ZAMBEZI RESOURCES LIMITED
New Strategy for Zambezi
ZRL - Rights Issue and Strategic Re-Direction - Mr Julian Ford, MD
Fri, 1 Aug 2008 11:15AM
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Mr Julian Ford
Fri, 1 Aug 2008
11:15AM Australia/NSW
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ZAMBEZI RESOURCES LIMITED (ZRL)
ASX code: ZRL,ZRL
Website: http://www.zambeziresources.com
Industry: Materials,General Mining
Principal Activities:
Exploration for copper, gold and uranium.
Address:
17 Ord Street, Ground Floor
WEST PERTH
WA
Phone: (08) 9216 9000
Fax: (08) 9216 9090
Executives & Directors
Mr Brian Rear , Non Exec. Chairman
Mr Julian Ford , Managing Director
Dr Geoffrey Johnson , Executive Director
Mr Jeremy Wrathall , Non Exec. Director
Mr Lloyd Flint , CFO
Ms Renee Hill , Company Secretary
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Company ASX Announcements
Company ASX announcements can be viewed on the ASX website.
Announcements from the preceding six months are shown below.
Please refer to the relevant stock exchange if any of the above information is incorrect
ZAMBEZI RESOURCES LIMITED (ZRL) Events
Australia/NSW
ZAMBEZI RESOURCES LIMITED (ZRL)
| Updated shareholder information | Fri, 4 Jul 2008 |
| Company Secretary Appointment/Resignation | Fri, 4 Jul 2008 |
| Uranium Joint Venture Update | Wed, 2 Jul 2008 |
| Copper Gold Projects Update | Wed, 18 Jun 2008 |
| Copper Gold Projects Update | Tue, 20 May 2008 |
| Withdrawal of Becoming a substant. holder dated 6 July 2007 | Wed, 14 May 2008 |
| Large VTEM Anomaly Defined at Kangaluwi Copper Project | Fri, 9 May 2008 |
| Quarterly Activities and Cashflow Report | Wed, 30 Apr 2008 |
| Substantial Mineralisation intersected at Kangaluwi Project | Tue, 29 Apr 2008 |
| Cheowa Copper-Gold Project Drilling Results | Tue, 15 Apr 2008 |
Please note: This company appears on this website as a result of its listing on the Australian Securities Exchange. Boardroom Radio does not claim any association with any company listed on this site.
INTERVIEW WITH JULIAN FORD, MANAGING DIRECTOR OF ZAMBEZI RESOURCES LIMITED (ZRL)
“Rights Issue and Strategic Re-Direction”
http://www.brr.com.au/event/48855
FRIDAY, AUGUST 1 2008, 11:15 AM.
BRR Boardroom Radio is joined today by Mr. Julian Ford, the Managing Director of Zambezi Resources. Julian, glad to have you back on Boardroom Radio.
10 ZRL Yeah. Good day, Joel.
BRR Julian, today the company announced a strategic redirection of its exploration activities. It has announced that it will suspend activities at most of its Zambian projects until the end of the field season which is in November '08
15 and it is going to focus solely on the Kangaluwi Copper-Gold Project. Could you give our listeners some context on the reasons behind this move?
ZRL Yeah, Joel. The strategy is really designed to protect shareholder interest while the fundamentals of the copper business remain exceptionally strong. We have got record prices at the moment and they are forecast to stay close
20 to that in the foreseeable future. However, the fallout from the global financial markets which has really affected us in Australia more recently is very evident in the small sector. We believe the business environment will prove substantial for copper exploration companies in Zambia in the foreseeable future. In Zambia, we are optimistic the fiscal regime there will improve and
25 we are confident that stakeholders will come to agree with that. And when that situation improves, we believe that is the right time to do a major capital funding to drill out Kangaluwi.
BRR So, why did you elect to focus specifically on the Kangaluwi project, Julian?
30 ZRL Well, right now, obviously, you need to be very careful about preserving cash and deploying that diligently and efficiently. We believe Kangaluwi is a world-class copper project. It is potentially a company maker and at this stage we are very keen to try and keep that project 100%. We are trying to get some pretty broad intersections and a plus 2% copper (inaudible) (0:01:39) with 30
35 meters et cetera as we get our iron so to speak. We have got a big geological database and we are already seeing those sorts of intersections as the norm rather than the exception. So the strategy therefore is designed really to preserve cash while maintaining momentum at Kangaluwi. In reality, the bulk of the Kangaluwi drill-out campaign will now happen in 2009 rather than 2008.
40 However, we should not really forget that we have already drilled 40,000 meters plus there but, you know, it is 28 kilometres of strike length. There is still some drill out to go before this large ore body, we believe, is drilled out.
BRR You have also announced that Zambezi has completed a non-renounceable
45 rights issue. What do you intend to apply the funds to?
ZRL We are raising 4.1 million which is really a compromise between the rights issue legislation here in Australia and the exempt offer and the EU regulations because we are listed in AIM as well. So, I have consulted pretty widely. I spoke to a number of our shareholders the last few weeks in excess of 50% of our share holding and we have strong support for this strategy, really replacing shares at about 20% to 40% discount depending on your view of the price and, really, the strategy is to preserve value for the existing shareholders.
5
BRR Now as you mentioned, the company has done a lot of drilling up at Kangaluwi. Could you perhaps give our listeners some idea of the likely timing and flow of results? And also, briefly, the key milestones that lie ahead for Zambezi.
10 ZRL Not to forget we are actually - we have just drilled out and finished this week the drilling at Cheowa which is a joint venture project with Glencoe. So, just to round off on Cheowa, we will expect those results in September and once we optimize the flow sheet there through metallurgical test optimization, we hope to be in a position to complete a pre-feasibility study in the fourth quarter of
15 this year. Naturally, that will be contingent on the improvement in the operating climate for copper companies in Zambia and we are optimistic that by early next year that situation should be resolved. At Kangaluwi then, really, we are - we start reporting, in fact, next week, our first, on a monthly basis, drill results from Kangaluwi. So, we will basically continue to drill that out and
20 we will target those with only this stage a single drill rig drilled in the six or seven we had operating there and we will report those results as they come through every month. We will also do some optimization test work in the third - fourth quarter of this year. We got very good metallurgical test results there in our first test center result. And, really, we just want to firm those up,
25 assuming that all goes according to plan and we are ready for a major drill-out campaign in 2009.
BRR Julian, thanks so much for those comments and thanks for your time today.
ZRL Thanks, Joel.
30
BRR Now, remember, if you have any questions about today's broadcast or about any other of Zambezi's broadcasts on Boardroom Radio, please feel free to send through an e-mail. The address is brr@brr.com.au or you can use the Contact Us button on the home page. You have been listening to Mr. Julian Ford, the Managing Director of Zambezi Resources.
INTERVIEW CONCLUDED
Contact brr@brr.com.au for more information
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