Companies Announcement Office Via Electronic Lodgement
MINOTAUR URANIUM ACCESS AGREEMENT
Overview
Peninsula Minerals Limited (“the Company”) is pleased to announce that a new Joint Venture agreement (“Uranium Access Agreement”) has been entered into between its wholly owned subsidiary Resource and Capital Management (SA) Pty Ltd (“RCMSA”), Minotaur Exploration Ltd (“Minotaur”) and Toro Energy Limited (“Toro”), a company that has amalgamated the uranium interests of both Minotaur and Oxiana Limited (“Oxiana”). This agreement is an amendment to the existing Joint Venture agreements (“Roopena and Gibraltar Agreements”) currently in place.
Under the terms of the Uranium Access Agreement Minotaur will relinquish its right to explore, mine and process uranium on the Iron Baron and Roopena tenements (“Roopena Joint Venture”) and the Gibraltar and Partridge Ridge tenements (“Gibraltar Joint Venture”) in South Australia, with RCMSA granting Toro the uranium exploration rights to those tenements. The existing Roopena and Gibraltar Agreements between the Company and Minotaur will remain intact with the only amendment being to exclude from its scope the exploration for uranium.
The Directors believe the Company will benefit significantly from the restructuring of the agreements which presents an opportunity to participate in any future uranium discoveries within the Roopena and Gibraltar Joint Venture tenements, which are situated within the Gawlor Craton of South Australia, one of the world’s most prospective uranium regions.
The Uranium Access Agreement offers a significant increase in exploration efforts on existing tenements and provides increased exploration funding over and above the current expenditure by Minotaur. Minotaur will maintain current expenditure levels on the existing tenements, in line with the Roopena and Gibraltar Agreements, with Toro independently funding the uranium exploration.
Peninsula Minerals Limited 1
2/02/2006
These material benefits, combined with a vastly improved market outlook for uranium makes the Uranium Access Agreement a very significant development for the Company.
The Company currently has existing joint venture agreements with Minotaur in relation to the Roopena Joint Venture tenements to the northwest of Whyalla in South Australia and the Gibraltar Joint Venture tenements north of Tarcoola. In each joint venture Minotaur may earn up to 70% by spending $1 million within a 48 month period.
Both the Roopena Joint Venture and the Gibraltar Joint Venture tenements are currently held by RCMSA, a wholly owned subsidiary of the Company.
RCMSA have now amended the above agreement to exclude from its scope the exploration of uranium and have entered the Uranium Joint Venture with Minotaur and Toro, whereby Minotaur relinquishes its right to explore, mine and process uranium on the Roopena Joint Venture and Gibraltar Joint Venture tenements. Minotaur has previously entered a Share Sale and Purchase Agreement under which it agreed to sell to Toro the whole of the issued capital of Minotaur Uranium Pty Ltd, which through a Tenements Access Agreement with Minotaur held the rights of access to the various mining titles for the purposes of exploring, mining and processing uranium.
In consideration of Minotaur relinquishing these uranium exploration rights, RCMSA has agreed to grant to Toro the uranium exploration rights to the Roopena Joint Venture and Gibraltar Joint Venture tenements. The key terms of the Uranium Access Agreement are as follows:
Key Terms of the Uranium Access Agreement
• It is a condition precedent that Toro becomes listed on the Australian Stock Exchange (“ASX”) on or before 30 June 2006. (Refer below regarding proposed Toro listing). • The Uranium Access Agreement provides for the exploration and prospecting of uranium only • Toro (subject to right to withdrawal clauses) shall be the sole contributor to all expenditure required to fund the Joint Venture activities from the commencement date until such time as it has spent the sum of $500,000, which shall be spent within the first 24 months. Toro can earn up to 70% by spending $1 million within a 48 month period. • Toro, while it is sole contributor to Joint Venture expenditure, shall expend sufficient monies to keep the Mining Title in good standing Peninsula Minerals Limited 2
2/02/2006
Toro
On 25 January 2006 Minotaur announced that it had entered an Exploration Alliance Agreement with Oxiana which amongst others areas, covered the highly prospective uranium regions of the Gawler and Curnamona Cratons of South Australia. It was through an amalgamation of both Oxiana’s and Minotaurs uranium interests in this region that Toro was formed.
It is intended that Toro will raise $18 million through an initial public offering. Oxiana and Minotaur will hold an approximate 25% shareholding in Toro respectively following its listing. Further details of the offer will be contained within the prospectus.
For and on behalf of the board
Warwick Grigor Executive Director
For further information, please contact either Warwick Grigor on 02 9247 0077 or Jade Styants on 08 9420 9333 during normal business hours.
Peninsula Minerals Limited 3
2/02/2006
Map of Tenements – Toro Energy Limited. (RCMSA Uranium Joint Venture tenements are marked below) Peninsula Minerals Limited 4
2/02/2006
PEN Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
(20min delay)