
in
Figures
5-‐9
- See
chapter
19
for
defined
terms.
17/12/2010
Appendix
5B
Page
4
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**ASX
CODE:
BML**
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----- Start of picture text -----
.
----- End of picture text -----
Figure
4.
Geological
fact
map
of
the
area
interpreted
to
contain
extensions
to
the
Maibele North
Prospect .
- See
chapter
19
for
defined
terms.
17/12/2010
Appendix
5B
Page
5
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**ASX
CODE:
BML**
==> picture [461 x 675] intentionally omitted <==
- See
chapter
19
for
defined
terms.
17/12/2010
Appendix
5B
Page
6
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**ASX
CODE:
BML**
==> picture [460 x 431] intentionally omitted <==
- See
chapter
19
for
defined
terms.
17/12/2010
Appendix
5B
Page
7
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**ASX
CODE:
BML**
TENEMENT
UPDATE:
The
current
status
of
licence
applications
as
at
30
June
2013
is
as
follows:
-
The
Department
of
Mines
is
yet
to
advise
BML
whether
its
Retention
Licence applications
over
areas
within
PL110/94,
PL111/94
and
PL54/98
(all
of
which
expired as
PLs
on
31
December
2012)
have
been
granted. -
The
Company
received
formal
advice
from
the
Ministry
of
Minerals,
Energy
and
Water Resources
in
Botswana
that
the
first
renewal
applications
for
PL360/2008
and PL158/2009
were
not
granted.
BML
delivered
a
letter
to
the
Ministry
during
the quarter
to
object
against
the
decision
on
the
basis
that
it
had
met
the
funding requirements
and
the
work
program
as
proposed
in
BML’s
application
for
the
licence, with
the
exception
that
no
drilling
had
been
carried
out
because
no
target
had
been defined
during
the
first
phase
of
exploration.
BML
believes
the
licences
should
be renewed
as
actual
exploration
expenditure
was
in
excess
of
that
proposed
in
the application. -
In
June
2013,
the
company
lodged
with
the
Department
of
Mines
a
second
renewal application
for
PL59/2008
Shashe
South
and
PL70/2008
Central.
**Pat
Volpe Chairman**
Contact
Details: +61
3
9830
7676 Registered
Office: Suite
5.
Level
1, 310
Whitehorse
Road, Balwyn,
Victoria,
3103 ABN
96
122
995
073
**Competent
Persons
Statement**
The
information
in
this
report
that
relates
to
Exploration
Results
is
based
on
information compiled
or
reviewed
by
Mr
Peter
Temby,
a
member
of
The
Australian
Institute
of Geoscientists.
Mr
Temby
has
sufficient
experience
that
is
relevant
to
the
style
of
mineralisation
and
type
of
deposit under
consideration
and
to
the
activities
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.
Mr
Temby
consents
to
the
inclusion
in
this
report
of
matters
based
on his
information
in
the
form
and
context
in
which
it
appears.
- See
chapter
19
for
defined
terms.
17/12/2010
Appendix
5B
Page
8
ASX
CODE:
BML
==> picture [215 x 62] intentionally omitted <==
**About
Botswana
Metals
Limited**
Botswana
Metals
Limited
is
listed
on
the
Australian
Securities
Exchange
(ASX)
and
its
stock
code
(ticker) is
BML.
BML
is
a
mineral
exploration
company
fully
focused
on
its
portfolio
of
exploration
tenements covering
approximately
2,300
sq.
km
all
located
in
Botswana.
BML’s
objective
is
to
discover
an
economic
base
and
precious
metals
resource
in
eastern
Botswana
on the
well-‐known
Limpopo
Belt
which
extends
into
Botswana
from
its
neighbouring
country
Zimbabwe.
Recent
exploration
has
resulted
in
three
discoveries
for
Nickel-‐Copper
and
Copper-‐Silver
known
as Airstrip
Copper,
Maibele
North
and
Dibete.
The
Ni-‐Cu
deposit
at
Maibele
North
is
just
east
of
Airstrip Copper
whilst
Dibete
is
7
km
to
the
south
of
Airstrip
Copper.
To
the
east
of
these
discoveries,
a
recent
VTEM
program
has
identified
at
least
23
new
anomalies
that are
planned
to
be
part
of
the
company’s
exploration
focus
in
2013.
BML
has
solid
logistical
support
and
the
projects
benefit
from
excellent
infrastructure.
The
Company
is managed
by
experienced
personnel
who
have
many
years’
experience
in
Botswana
as
well
as
other African
countries.
Botswana
is
considered
to
be
one
of
the
most
advanced
African
countries
in
respect to
its
mining
and
exploration
laws,
and
for
safety
and
education
where
English
is
spoken
freely.
BML
has
offices
in
Australia
(Melbourne)
and
Botswana
(at
Francistown
and
Tobane).
**About
BCL
Limited**
BCL
Limited
(“BCL”)
is
a
mining
and
smelting
company
owned
by
the
Botswana
Government
(94%)
and Norilsk
Nickel
(6%).
The
company
commenced
operations
in
1959
and
is
now
one
of
the
largest
private sector
employers
in
Botswana.
BCL
produces
two
types
of
finished
matte
containing
nickel,
copper
and
cobalt,
and
precious
and platinum
group
metals
to
a
smaller
extent.
The
Selebi
Phikwe
ore
deposits
are
owned
and
operated
by
BCL
Limited.
The
Selebi
copper
and
nickel orebody
was
discovered
in
1963,
and
higher
grade
ore
was
discovered
at
Phikwe
in
1966.
Mining
of nickel-‐copper
ore
commenced
in
1973
and
since
1980,
BCL’s
smelter
has
operated
at
an
annual production
rate
of
approximately
50,000
tonnes
of
nickel-‐copper
matte.
- See
chapter
19
for
defined
terms.
17/12/2010
Appendix
5B
Page
9
ASX
CODE:
BML
Rule
5.3
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Appendix 5B
**Mining
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
Name
of
entity
BOTSWANA
METALS
LIMITED
ABN 96
122
995
073
Quarter
ended
(“current
quarter”) 30
JUNE
2013
**Consolidated
statement
of
cash
flows**
| Consolidated statement of cash flows | ||
|---|---|---|
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 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 |
Current quarter $A’000 |
Year to date (3 .months) $A’000 |
| - (50) - - (210) - 3 - - - |
- (396) - - (899) - 15 - - - |
|
(256) |
(1,252) |
|
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities |
- - - - - - - |
- - (5) - - 33 - |
- See
chapter
19
for
defined
terms.
17/12/2010
Appendix
5B
Page
10
| 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward) |
ASX CODE: BML - - - - |
ASX CODE: BML - - - - |
|---|---|---|
- |
28 |
|
| (256) | (1,252) | |
- See
chapter
19
for
defined
terms.
17/12/2010
Appendix
5B
Page
11
| ASX CODE: BML | ASX CODE: BML | |
|---|---|---|
| 1.13 Total operating and investing cash flows (brought forward) |
(256) | (1,252) |
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 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 (provide details if material) Net financing cash flows |
- - - - - - |
(13) - - - - - |
| - | (13) | |
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter |
(256) 434 3 |
(1,265) 1,447 (1) |
| 181 | 181 |
**Payments
to
directors
of
the
entity
and
associates
of
the
directors**
Payments
to
related
entities
of
the
entity
and
associates
of
the
related entities
| entities | |
|---|---|
1.23 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10 |
Current quarter $A'000 |
98 |
|
| - | |
1.25 Explanation necessary for an understanding of the transactions |
- See
chapter
19
for
defined
terms.
17/12/2010
Appendix
5B
Page
12
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**ASX
CODE:
BML**
During
the
quarter
the
following
payments
were
made
to
Directors:
Directors
Fees Mr
M
Cellante
$7,500 Dr
P
Woolrich $7,500 Total
Directors
Fees
$15,000 Consulting
Fees Mr
P
Volpe
$82,500 Total
Directors
Fees $82,500
Superannuation
contributions
totalling
$675
accrued
from
the
prior
quarter
were
also
paid during
the
quarter
on
behalf
of
the
Directors.
**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 -
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
**Financing
facilities
available**
Add
notes
as
necessary
for
an
understanding
of
the
position.
Amount
available Amount
used $A’000 $A’000
- See
chapter
19
for
defined
terms.
17/12/2010
Appendix
5B
Page
13
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**ASX
CODE:
BML**
3.1 Loan
facilities 3.2 Credit
standby arrangements
**Estimated
cash
outflows
for
next
quarter**
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration |
$A’000 |
|---|---|
| 40 | |
| - | |
| - | |
| 85 | |
Total |
125 |
**Reconciliation
of
cash**
| Reconciliation of cash | ||
|---|---|---|
| Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. |
Current quarter $A’000 |
Previous quarter $A’000 |
| 5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (term deposits) |
17 | 8 |
| 111 | 265 | |
| - | - | |
| 53 | 161 | |
Total: cash at end of quarter(item 1.22) |
434 | 434 |
- See
chapter
19
for
defined
terms.
17/12/2010
Appendix
5B
Page
14
Appendix
5B Mining
exploration
entity
quarterly
report
**Changes
in
interests
in
mining
tenements**
6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased |
Tenement reference |
Nature of interest (note (2)) |
Interest at beginning ofquarter |
Interest at end of quarter |
|---|---|---|---|---|
Appendix
5B Mining
exploration
entity
quarterly
report
**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 per security (see note3) (cents) |
Amount paid up per security (see note3) (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 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs |
188,156,882 | 188,156,882 | ||
| 21,564 |
21,564 |
10 cents |
10 cents |
|
| 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 conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter |
- |
- |
Exercise price |
Expiry date |
| - | - | |||
| 21,564 | 21,564 | 10 cents | 10 cents | |
| 116,253,579 | 116,253,579 | 10 cents | 10 cents | |
| 7.11 Debentures (totals only) |
Appendix
5B Mining
exploration
entity
quarterly
report
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
5).
2 This
statement
does
give
a
true
and
fair
view
of
the
matters
disclosed.
==> picture [376 x 183] intentionally omitted <==
----- Start of picture text -----
Sign
here:
.........
..............................
Date:
..
18 [th]
July
2013.........
(Company
secretary)
Print
name:
.......Richard
Baker................................
----- End of picture text -----
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.
Appendix
5B Mining
exploration
entity
quarterly
report
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
6:
Exploration
for
and
Evaluation
of
Mineral Resources and AASB
107:
Statement
of
Cash
Flows apply
to
this
report.
5 Accounting
Standards ASX
will
accept,
for
example,
the
use
of
International
Financial Reporting
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.
==
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