ASX Announcements 2001
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Matrix Metals Limited is pleased to announce that ongoing evaluation studies related to the Mt Watson Prospect
Dec 18th 2001
Matrix Metals Limited is pleased to announce that ongoing evaluation studies related to the Mt Watson Prospect have discovered the results of a drill program completed by others in the 1970's in the area coincident with, and directly to the east of the oxide copper resource announced to ASX on 3 July 2001. The current resource comprises 837,000 tonnes @ 1.3 % copper at a 0.5 % cut off grade. The historical drill results apparently had not been lodged with the Queensland Mines Department, and hence were not available on the open file. The historical drilling results have confirmed that high-grade mineralisation extends for at least 150m past the eastern end of the current resource boundary. A summary of the drill holes in the recently discovered program that intersected ore grade mineralisation to the east of the current resource are tabulated below. TABLE OF RESULTS LOCATION HOLE NO. INTERCEPT 10225 East 4924 North MWOD45 18.3 m@ 0.97 % Cu from 9.1 m 10325 East 4906 North MWOD33 24.4 m@ 1.27 % Cu from Surface 10375 East 4897 North MWOD31 9.1 m@ 1.21 % Cu from Surface 10375 East 4897 North MWOD31 3.1 m@ 1.54 % Cu from 15.2 m 10375 East 4911 North MWOD30 9.1 m@ 1.27 % Cu from 12.2 m 10400 East 4902 North MWOD27 27.5 m@ 0.94 % Cu from 3.0 m 10400 East 4902 North MWOD27 6.1 m@ 1.30 % Cu from 3.0 m 10400 East 4902 North MWOD27 3.1 m@ 2.00 % Cu from 15.2 m 10400 East 4902 North MWOD27 6.1 m@ 0.98 % Cu from 24.4 m 10400 East 4919 North MWOD08 12.2 m@ 0.92 % Cu from 18.3 m 10425 East 4898 North MWOD25 9.2 m@ 0.82 % Cu from 3.0 m 10425 East 4898 North MWOD25 3.1 m@ 1.18 % Cu from 3.0 m 10425 East 4898 North MWOD25 9.2 m@ 0.71 % Cu from 21.3 m 10500 East 4902 North MWOD18 6.1 m@ 1.16 % Cu from 21.3 m These results are very positive in terms of supporting Matrix's technical interpretation of the possible extent of the mineralisation, and ultimate resource potential at Mt Watson. In addition, this historical information will be of great assistance in refining the next drilling program in the area. The inclusion of these recently discovered drilling results into Matrix's geological data-base confirms that the high-grade mineralisation also continues to remain open to the south-east and at depth. As previously reported, in addition to this eastern extension, the drilling completed by Matrix earlier in the year has also confirmed mineralisation extends along strike for in excess of 1,200 m to the west of the defined resource. The Company considers this new data further confirms the technical assessment of the potential of the Mt Watson Prospect. This eastern extension area, together with the already drill tested western extension areas, will be further tested during the next phase of the drilling campaign which commenced last week. Yours sincerely, Andrew Chapman Chief Executive Officer The geological information in this report is based on information compiled by the Company's Senior project Geologist, Mr Phil Frank and the Company's Operations Manager, Mr Bob Dennis both of whom are employees of Matrix Metals Limited. Messrs Frank and Dennis each have a minimum of 5 years experience in estimation, assessment of, and evaluation of Mineral Resources and Ore Reserves, which are relevant to the style of mineralisation under consideration.
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MT WATSON PROSPECT - Strike Extension Drilling Program Commences
Dec 12th 2001
Matrix Metals Limited is pleased to announce that a program of drilling to test parts of the strike extension areas to the east and west of the current Mt Watson copper resource commenced today. The rotary air blast (RAB) drilling program, comprising 80 holes for approximately 2000m, will test the strike extensions adjoining both the east and west extremities of the current resource areas. This area extends from Eastings 9,500 to 10,500, a distance of some 2 kilometres. The purpose of the drilling is to confirm the zones of mineralisation to a depth of 25m to allow additional inferred resources to be estimated. A further program of geological mapping completed in recent days has confirmed the mineralised zones continue for significant distances past the area to be drill tested in this program. The current program is likely to be extended to at least partially test these newly identified extension areas. In addition, excavation of the drill pad areas in recent days has uncovered zones of oxide copper mineralisation that were not visible at surface. It is expected the results of the program will be available in early January 2002. Yours sincerely, Andrew Chapman Chief Executive Officer
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Placement of Securities
Dec 5th 2001
Matrix Metals Limited is pleased to announce that under a mandate agreement with stock broking firm Patterson Ord Minnett, a placement of 35,808,504 shares to raise $2,506,595 has been concluded. The issue of the ordinary fully paid shares will be at 7 cents per share and will be processed as two separate tranches, the first issued under the director's 15% authority and the second tranche will be put to an extraordinary meeting of shareholders, to be held in mid-January 2002. Details of the securities to be placed are: The securities to be issued are ordinary fully paid shares. Maximum number which may be issued is up to 35,808,504 The shares will rank pari passu with ordinary fully paid shares currently on issue. The funds from the issue will be used for exploration activities including drilling at the Mt Watson Prospect and for working capital purposes. The Company will seek security holder ratification in relation to tranche 1 of the proposed issue of securities, which will be for 7,681,500 shares. The Company will seek security holder approval in relation to tranche 2 being the remainder of the shares to be issued. The issue will not be to a class of security holders The Company also announced today the issue of a Loyalty Option to Shareholders on a 1 for 5 non-renounceable pro-rata basis. The Option will be exercisable at 20 cents on or before 14 February 2003. Entitlements for the Option will determined based on registered shareholdings as at 15 February 2002. Yours sincerely, Andrew Chapman Chief Executive Officer
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Pro Rata Issue of Free Loyalty Option
Dec 5th 2001
Matrix Metals Limited is pleased to announce the issue of a free loyalty option "Option" to shareholders holding ordinary shares on a 1 for 5 non-renounceable pro rata basis. It is anticipated this will result in up to 20 million options being issued with entitlements to be determined based on registered shareholdings as at 15 February 2002. The Option will be exercisable at 20 cents on or before 14 February 2003. The Company considers the issue of the Option at this time to be prudent in consideration of the events and circumstances that have prevailed in the past year and the desire of the Company to enhance shareholder loyalty at this important time in the progression of the Company and its mining operations, exploration activities and development studies. Details of the free loyalty Option to be issued will be presented in a Prospectus and an Appendix 3B document to be issued at a later date. In an announcement to be released immediately after this Loyalty Option announcement, the Company will advise the ASX that it has concluded a placement of shares, which has raised $2.5 million at 7 cents per share. Yours sincerely, Andrew Chapman Chief Executive Officer
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MT Watson Prospect Update
Oct 25th 2001
Matrix Metals Limited is pleased to announce that following further geological investigations and interpretive work at the Company's Mt Watson Prospect and the adjacent areas, new large zones containing oxide copper bodies have been identified and the status of the previously announced resource has been upgraded. The newly discovered copper oxide zones occur in both the existing Mt Watson Exploration Permit and a new Application area. These zones are associated with readily recognised, highly deformed and altered fault structures, which have a collective strike length now exceeding 20 kilometres. Indications of oxide copper mineralisation are evident for most of this length, including a large exposed surface zone with copper oxide mineralisation measuring 400 by 50 metres in the Application area, and a further zone exceeding 100 by 100 metres in the Mt Watson tenement. The Exploration Permit Application has been lodged with the Queensland Department of Natural Resources and Mines, which secures this ground adjacent to Mt Watson and hosts the recent discoveries. The new Application encompasses an area of some 95 square kilometres. The discovery of these additional highly prospective oxide copper bodies at Mt Watson itself and in the surrounding area has increased the probability of locating additional oxide copper mineralisation. The additional interpretive work has also allowed the previously announced inferred resource at Mt Watson of 837,000 tonne at 1.3% Copper at a cut off grade of 0.5% to be upgraded to an Indicated resource status. The next phase of drilling at the existing Mt Watson area has been scoped and is planned to proceed following the completion of the restructure of the current funding arrangements. Geological interpretive work continues on the existing and newly applied for areas. Yours sincerely, Andrew Chapman Chief Executive Officer
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Mt Cuthbert Operation Copper Production
Oct 23rd 2001
As previously advised, under the amended operating plan adopted in June 2001, copper production levels at the Mt Cuthbert Operation were anticipated to decline gradually in the latter part of the 2001 calendar year as the inventory of copper in the leach pads depletes. This production decline commenced in late September 2001, but over the past 10 days a steeper than the foreshadowed decline in production has been recorded. The production rate now appears to have stabilised. This decline in production when combined with the continued weakening of the copper price will have an effect on revenues from copper sales, placing further cash flow pressure on the Company. The underwriter to the current Rights Issue, Resource Capital Fund II LP (RCF) has been informed of the situation and has subsequently confirmed ongoing funding support to the Company. Negotiations are underway with the Company's major shareholder Summo Minerals Corporation, and their major shareholder RCF, in regard to the funding of the Company. It is anticipated that the current Rights Issue will be restructured, with the new Issue to raise an increased amount of funds and to be fully underwritten by RCF and/or Summo. Yours sincerely, Andrew Chapman Chief Executive Officer
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MT Watson Prospect Resource Potential Upgraded
Sep 20th 2001
As announced to the ASX over recent months, Matrix has enjoyed significant exploration success at its greenfields exploration prospect known as Mt Watson. Ongoing evaluation work in recent weeks has resulted in the resource potential of the prospect and adjoining areas upgraded. The prospect, located approximately 25 km from the Company's operating Mt Cuthbert mine, was acquired 100% by Matrix in November 2000 and was subjected to an initial drilling program in June 2001. This initial program, although very limited in its scope, and at the time only targeting reconnaissance information, was highly successful with a significant oxide copper resource being defined. The Indicated resource previously reported is: 837,000 tonnes @ 1.3 % copper at a 0.5 % cut off grade. Such a result from an initial drilling program, particularly with the maximum hole depth being only 25m and importantly, several drill holes finishing in ore grade mineralisation, is considered to be highly significant in terms of the potential for the delineation of substantial oxide copper resources. Follow up geological mapping along strike from the currently defined resource at Mt Watson, has confirmed mineralisation over an area extending some 350 metres to the east and 700 metres west. In addition, the structure hosting the mineralisation has been mapped for an additional 1.2 km around a syncline east of the central area and a further 0.5 km to the west. Geological features of note in relation to the existing resource and the extension areas that have been mapped are early (D1) thrust faults and folds, which have been folded and displaced by later tectonic events. These very disrupted rocks have provided the conduits for mineralising solutions and control the locations for mineralisation. Similar structures in the region have been proposed for localisers of the world class Mt Isa copper ore-bodies and those of the Selwyn mine. In addition to the area directly around Mt Watson, the Company has applied to the Dept of Natural Resources and Mines for two new Exploration Permits adjoining Mt Watson to the northeast. Initial reconnaissance work in these areas has identified very similar structures to Mt Watson with coincident magnetic high anomalies exhibited over the areas of interest. An area within the new application area known as Mt Earl, which has been the subject of a nominal amount of previous exploration work, hosts a significant area of copper anomalies with dimensions of 1.4 km by 0.7 km with soil values between 150 parts per million (ppm) and 0.1 % copper. The high values recorded are considered to be at the top end of the range for soil anomaly values. Prolific outcropping copper oxide mineralisation has been observed associated with the copper anomalies, hosted in disrupted D1 folds as is observed for the Mt Watson resource. Reconnaissance diamond drilling by previous explorers at Mt Earl has shown that the primary mineralisation is chalcopyrite associated with quartz veining, similar to the association observed at surface between copper oxide mineralisation and quartz veining. This raises the possibility of a primary mineralisation target below the surface oxide and transitional zones. If ore grade material is located, the extensive surface indications suggest the potential for a large primary copper target. Preliminary surface reconnaissance mapping over the new application areas has identified repeat structures to that hosting the Mt Watson resource. These have now been identified over a collective strike length of 18 km, which when added to the Mt Watson strike length of 2 km, presents a total length of structure of 20 km. Contorted D1 folds, quartz veining and ferruginous residue are prolific along the strike lengths of these structures. Oxide copper mineralisation has been observed at locations where erosion has removed the overlying weathering depleted rock. The assessment of the copper exploration potential at Mt Watson and at the two new application areas is, in the view of the Matrix geologists, highly prospective both for oxide and sulphide copper mineralisation. The success of the first drilling program at Mt Watson in defining the sizable resource is evidence of this potential. The next step in the exploration program at Mt Watson will include geological mapping, RC and diamond drilling and metallurgical testwork. Additional reconnaissance mapping, magnetic surveying, soil sampling and RC drilling along the mineralised structure will be undertaken to outline the potential over the recently identified extensions at Mt Watson with similar programs to be implemented at the new application areas upon the grant of those tenements. These exploration programs at Mt Watson will commence as funding becomes available and as the wet season conditions allow. Since completion of the initial drilling program in June 2001, Mt Watson and the surrounding area has continuously provided positive, and in some cases outstanding exploration results as the various work programs that have been completed. The Company is now more encouraged in its view that Mt Watson has the potential to not only extend the life of the current Mt Cuthbert operation and justify a production upgrade, but to provide a resource base on which the evaluation of a new stand alone mining and treatment facility may be justified. The potential has also been demonstrated for a primary zone mineralisation to be identified. Yours sincerely, Andrew Chapman Chief Executive Officer
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Underwritten Pro Rata Rights Issue to Shareholders
Sep 14th 2001
The Directors of Matrix Metals Limited are pleased to announce the Company will proceed with a 1 for 2 Pro Rata Rights Issue ("Issue") of ordinary shares to Shareholders. The Issue, if fully subscribed, will result in 25,980,000 ordinary shares being issued at a price of 4 cents per share with one free attaching option for every two shares subscribed, and will raise up to A$1.04m before costs of the Issue. A decision on whether the Issue will be renouceable or not is yet to be confirmed. Resource Capital Fund II LP will unconditionally underwrite the minimum subscription for the Issue of A$750,000, for a fee of A$60,000. The Resource Capital Fund group is the major shareholder of Summo Minerals Corporation, who in turn holds a 47.3% shareholding in Matrix. As reported in the Matrix June 2001 Quarterly Report and in consideration of the amended operating plan as announced to ASX on 21 May 2001, the Mt Cuthbert Operation has been demonstrating sustained copper production rates in excess of the nameplate capacity in recent months, with this performance continuing at this time. Equally and potentially more importantly, exploration drilling at the Mt Watson prospect has been highly successful with an initial inferred resource of 837,000 tonne @ 1.3% copper estimated from the first drilling program. It is noted exploration expenditure to date at Mt Watson totals less than $100,000. Ongoing interpretive work continues to confirm the potential for Mt Watson to produce a long life ore supply for the Mt Cuthbert Operation. The recent dramatic drop in the copper price has reduced revenues from copper sales and has consequently reduced working capital to an unacceptably low level. This has the potential to have a negative effect on the mine sites operations in general, but more specifically it will restrict progression of the Mt Watson exploration program, which is critical for efficient copper production into the year 2002 and beyond. The underwriting of the Issue by Resource Capital Fund II LP is a positive demonstration of support for Matrix and its' assets and although the issue price is at a low level, it is reflective of the state of the market at this time. Nevertheless, the Issue is critical to ensure the Company is able to pursue its operational and exploration activities and thereby potentially adding shareholder value. A Prospectus in regard to the Issue will be completed as soon as possible. Andrew Chapman Chief Executive Officer
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Preliminary Final Report to 30 June 2001
Sep 13th 2001
The Company today announced its Preliminary Final Report for the financial year ending 30 June 2001, which reported a loss of $6.1m. $5.6m of the reported loss is due to a reassessment of the carrying value of the inventories of copper in the heap leach pads at the Mt Cuthbert Operation. The reassessment of the carrying value of the copper inventories is a direct result of the significant decline in the Australian dollar copper price, which in turn has required the accounting adjustment to be made. Andrew Chapman Chief Executive Officer
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Change of Directors
Sep 11th 2001
Appointment of Director The Directors of Matrix Metals Limited are pleased to announce that Mr Gregory Hahn has been appointed as director of the Company following a board meeting held on 10 September 2001. Mr Hahn is President and CEO of Summo Minerals Corporation, who hold a 47.3% shareholdings in Matrix Metals Limited. Resignation of Director Following Mr Hahn's appointment it is advised that Mr Robert A Prescott has resigned from the Board. Mr Prescott is an employee of Summo Minerals Corporation. We wish to thank Mr Prescott for his contribution to the Board. Andrew Chapman Chief Executive Officer
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Underwritten Pro Rata Rights Issue to Shareholders
Sep 11th 2001
The Directors of Matrix Metals Limited are pleased to announce the Company will proceed with a 1 for 2 Pro Rata Rights Issue ("Issue") of ordinary shares to Shareholders. The Issue, if fully subscribed, will result in 25,980,000 ordinary shares being issued at a price of 4 cents per share with one free attaching option for every two shares subscribed, and will raise up to A$1.04m before costs of the Issue. A decision on whether the Issue will be renouceable or not is yet to be confirmed. Resource Capital Fund II LP will unconditionally underwrite the minimum subscription for the Issue of A$750,000, for a fee of A$60,000. The Resource Capital Fund group is the major shareholder of Summo Minerals Corporation, who in turn holds a 47.3% shareholding in Matrix. As reported in the Matrix June 2001 Quarterly Report and in consideration of the amended operating plan as announced to ASX on 21 May 2001, the Mt Cuthbert Operation has been demonstrating sustained copper production rates in excess of the nameplate capacity in recent months, with this performance continuing at this time. Equally and potentially more importantly, exploration drilling at the Mt Watson prospect has been highly successful with an initial inferred resource of 837,000 tonne @ 1.3% copper estimated from the first drilling program. It is noted exploration expenditure to date at Mt Watson totals less than $100,000. Ongoing interpretive work continues to confirm the potential for Mt Watson to produce a long life ore supply for the Mt Cuthbert Operation. The recent dramatic drop in the copper price has reduced revenues from copper sales and has consequently reduced working capital to an unacceptably low level. This has the potential to have a negative effect on the mine sites operations in general, but more specifically it will restrict progression of the Mt Watson exploration program, which is critical for efficient copper production into the year 2002 and beyond. The underwriting of the Issue by Resource Capital Fund II LP is a positive demonstration of support for Matrix and its' assets and although the issue price is at a low level, it is reflective of the state of the market at this time. Nevertheless, the Issue is critical to ensure the Company is able to pursue its operational and exploration activities and thereby potentially adding shareholder value. A Prospectus in regard to the Issue will be completed as soon as possible. Andrew Chapman Chief Executive Officer
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MT CUTHBERT PRODUCTION PERFORMANCE. Levels of 113 % of Plant Design Capacity Achieved.
Jul 3rd 2001
The Directors of Matrix Metals Limited are pleased to advise that copper cathode production at the Mt Cuthbert Operation has averaged 16.4 tonne per day (tpd) since the middle of June 2001, with daily production of 17.5 tpd achieved on 30 June 2001. These levels equate to 106% and 113% of plant capacity respectively and compares to the nominal nameplate production capacity of 15.5 tpd. The enhanced production performance is attributed to the effects of the Amended Operating Plan, which was implemented in late May 2001. The details of the Amended Operating Plan were announced to ASX on 21 May 2001. It is expected that average daily production over the coming months will settle back to the design capacity of 15.5 tpd. Yours sincerely, Andrew Chapman Chief Executive Officer
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Mt Watson Drilling Infers New Resource
Jul 3rd 2001
The Directors of Matrix Metals Limited are pleased to announce that the initial program of drilling at the Mt Watson Prospect which was completed in late June 2001, has been highly successful with an inferred resource of 837,000 tonnes of oxide copper mineralisation estimated, grading an average 1.3% Cu at 0.5% cut-off. The northwest trending mineralisation comprises an eastern and western zone and extends continuously within the strike length of the zones for 425m and 200m respectively. The eastern zone remains open to the east, west and at depth, with the western zone remaining open at depth. This initial drilling program was limited to a depth of 25.5 m with some drill holes being mineralised over their entire length and some finishing in ore grade mineralisation. The Mt Watson deposit, which will become a satellite open pit to the Company's Mt Cuthbert operation, is a greenfields exploration project with no mining or oxide zone exploration previously recorded. The fact that the first drilling program has resulted in the estimation of an inferred resource is highly significant in terms of the potential ultimate size and tonnage of the deposit. As a measure of perspective, the Mt Cuthbert Operation since it's commissioning in 1996 has mined a total 1.5 million tonne of oxide ore. Mt Watson, with this initial 837,000 tonne resource, together with the untested strike and depth extensions that have been interpreted, has now demonstrated strong potential to both extend the life and enhance the performance of the Mt Cuthbert Operation. Significant intercepts reported from the drilling include: (Note: maximum depth of hole = 25.5m) MWRB21 25.5m @ 2.62% Cu from Surface MWRB20 21.0m @ 2.60% Cu from 4.5m MWRB06 15.0m @ 1.63% Cu from 6.0m MWRB07 7.5m @ 1.97% Cu from 3.0m MWRB13 13.5m @ 2.22% Cu from12.0m MWRB14 16.5m @ 1.51% Cu from 9.0m MWRB24 10.5m @ 1.66% Cu from 15.0m MWRB25 25.5m @ 1.47% Cu from surface MWRB29 4.5m @ 1.80% Cu from 6.0m MWRB33 6.0m @ 1.67% Cu from 19.5m MWRB34 7.5m @ 1.55% Cu from 18.0m MWRB44 13.5m @ 1.16% Cu from 10.5m MWRB46 7.5m @ 1.81% Cu from 12.0m MWRB48 16.5m @ 1.00% Cu from 9.0m MWRB52 6.0m @ 1.23% Cu from 3.0m MWRB54 9.0m @ 1.17% Cu from16.5m MWRB55 21.0m @ 1.20% Cu from 4.5m MWRB56 4.5m @ 1.20% Cu from 1.5m MWRB82 18.0m @ 1.60% Cu from surface MWRB86 10.5m @ 1.32% Cu from 15.0m Mineralisation at Mt Watson is contained within the Surprise Creek Formation and is structurally controlled occurring along a prominent northwest fault zone in sheared and altered siltstone and carbonaceous slate. The mineralisation is located at or near the contact between the siltstone and slate with quartzite. The dip of this mineralisation is northeast. Surface mapping and drilling have outlined two mineralised zones of copper, the first occurring between (mine grid) 9,975E and 10,400E and the second between 9,325E and 9,525E. The eastern mineralisation is open at depth and along strike to the west and east with the western mineralisation open at depth. All mineralisation recorded so far occurs in oxide material. The drilling program comprised 87 open percussion holes totalling 2,218.5 metres and was completed in late June. Located along drill lines spaced mostly at 50m intervals, each hole was drilled to a depth of 25.5 metres and sampled at 1.5 metre intervals. Table 1 sets out the drill hole data and Table 2 summarises the drill intersections. The estimated resource has been classified as Inferred in accordance with the Australasian Code for Reporting Mineral Resources and Ore Reserves. A second phase of drilling has been programmed to further evaluate the known mineralised zones and obtain geological and structural information. This program will involve RC (Reverse Circulation) drilling and will include infill drilling of the mineralised zones, together with exploration drilling along strike from the eastern zone mineralisation and down dip on both the eastern and western zones. Yours sincerely, Andrew Chapman Chief Executive Officer Click to view Mt Watson Survey Data Click to view Mt Watson Drill Intersections This estimate of mineral resources was prepared by Mr Phil Frank, who is a Fellow of The Australasian Institute of Mining and Metallurgy and/or the Australian Institute of Geoscientists with a minimum of five years experience in this style of mineralisation and type of deposit. The inferred resource based on the drilling results has been estimated using the following criteria: The polygonal method was used for estimating the resources with ore zones constructed by digitising inferred resource outlines on sections using Micromine software. Resource areas were projected half way to adjoining sections. A cut off grade of 0.5% copper was used for the outlines with an SG of 2.4 used for the tonnage calculations. Down dip projection of mineralisation was extended to a maximum of 20m.
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Appointment of Directors
Jun 26th 2001
The Directors of Matrix Metals Limited are pleased to announce that Mr Robert Prescott and Mr Christopher Mitchell have been appointed as directors of the Company. These appointments follow Matrix receiving confirmation of the completion of the purchase by Summo Minerals Corporation (Summo), of shares in Matrix previously held by Murchison United NL and Majestic Resources NL. Shareholder approval for the share transactions and the appointments was granted at the Extraordinary General Meeting held on 10 April 2001 in regard to the Summo Transaction. Mr Prescott and Mr Mitchell are both employees of Summo. Mr Christopher Mitchell Mr Mitchell is the Executive Vice President and Chief Financial Officer of Summo. He is a registered professional engineer. Mr Mitchell has been employed in the minerals business for over 30 years, initially as a metallurgist and financial analyst. Since 1970 he has held positions of increasing responsibility in corporate finance and administration, marketing of base and precious metals concentrates, environmental permitting and executive management positions with several mining companies in Canada and the United States. He was appointed Vice President and Secretary of CoCa Mines Inc. upon its creation as a private mining company in 1981. Mr Mitchell was responsible for the corporate finance, accounting and administration functions, gold marketing and sales, and environmental permitting. While at CoCa, he managed that company's reverse take-over of a publicly listed mining company. He joined Viceroy Resource Corporation in June 1987 as CFO, and also held a number of senior executive positions with that company, with responsibility for activities in the areas of finance, marketing and sales, and governmental and environmental affairs. He joined Orvana Minerals Corp. in September 1996 as Executive Vice President, CFO and Secretary. During the course of his career in the minerals industry, Mr Mitchell has negotiated several project financings and equity issues, with values aggregating well in excess of US$100 million. Mr Mitchell is 60 years of age and resident in Denver, Colorado, USA. Mr Robert Prescott Mr Prescott is the Vice President of Operations of Summo USA Corporation (a related party of Summo). Mr Prescott is responsible for managing the permitting and ultimately construction and operation of the Lisbon Valley project. Mr Prescott is a metallurgical engineer with over 30 years' experience in management of mining and metallurgical operations, and has specific knowledge and expertise in solvent extraction and electrowinning. Mr Prescott spent 19 years with Kennecott Copper Corporation at the Bingham, Ray and Chino operations in Utah, Arizona and New Mexico, respectively, and 11 years with Inspiration Resources Corporation at the Bluebird and Miami operations in Utah. Bluebird was the first mine-for-leach copper operation to go into production in the United States. Mr Prescott has extensive experience with project permitting. Mr Prescott is 60 years of age and resident in Moab, Utah, USA. Yours sincerely, Andrew Chapman Chief Executive Officer
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Drilling Commences at Mt Watson
Jun 7th 2001
DRILLING COMMENCES AT MT WATSON The Directors of Matrix Metals Limited are pleased to announce that the first round of drilling has commenced at the highly prospective Mt Watson Prospect. Mt Watson is located 20 km NNW of the Mt Cuthbert Operation and is considered to have the resource potential to substantially increase the life of the Mt Cuthbert Operation. The initial program comprising approximately 2,500m of reverse air blast (RAB) drilling commenced today with the program designed to test three parallel zones of copper mineralised outcrop which were confirmed in the recent surface mapping program. The three mineralised zones vary in width up to 15m and extend beyond the mapped strike length of 1 km. Additional reconnaissance mapping completed at this stage indicates the strike extends a further 500m. The initial drilling program is scheduled to be completed in late June with the first interpreted results expected in mid July. Yours faithfully, Andrew Chapman Chief Executive Officer
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LETTER TO SHAREHOLDERS -Exciting New Operational Plan for Mt Cuthbert
May 28th 2001
Please find following the contents of a letter released to shareholders today. Dear Shareholder I take this opportunity to write to you to provide a timely update on the activities of your Company and particularly, to explain the amendment to the Mt Cuthbert operating plan ("Plan") that was announced to the ASX on 21 May 2001. In summary, the amended Plan will provide a substantial increase in cashflow from Mt Cuthbert over the next twelve months by reducing operating costs and deferring capital expenditure. In addition, the Plan also reduces operational risk, particularly over the 2001/2002 wet season period. The implementation of the Plan will result in the cash reserves of the Company being replenished, which will provide funds to progress the Company's exploration and development activities. As detailed in both the December 2000 and March 2001 Quarterly Reports, the severe rains and subsequent floods experienced in December 2000 placed the Company under operational and cashflow pressure, with daily copper production dropping to approximately 50% of the levels achieved in December prior to the rain. I am pleased to report the recovery from the problem period is now effectively complete with maximum daily production levels achieved in late April. A further positive milestone achieved in April was the overwhelming shareholder vote for Summo Minerals Corporation (Summo) to become a 48% shareholder of Matrix, thereby offering an increased level of shareholder support and stability to the share register. Other benefits of the transaction are that two Summo representatives will sit on the Matrix Board of Directors and a loan facility of A$3.25m has been provided by Summo, of which A$1.25m has already been drawn down for working capital purposes. The remaining A$2m will be drawn down in June 2001 to fund the second tranche of acquisition costs for the White Range Project. The stabilisation of production at Mt Cuthbert and of the corporate structure via the entry of Summo, has led to the next logical management step of initiating a strategic review of the Mt Cuthbert Operation and of the overall Company plans for the coming 2001/2002 year. This review resulted in the adoption of the amended Plan as previously mentioned. The Plan is based on the optimised use of the existing ore grade and low grade stockpiles, the accelerated extraction of the copper inventories in the existing leach pads and the blending of the outsourced Electrostatic Precipitate Dust (ESP) with these available ore sources and copper inventories. The key to the Plan's success was the securing of a confirmed supply of ESP for the 2001/2002 year. Strategic use of the ore sources and copper inventory with the ESP will allow the deferment of open pit mining operations resulting in reduced operating costs, deferred capital expenditure on open pit development, reduced risk and a substantially improved cash flow from the operation. I believe this plan presents a solid "recovery" profile from the past problems. With this recovery overlaid on the predicted upward movement in the copper price, which was a cornerstone of the strategy of creating and listing the Company last year, the potential of the Company has been reinvigorated. The copper price has been disappointing over the last few months due mainly to a fear that the world economy was slowing, however analysts are now noting there are positive indications that this slow down has receded and that the copper price is on the upward move again. A rise in the price over the last week coincident with a continuing reduction in inventory stocks at the London Metals Exchange ("LME"), offer support to this positive view. LME inventories have reduced significantly over the last year and an increase in the world demand of copper is predicted to result in a significant bounce in the copper price. For your interest, I have attached a press clipping from the London Financial Times (3 May 2001), which discusses the bullish outlook for the copper price in the coming months. In considering the future outlook for copper and Matrix, I offer a few specific positive points of note to remember about your Company: We are a proven copper producer, with Mt Cuthbert having a 4 year production history. We are the only mining company in Australia that enjoys single commodity exposure to copper. Based on a firm policy of remaining unhedged to the copper price, the Company has unlimited exposure and leverage to a rising copper price. The Mt Cuthbert Operation has proved it can operate at its nameplate production capacity. Mt Cuthbert has the enviable reputation of consistently producing premium grade quality copper cathode. The medium term business plan provides for a quadrupling of copper production capacity over the next 2 to 3 years via optimisation and full development of the existing assets in the Company's portfolio. In addition to this organic growth profile, further growth potential may be realised via the acquisition of other operating assets. Since listing, we have acquired the highly prospective Mt Watson prospect (located near Mt Cuthbert), which has the demonstrated potential to significantly increase the life of the Mt Cuthbert Operation. Exploration has commenced at Mt Watson with drilling programmed for June. The Company's new major shareholder, Summo Minerals Corporation, is backed by a US based private equity fund, namely the Resource Capital Fund LP. The investment Summo made in Matrix was knowingly transacted at a level well above the prevailing share price in confidence of the intrinsic value of Matrix's asset base and the projected positive outlook for world copper demand and hence rising price. Having said all of this, the reality of the situation and the obvious measure of our Company's performance is the share price. The share price, as we are all aware, is at a grossly unacceptable level. It should be noted that the downward movement in the share price has been on very low share trading volumes. The reasons for this situation are many and varied, some being within our control, and others outside of it. The Board believes the adoption of the amended production plan and the resultant strengthening of the financial position of the Company, combined with a turn around in the copper price, will recreate investor interest levels and support for the pursuits of Matrix. Looking further ahead, the requirement for addressing the demands of development capital for the White Range Project, strategies for capital raisings and dividend policy in regard to the current financial year and beyond, are all issues to be addressed over the coming months. In closing, I take the opportunity to reiterate that the Management and Board of Directors are committed to achieving success with the operational and development pursuits of the Company with the ultimate intention of having the success reflected in the share price and hence, returning value to shareholders. All appropriate steps to achieve this objective are being undertaken and other value adding opportunities are under evaluation. I trust the development and implementation of the amended operating Plan for Mt Cuthbert is taken as an indication of our ability to devise and implement innovative solutions to the problems inherent to the industry in which we operate. As always, the Chairman, Mr Gordon Freeman and myself welcome direct contact with shareholders who may wish to discuss any matter in regard to the Company. Yours Sincerely, Andrew Chapman Chief Executive Officer COMMODITIES & AGRICULTURE: Experts see start of big bull market for copper METALS CONFERENCE TOLD UNDERLYING SUPPLY-TO-DEMAND POSITION REMAINS TIGHT: Financial Times, May 3, 2001 By GILLIAN O'CONNOR The copper price is close to a significant bull market, with perhaps six months to go to take off, predicted industry observers yesterday. If the recent 5 per cent demand growth trend continues, the price could hit Dollars 3,000 a tonne before the end of 2002, compared with around Dollars 1,700 last night. On a more conservative assumption of 4.25 per cent growth, the price should still rise to Dollars 2,315 a tonne. Only if growth slows to 3.5 per cent will the price stay around current levels. Peter Hollands of Bloomsbury Minerals Economics, who made these predictions, was one of two copper experts at CSFB's metals conference yesterday. Simon Hunt of Simon Hunt Strategic Services, who concentrated on the explosive growth in Chinese demand, was equally enthusiastic about prospects for the red metal. Looking at copper from a global perspective Mr Hollands suggested that the recent price weakness was not the result of a real supply surplus, but of the clearance of a temporary blockage in the supply pipeline. The underlying supply to demand position remains tight. There was a substantial deficit last year, and there will be another smaller one this year, despite the global economic hiccup. What is more, further deficits can be expected over the next couple of years as growth picks up, because there is no way the mining industry can expand output fast enough to satisfy even the most cautious demand projections. Substantial planned additions to copper mining capacity before 2004, such as the Antamina mine in Peru and the expansion of Escondida in Chile, are already known about, and others further along the pipeline, such as Konkola Deep in Zambia, cannot suddenly be accelerated. It is unlikely that moth-balled US capacity will reopen - unless strong demand and rising metal prices make it worthwhile. After 2004, the market could return to surplus, if all the companies were to go ahead with all the projects already on their drawing boards. China is now the second largest consumer of refined copper in the world: it accounts for around 12 per cent of the global total, compared with just under 20 per cent for the US, and its consumption has been growing at a remarkable 15 per cent a year. Mr Hunt argued that the boom was likely to continue, with average Chinese consumption growth of around 9 per cent until 2005. He suggests three sources for the growth. The first is domestic demand. Copper is used both in basic infrastructure projects and in electronic consumer goods, such as mobile telephones. His projections for the growth in internet users and mobile phone users in China showed very rapid growth from a small base. Second is import substitution. At present, China imports substantial quantities of semi-fabricated products, such as wire and tubes, partly because the local product has not been good enough. This situation is changing. The third factor is foreign manufacturers moving operations to China. The last two factors may mean that copper consumption in some countries outside China dips. But Mr Hunt's overall message was strongly positive for copper. Copyright: The Financial Times Limited
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Confirmed Availibility of ESP Dust Allows Matrix to Improve the Mt Cuthbert Operating Plan
May 21st 2001
The directors of Matrix Metals Limited are pleased to advise that agreement has been reached with the supplier of the Electrostatic Precipitator Dust (ESP) for the confirmed supply of a minimum 10,000 tonnes of ESP to the Mt Cuthbert Operation during the 2001/2002 financial year period. With the security of this tonnage of ESP, Matrix has been able to amend the Mt Cuthbert operating plan resulting in reduced operating costs, deferred open pit capital expenditure and a significantly improved cashflow from that indicated in the March quarterly report. The amended plan allows for the deferment of the development of mining operations at the Hidden Treasure Open Pit. Ongoing copper production will come from the blending of the confirmed supplies of ESP with the existing ore stockpiles and other readily available sources of ore and by drawing on the existing copper inventory in the leach pads. As a further enhancement to the plan, a program of testwork has also commenced to assess the potential for retreatment of some of the existing leach pads incorporating ESP. Although implementation of the plan will result in the processing plant operating at less than maximum capacity for a period, the increased cashflow increment provides working capital and funds for the White Range Feasibility Study. Many operational benefits will be achieved including improved management and timing of the utilisation and development of existing reserve inventory with a reduction in the operating risk in general, specifically over the 2001/2002 wet season. The amended production plan has received the full support of Summo Minerals Corporation and the Resource Capital Fund. Yours faithfully, Andrew Chapman Chief Executive Officer
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Matrix Announces Maiden Half-Year Report
Mar 31st 2001
Please view attached file
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Independent Expert Report Confirms that the Proposed Summo Transaction is Fair and Reasonable
Mar 6th 2001
Matrix is pleased to inform shareholders that KPMG have concluded in its Expert's Report that the proposed Summo Transaction is "fair and reasonable". The Directors of Matrix agree with the conclusions of the Independent Expert Report and will unanimously recommend to shareholders that they approve the Transaction. The Independent Expert's Report was commissioned in order to ensure that Matrix's shareholders are provided with all necessary information to enable them to assess the merits of the proposed Summo Transaction, the key aspects of which are: Summo Minerals Corporation will acquire Murchison United NL's and Majestic Resources NL's shares in Matrix for a net consideration of 23.8 cents per share to become a 48% shareholder of Matrix; and Summo will provide a A$3.25 million debt facility to the Company, of which A$500,000 was advanced to the Company on 26 February 2001. Expert's Conclusions The Independent Expert has concluded that the Summo Transaction, on balance and in the absence of a more attractive alternative transaction, is fair and reasonable to the non-associated shareholders of Matrix. The principle factors taken into account by KPMG in forming its opinion are: The $3.25 million of funding secured by the transaction (the "Loan") will alleviate current cashflow pressures and ensures ownership of the Company's assets; The Loan can, at Matrix's option, be converted to equity if required to satisfy any medium term funding requirements; The proposed transaction does not substantially change the equity interests of the non-associated shareholders' interests in Matrix; Summo will contribute a technical focus to the Board to enhance current and future operations and is focussed on developing Matrix's copper assets to enhance the prospect of realising shareholder value; The commitment shown by Summo in providing the first $500,000 tranche of the Loan without requiring approval of the Matrix shareholders for the balance of the transaction; The cash consideration payable by Summo equals the prospectus subscription price of 25 cents per share; The net consideration received by Murchison and Majestic is 23.8 cents per share after allowing for the portion of the transaction costs to be borne by these parties; and The transaction both enhances and detracts from the potential for a future takeover bid for Matrix. In KPMG's opinion, the disadvantages of the Summo transaction are: the net cash consideration of 23.8 cents per share receivable by Murchison and Majestic is at a premium to the recent price at which Matrix shares have traded at ASX and is at the upper end of KPMG's fair values range of 12 cents to 28.8 cents with a midpoint of 20.8 cents, and that this premium is not being offered to other shareholders; andMatrix may need to source further short to medium term funding, depending upon operational performance, if the Loan is not converted to equity. Directors Comments on Independent Expert's Report The Directors would like to bring the following issues to the attention of shareholders: Although Murchison and Majestic may be receiving a premium to the current share price that is not being offered to other shareholders, Murchison and Majestic will receive: less than the Directors view on the underlying value of the Company once allowance is made for the upside in the Company's existing projects; less than the top end of the KPMG value range of 28.8 cents; and slightly less than the 25 cent IPO price a large number of the minority shareholders paid to acquire their interests. The Directors consider that the market price of Matrix Shares is impacted by the current uncertainties The Directors consider there is a degree of conservatism in the KPMG value range and if greater allowance for project upside were included, KPMG would have concluded that Summo was not paying a premium. The Director's consider the Summo Transaction places the company in a far more robust position as it will alleviate the current cashflow situation as well as enabling the Company to proceed with work programs to ensure other sources of funding are available as required. At it's sole bulletretion, Matrix has right to convert the Summo $3.25 million Loan to shares in Matrix at the 16 cents per share conversion price provides the Company with a valuable fall back option. Meeting Date Following the granting of required regulatory approvals, the general meeting to consider these transactions will be held at the Celtic Club - "Function Room", 48 Ord Street West Perth WA 6005, on Monday, 9 April 2001 commencing at 10.00 am.. Formal notification of the meeting and a detailed Explanatory Memorandum, including a full copy of the Expert's Report, is in the process of being printed and will be mailed to shareholders shortly. Shareholders are encouraged to read the documentation in full when it is received, seek professional advice if required and to exercise their right to vote at the General Meeting either in person or by proxy. Shareholders may also contact Matrix's management or its financial advisers if they wish to bulletuss the proposed Summo Transaction. Yours sincerely, Andrew Chapman Chief Executive Officer
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Matrix Announces Maiden Half-Year Report
Mar 6th 2001
The Directors of Matrix Metals Limited are pleased to announce that the Company has achieved a maiden half-year pre tax profit of $463,623. Despite the operational setbacks that occurred in the period, (as detailed in the December Quarterly report to Shareholders), Matrix is pleased to confirm that this profit is substantially in line with the budget figures used to prepare the Prospectus forecast. The Half-Year Accounts and the Appendix 4B were released separately today. The Company has also today released a Notice of Meeting and Explanatory Memorandum in regard to the proposed transactions with Summo Minerals Corporation. The meeting to consider the transactions will be held at the Celtic Club - "Function Room", 48 Ord Street West Perth WA 6005, on Monday, 9 April 2001 commencing at 10.00 am. The Explanatory Memorandum and the attached Independent Experts Report provides details of the operating performance of the Company over recent times in addition to all information in regard to the transaction with Summo. Yours faithfully, Andrew Chapman Managing Director
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Matrix Receives First Tranche of Loan Facility
Feb 26th 2001
The Directors of Matrix Metals Limited advise that they have executed formal loan documentation with Summo Minerals Corporation. This loan facility which is for a total of A$3.25 million is a component of the Heads of Agreement between Matrix and Summo which was previously announced to the ASX on 24 January 2001. In accordance with the provisions of the loan facility, the first tranche of A$500,000 was received by the Company today. Yours sincerely, Andrew Chapman Chief Executive Officer
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Summo Minerals Corporation to become Major Shareholder of Matrix
Feb 7th 2001
Dear Shareholder, We are writing to you to ensure you are aware of the announcement made to the Australian Stock Exchange on 25 January 2001 detailing the proposal by Summo Minerals Corporation to acquire a major shareholding in Matrix and provide significant funding support to your Company. A copy of the December 2000 Quarterly Report which contains this announcement, is attached for your information. In late February 2001 you will receive the formal Notice of Meeting and Explanatory Memorandum in relation to this transaction, however the Board felt you may wish at this interim stage to understand some background to the transaction and the Board's views of its relative merits when compared with other opportunities considered by the Company. The Board also wished to ensure that shareholders have a clear understanding of the important role that they have to play in approving this transaction, and the timetable for this approval process. Subject to approval of shareholders, excluding Murchison and Majestic, Summo intends to acquire for 25 cents per share (less the costs of the transaction) the shareholdings of Murchison (40%) and Majestic (8%) in Matrix. These shareholdings represent a controlling block in the Company. Both these shareholders signalled at the time of our Initial Public Offering (IPO) that their shareholding in the Company was to be held only for the short term. Matrix had no role in these share acquisition negotiations between Summo, Murchison and Majestic other than to ascertain that Summo did not believe it appropriate to make a full takeover bid for the Company because: the price Summo would have been likely to offer for all Matrix shares, Murchison and Majestic would not have accepted; of their desire to use Matrix as a listed vehicle for further expansion in the Asia Pacific region; and - because of the additional funding requirements which Summo could then be called upon to satisfy Matrix's own projects. Against this background and in the knowledge of the funding requirements of the Company, the Matrix Board had to form a view on the type of transaction which would be in the best interests of the Company and its shareholders. In their deliberations the Board considered a number of alternatives to those offered by Summo, including introducing other strategic shareholders, joint ventures of the assets, equity raisings and debt facilities. Regarding the latter, the early stage of feasibility assessment on our assets dictated that no bank funding could be sourced at this time. Equity raisings were canvassed with two brokers with both advising that given the present market, the raisings could only be completed at significant discount to the current Matrix share price, on extended timeframes and without any certainty of outcome. The joint ventures considered by Matrix offered a dilution to our existing ownership position at a discount to our purchase price. The Board recognised that it needed to encourage the introduction of shareholders who could provide the funding support required and add to the vision for the Company. Having considered the other strategic investors in this sector who may have had an interest in supporting the Company, the Directors formed the view that Summo had excellent credentials to assist the Company to achieve its objectives as: Summo would add to the share register an interested and supportive shareholder, replacing two neutral if not disinterested shareholders, a factor which the Board considers to be of significant merit in respect of the short and long term future of Matrix. The formation of a relationship between Summo and Matrix would be of substantial benefit to the operational and development objectives of Matrix, both in the short and longer term. The synergy between Summo and Matrix is strong, and can be summarised as follows: both companies are involved in the pursuit of oxide copper and processing via the SX/EW process; both companies are committed to the copper industry and have a positive view of the outlook for the copper price; the technical and management experience of each company is complementary; the separate geographic locations of each company will ensure they are not competing for projects or tenements and ensure each has a distinct and vibrant growth path; the broader vision and exposure will assist in raising the profile of both companies in this sector; and the strength of the financial support available through the backing of Summo's major shareholder, Resource Capital Fund, will provide additional leverage to both companies. RCF is a private equity investment fund with a mandate to invest in small base metal focused companies. RCF sees a niche market opportunity to create medium sized metal producers, with Summo and Matrix having been selected by the Fund as having the assets, management and potential to move into this niche market for copper production with the appropriate backing and support. Matrix has been advised that Summo had conducted a worldwide search for copper opportunities to which they could add their particular value and in this search spoke to Murchison about their shareholding in Matrix. To secure their agreement to sell Summo offered Murchison and Majestic an exit from Matrix at the subscription price paid by IPO shareholders of 25 cents (less transaction costs). The Directors consider both Summo's acquisition of these shares, at the IPO price, which is at a premium to recent trading levels, and the provision of funding support as a positive vote for the value of the assets and the future of the Company. Although the Board has provided its support to Summo in this transaction, we advise that the Directors are free to recommend any bona fide alternative proposal if such a proposal is made during the course of the transaction with Summo. It is proposed that the Notice for the Extraordinary General Meeting (EGM) and Explanatory Memorandum will be dispatched to shareholders in the last week of February. This will provide full details of the Resolutions to be proposed at the EGM, details of the proposed transaction and an Independent Expert's Report and Valuation by KPMG of Matrix's assets. It is envisaged the EGM will be held in late March 2001. In the time period between the issue of the Notice of Meeting and the EGM, Summo's CEO, Mr Greg Hahn, and Matrix's CEO, Mr Andrew Chapman will conduct an Australia wide tour presenting the details and merits of the transaction and the respective objectives of both Matrix and Summo in regard to the future. The presentations will be to both current and prospective investors in Matrix. In light of the production issues that have faced the Company over the last two months (details of which are provided in the December 2000 Quarterly Report) and the support Summo will provide to ensure the Company's business plan is moved back on track, we urge you to consider the proposed transaction in a positive light realising its inherent benefit to the minority shareholders. As always, we would welcome contact from shareholders to discuss issues in relation to the Summo transaction or others matter in respect of Matrix. Contact numbers are detailed in the attached Quarterly Report. Yours sincerely, Gordon Freeman Chairman Andrew Chapman Chief Executive Officer
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Quarterly Activities Report - December 2000
Jan 31st 2001
Please view attached file
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Summo Heads of Agreement
Jan 24th 2001
Summo Minerals Corporation ("Summo") has today advised Matrix Metals Limited ("Matrix") that it has entered into agreements to acquire the Matrix shares held by Murchison United NL and Majestic Resources NL, subject to the approval of Matrix shareholders. The directors of Matrix are pleased to announce that a Heads of Agreement has also been signed today with Summo under which Summo has committed to provide a bridging loan facility to Matrix to fast track its current operating plans and the directors of Matrix have indicated their support for Summo becoming a major shareholder of the company. The funds provided to Matrix by Summo will be utilised to: optimise the operation of the existing Mt Cuthbert copper operation, including further evaluation of the production upgrade feasibility study; commence exploration drilling at the recently acquired and highly regarded Mt Watson prospect; secure ownership of the White Range project through the payment of the A$2million deferred consideration to Majestic; and commence the final phase of the White Range Project Feasibility study. Summo is listed on the Toronto Stock Exchange, has a market capitalisation of CAD$10m., and has the same focus as Matrix - that is the development of SX/EW copper projects. Summo owns two significant heap leach oxide copper development projects in North America, namely the Lisbon Valley Project, located in Utah, and the Terrazas Project located in Mexico. The combined inventory of contained copper for these two projects is in excess of 1.0 billion pounds (476,400 tonnes) of copper. Summo's major shareholder is the US based private equity fund, Resource Capital Fund. This Fund currently has approximately US$110m under management and has a mandate to promote the growth of young promising resource companies. Resource Capital Fund, which is associated with the Rothschild family, has provided Summo with the funds to both acquire the Murchison/Majestic stake and to provide the additional development funding to Matrix. The key terms of the intended transactions are: Summo will purchase the shareholding currently held by Murchison and Majestic, totalling 48 per cent of the issued capital of Matrix, at 25 cents per share. Summo will extend a loan, or at Matrix's option a Letter of Credit, for up to A$3.25M for working capital and project development purposes. Five Hundred Thousand dollars ($500,000) of that facility will be available to be drawn down prior to the shareholders meeting upon the execution of formal loan and security documentation agreement, with the balance to be drawn down on shareholder approval of the share acquisitions. The loan will mature on 30 June 2002, and is convertible at Matrix's option into ordinary shares at 16 cents if any unpaid balance of the loan remains outstanding on maturity. The interest is payable, at Matrix's option, in shares or cash. In consideration of this loan Summo will receive 3 million options for ordinary shares in Matrix exercisable at 25 cents per share at any time prior to 30 June 2003. Providing shareholder approval is granted, at least two Summo representatives will be invited to join the Board of Directors of Matrix. It is envisaged that one of the current non-executive directors of Matrix will resign from the Board. The Directors of Matrix consider the intended transactions will be beneficial to existing shareholders in that they: introduce a new growth orientated industry shareholder with significant resource sector operating, management and development expertise and importantly with specific expertise in the areas of solvent extraction, electrowinning, heap leaching and the production of LME Grade A copper cathode; provide access to the funding resources of Summo and its principal shareholder the Resource Capital Fund that will enable Matrix to retain sole ownership of its existing projects and assist in the further development of these projects; facilitate the orderly exit of Murchison and Majestic from the Matrix share register; provide Matrix with the required development funding without significantly diluting existing shareholders through a share placement or alternative equity raising that would otherwise be required; and enable Matrix shareholders to share in the upside created by the enhanced opportunities presented to the Company through these changes. It is intended that a general meeting of Matrix's shareholders will be held as soon as possible at which the shareholders, other than Murchison and Majestic, will be asked to vote on Summo's acquisition of the Matrix shares currently held by Majestic and Murchison. Formal documentation will be distributed to all shareholders as soon as practicable. To accompany the Notice of General Meeting of Matrix's shareholders, the Directors and management of Matrix are currently preparing an Explanatory Memorandum that will explain the relative merits of the transaction. Matrix has commissioned KPMG to prepare an Independent Expert's Report on the proposed acquisition of the Matrix shares by Summo, which will be sent to shareholders with the other meeting documents. Matrix believes the relationship with Summo brings together significant operating, management and development expertise in the resource sector in general and specifically in the areas of solvent extraction, electrowinning, heap leaching and the production of LME Grade A copper cathode. Matrix and Summo are confident that the sharing of this expertise in addition to the financial support provided by Summo's major shareholder, Resource Capital Fund, will offer significant benefits to both companies. Yours faithfully, Shane McBride Company Secretary
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Mt Cuthbert Copper Project Rainfall Event
Jan 19th 2001
The North West Region of Queensland has experienced a rainfall event over the past few days with in excess 250mm of rain being recorded. The band of storms has extended from the Southern Gulf of Carpentaria to Central West Queensland with the Mt Cuthbert project area being affected. Due to effects on mining, crushing, stacking and general operations, copper cathode production will be affected. Further, although fuel and acid stocks were at near maximum capacity prior to the rain, it is possible shortages of fuel, acid and other consumables may occur. The ultimate effect on copper cathode production for the remainder of December and into January is not quantifiable at this stage. Operating staff have implemented actions to ensure the effects on production are minimised. Yours sincerely, Andrew Chapman Chief Executive Officer
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Announcement Response to Media Report
Jan 17th 2001
The Directors of Matrix Metals Limited ("Matrix") have become aware of a media report which suggests the possibility of a North American company, Summo Minerals Corporation ("Summo") becoming the major shareholder of Matrix. The report further suggests that Summo would achieve this shareholding via the purchase of shares held by Matrix's two existing major shareholders. Matrix advises that it has been in negotiation with Summo in regard to that company taking a significant interest in Matrix. The exact form and terms of the transaction have not been agreed. Matrix advises that it is awaiting a response from its current major shareholder in regard to various matters prior to being in a position to proceed with negotiations. Shareholder approval will be required for the transaction currently being contemplated. Yours sincerely, Andrew Chapman Chief Executive Officer
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Investor Presentation - Dec 7th 2007 (click here)
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Mining 2006 Brisbane - Presentation
- Oct 2nd 2006 (click here)
Liquidators
Ernst and Young
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PERTH WA 6000
Phone: +61 8 9429 2222
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