For the history buff1.1.1Overview of OperationsCompany...

For the history buff

1.1.1Overview of Operations
Company Hlstory

Hillgove was incarporated in Victoria in 1952 as Victorian Antimony Mines Limited and adopted its present name ( Hillgrove Gold NL) in 1994. The Company’s operations have been centred around Antimony and gold mining at Hillgrove near Armidale , New South Wales, where its mining leases and ore treatment plants are located.

Total reserve and resource positions were 1,843,000 tomes grading 1.89% antimony and 5.8 grams of gold per tonne

Receivership and Administration
On the 3/01/2002 Tronoch the major shareholder appointed administrators under the terms of the loan agreement it had with the company.
On 29 August 2002, the Company entered into an agreement with Denlin Nominees Pty Ltd for rationalisation of the affairs of the Company

Hillgrove Resources Limited (formerly Hillgrove Gold Limited) And Controlled EntitiesACN 004 297 116
Directors’ report
State of affairs:
The following significant changes in the state of affairs of the consolidated entity occurred on the 17 February 2003: -
*the purchase of 201,019,037 Shares in the Company by Denlin Nominees Pty Ltd (“Denlin”) and it’s nominees from Tronoh Mines Malaysia Berhad (“Tronoh”);
*the assignment to Denlin from Tronoh of part of the existing secured debt of $44,395,996 owed by the Company to Tronoh for an aggregate purchase price of $399,999;
*the consolidation of the share capital of the Company on a one share for 60 share basis, by the conversion of 324,515,344 existing Shares into approximately 5,408,589 Shares;
*the issue of 35,000,000 Post Consolidation Shares to Denlin and it’s nominees from the extinguishment of the assigned secured debt referred to in paragraph (b);
*the grant of 15,000,000 Options (issued as one Post Consolidation Share per Option) to Denlin and it’s nominees;
*the issue of 15,000,000 Post Consolidation Shares to investors at a price of $0.10 per Share raising $1,500,000 of which:$300,000 was allocated to pay certain costs connected with the Transactions (including the preparation of the Notice of Meeting and the Explanatory Notes) and an existing debt of $200,000 owed by the Company to Tronoh;
* and$1,200,000 was used allocated to be used as working capital of the Company;
*the Receivers and Managers Tronoh entered into a Deed of Release/Retirement on 17 February 2003 under which the receivers retired and were released as Receivers and Managers of the consolidated entity;
*the lifting of the suspension of trading on the Australian Stock Exchange on 17 February 2003.

Other significant changes in the state of affairs of the consolidated entity during the financial year were as follows:-
(i) the issue of 8,250,000 Shares to investors pursuant to a placement at $0.10 per Share raising $825,000 in September 2003;
(j) the consolidated entity announced on 3 November 2003 that it had signed an agreement by which it will acquire an effective 90% interest in EL 2663. The EL covers an area totalling 493km2 around Kanmantoo, which is located in the Mount Lofty Ranges, 55 kilometres southeast of Adelaide, in South Australia.
(k) the issue of 3,333,333 Shares to investors pursuant to a prospectus at $0.15 per Share raising $500,250 in December 2003.
(l) the consolidated entity announced on 12 January 2004 that it had entered into a Deed of Option whereby it may acquire up to a 70% interest in EL 3037, which is located at Alford in South Australia and within the Gawer Craton, which has shown the potential to host world class Iron Oxide Copper Gold Deposits.
(m) the company announced on 27 January 2004 that its wholly owned subsidiary, Hillgrove Energy Pty Limited has farmed into the PEL 238 Coal Bed Methane Development Project in New South Wales whereby it may acquire up to a 32.5% interest in the Project. It is acquiring its 32.5% interest from Canadian listed company Gastar Exploration Limited. The consideration comprises an initial payment of US$1.0 million to acquire a 2.5% interest.