BATAVIA MINING LIMITED
Investment in West Australian Metals Limited
http://stocknessmonster.com/news-it.....TV&E=ASX&N=437510 Investment in West Australian Metals Limited
Batavia Mining Limited (ASX: BTV) advises that it has entered into a convertible note facility with ASX listed West Australian Metals Limited (“WME”) for the amount of $1.400 million.
The significant terms of the convertible note are:
1.
Interest of 8% pa paid on maturity or conversion.
2.
Matures 12 months from allotment.
3.
BTV has the right to convert the convertible notes into 20 million ordinary fully paid shares in WME with an exercise price of 7 cents per share.
4.
The shares received as a result of the conversion are voluntarily escrowed for a period of one year from the original date of the convertible note. (Subject to certain matters being satisfied which waives this condition).
5.
The convertible note is unsecured.
WME is an ASX listed company whose principal asset is the Marenica Uranium Project located in the uranium rich Damara Province in Namibia. WME’s strategy is to focus on the evaluation of the Marenica Project as well as to identify and acquire other uranium opportunities.
Marenica Uranium Project
WME has previously announced an inferred mineral resource of 34 million pounds of U308 contained within 111mt of ore grading 140ppm U3O8. The project lies in the same uranium province as the Rossing and Langer Heinrich uranium mines and immediately north of the Trekkopje Mine which is currently being developed by the French Group; Areva.
In 2006, WME entered into a Joint Venture agreement whereby it could earn an 80% interest in the project by spending N$1,500,000 on exploration. The formation of the Joint Venture received Ministerial approval on 31 May 2006.
Due to high uranium prices in the 1970's, Namibia underwent considerable exploration for uranium particularly along a 100km wide corridor extending east from the coast. The Geological Survey of Namibia flew several airborne radiometric surveys which outlined a number of potential targets.
Previous exploration notably by the Goldfields Group of South Africa, over the north east portion of the Province, outlined several uranium mineralised areas including Marenica.
The Marenica Deposit is very similar to AREVA’s Trekkope Project as both are bulk tonnage low grade deposits. Trekkope is only 30kms to the south and this 550MT resource at 128pm U3O8 is expected to be in full production by 2010. Another neighboring project under going feasibility is the Valencia Project. This 62M lb resource, was owned by Forsys and was recently acquired by George Forrest International Arifque in a takeover worth $C579 million, this equated to a in ground value of $US6.97/lb for uranium.
The Directors of WME are:
Kevin Judge (Non-Executive Chairman)
Neil G Biddle (also a Director of Batavia Mining Limited)
David Sanders
Mr John Young who was previously the CEO of Thor Mining PLC has recently been appointed as CEO of WME.
WME currently has approximately 330 million shares on issue.
The voluntary escrow of the shares to be issued in the event the notes are converted will be cancelled if:
a)
The Volume weighted average trading price of WME’s shares listed on the Australian Securities Exchange being at a minimum price of $0.22 for a period of five (5) consecutive trading days; or
b)
WME raises no less than $2,000,000 in any single capital raising (not including any amounts raised from the issue of any convertible notes) at any time prior to the maturity date.
c)
More than 50% of shareholders in WME accept a takeover bid.
d)
Approval by the WME Board
The issue of the Convertible Notes is subject to the satisfaction of various conditions precedent which are expected to be satisfied by Friday 13th February, 2009.
Yours faithfully
BATAVIA MINING LIMITED
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