Tasmanian Assets to be Spun Off and Listed as TNT Mines Limited
Companies:Minemakers LtdMinemakers Ltd
Symbol Price Change
MAK.AX 0.59 +0.01
Follow these stocks
Press Release Source: Minemakers Limited On Tuesday December 14, 2010, 9:35 am EST
TORONTO, ONTARIO--(Marketwire - Dec. 14, 2010) - Minemakers Limited (TSX:MAK - News; ASX:MAK - News; NSX:MMS) -
-- Tin, tungsten and fluorspar are at near record prices
-- Minemakers' tenure includes all the major hard rock tin and tungsten
mining centres in North East Tasmania - Australia's most productive
historic tin and tungsten field
-- Its Moina project holds a large undeveloped fluorspar deposit and is
associated with tin, tungsten, bismuth and magnetite
-- Minemakers will spin-off these assets as TNT Mines Limited ("TNT") in an
IPO aimed to raise $10M
-- There will be an in specie distribution of TNT shares to Minemakers'
shareholders and they will enjoy a preferred position in applications
for new shares in the IPO
Minemakers, via its wholly owned subsidiary, Minemakers TTT Pty Ltd, wholly owns mineral tenements covering all major historic hard rock producing tin and tungsten centres of North East Tasmania. The subsidiary company is to be re-named TNT Limited and the tenements contain:
-- The major historic tin and tungsten mines of Aberfoyle and Storey's
-- The Lutwyche tin/tungsten deposit
-- The Anchor tin mine
-- The Royal George tin mine
-- The Great Pyramid tin deposit
-- Various exploration targets based on outcropping mineralization and
To view the Aberfoyle and Storey's Creek Map, please visit the following link: http://media3.marketwire.com/docs/AberfoyleStoreyCreekMap.pdf.
The wholly owned subsidiary, Minemakers (Moina) Pty Ltd has an option to acquire an initial 80% of the tenement containing the Moina fluorspar and polymetallic deposit. TNT Limited will acquire Minemakers (Moina) Pty Ltd and its assets
A recognised fluorspar consultant has advised his opinion that Moina is the largest undeveloped fluorspar deposit known in the world, as previously reported to the ASX.
To view the Moina Map, please visit the following link: http://media3.marketwire.com/docs/Moina_Map.pdf.
Further details on historic production and valuation of the projects can be found on the Minemakers website www.minemakers.com.au. Refer to Investor Centre, Company Reports, 2006 IPO Prospectus.
COMMODITY PRICE TRENDS
Tin and tungsten price trends are shown in the following graphs:
At about $290/t FOB, fluorspar price has been increasing strongly.
The current intention is to seek a listing for TNT on the ASX and to raise $10M in an IPO. There will be an in specie distribution of about 40% of the intended shares in TNT to shareholders of Minemakers, and this is likely to be on an approximately 1 for 5 basis and involve about 50 million shares. Current Minemakers shareholders will also be given a priority in application for new TNT shares. The remaining 20% of shares upon listing will be held by Minemakers.
Intersuisse will be lead broker to the issue.
Board composition is as follows:
- Professor Ian Plimer: Chairman
- TBA Managing Director
- Andrew Drummond: Non-Executive Director
- Neville Bergin: Non-Executive Director
- Michael Beer: Non-Executive Director
Ian Plimer is Professor of Mining Geology at the University of Adelaide, Emeritus Professor of Earth Sciences at the University of Melbourne, was a director of CBH Resources Ltd (1998 - 2010) and is a non executive director of Ivanhoe Australia Ltd, Ormil Energy Ltd (ASX:OMX - News) and Kefi Minerals plc (AIM:KEFI). He has worked on tin-tungsten exploration with North Broken Hill Ltd and published numerous scientific papers on Sn-W deposits.
Michael Beer has a financial and commercial background and is a Senior Consultant to Phillip Capital Pty Ltd, the corporate arm of Intersuisse stockbrokers. He was formerly the Managing Director of Range River Gold NL.
Neville Bergin is General Manager Projects Development for Minemakers and Andrew Drummond is Managing Director of that Company.
Initially, financial and administrative management, and exploration, feasibility and pre-development technical input will be provided by Minemakers' staff so as to reduce overhead costs for TNT.
It is intended to be in a position to seek a listing of TNT in the first quarter of 2011 and Minemakers' shareholders will be regularly informed of progress.
Minemakers' Managing Director, Andrew Drummond stated "We have been looking for some time to unlock value for our shareholders in some of our non-phosphate assets, which tend to be overshadowed by the magnitude of our phosphate resources and potential. The spin-off is intended to allow shareholders to gain a more direct exposure to the very exciting tin, tungsten and fluorspar sectors."
Andrew Drummond, Managing Director
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Andrew Drummond, who is Managing Director of the Company and a Fellow of The Australian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Drummond has sufficient experience deemed 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'. Mr Drummond consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The potential quantities and grades disclosed in this release are conceptual in nature, there has been insufficient drilling to define an enlarged Mineral Resource, and it is uncertain if further exploration will result in the determination of an enlarged Mineral Resource.
ABN 48 116 296 541
Mr Andrew Drummond
+61 8 9264 7000
+61 8 9264 7099 (FAX)
Mr Dean Richardson
Investor Relations Manager
+61 8 9264 7000
+61 8 9264 7099 (FAX)
Mr Ian Howarth
Collins Street Media
0407 822 319