Minemakers Limited
ASX : MAK
TSX : MAK

Minemakers Limited

October 14, 2010 12:35 ET

Minemakers Limited: Strategic Investment In BCD Resources NL and its Tasmania Gold Mine

WEST PERTH, WESTERN AUSTRALIA--(Marketwire - Oct. 14, 2010) - Minemakers Limited (TSX:MAK)(ASX:MAK)(NSX:MMS) has today entered into a Loan Agreement to make a loan facility available to BCD Resources NL ("BCD"), the owner of the producing Tasmania Gold Mine at Beaconsfield.

An initial draw-down of $8.0M has been made by BCD, with the primary purpose being to pay out a loan due to Bendigo Mining Ltd.

The Minemakers loan facility is for up to $15.0M and the Company is protected by a Fixed and Floating Charge over all of BCD's assets. Further draw-downs will be made to meet any required working capital before BCD is able to access richer ore from early calendar 2011.

Under the Loan Agreement, and subject to approval by BCD shareholders, the loan can be converted at any time thereafter to ordinary shares in BCD at a conversion price of two cents ($0.02) per share. Prior to the trading halt from the Australian Securities Exchange ("ASX"), BCD last traded at 14.5¢.

Minemakers' General Manager – Projects Development, Neville Bergin, has accepted an invitation to join BCD's Board of Directors forthwith.

A key aim of the Minemakers Board is to enhance and capture value for its shareholders with respect to the Company's exciting non-phosphate assets. Gold and tin are currently at all time record prices. After the debt to equity conversion, which will result in Minemakers gaining control of BCD, there is presently a general intent that the Company's Tasmanian tin and tungsten assets (it currently has four deposits and is drill testing new targets near Rossarden) will be merged with BCD to create a separate Tasmanian mining house. Shareholders will be fully informed of developments as they occur, and their approvals sought as and when required. Other ways to drive value will also be considered.

The Directors are excited about the potential of BCD and the Tasmania Gold Mine, which has a reported resource base in excess of 500,000 ounces, of which almost 300,000 ounces are in reserves*. They look forward to adding value to them, for the benefit of shareholders of both companies.

Concurrently, the Company remains focussed on advancement of its key phosphate projects. Information updates on them will be provided in the September Quarterly Report which is due for release shortly.

Andrew Drummond, Managing Director

* Tasmanian mine gold reserve and resource information summarised from BCD release to ASX of 15 September 2010.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Andrew Drummond, who is Managing Director of the Company and a Fellow of The Australian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Drummond has sufficient experience deemed relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Drummond consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

ABN 48 116 296 541

Contact Information

  • Minemakers Limited
    Mr Andrew Drummond
    Managing Director
    +61 8 9264 7000
    +61 8 9264 7099 (FAX)
    or
    Minemakers Limited
    Mr Dean Richardson
    Corporate Business and Investor Relations Manager
    +61 8 9264 7000
    +61 8 9264 7099 (FAX)
    www.minemakers.com.au
    or
    Collins Street Media
    Mr Ian Howarth
    Managing Director
    0407 822 319