30 june 2007 quarterly report

NEW WORLD ALLOYS LIMITED
ABN 36 060 774 227
989 Wellington Street, West Perth WA 6005
PO Box 403, Victoria Park, 6979, Western Australia
Telephone +61(8) 9322 2744 Facsimile +61(8) 9226 3233
Email [email protected] Website www.newworldalloys.com
30th July 2007
Manager of Company Announcements
Australian Stock Exchange Limited
Level 6, 20 Bridge Street
SYDNEY NSW 2000
By E-Lodgement
QUARTERLY REPORT FOR THE QUARTER ENDED 3oth JUNE 2007
NEW WORLD ALLOYS (ASX: NWA) (the “company”) is pleased to advise shareholders of the following key activities during the quarter.
As reported previously, the Board had been conducting serious negotiations with a London based group over a period of time to enable the Congo operations to be fully funded with suitable plant, a reliable source of ore and coke supply and suitable sales arrangements.
Negotiations resulted in the announcement during the quarter of an agreement being entered into to restructure the Company’s assets in the Democratic Republic of Congo. Under the Agreement, NWA will transfer its interest in two of its subsidiaries, Nova Mining SPRL (Nova) and Macro Mining (Macro) (which in turn owns 80% of Phoenix Resources) for the issue of 166,666,667 shares in the capital of Sino Asia Mining Resources Ltd (SAMR) at a deemed issue price of 2p each (Consideration Shares). Prior to and dependent on settlement of the transfer, SAMR has completed a fund raising of approximately £2,200,000 at 2p. At the completion of that raising and settlement, NWA will hold 55% of SAMR. SAMR intends to change its name to Congo Copper plc and seek admission to the Alternative Investment Market in London (AIM) at which time they may seek to raise a further ₤2,000,000. The proposed pricing of the second fund raising should be higher than 2p and, hopefully, in the region of 10p. NWA’s diluted position in SAMR would then be 52%. At the completion of all raisings, Sino-Asia will still be a subsidiary of NWA and NWA will retain its controlling interest in the operations.
A meeting of NWA shareholders to approve the transaction is set down for 11 am on August 14, 2007 at 129 Edward Street, Perth. We encourage those shareholders who cannot attend to send in their proxies.
SAMR have well placed and experienced contacts in London and will be able to bring to the operations access to the London financial markets as well as mining engineering skills and personnel with widespread African experience. The Board feels that these, combined with the assets and skills the Company has in DRC, will lead to a fulfilment of the Company’s objectives for the furnace business in DRC. Further, as the Government is now enforcing its ban on copper ore being exported across the border in Zambia for processing, the prospects for the Company’s furnace business in DRC has greatly improved.
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Further, the operations in Lubambashi have been operating one furnace on a rental basis over the past month at a rental of US$100,000 per month. The rentor is supplying the ore and is meeting all costs.
BATCHELOR JOINT VENTURE
The Company also announced after the end of the quarter that they had renegotiated their agreement with Korab Resources Ltd and Uranium Australia Pty Ltd over the Batchelor project held by the Company’s subsidiary Savanna Mineral Resources Pty Ltd.
Previously, Korab could earn a 60% interest in the tenements by spending $600,000 over a 4 year period.
Under the amended agreement Korab Resources and Uranium Australia can now acquire a 90% interest in the tenements in consideration of $200,000 in cash and 1.6m Uranium Australia Pty Ltd shares at an issue price of 50 cents each. Korab have advised that their intention is to float Uranium Australia at some time in the not too distant future. Korab will attend to all historical rehabilitation on the tenements. Savanna will be free carried for 10% through to completion of a bankable feasibility study. At that time Savanna will have the option to either contribute to the project on a pro-rata basis, or convert their interest to a 3% net smelter royalty return.
CORPORATE
During the quarter the Company conducted an entitlements issue to all shareholders on the basis of one new share for every share held at the record date at an issue price of one cent each to raise an amount of $2.9m less costs. That issue was fully underwritten and closed on 24 April 2007.
The Board is also pleased to announce that Mr Lindsay Colless, a non-executive director has been appointed Chairman of the Company.
For and on behalf of the Board.
Lindsay A Colless
Chairman.
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