29 September 2004
Letter to Shareholders
Dear Shareholder
NOTICE OF MEETING
You will have received recently a purported Notice of General Meeting to be held on 18 October 2004. The notice has been sent by a Mr C Patterson on behalf of a small number of individual shareholders, not the Company.
Given the number of shareholder meetings that have been called recently, your company, as a matter of prudence has taken legal advice as to the validity of the meeting. We have been advised that the meeting has been invalidly convened. We will write to you shortly with further details concerning this, but for the moment urge you to TAKE NO ACTION in response to the Notice of General Meeting pending clarification as to whether the meeting will in fact be held.
$2.3 million Received from Recent Capital Raisings, Drilling Continues
Your company has raised approximately $2,300,000 from the public share offer that closed on 20
September 2004, the Share Purchase Plan and a recent placement of shares. These offers received a wide level of support from shareholders, which is a welcome vote of confidence as we approach the final stages of our current drilling programme.
We now have the funds necessary to continue to pursue our business plan.
Essentially this involves a standard mining industry process of exploration drilling, completion of a feasibility study, followed by financing, construction and ultimately gold production.
The Board is committed to moving things forward on this path so as to generate cash as quickly as possible. Our immediate focus is to accelerate our 10,000 metre drilling programme, which is more than half completed.
The satisfactory progress of this work greatly strengthens our position in negotiating with financial institutions regarding the orderly retirement of outstanding debt, as outlined in the Company’s public offer Prospectus dated 9 September 2004, and procuring finance for plant construction and project development.
Exploration and Fiji Update
We enclose for your information (also available on our website at www.burdekinpacific.com.au):
(i) a copy of a research report prepared by RM Research Pty Ltd. While commissioned by your
company, the study was carried out by a reputable and professional firm and provides a concise update and an external view of our latest exploration activities at Mt Kasi.
(ii) a recent editorial and two articles from Fiji’s leading newspaper, the Fiji Times, which underline the importance of our project to the Fijian economy. A follow up article from the West Australian newspaper is also enclosed.
Doing business in Fiji means that all exploration and mining must be carried out in an environmentally sensitive and responsible manner. Our project development team has to carefully balance the commercial objective of fast tracking operations with the need to observe local and regional environmental sensitivities.
Short cuts are not an option. The editorial suggests they are doing a fine job in this respect.
Your Board is confident the project is advancing well, at a realistically achievable pace given the environmental sensitivities, and is on track to commence the bankable feasibility study by the end of 2004. If you have any query on the project or progress of our company in general, you are welcome to ring me or my fellow director Susan Field on 08 9322 6045.
Yours sincerely
Jerome G Vitale
Director and Chief Executive
Constructive comments & discussion please.
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burdekin pacific limited
