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Market Update
KEY POINTS
• Tripartite Standstill Agreement with financiers extended for a further six weeks to
25 September 2009.
• Extension required to enable the commercial positions between the parties to be
finalised.
• All parties remain positive and committed to finding a satisfactory long-term solution.
• Territory securities to remain in suspension pending completion of ongoing
confidential negotiations.
• All sales are currently being made at spot market prices.
Territory Resources Limited (ASX: TTY – “Territory” or “the Company”) advises that it has reached
agreement with its financiers, the hedge book facility provider (“Bank”) and Noble Resources Limited
(“Noble”), for a further 6-week extension of the previously announced Tripartite Standstill
Agreement (refer ASX announcements dated 1 April 2009 and 2 July 2009).
The Company, Noble and the Bank all remain committed to finding a satisfactory, long-term solution
with the delays in resolving the situation due to normal and ongoing commercial discussions between
the parties.
Territory’s Board has reluctantly concluded that its securities must remain in suspension due to the
confidential nature of the ongoing discussions and until final agreement is reached. “All parties are
continuing to work very hard towards achieving this,” said Territory’s Chairman, Mr Andrew Simpson.
“While it is extremely frustrating that our shares must remain in voluntary suspension until an outcome
can be announced, this further six week extension of the standstill arrangements reflects the strong
commitment of all parties to settle on the necessary debt restructure and the significant positive
market developments seen in recent months,” he continued.
As reported recently, Territory achieved a significant increase in shippable tonnes from the Frances
Creek Mine during the June 2009 Quarter, with 548,601 tonnes shipped in seven shipments. Cash
operating costs fell to A$46/tonne loaded on the boat in Darwin during June – an outstanding result
which positions the Frances Creek operation very competitively on the cash cost curve given its
relatively small scale of production. The Company continues to maintain a fully sold position and, until
the Memoranda of Understanding in place are converted to long term agreements, all product is being
sold into the spot market.
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