Union Resources Limited
QUARTERLY ACTIVITIES STATEMENT FOR PERIOD ENDED 31 MARCH 2008
Background
Union Resources Limited ("Union" or "the Company") is focused on the
development of the Mehdiabad Base Metal Project ("the Project") located in
Central Iran.
The Project is carried on by Union, Iranian Mines and Mining Industries
Development and Renovation Organisation ("IMIDRO") and the company Itok GmbH
("Itok") through an incorporated Iranian joint venture company, Mehdiabad Zinc
Company ("MZC"). Union has to date invested in excess of US$15 million on
exploration and feasibility activities relating to the Project. As previously
advised, IMIDRO purported to terminate several agreements governing the Project
in December 2006. Union stated then, and is still firmly of the opinion, that
the agreements were invalidly terminated. Since that time Union has been
negotiating with various Iranian parties in an effort to resolve the impasse
and progress the Project. At the same time, Union has been exploring the
possibility of resolving the matter through arbitration and has made initial
preparations for instituting arbitration proceedings should that become
necessary.
Union has also previously advised that it has received notification from the
MZC Board that Project expenditure by it and Itok of US$9,695,992 and
US$463,179 respectively has been approved by the MZC Board. Whilst the sum of
US$9,695,992 represents only part of what Union claims is its legitimate
Project expenditure, the significance of the MZC Board's determination is that
it constitutes formal recognition that Union and Itok have met their initial
"earn-in" expenditure commitment under the Project agreements. The effect of
this is that Union is entitled to have its Project expenditure through MZC
converted to an approximately 47.7% equity in MZC (with Itok entitled to an
approximately 2.3% equity). This will prove to be of significant benefit if a
resolution of the current dispute can be achieved.
Activities during quarter
During the quarter Union continued to hold discussions with the relevant
Iranian parties in an effort to resolve the Project dispute and progress the
Project, and further discussions are scheduled to be held in Dubai in early
May.
Union's Managing Director, Dr Frank Reid was appointed chairman of MZC on 12
February.
During the quarter Union also investigated possible involvement in other
projects, and such investigation is ongoing.
No exploration activities were undertaken in the quarter. Nor did the Company
undertake any mining production and development activities in the quarter.
Stephen Gatley and John Lemon were each appointed as a director of the Company
in February and March respectively, and Mark Pratt resigned as a director of
the Company in March.
UNION RESOURCES LIMITED
Dr Frank Reid
Managing Director
For further information contact:
Australia: Union Resources Limited
Frank Reid - Managing Director
Phone: +61 07 3833 3833
Email: info@unionresources.com.au
London: Hanson Westhouse Limited
Louis Castro or Martin Davison
0207 7601 6100
Bankside Consultants
Simon Rothschild or Louise Mason
020 7367 8888
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 entity
Union Resources Limited
ABN Quarter ended ("current
quarter")
40 002 118 872 31 March 2008
Consolidated statement of cash flows
Cash flows related to operating Current quarter Year to date
activities
$A'000 (9 months)
$A'000
1.1 Receipts from product sales and - -
related debtors
1.2 Payments for (a) exploration and (115) (356)
evaluation
- -
(b) development
- -
(c) production
(545) (1,929)
(d) administration
1.3 Dividends received - -
1.4 Interest and other items of a 40 117
similar nature received
1.5 Interest and other costs of finance - -
paid
1.6 Income taxes paid - 9
1.7 Other (provide details if material) 8 33
Net Operating Cash Flows (612) (2,126)
Cash flows related to investing
activities
1.8 Payment for purchases of: (a) - -
prospects
- -
(b) equity investments
(6) (21)
(c) other fixed
assets
1.9 Proceeds from sale of: (a) - -
prospects
0 2
(b) equity
- -
investments
c. other fixed
assets
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other (provide details if material) - -
Net investing cash flows (6) (19)
1.13 Total operating and investing cash (618) (2,145)
flows (carried forward)
1.13 Total operating and investing cash (618) (2,145)
flows (brought forward)
Cash flows related to financing
activities
1.14 Proceeds from issues of shares, (37) 2,357
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 (provide details if material) - -
Net financing cash flows (37) 2,357
Net increase (decrease) in cash (654) 212
held
1.20 Cash at beginning of quarter/year 2,463 1,602
to date
1.21 Exchange rate adjustments to item (2) (7)
1.20
1.22 Cash at end of quarter 1,807 1,807
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related
entities
Current quarter
$A'000
1.23 Aggregate amount of payments to the parties included 246
in item 1.2
1.24 Aggregate amount of loans to the parties included in -
item 1.10
1.25 Explanation necessary for an understanding of the transactions
Salaries and directors fees
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'000
3.1 Loan facilities - -
3.2 Credit standby arrangements - -
Estimated cash outflows for next quarter
$A'000
4.1 Exploration and evaluation 100
4.2 Development -
Total 100
Reconciliation of cash
Reconciliation of cash at the end of the Current quarter Previous quarter
quarter (as shown in the consolidated
statement of cash flows) to the related $A'000 $A'000
items in the accounts is as follows.
5.1 Cash on hand and at bank 306 463
5.2 Deposits at call 1,500 2,000
5.3 Bank overdraft - -
5.4 Other (provide details) - -
Total: cash at end of quarter (item 1,806 2,463
1.22)
Changes in interests in mining tenements
Tenement Nature of interest Interest Interest
reference at at end of
(note (2)) beginning quarter
of
quarter
6.1 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 rights
together with prices and dates.
Total number Number quoted Issue price Amount paid up
per security per security
(see note 3) (see note 3)
(cents) (cents)
7.1 Preference + - - - -
securities
(description)
7.2 Changes
during
quarter
(a) Increases - - - -
through
issues
(b) Decreases - - - -
through
returns of
capital,
buy-backs,
redemptions
7.3 +Ordinary 898,373,543 898,373,543 Fully paid Fully paid
securities
7.4 Changes
during
quarter
(a) Increases - - - -
through
issues
(b) Decreases - - - -
through
returns of
capital,
buy-backs
7.5 +Convertible - - - -
debt
securities
(description)
7.6 Changes
during
quarter
(a) Increases - - - -
through
issues
(b) Decreases - - - -
through
securities
matured,
converted
7.7 Options Exercise price Expiry date
(description 246,040,340 246,040,340
and UCLOA UCLOA 9.82 31 March 2009
conversion
factor) 264,428,911 264,428,911 10.00 31 March 2009
UCLOB UCLOB
90,000,000 - 7.50 31 March 2009
Unlisted
6,000,000 - 2.00 31 March 2013
Unlisted
5,333,332 - 2.10 31 March 2015
Unlisted
2,666,666 - By reference 31 March 2015
Unlisted to future
market price
7.8 Issued during - - - -
quarter
7.9 Exercised - - - -
during
quarter
7.10 Expired - - - -
during
quarter
7.11 Debentures - -
(totals only)
7.12 Unsecured - -
notes(totals
only)
Notes
1 The quarterly report provides a basis for informing the market how the
entity's activities have been financed for the past quarter and the effect on
its cash position. An entity wanting to disclose additional information is
encouraged 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 in respect of
interests in mining tenements acquired, exercised or lapsed during the
reporting period. If the entity is involved in a joint venture agreement and
there are conditions precedent which will change its percentage interest in a
mining tenement, it should disclose the change of percentage interest and
conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive
Industries and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International
Accounting Standards for foreign entities. If the standards used do not address
a topic, the Australian standard on that topic (if any) must be complied with.
END
UNION RESOURCES LTD: Quarterly Report
© 2008 PR Newswire
Sie erhalten auf FinanzNachrichten.de kostenlose Realtime-Aktienkurse von und
Werbehinweise: Die Billigung des Basisprospekts durch die BaFin ist nicht als ihre Befürwortung der angebotenen Wertpapiere zu verstehen.
Wir empfehlen Interessenten und potenziellen Anlegern den Basisprospekt und die Endgültigen Bedingungen zu lesen,
bevor sie eine Anlageentscheidung treffen, um sich möglichst umfassend zu informieren, insbesondere über die potenziellen
Risiken und Chancen des Wertpapiers. Sie sind im Begriff, ein Produkt zu erwerben, das nicht einfach ist und schwer zu
verstehen sein kann.
