Western Metals plots aggressive growth for 2008 Tuesday , 29 Jan 2008 Western Metals Limited (ASX:WMT) is pleased to report significant progress during the December quarter which has left it well placed to execute an aggressive growth strategy in 2008.
Western Metals is a diversified uranium, base metals and gold explorer with a portfolio of potential world-class projects in Africa, Australia and the America's.
Managing Director, Mr George Bauk, said the company was determined for 2008 to be the year to transition Western Metals to become a notable resource business.
"With a highly experienced management team and cash reserves of more than $30 million, Western Metals has the resources to maintain both an aggressive exploration strategy and actively pursue corporate opportunities, particularly in light of the current uncertainty affecting international equities markets," Mr Bauk said.
During the December quarter, the company made significant progress on all fronts in pursuit of its business strategy.
In Tanzania, where it has interests in uranium tenements covering more than 14,000 square km, drilling extended the known strike of high grade mineralisation at its Mtonya project, while trenching at the Grandfather prospect also returned significant high grade results.
The Company has also made two potentially major uranium discoveries from the first reconnaissance programme in the Ruvuma project, south of Mtonya.
In North America, Western Metals has substantially enhanced its asset portfolio by securing an option to acquire the highly prospective Snowbird Nickel Project in Canada's Northwest Territories from BHP Billiton, while approvals were granted to commence drilling at the Glade uranium project in Southern Colorado.
In Australia, the Company completed a geological interpretation of the West Georgetown project in Queensland to identify targets in anticipation of securing access approvals needed to commence ground geophysical surveys and drilling in the second quarter.
Mr Bauk said the path to the Company's growth outcome would require a balance of world class exploration programs complimented with targeted corporate activities.
"This is a complex process requiring dedicated resources and capital - to which we have already invested well in both and intend to utilise this unique position to our advantage," he said.
"We have a highly skilled and balanced team with a cross section of capabilities required to run a dynamic growth business in our sector. We have also built a portfolio of world class exploration assets in base metals, uranium and gold, all of which individually have the potential to substantially grow the business."
In 2007 Western Metals raised $32m in capital which has provided the opening balance for 2008 of $30m, as announced above.
"This secure position means that we can manage the work programs on current assets in an aggressive but responsible manner for some time to come."
Mr Bauk said that while successful greenfields exploration will ultimately lead to the greatest multiples on investment, the Board was committed to complimenting this process through a program of acquisitions of advanced projects and, or, cash producing assets.
On the corporate front, Western Metals engaged Azure Capital as a corporate adviser to assist in identifying growth opportunities. The Company is currently evaluating a number of potential project opportunities that may come to fruition in the coming months.
Significant progress was made during the quarter to identify likely corporate and project opportunities. These investigations will progress through a rigorous but efficient assessment process in coming months.
The Company has also prepared an aggressive and fully funded corporate growth strategy for 2008 expected to cost in the order of $10 million. Exploration activities will be focused on its Tanzanian uranium projects where drilling is planned at a number of prospects in the Mtonya Corridor and accelerated reconnaissance work across its entire suite of projects.
Western Metals is also planning a rapid ramp-up of work at West Georgetown once all access approvals have been received.
Please refer to the attached December Quarter Report for details of the Companies activities during the period.
WMT Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
