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http://www.miningweekly.com/article/balmara-plans-restructure-as-it-finds-company-making-polish-mine-2013-07-24

Balmara plans restructure as it finds ‘company-making’ Polish mine

PERTH (miningweekly.com) – Minerals explorer Balamara Resources on Wednesday flagged a possible corporate restructure after gaining the rights to explore and develop the Nowa Ruda coal project, in Poland.

ASX-listed Balamara told shareholders that it had been awarded the exclusive rights to the Nowa Ruda project, which comprised a previously developed underground mine with a historical production of around one-million tonnes a year.

“As a result of this important breakthrough in the company’s ongoing search for major resource asset with company-making potential, Balamara intents to embark on a corporate restructure, including the potential divestment of its existing base metals projects in central Europe and Australia, to enable it to focus on the development of this tier-one asset,” said MD Mike Ralston.

“The company has been pursuing a large, advanced project of this quality for some time now as part of our revised 2013 strategy. In the current market, a tier-one asset such as Nowa Ruda is exactly what we want to be focusing on and we are delighted to have secured a project of this caliber with the potential to underpin a world-scale mining operation for Balamara head.”

Ralston noted that the advanced nature of the project represented a distinct advantage and would enable Balamara to progress it more rapidly.

The project covers some 20 km2 of land surface and holds key infrastructure, including roads, rail, power and water. The current licence could be converted into a mining licence on the completion of a feasibility study, and Ralston said that a work programme would begin immediately, which would include the collation of the existing database and confirmatory drilling to deliver a Joint Ore Reserves Committee-compliant resource, a bankable feasibility study, funding arrangements and mine rehabilitation and recommissioning of all plant and infrastructure.

“It is important to note that adding Nowa Ruda to our portfolio does not in any way change our position with respect to the Togo phosphate project, for which we still remain deeply committed as we navigate the final stage of the tender process,” Ralston added.

He noted, however, that if it was successful, the Togo phosphate tender would need to consider corporate restructuring within Balamara, as the company could ultimately not focus on delivery two diverse tier one projects within the same vehicle.

“The board will ensure that any restructure performed would aim to benefit the existing shareholders,” he added.