re: fatchic/sartori444/annap offer G'day FatChic,
Not too sure where you're coming from on this one.
As an existing long term share holder you would've been throught the DMR saga etc., etc. and have had ample opportunities to trade out of your losses, which I'm assuming you have incurred.....apologies if I'm wrong on that one.
I have listed below two November Press Releases by ATN as to what is happening &/or being proposed.
As an existing shareholder you should already be aware of the changes taking place, as you said you have already spoken to Tom.
I can only make two, what I hope are constructive, criticisms with absolutely no offence intended:
(a) If you don't trust or believe what Tom is telling you regrding Ashburton, why are you holding ATN and why are you even considering putting in more money?
(b) Why on earth would you seek to gain further information on a public forum like HC, from people who are for all intents and purposes, not only anonymous, but for the most part self serving (or have an axe to grind) as well.
Personally, I've found Tom to be a straight shooter and if you don't agree with that assessment, I'd consider getting out of the company.
Try calling him again, and have a detailed list of questions you want answered.....if you come away still dissatisfied, then it's probably time to bail out.
BTW, FYI, the offer, for those with an entitlement, has been extended to January 10th.
Cheers FatChic and good luck with whatever course you decide to follow.
Happy New Year,
Carl.
BELOW are the Press releases I referred to:
Executive Director
21 November 2002
PRESS RELEASE
ASHBURTON MINERALS AGREES TO BUY DRUMMOND BASIN GOLD PROJECT FROM AURIONGOLD
The Directors of Ashburton Minerals Ltd (“Ashburton”) are very pleased to announce that Ashburton has today signed a Heads of Agreement (“the Agreement”) with Delta Gold Limited (“Delta”, a wholly owned subsidiary of AurionGold Limited, now controlled by Placer Dome) encompassing the terms for the acquisition by Ashburton of the Drummond Basin Gold Assets (“the Assets”) in Queensland.
The Assets include:
·a 315,000 oz gold resource at Wirralie gold mine;
·three tenement packages totalling some 3,200 km2 with excellent exploration potential;
·the Wirralie 1.5 Mtpa CIP treatment plant and infrastructure, administration buildings, accommodation camp, sundry vehicles, machinery, stocks and spares, an all weather airstrip, the Yandan heap leach pad, the Wirralie exploration office;
·an extensive exploration database and technical information.
In summary, under the terms of the Agreement, Ashburton is to pay Delta $600,000 in cash, $400,000 in shares and $2 million in royalties from production, after the first 50,000 oz, where the spot gold price is above A$560/oz. By acquiring the Drummond tenements, Ashburton is also obliged to make arrangement to replace the attaching environmental performance bonds of around $2.61 million. The transaction is conditional on Ashburton obtaining any necessary shareholder approvals and raising a minimum of $4.6 million by debt or equity by 30 April 2003.
The acquisition will enable Ashburton to work towards recommencing mining operations at the Wirralie gold mine, where remaining resources stand at 315,000 oz of gold, comprising an oxide resource of 1.18 M t @ 1.07 g/t (40,000 oz) and a sulphide resource of 3.58 M t @ 2.39 g/t (275,000 oz). Past production from Wirralie totals 477,000 oz of gold from open pit mining of oxide and deep lead resources to an average of 60 m depth. Based on current information, Ashburton envisages being able to commence production within 18 months, by the middle of 2004, at an initial rate of 50,000 oz per annum. This will provide sufficient cash flow to fund ongoing development and exploration of the Drummond tenements as well as Ashburton’s holdings in Western Australia, namely, the Ashburton and East Kimberley projects.
Studies commissioned by Ross Mining NL on the Wirralie sulphide resource investigated various processing routes and technologies, including BacTech, Bacox, GeoBiotics and ultra fine grinding (down to 10 microns) of the ore, with gold recoveries of up to 93% achieved from metallurgical samples. The least capital intensive method appears to be ultra fine grinding of the ore. The gold at Wirralie is dominantly fine grained (< 30 microns), so Ashburton will investigate the applicability of the ultra fine grinding option as a priority. The method is being successfully utilised on sulphidic gold ore in a number of Australian gold mines, including at the Superpit in Kalgoorlie.
The Wirralie treatment plant ceased processing ore in February 2002, and is currently on care and maintenance. Due to the low water salinity in the district, the plant remains in excellent condition. Only minimal refurbishment would be required to make the plant operational.
The Drummond project area covers some 3,200 km2 of the northern portion of the prospective Devono-Carboniferous Drummond Basin, which can be separated into three distinct depositional phases, Cycle 1 – Cycle 3. Cycle 1 is characterised by widespread volcanic activity, being typically associated with andesitic volcanics, volcaniclastic sediments and tuffs. The Drummond project tenements are specifically focused on Cycle 1 lithologies. The Cycle 1 units host a large number of low sulphidation epithermal gold deposits, with total historical production and known reserves/resources within the Drummond Basin being in excess of 5 million ounces.
Deposit Contained gold Average grade (g/t)
Pajingo/Vera Nancy 3.0 million oz 15.0
Wirralie 0.7 million oz 2.7
Yandan 0.6 million oz 2.1
Mt Coolon 0.3 million oz 15.0
Twin Hills/Lone Sister 0.6 million oz 2.1
Gold production from within the Drummond project tenement area, since 1987, totals some 842,000 oz, being sourced from the Wirralie, Yandan, Belyando, Mt Coolon and Glen Eva open pit mines operated mainly by Ross Mining and Delta. According to recent published estimates, resources of around 358,000 oz remain within the Drummond Basin project, with most of these being at Wirralie below 60 m depth. Ross Mining and Delta undertook only limited regional exploration due to the demands of production on time and resources.
Historical information clearly indicates the potential for the discovery of further 1 million ounce deposits within the Drummond Basin. Numerous epithermal fields, of varying degrees of mineralisation (0.01 M oz - 0.1 M oz), are known to exist within the Drummond tenement group, some with characteristics similar to Pajingo (eg, Mt Coolon), though few have been fully evaluated. Ashburton will focus its regional exploration efforts at looking for high grade vein and hot spring style deposits, especially under Tertiary cover (30% - 40% of the tenement area) where little or no work has been done so far.
Ashburton has for a considerable time been investigating and bidding for projects of this nature and is very pleased that our efforts have been rewarded by securing the Drummond Basin project.
Ashburton is keen to begin work at the earliest opportunity. To that end, Ashburton has today signed a letter of engagement with Montt Capital to assist with the fundraising process.
Further details on the Drummond Basin acquisition and on the fundraising will be made available over the course of the next few weeks. Meanwhile, more information on current matters may be obtained by contacting the Company direct.
Tom Dukovcic
Executive Director
Ashburton Minerals Ltd
Tel: 08 9321 6600
Fax: 08 9321 6633
Email: [email protected]
29 November 2002
Dear Shareholder
OFFER TO SHAREHOLDERS
As you may be aware, your Company has recently reached an agreement with Delta Gold Limited, a subsidiary of AurionGold Limited, to acquire the Drummond Basin Project, including the Wirralie Gold Mine (Acquisition), further details of which are set out in the enclosed press release. This Acquisition represents a very exciting time in the growth and development of the Company, which your Directors hope will see the Company make a successful and profitable transition from an explorer to a gold producer.
In order to finance costs associated with the Acquisition the Directors of Ashburton Minerals Ltd have resolved to introduce a share purchase plan which enables the Company to invite each shareholder, irrespective of the size of their shareholding, to subscribe for a minimum of $2,000 and up to a maximum of $5,000 in new fully paid ordinary shares (Shares) at a discount to market, free of brokerage.
Your Directors are therefore pleased to offer you the opportunity to subscribe for up to $5,000 worth of Shares at an issue price of 0.8 cents each (Offer). This represents a 20% discount to the closing price on the ASX at the date of this letter. In addition, if you accept the Offer, the Company intends offering you the right to subscribe for options on at least a 1:2 basis (Loyalty Offer). The Loyalty Offer is intended to be made following completion of the Acquisition and will be based on your entire shareholding (not just the Shares you subscribe for under the Offer), provided your shareholding does not fall below the number of Shares you will hold immediately following the completion of the Offer.
If you currently hold an unmarketable parcel of shares (being less than $500 worth of shares) this Offer is a good means by which you can top up your shareholding, thus enabling you to trade your shares on the ASX.
You should note that there are a limited number of Shares available under the Offer and the Directors intend giving priority to first applications received in time. The Directors intend closing the Offer on Friday, 20 December 2002.
Please note that there is a risk that the market price of the Shares may change between the date of the Offer and the date Shares are issued to you under the Offer, in which case the market value of the Shares you subscribe for may rise or fall. Moreover, the Directors consider an investment in the Shares to be speculative and that the value of the Shares is likely to fluctuate depending on various factors including the success of the Company’s current and proposed assets, and economic and stock market conditions generally, as well as the price of commodities and currency exchange rates. If you are in doubt as to the course you should follow, consult your licensed financial adviser.
The Directors commend this offer to shareholders.
You can accept the Offer by completing the enclosed application form.
Please feel free to direct any enquiries in relation to the Offer to either Mr Rodney Dunn or Mr Tom Dukovcic on (08) 9321 6600.
Yours faithfully
TOM DUKOVCIC
