PERTH, Western Australia, March 15 /CNW/ - Tiger Resources Limited (ASX / TSX: TGS) ("Tiger" or the "Company") is pleased to announce the issuance today of the Company's interim financial report for the period ended 31 December 2009. The Operations Review Summary from the interim financial report is set out below, and the full text of the report is available on the Company's website www.tigerresources.com.au and under the Company's profile on SEDAR at www.sedar.com.
Operations Review Summary
During the half-year the Company continued to progress its transition from exploration to mining, processing and copper production at the Kipoi Project in the Democratic Republic of Congo ("DRC").
Kipoi Project - Project Acquisition and Stage 1 Development Funding
In November 2009 the Company entered into a conditional agreement with Trafigura Beheer B.V. ("Trafigura") for a combined equity and debt financing package for a total of approximately US$33.9 million. The funds will primarily be used to enable Tiger to complete the key payment obligations at the Kipoi Project, being:
- Completion of the acquisition of Tiger's 60% interest in the Kipoi
- Funding requirements for the Stage 1 development (in conjunction with
a proposed debt facility from Nedbank Limited) ("Nedbank").
The financing package from Trafigura comprises three components:
- Placement of 50 million shares at an issue price of $0.15 for
proceeds of $7.5 million (approximately US$6.9 million) - which was
completed in November 2009.
- Loan note debt facility for US$12 million - scheduled for completion
in April 2010.
- Subordinated debt facility for US$15 million - scheduled for
completion in May 2010.
Tiger also reached agreement with Trafigura on the key terms of an offtake agreement and a technical services agreement.
Stage 1 Development Funding
Capital expenditure for the proposed Stage 1 development at the Kipoi Project has been estimated by Arccon Mining Services in the Revised Definitive Feasibility Study to be approximately US$30 million.
In September 2009 the Company mandated Nedbank to act as exclusive arranger of an Export Credit Insurance Corporation of South Africa Limited ("ECIC") supported US$16 million senior debt facility, to assist in funding the Stage 1 development at the Kipoi Project. Nedbank and ECIC are currently finalising their due diligence review. The Company is targeting receiving the final approvals from Nedbank and ECIC in April 2010.
As part of the financing package noted above, Trafigura will arrange and underwrite a subordinated debt facility of US$15 million to complete the funding required for the proposed Stage 1 development at the Kipoi project. The availability of the subordinated debt facility is subject to various conditions precedent including receipt of shareholder approval. The Company anticipates holding the required shareholder meeting in April 2010.
Project Acquisition Funding
During the period Tiger paid a total of US$11.2 million in order to increase its interest in the Kipoi Project. This comprised payments totalling US$8.2 million to the vendors of Congo Minerals sprl (the company which owns 60% of SEK sprl, which is the holder of licences covering the Kipoi project), and US$3 million to the vendors of a 15% interest in Tiger Congo sprl.
In accordance with the acquisition arrangements a further US$12 million is required to be paid by May 2010 to the vendors of Congo Minerals sprl to complete the acquisition of 100% of that company. This payment is to be funded by a US$12 million loan note facility from Trafigura (refer above). The availability of the loan note facility is subject to various conditions precedent including receipt of shareholder approval.
Kipoi Project - Stage 1 Mining Development Work
During the period DRA Mineral Projects (Pty) Ltd ("DRA") were awarded the contract to provide the Company with a lump sum turnkey proposal to design, supply and commission a modular treatment Heavy Media Separation ("HMS") and spirals plant. DRA completed a full process review which confirmed that they can complete the installation of the treatment plant and the necessary infrastructure within six months of a formal order being placed, and subject to the longer lead items (Mineral Sizer, Scrubber and Apron Feeder) being ordered upfront.
A review of the slope parameters to assess the potential to steepen the staged pit wall slopes was also completed during the period, resulting in a reduction in pre-strip time, and allowing earlier access to the oxide copper ore.
During the period Coffey Mining Ltd ("Coffey") prepared and managed a mining tender process. The process closed on 19 February 2010 and the tenders are currently being evaluated prior to a recommendation being made to the Tiger Board.
Based on the short construction and pre-strip period and the relatively simple nature of the proposed development and operation, the Company is targeting commencement of production for the fourth quarter of 2010.
Scientific or technical information in this report has been prepared by or under the supervision of Mr David Young, Joint Managing Director and a full-time employee of the Company and a member of the AusIMM. Mr Young has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code and to qualify as a "Qualified Person" under NI 43-101. Mr Young has verified the data disclosed in this report, including sampling, analytical and test data underlying the information or opinions contained in this report. Mr Young consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
Caution Regarding Forward Looking Statements: The forward-looking statements made in this report are based on assumptions and judgments of management regarding future events and results. Such forward-looking statements, including but not limited to those with respect to the development of a 32,000tpa Stage 1 mining operation at the Kipoi Project, completion of an equity and debt funding package with Trafigura Beheer B.V. and obtaining shareholder approval of such package, obtaining a project debt facility with Nedbank Limited and completion of the acquisition of Congo Minerals sprl, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual market prices of copper, cobalt and silver, the actual results of current exploration, the actual results of future mining, processing and development activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's filed documents. There can be no assurance that the Kipoi Project will be successfully developed, that the conditions precedent to the equity and debt funding package with Trafigura Beheer B.V., including obtaining shareholder and any required regulatory approvals, will be satisfied, that an agreement will be reached with Nedbank Limited for a project debt facility, that the acquisition of Congo Minerals sprl will be completed as anticipated, that any mineralisation previously disclosed in respect of the Kipoi Project will be proven to be economic, that anticipated metallurgical recoveries will be achieved, that future evaluation work will confirm the viability of deposits identified within the project or that future required regulatory approvals will be obtained.
SOURCE Tiger Resources Limited
For further information: For further information: in respect of the Company's activities, please contact: David Young, Joint Managing Director, Tel: (+243) 9240 1933, Email: email@example.com; Brad Marwood, Joint Managing Director, Tel: (+61 8) 9240 1933, Email: firstname.lastname@example.org; Reg Gillard, Chairman, Tel: (+61 8) 9240 1933, Email: email@example.com; Company website: www.tigerresources.com.au