18th Jun 2009 07:00
Weatherly International Plc ("Weatherly" or the "Company")
Corporate and Trading Update
Weatherly today provides the following update with respect to its recent trading, funding position and corporate developments including further asset disposals by the Company's mining subsidiary, Weatherly Mining Namibia, and the sale of the Company's interest in Emerging Metals Ltd.
Weatherly Mining Namibia
Weatherly's mining subsidiary in Namibia, Weatherly Mining Namibia ("WMN"), has completed a second round of non-core asset sales including surplus mobile equipment, land, property and vehicles. This second round of asset sales raised total proceeds of approximately US$1.9 million of which approximately US$630,000 is available to settle all remaining trade creditors of WMN with the remainder expected to be available progressively over the next three months as the transfers of title to the properties are completed. WMN has retained ownership of all mines, associated infrastructure and equipment.
Weatherly has completed its internal review of WMN's assets and will focus on the further evaluation and development of the Tschudi orebody as an open pit operation. Tschudi has a JORC compliant resource of 43mt at 0.8%Cu and 11g/t Ag and is within trucking distance of the Tsumeb concentrator and smelter. Work is underway to complete a full update of the resource incorporating the results of a program of infill drilling undertaken during 2007/8.
WMN's remaining assets may be developed, reopened or divested depending on the prevailing copper price, interest from other parties and availability of funds. Weatherly is evaluating various alternatives and WMN has retained sufficient core mobile equipment to be able to restart mining at the Otjihase and Matchless mines if such a decision is warranted.
Namibia Custom Smelters
The Tsumeb Smelter continues to improve operationally and production is now in line with the forecast and in the current month is forecast to process close to 11,000t of copper concentrate. Work is well advanced on the oxygen plant which is scheduled for commissioning in November this year. Full details of production for the three months to 30 June 2009 will be provided in the next quarterly production update which is expected to be released in mid July.
Emerging Metals Ltd
Weatherly today announces that it has sold its entire holding of 21,899,698 ordinary shares in the AIM listed company, Emerging Metals Ltd ("EML"). The shares were sold for 4.75p per share through on market sales and raised proceeds of approximately US$1,685,000.
Funding Position
Following the sale of shares in EML described above, Weatherly currently has cash reserves of approximately US$2.0 million which will increase by a further US$1.3 million as proceeds expected from the recently completed asset sales as described above become available.
Weatherly has decided to defer its June 2009 payments to holders of the Company's US$12 million Convertible Loan Note ("Noteholders") in order to re-build its cash reserves. Under the terms of the Convertible Loan Note agreement, Weatherly has the right to defer these payments (US$3 million capital plus approximately US$1 million interest) for up to 12 months (to June 2010) when a further capital repayment of US$4 million plus interest is due. The final US$5 million repayment of the Convertible Loan Note and any accrued interest is due on or before 8 May 2011.
For further information contact:
Rod Webster, Chief Executive Officer Weatherly International +44 (0)207 868 2232
Richard Brown Ambrian Partners Limited +44 (0)207 634 4700
Richard Greenfield
Related Shares:
Weatherly International Plc