TRUO1 - expecting an update from Sino - Congo Copper in January...

TRUO1 - expecting an update from Sino - Congo Copper in January regards the IPO this month - with the float hopefully in February.
I'm betting it'll be an over subscribed in a day type IPO!!

Also NWA changing name to Austral Africa Resources Ltd.


NEW WORLD ALLOYS LIMITED
ABN 36 060 774 227
989 Wellington Street, West Perth WA 6005
PO Box 403, Victoria Park, 6979, Western Australia
Telephone +61(8) 9322 2744 Facsimile +61(8) 9226 3233
Email [email protected] Website www.newworldalloys.com
22 November 2007
Manager of Company Announcements
Australian Stock Exchange Limited
Level 6, 20 Bridge Street
SYDNEY NSW 2000
By E-Lodgement
PROGRESS REPORT ON SINO-ASIA MINING RESOURCES TRANSACTION AND DRC OPERATIONS
Acquisition by Sino-Asia
The legal and financial due diligence is nearly completed for the acquisition by Sino Asia Mining Resources Ltd (“Sino”) of the DRC assets from New World Alloys Ltd (“NWA”). Some issues revealed in the due diligence have required the acquisition to be restructured from that which was originally planned. Sino and NWA have agreed that:
• NWA will transfer the assets of its subsidiary Nova Mining sprl (“Nova”) to another of its subsidiaries, Macro Mining sprl (“Macro”); and
• Sino will acquire NWA’s interest in Macro, thereby acquiring:
o the DRC copper operations;
o two exploration concessions held by Macro in the DRC; and
o Phoenix Resources sprl (“Phoenix”), a subsidiary of Macro, which also holds two exploration concessions in the DRC.
Sino has loaned £750,000 (A$1,740,000) to Nova, ahead of completion of the acquisition, to allow operations to continue in the DRC. This loan is secured by a floating charge over the shares that NWA owns in Nova.
The Acquisition Agreement between Sino and NWA is expected to be finalised and executed prior to December 2007. Sino is now expecting to market the Initial Public Offering in January 2008, and complete its admission to AIM in February 2008.
DRC Operations
Copper smelting operations have recommenced at the Lubumbashi site, with two cupolas producing and two being rehabilitated. Nova plans to install electric arc furnaces, which can process finer sizes and lower grades of ore than the cupolas. An estimate has been obtained to build and install the first electric arc furnace. Nova is currently installing a new weighbridge, and has undertaken a feasibility study for the construction of an on-site concentrator.
Page 1
Since recommencing operations, 130 tonnes of blister copper has been produced for Nova’s own account, with additional tonnage produced under toll treatment arrangements. The 130 tonnes of blister copper was sold to Trafigura Beheer B.V. Amsterdam, pursuant to a pre-existing Offtake Agreement. Approximately USD $850,000 net revenue was generated, allowing the USD $413,000 that Trafigura had loaned to the project to be repaid. Nova’s bank overdraft of USD $120,000 has also been repaid in full, making the operations debt
free. Negotiations are currently underway to enter into longer term ore supply agreements with local groups in the DRC.
Sino is currently assessing the four exploration concessions it will hold in Macro, with a view to commencing an exploration programme upon completion of the acquisition. The Company is also negotiating to enter into an exploration joint venture with a group who hold exploration tenure over prospective ground in proximity to the smelting operation.
For and on behalf of the Board.
Lindsay A Colless
Chairman.