31st Oct 2005 07:01
Murchison United NL31 October 2005 Quarterly Report September 2005 Summary __________________________________________________________________________________ Murchison continues to review existing assets and investigate resourceopportunities in Australia and internationally to assess their appropriatenessfor the Company. The broader strategy of Murchison apart from its existingassets is to focus on energy related assets. The Company's review ofopportunities has been affected by the limited availability of qualifiedtechnical consultants. During the quarter the following progress has beenachieved. Company Owned Millenium Leases, Queensland Australia. The Millenium leases are located some 35 kilometers west-north-west ofCloncurry. The leases cover an area on some 3.5 kilometers long and 500 meterswide. The leased area has old workings (early 1900's), exploration costeans anddrill pad sites which were directed to the exploitation of copper ore. Murchisonhas been approached to consider various joint venture arrangements with a viewto remapping and reassessing the leases for copper and other minerals. In lightof these proposals, the Board of Murchison have decided that for the time beingit would be in the interests of shareholders to perform exploration activitiesin its own right. As such, Murchison has contracted a suitably qualifiedcontract geologist to review past documentation and map the geology accompaniedby rock chip sampling and multi-element analyses. This work would produce acomprehensive map together with assay data that would enable an assessment ofthe prospectivity of the area and, if warranted, would enable the preparation ofa well targeted drilling program. Uranium Review of West Africa Considerable press has been made of the increasing price and demand for uraniumas an alternative source for power generation. The Board considers that as partof Murchison's focus on energy assets uranium exploration offers significantbenefits to our shareholders. As announced Murchison has appointed SRKConsulting (UK) to assess the prospectivity of a landholding package for uraniumin the countries of Niger, Mali and The Republic of Guinea. Since thisannouncement Murchison has also contracted a suitably qualified geologist toreview the prospectivity for uranium in adjoining Mauritania. A summary of thereview to date is as follows: Republic of Guinea. SRK Exploration has reported that they have reviewed all historic reports andplans available in Conakry, Guinea including conducting a field visit to threeareas which previous historical exploration defined several uranium anomalies.SRK conducted field visits to all three areas of historic uranium anomalies toassess access and field conditions should exploration programs be planned. SRKhave recommended that based on the historical data and preliminary workperformed by SRK the three areas are prospective for uranium. As such Murchisonis in the process of formal application for Prospecting Permits in accordancewith the Mining Code - 1995 of the Republic of Guinea. Prospecting Permitscannot exceed 500 square kilometres and are issued for a term of three years. Ifsuccessful, initially Murchison will re-evaluate the historical anomaliesincluding the re-establishment of grids, a combination of soil and rock samplegeochemistry, combined with ground spectrometer work. Niger and Mali SRK Exploration has completed field visits to both countries and are currentlypreparing their report. Once this report is made available to Murchison theBoard will consider its contents and recommendations. Mauritania Murchison has appointed a contract geologist to also assess the prospectivity ofuranium in Mauritania. A report is currently being prepared based on informationobtained from the Ministry of Mines and Industry based in Nouakchott,Mauritania. Once this report is made available to Murchison the Board willconsider its contents and recommendations. Other Consistent with the focus on energy assets Murchison is currently consideringother energy related opportunities. Discussions to date are preliminary andnon-binding. As such if and when proposals become binding, relevantannouncements will be released. Corporate During the period Murchison completed the sale of unmarketable parcels of sharesheld by eligible shareholders. The Company sold 2,111,174 shares on behalf of880 shareholders. After the sale the Company has approximately 1,500shareholders. Murchison's Annual General Meeting will be held in the Hay Street Room of theRydges Hotel, 815 Hay Street, Perth, Western Australia at 10.30 am (Perth time)on Tuesday 29th November 2005. Mr David Hutchins will not be seeking re-election at the Annual General Meeting.The Board of Directors express their gratitude to Mr Hutchins for his dedicatedservice to the Company over the years and wishes him every success in thefuture. Rule 5.3 Appendix 5B Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001. Name of entityMURCHISON UNITED NL ABN Quarter ended ("current quarter")59 009 087 852 30 SEPTEMBER 2005 Consolidated statement of cash flows Current quarter Year to date Cash flows related to operating activities A$'000 (12 months) A$'0001.1 Receipts from product sales and related - - debtors 1.2 Payments for (a) exploration and - - evaluation - - (b) development - - (c) production (411) (411) (d) administration1.3 Dividends received1.4 Interest and other items of a similar nature received 24 241.5 Interest and other costs of finance paid - -1.6 Income taxes paid - -1.7 Other (provide details if material) (387) (387) Net Operating Cash Flows Cash flows related to investing activities1.8 Payment for purchases of: (a) prospects - - (b) equity - - investments - - (c) other fixed assets1.9 Proceeds from sale of: (a) prospects - - (b) equity - - investments - - (c) other fixed assets1.10 Loans to other entities - -1.11 Loans repaid by other entities - -1.12 Other (provide details if material) - - Net investing cash flows 0 01.13 Total operating and investing cash flows (387) (387) (carried forward) 1.13 Total operating and investing cash flows (brought (387) (387) forward) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. - -1.15 Proceeds from sale of forfeited shares - -1.16 Proceeds from borrowings - -1.17 Repayment of borrowings - -1.18 Dividends paid - -1.19 Other - Settlement of Guarantee Net financing cash flows 0 0 Net increase (decrease) in cash held (387) (387) 1.20 Cash at beginning of quarter/year to date 1,988 1,9881.21 Exchange rate adjustments to item 1.201.22 Cash at end of quarter 1,601 1,601 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the relatedentities Current quarter $A'000 1.23 Aggregate amount of payments to the parties included in item 1.2 74 1.24 Aggregate amount of loans to the parties included in item 1.10 0 1.25 Explanation necessary for an understanding of the transactions Salaries and rental of office premises Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows Nil 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Nil Financing facilities available Add notes as necessary for an understanding of the position. Amount available Amount used $A'000 $A'0003.1 Loan facilities Nil N/A 3.2 Credit standby arrangements Nil N/A Estimated cash outflows for next quarter $A'0004.1 Exploration and evaluation 200 4.2 Development 0 Total 200 Reconciliation of cash Reconciliation of cash at the end of the quarter (as Current quarter Previous quartershown in the consolidated statement of cash flows)to the related items in the accounts is as follows. $A'000 $A'0005.1 Cash on hand and at bank 1,601 1,9885.2 Deposits at call - -5.3 Bank overdraft - -5.4 Other (provide details) - - Total: cash at end of quarter (item 1.22) 1,601 1,988 Changes in interests in mining tenements Tenement Nature of interest Interest at Interest at reference beginning of end of (note (2)) quarter quarter6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rightstogether with prices and dates. Total number Number quoted Issue price per Amount paid up per security (see note security (see note 3) (cents) 3) (cents)7.1 Preference +securities (description)7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions7.3 +Ordinary securities 271,132,594 271,132,594 2,250,000 - 25 17.4 Changes during quarter (a) Increases through issues Issue for cash (b) Decreases through returns of capital, buy-backs7.5 +Convertible debt securities (description)7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options (description and Exercise price Expiry date conversion factor) (cents) 7,500,000 - 5.5 19/5/10 200,000 - 114 8/8/05 350,000 - 46 1/7/07 - - -7.8 Issued during quarter7.9 Exercised during quarter7.10 Expired during quarter7.11 Debentures (totals only)7.12 Unsecured notes (totals only) Compliance statement 1 This statement has been prepared under accounting policies whichcomply with accounting standards as defined in the Corporations Act or otherstandards acceptable to ASX (see note 4). 2 This statement does give a true and fair view of the mattersdisclosed. Sign here:.......................................... Date: 31 October 2005.... Company Secretary Print name: .............Joe Schiavi...................... Notes 1 The quarterly report provides a basis for informing the market howthe entity's activities have been financed for the past quarter and the effecton its cash position. An entity wanting to disclose additional information isencouraged to do so, in a note or notes attached to this report. 2 The "Nature of interest" (items 6.1 and 6.2) includes options inrespect of interests in mining tenements acquired, exercised or lapsed duringthe reporting period. If the entity is involved in a joint venture agreementand there are conditions precedent which will change its percentage interest ina mining tenement, it should disclose the change of percentage interest andconditions precedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid upis not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting forExtractive Industries and AASB 1026: Statement of Cash Flows apply to thisreport. 5 Accounting Standards ASX will accept, for example, the use ofInternational Accounting Standards for foreign entities. If the standards useddo not address a topic, the Australian standard on that topic (if any) must becomplied with. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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