TORONTO, Aug. 22 /CNW/ - Thistle Mining Inc. ("Thistle" or the "Company")
Update on Forecast Gold Sales
The Company wishes to announce a downgrade to the forecast gold sales of
its subsidiary President Steyn Gold Mines (Free State) (Pty) Ltd ("PSGM") for
2007 from the previous forecast made in July 2007 of 134,400 oz to 132,600 oz.
The adjustment follows additional unexpected rehabilitation work undertaken at
the areas affected by the fire at No. 2 shaft as described in the Company's
press release of July 26, 2007.
The reduction in the forecast sales has been offset by the weakening of
the ZAR relative to the US$, such that, cash and total costs for 2007 are now
forecast to be between $615 and $625 per ounce and $655 and $665 per ounce
respectively, assuming an average exchange rate of 7.16 ZAR:US $ for 2007.
Cash cost per ounce sold is not a recognized measure under Canadian GAAP.
On June 27, 2007, MC Resources Limited ("MC") and Casten Holdings Limited
("Casten") agreed to provide a credit line to the Company of up to $666,600
per month for the three month period to September 2007. The credit line was
available for the purpose of funding corporate costs including the cost of
strategic initiatives relating to PSGM and to provide a contingency in the
event of below forecast performance by PSGM.
As described in this Company's press release of June 27, 2007, the credit
line was contingent on, amongst others, improved performance at PSGM for each
of the months of July and August 2007 of not less than 396 kilograms of gold.
Unfortunately this level has not been reached and as a result MC and Casten
have no obligation to extend any further credit. In addition, MC and Casten
may, at their option, declare all amounts owing by Thistle to them to be
forthwith due and payable. At present Thistle has not received any notice in
MC and Casten have, however, agreed to fund certain costs of the Company
for August 2007 amounting to $374,000 as set out below and have stated that
they will consider at their discretion future requests from the Company for
additional funding on a case by case basis.
Financial Condition of the Company
Having reviewed the cash flow forecasts of the Company and its
subsidiaries, it is management's belief that without additional credit support
from MC and Casten or any other third party, existing cash resources, net cash
to be generated from operations and the sale of assets will not be sufficient
to meet the Company's corporate costs including the cost of strategic
initiatives relating to PSGM.
MC and Casten have agreed to fund the corporate costs for August 2007
amounting to $374,000 subject to the appointment of Mr. John Bredenhann as
Chief Executive Officer. MC and Casten have not made any further commitments
nor have they provided any further assurances with respect to the funding of
future operating requirements although they have stated at their discretion
they will consider future requests from the Company for additional funding on
a case by case basis.
Should PSGM not be successful in achieving sufficient levels of
profitable operations and MC and Casten or any other third party not fund the
Company's corporate costs there is a material risk that the Company and its
subsidiaries may not continue as going concerns and, therefore, that they may
be unable to realise their assets and discharge their liabilities in the
normal course of business.
Appointment of Mr. John Bredenhann as Chief Executive Officer
The term of Mr. Gerrit Kennedy's contract as Chief Executive Officer of
Thistle has now been completed and Mr. Kennedy has decided to retire from the
mining industry to pursue other business interests. The Board thanks him for
past services and wishes Mr. Kennedy success in his future endeavours.
It is with pleasure that the Board wishes to announce the appointment of
Mr. John Bredenhann as Chief Executive Officer, for an initial period of six
months with effect from August 26, 2007. Mr. Bredenhann is a seasoned mining
executive and has over 38 years operational experience in the hard rock South
African gold mining industry. Prior to joining Thistle, Mr. Bredenhann was
Chief Executive Officer of the Placer Dome - Western Areas Joint Venture that
ran the South Deep Gold mine now part of the Gold Fields of South Africa
Mr. Bredenhann has also held various executive positions in the Gold
Fields group including as Senior Consultant - Group Projects, Senior Manager
Operations of the Kloof Division and Mine Manager of Driefontein Consolidated.
Mr Bredenhann is a South African citizen.
Lord Lang, the Chairman of Thistle, states that: "I am sure everyone will
join me in welcoming the arrival as Chief Executive Officer of John
Bredenhann, with all the mining experience and leadership qualities that he
will bring to the role, and we wish him success."
Mr. Bredenhann indicated that he will conduct a review of the operations
of the President Steyn Gold Mine. One of Mr. Bredenhann's key responsibilities
will be to provide leadership to President Steyn Gold Mine until any
divestiture of the mine is completed.
Forward-Looking Information: This press release may contain or refer to
forward-looking information based on current expectations. Forward-looking
statements are subject to significant risks and uncertainties, and other
factors that could cause actual results to differ materially from expected
results. These forward-looking statements are made as of the date hereof and
Thistle assumes no responsibility to update or revise them to reflect new
events or circumstances.
For further information:
For further information: Anton Kakavelakis, Chief Financial Officer, +
27 57 391 9026 or email to email@example.com; Gerry Beaney, Troy MacDonald
or Maureen Tai, Grant Thornton Corporate Finance at +44 (0) 207 383 5100