10th Dec 2007 07:00
Churchill Mining plc10 December 2007 10th December 2007 CHURCHILL MINING PLC ("Churchill" or "the Company") Disposal of South Woodie Woodie Manganese Project to Spitfire Resources complete Churchill is pleased to announce the completion of the disposal of its SouthWoodie Woodie Manganese Project ('the Disposal') to Spitfire Resources Limited("Spitfire", ASX: SPI) which has today been admitted to the Official List of theASX and will commence trading on December 12. All conditions have now been met including the issue to Churchill's subsidiary,Planet Mining Pty ("Planet Mining"), of 25 million new ordinary shares inSpitfire and the completion by Spitfire of an A$6 million capital raising.Planet Mining now holds a 40.1% interest in Spitfire. Churchill will also be entitled to retain a manganese production royalty shoulda mine be developed. The production royalty is price indexed so as to ensureChurchill retains substantial leverage to any future mining cash flow. Churchill's focus remains on its two key Indonesian assets - the East Kutai coalproject and the recently announced Sendawar coal bed methane project - bothlocated in Kalimantan. Churchill Managing Director Paul Mazak said: "The completion of the South WoodieWoodie disposal will enable us to focus on our Indonesian coal and CBM assets,whilst at the same time, through our major holding in Spitfire, ensure ourcontinued exposure to the potential upside of Spitfire's manganese prospects.The Spitfire IPO was a great success with oversubscriptions for the funds thatwere sought. We look forward to making further announcements on Spitfire'sdevelopments in its manganese projects as and when appropriate." Enquiries: Churchill Mining Plc Blue Oar Securities Parkgreen CommunicationsManaging Director - Paul G. Mazak Romil Patel Justine Howarth+61 (0)8 9388 0377 +44(0)20 7448 4000 +44 (0) 20 7493 3713 [email protected] Olly Cairns +61 (0)8 6430 1631 Notes to editors Churchill Mining Plc listed on AIM in April 2005. South Woodie Woodie Given the increased prospectivity of South Woodie Woodie, and Churchill'sincreasing focus on its Indonesian coal and coal bed methane projects, theCompany sold 80% of the project to Australian company Spitfire ResourcesLimited. Spitfire, which will list on the ASX on 12 December 2007, will have theoption to purchase the remaining equity in the project after spending AUD$1.5million on exploration. The South Woodie Woodie project covers approximately 490 square kilometres inthe East Pilbara region of Western Australia, and sits approximately 400kmsoutheast of Port Hedland in the highly prospective Pilbara manganese province. Sendawar - CBM The Sendawar Coal CBM project in Kalimantan, Indonesia, covers more than 800square kilometres of prospective ground and lies in close proximity to twooperating open-cut coal mines. The project is located approximately 50km fromthe Mahakam River. During Churchill's coal exploration programme, data collected during geophysicaland resitivity work, along with data collected from previous oil and gasexploration in the area; indicated that the area was highly prospective for CoalBed Methane. Churchill (70% of the CBM project) along with its Indonesianpartner RMU (30% of the CBM project) applied for and were granted Indonesia'sfirst CBM JEA license in September 2007. The CBM project has the potential tohost Gas-in-Place of 5.6 TCF. Churchill is currently conducting further studieson the CBM project before starting detailed field work. East Kutai Coal Project Churchill announced on 15 February 2007 that it had signed an ExclusivityAgreement with PT Techno Coal Utama to enable it to conduct due diligence workon the thermal coal project. In May 2007 Churchill announced a sales agreementhad been entered into to purchase a 75% interest in the Project, which has nowbeen finalised. Exploration and resource drilling continue at the project. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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