|
Miranda raises R20.7 million to develop coal exploration projects |
|
|
|
Written by JSE SENS Department
|
|
Monday, 28 January 2008 |
Miranda today announces that is has raised an additional R20.7 million via the successful placing of 28,000,000 ordinary shares, equating to 14.96% of the company’s issued share capital. The placement was approved by the requisite majority of shareholders at the AGM held on 23 January 2007. The placed shares, which rank pari passu with the existing ordinary shares were placed at an issue price of R0.74 and represents 9.0% discount to the 30 day volume weighted price of R0.8132 per ordinary share as at 4 December 2007. The shares will be listed on the JSE with effect 28 January 2008.
Alan Thompson, Chairman of Miranda commented, “We were delighted with the overwhelming response from the market for the placing which was 2.8x over subscribed. The raised funds will be used to develop coal exploration properties which will enable us to consolidate our coal position in the Northern Kwazulu-Natal area”.
The Department of Minerals and Energy have recently granted Prospecting Rights for four projects which include:
Farm Yarl 2962, spans 1,215 hectares and is situated within the southern part of the Klip River coal fields of KZN, 8km north of Dannhauser. Two economic Seams have been identified according to existing geological data from the Council for Geosciences. The Top Seam and Bottom Seam, continuous over the entire project area are separated by coarse grained sandstone, with spacing between the seams ranging from 15m to 18m. The seams have an average thickness of 1.1m increasing to 2.8m in places.
High value Anthracitic and Bituminous coal appear in both the Top and Bottom Seams Preliminary indications reveal that the resource could be classified in terms of the SAMREC code as “inferred resources” with total in-situ tons of 16.9 million tons.
More drilling and analytical data is required to clearly define the interface between the two ranks of coal and to upgrade the resource.
Farm Uithoek falls within the southern part of the Klip River coal fields and is situated 3km south of the town Glencoe. Top and Bottom Seams have been identified, which are separated by a thin layer of coarse grained pebbly, cross bedded, thinning upwards to shale at the top. Of the 74 boreholes drilled 68 have quality data on which the current resource statement has been based. The Top Seam was intersected by 42 boreholes and the Bottom Seam by a total of 30. The Bottom Seam is semi-Anthracite, with a Fixed Carbon above 70%, while the Top Seam is a Bituminous coal with high Calorific Values (+/- 29.6%) and low ash contents.
The resource may be divided into an open pit and underground area for both seams. Preliminary indications reveal that the resource could be classified in terms of the SAMREC code as “measured resource” with total in-situ tons of 3.7 million tons.
Alan Thompson noted, “We have reports indicating that additional drilling could extend the size of the resource to over 11 million tons”.
Street Spirit Trading (Pty) Ltd - the Prospecting Permit issued by the DME covers three contiguous properties, including Burnside 3287, which borders Uithoek and the two farms Izemfene 9146A and Izemfene 8802B. The geology of the area is very similar to that of Uithoek. According to data received from the Council for Geosciences, a total of 78 bore holes have been bored, the majority of which have quality data. The Top Seam was intersected by 32 boreholes and the Bottom Seam by 54. The Bottom Seam consists of a soft to hard coking coal with a Fixed Carbon above 70%, whilst the Top Seam is a Bituminous coal with high Calorific Values (28.4%) and low ash content. Indications are that the borehole data could classify the resource as an indicated resource as per the current SAMREC classification for multi-seams deposits with a total 59.9 million tons in situ. PC Meyer: Pr Scie. Nat
The planned prospecting program could upgrade the resource to that of a “measured resource”.
Point Blank Trading (Pty) Ltd - Farm Lereydale is situated in the district of Dannhauser and borders on the farm Yarl. Initial informal estimates indicate approximately 20 million tons of coal. Management is currently reviewing the geological data to obtain a more accurate estimate of the quality and quantity of the resource.
Only boreholes with quality data were allowed to contribute to the resource estimate Indications reveal that the density of the borehole data is sufficient to classify the resource as an “indicated resource” as per the current SAMREC classification for multi seam deposits, with a total of 59.9 million tons in-situ
The board is in possession of extensive existing geological data on the above properties and plans additional exploration activities to confirm and, where possible, extend these results.
Alan Thompson noted that, “The planned prospecting activities on these properties represent an exciting juncture for Miranda. With our current issued permits and those accepted by the DME, we have the exploration potential of about 200 million tonnes.
We are confident that we can create significant value for shareholders from our current asset
base.”
ENDS
ISSUED BY: FDBeachhead
Louise Brugman
(011) 214 2415/ 083 504 1186/
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
ON BEHALF OF: Miranda Minerals
Chairman: Alan Thompson
Corporate Advisor: Qinisele Resources
Dennis Tucker
(011) 469 4613 / 082 492 4957
Notes to editors
Miranda is a mineral exploration company that enters in to a JV agreement with a potential mining partner to conduct exploration and feasibility on a particular resource (over which Miranda typically will hold a prospecting permit) with a view to upgrading its mineral status to that of either a measured resource, or a probable or proved reserve. On completion of the exploration program, the JV partner will have the exclusive right to mine the project and Miranda will earn a "JV fee" based on an ongoing turnover/ profit percentage or rand amount per ton mined by the JV mining partner. |
|
Last Updated ( Monday, 05 May 2008 )
|
