CMR 0.00% 15.0¢ compass resources limited

intraday view, page-3

  1. 1,774 Posts.
    COMPASS RESOURCES NL
    ABN 51 010 536 820
    8 October 2007
    Compass to Maintain Multi-commodity Growth Strategy
    The Board of Compass Resources NL has determined that shareholders' interests are best
    served by continuing with a multi-commodity approach to wealth creation.
    Base metals assets and Uranium assets will be developed together within Compass. Key
    factors in reaching this conclusion were:
     The base metals sulphides and uranium assets in the NT occur either in close proximity
    or, in some cases such as Browns East, they are intimately mixed and hence an
    integrated approach to mining and processing will be essential to efficient production.
     The mining and process engineering and the construction of the facilities to produce
    base metals and uranium from the Compass tenements in the NT will require a unified
    approach under a single owner’s team and mostly likely with a single engineering
    company providing Engineering and Construction Management services.
     Staffing one rapidly growing mining company is a challenge in the current environment
    with almost all executive, management, construction, maintenance and operations
    skills very much at a premium.
     The cost of separation of the assets into two independently listed vehicles would be
    several million dollars and this money is better spent on the development of our
    uranium assets within a rapidly growing multi-commodity company.
    This decision is fully supported by the team that our Managing Director has been putting
    in place to ensure world-class feasibility assessment, engineering, construction and
    operation of both the base metals sulphide project and our uranium projects. This team
    also supports the Browns Oxide Project management completing the construction and
    commissioning of the Oxide Project, which will generate significant cash flow for
    shareholders.
    A significant and dedicated geological and “Brown Fields” exploration team will be
    maintained within Compass to continue adding to our assets in the NT and to evaluate
    new accretive opportunities as they arise.
    However it is intended, as previously announced, that grass roots exploration properties in
    NSW and in Peru will be separately listed in a new ASX vehicle. Further details of this plan
    will be announced soon.
    For further information contact:
    Philip Cohen (Company Secretary)
    Phone: + 61 (0) 2 9417 3588
    Fax: + 61 (0) 2 9417 8750
 
watchlist Created with Sketch. Add CMR (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.