www.carpentariaex.com.au
Carpentaria Exploration (ASX: CAP) is an exploration company focused on discovering base, precious metals and bulk commodities in eastern Australia. The company currently has interests in iron ore, tin, gold, copper and coal exploration projects. Discoveries to date include: Hawsons Iron Project - NSW and the Euriowie Tin Project - NSW.
Carpentaria Exploration flush with A$20m cash, shrugs off takeover offer
Having shrugged off a non-binding, indicative and conditional takeover offer, Carpentaria Exploration (ASX: CAP) has banked the final $2 million Stage 1 payment from venture partner Bonython Metals Group as part of the $81m Hawsons Iron Project joint venture near Broken Hill, New South Wales.
Given the company's exploration success and cash injection, Carpentaria has reported an almost full take up of all the Carpentaria Options that fell due on June 30th, 2010, realizing $6,204,000.00. This boosts Carpentaria’s cash reserves to $20.1M.
Carpentaria has now received $13 million from BMG, comprising $5 million in cash and the remainder funding exploration and pre-feasibility work aimed at defining up to 1 billion tones of Inferred Resource at EL 7208 (Burta).
Nick Sheard, Carpentaria’s executive chairman, said he welcomed BMG’s commitment to the JV as shown by their financial backing and was very pleased with the take up of the options.
This gives Carpentaria the financial resources to maintain a strong exploration program and seek more mature opportunities.
“Carpentaria is excited by the potential for the Hawsons Iron Project and is determined to quickly move the project towards pre-feasibility status, backed by the latest funding from our joint venture partner."
"Assuming a positive pre-feasibility outcome, which is anticipated early next year, the project will move to Stage 2 in which case BMG will pay Carpentaria an additional $25 million to vest 51% in the project,” Sheard said.
“Ultimately, Carpentaria will retain a 20% free carried interest up to the targeted production of 20 million tons per annum of iron ore concentrate, giving shareholders a low-cost entry to a producing iron ore mine.”
He said the latest payment from BMG and the option take up payment would be used to boost exploration at the company’s other attractive projects in eastern Australia, including drilling at the Euriowie tin project (100% CAP) and Panama Hat JV gold project in August, and also at the Combaning gold/nickel project (100% CAP).
Drilling is continuing at the Hughenden Coal Project in Queensland with promising initial results, while drilling is set to start in late August at the Glen Isla gold joint venture.
“Carpentaria’s aggressive exploration program has already achieved two discoveries, Hawsons and Euriowie, and we are confident of adding to our promising project pipeline."
"With $9 million committed towards exploration this calendar year and additional funding anticipated from BMG at Hawsons, Carpentaria has the necessary financial and geotechnical resources to achieve further success and make the transition from minerals explorer to mining house,” Sheard added.
At the Hawsons Iron Project two Reverse Circulation rigs and one diamond rig are operating on the Burta JV, as part of the 4,000 metre drilling program planned in the initial phase.
The Hawsons Iron Project is also potentially the State’s biggest discovery of magnetite iron. The magnetite occurs in a siltstone and is very soft, allowing for low-cost mining and crushing in a favorable location for infrastructure just 60 kilometers from Broken Hill.
Carpentaria said these results will be announced at the completion of the program and when assay and analysis results are obtained.
