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2007 Announcements, Press Articles |
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RECOMMISSIONING COMPLETED AT BEACONSFIELD GOLD MINE
The Beaconsfield Mine has now completed the recommissioning of full mining activities. Chairman’s Address - General Meeting Please find attached for immediate release a copy of the Chairman's Address being delivered at the Company's General Meeting at 11:00am this morning. Yours sincerely CHAIRMAN'S ADDRESS TO GENERAL MEETING 4 DECEMBER 2007 In my address to shareholders at last week's Annual General Meeting I referred to the Company's significant achievements during 2007, which included the restructuring of the ownership of the Beaconsfield Mine. Ultimately Beaconsfield Gold acquired approximately 90% of Allstate Explorations N L, its joint venture partner in the mine. This has seen Beaconsfield Gold's interest in the mine increase to around 95%. One of the essential steps in the ownership restructure was removing the Allstate group companies from administration. As part of that process Beaconsfield Gold agreed to arrange novation of, or to pay out, the Allstate group’s gold hedging contracts held with Macquarie Bank Limited, with novation being Beaconsfield Gold’s preferred option. By late October 2007, with continued and rapid strengthening of the gold price, the Company’s banker was showing reluctance to take on the Allstate out-of-the-money hedge contracts through novation and to further extend the Company’s own hedge book. At that point the Beaconsfield Gold Board resolved to close out the group’s entire hedge position and to finance the close-out by an equity raising. We will now reap the benefit of having all future production from the Beaconsfield Mine sold at spot price, which is presently close to A$900 per ounce, rather than having a proportion delivered into forward contracts which, when closed out, averaged less than A$650 per ounce. The Company’s banker, CBA, as part of a total funding package, provided short term bridging finance to partly fund the close out of hedging positions. The purpose of this meeting The purpose of this meeting is explained in the Notice of Meeting and Explanatory Notes, and my earlier comments were intended to set out the background to the proposed share placement. Shareholder approval for today’s resolution will give the Company the necessary flexibility over the next three months to reduce the CBA facilities as deemed appropriate. As I said at last week’s AGM, the re-commissioning phase for mining at Beaconsfield is due to end later this week with the recommencement of stoping in the high grade western zone of the mine. This will return the mine to positive cash flow after the long period of negative cash flow experienced during the mining suspension and recommissioning. The number of shares that may be issued and the pricing of those shares have not been determined and will depend, amongst other things, on the level of cash flow that the Mine generates in coming months. Results of General Meeting 4 December 2007 - Beaconsfield Gold NL As required by Listing Rule 3.13.2 and section 251AA(2) of the Corporations Act, the following statistics are provided in respect to each motion on the agenda. In respect to each motion the total number of votes exercisable by all validly appointed proxies was:
Dated this 4th day of December 2007 Brian Coulter Results of Annual General Meeting - Beaconsfield Gold NL As required by Listing Rule 3.13.2 and section 251AA(2) of the Corporations Act, the following statistics are provided in respect to each motion on the agenda. In respect to each motion the total number of votes exercisable by all validly appointed proxies was:
Chairman's Address and Chief Executive Officer’s Presentation - AGM 2007 Please find attached for immediate release a copy of the Chairman’s Address and the Chief Executive Officer’s Presentation being delivered at the Company’s AGM at 11:00am this morning. Yours sincerely Brian Coulter
Chairman's Address to AGM 2007
The 2007 year has been one of successful transformation for Beaconsfield Gold from simply being an investor in a mining joint venture to an operator of its own mine.
Mine Operations The final restriction on underground mining was lifted on 28 September 2007 when Workplace Standards Tasmania accepted the Western Case for Safety. I am pleased to report that gold production from the high grade western stopes is scheduled to recommence next week, following the necessary development work. Acceptance of the Western Case for Safety followed a progressive lifting of bans in other areas of the mine, commencing with decline development in November 2006, sill driving in April 2007 and eastern stope production in June 2007. Production from the higher grade Western Zone of the mine, which is the key to returning to full profitable production, will utilise a non-entry mining method which will keep all personnel remote from the orebody during stoping. Mine management and staff are to be commended on the effort involved in having all mining restrictions lifted. The Case for Safety process proved to be exhaustive, intensive and time consuming in the extreme. Share Trading Trading of Beaconsfield Gold shares on the Australian Stock Exchange resumed on 20 April 2007, almost a year after the tragic rockfall of 25 April 2006. Beaconsfield Mine Ownership At the time of the 2006 Annual General Meeting a year ago, the Company held a non-operating 48.49% interest in the Beaconsfield Mine Joint Venture, the owner of the Beaconsfield gold mine. The balance of 51.51% was held by the Allstate Explorations N L group which managed the mine. The position of Beaconsfield Gold was basically that of an investor with limited capacity to influence events at the mine and that was most unsatisfactory. Since then the Company's long-held ambition to own and manage the Beaconsfield Mine has been realised. This significant transformation was completed in July 2007 following a process that involved four complex transactions.
The most demanding challenge related to the recommissioning of the mine which will be completed next week when mining of the high-grade western stopes gets underway. From a technical perspective, the Case for Safety process that was required by Workplace Standards Tasmania as a prerequisite for safe reopening of the mine proved an extremely complex requirement and was frustratingly slow. Nevertheless, its completion was essential to provide assurance that mining could recommence safely. From a financing perspective, the challenge was to raise adequate funding during the period of mining suspension without undue dilution. Equity raised since April 2006 has funded:
The present position is that Beaconsfield Gold has an effective 100% beneficial interest in a substantial high-grade gold mine that is nearing complete recommissioning. At 30 March 2006, just prior to the suspension of mining, identified resources were 881,000 tonnes @ 15.6g/t gold, for 443,000 contained ounces. As the mine gradually achieves full recommissioning and profitable production I expect that investors will begin to better appreciate the attractiveness of the position. When mining was suspended in early 2006 the gold price was approximately A$800 per ounce and mining was strongly cash positive. Given that Beaconsfield Gold is now entirely unhedged and the current gold price is over A$900 per ounce, we anticipate obtaining healthy operating margins going forward. Future We have a high-grade orebody with good reserves that are open at depth, very prospective exploration leases at Beaconsfield and western Victoria, a highly competent and energetic workforce and a supportive group of shareholders. With that combination of resources I look forward to the future with confidence. Chief Executive Officer's Slide Presentation Presentation – Mines and Money 2007 Please find attached for immediate release to the market Beaconsfield Gold’s presentation to Mines and Money 2007. This presentation will also be used by the CEO for Beaconsfield Gold, Bill Colvin, during investor presentations in Europe this week. Yours sincerely ALL REMAINING GOLD HEDGING CLOSED OUT The Beaconsfield Gold Group, including Allstate Explorations NL ("Allstate"), has closed out all remaining gold hedge positions, increasing its exposure to the spot price of gold. A total of 70,226 ounces of forward positions have now been closed out since the temporary mine closure in April 2006, at which time total Group hedging was 76,166 ounces. The balance of 5,940 ounces of hedging was delivered into from mine production since that time. The Commonwealth Bank of Australia ("CBA") has provided the interim funding required to close out all of the Group's hedging positions, including Allstate's hedges with Macquarie Bank Limited. The total CBA funding package comprises a $7.5 million Equity Bridging Facility and a $7.5 million Working Capital Facility. Chief Executive Officer, Mr Bill Colvin, said: "With the significant increase in the gold price in recent months and predictions of continued strength next year, investors are favouring gold producers with no hedging commitments. Beaconsfield Gold will now benefit from all of the gold production from the Beaconsfield Mine being sold at the spot price. With the gold price now around A$900 per ounce, the current gold resources of over 400,000 ounces at the Beaconsfield Mine have an in-situ value of around $360 million."
2007 Notice of Annual General Meeting In accordance with ASX Listing Rule 3.17, I advise that the Notice of Annual General Meeting for Beaconsfield Gold NL is being mailed to shareholders today.
2007 ANNUAL REPORT In accordance with ASX Listing Rule 3.17, I advise that the 2007 Annual Report for Beaconsfield Gold NL is being mailed to shareholders, excluding those who have not elected to receive it, today. APPEAL LODGED ON BUSINESS INTERRUPTION INSURANCE CLAIM RULING The Beaconsfield Mine Joint Venture ("BMJV") participants, comprising a number of Beaconsfield Gold group companies, have today lodged an appeal with the Supreme Court of Victoria Court of Appeal against the ruling handed down on 10 October 2007 by Justice Hargrave. The BMJV participants are claiming indemnity of $45.5 million from their insurer's for losses incurred during the recent suspension of mining activities, and had sought a ruling on a preliminary question regarding the construction of a key policy clause on which they rely.
FARM-IN AGREEMENT, WESTERN VICTORIA
Beaconsfield Gold NL (ASX:BCD) and Mineral Sands Ltd (ASX: MSN), are pleased to announce a farm-in agreement over Exploration Licence 4932, in the northern Otway Basin region of western Victoria, one of the tenements in Beaconsfield Gold's Stavely gold exploration project. Figure 1. Location of EL 4932
Figure 2. Digital terrain image showing curvilinear strandplain features, and EL 4932.
For Further Enquiries:
ADVERSE PRELIMINARY COURT RULING ON BUSINESS INTERRUPTION INSURANCE CLAIM The Beaconsfield Mine Joint Venture ("BMJV") participants, comprising a number of Beaconsfield Gold group companies, filed a claim in the Supreme Court of Victoria on 14 May 2007 claiming damages of $45.5 million arising from the insurer’s refusal to provide indemnity for losses incurred by the BMJV participants during the recent suspension of mining activities. The trial of a preliminary question regarding the construction of a key clause in the policy that the BMJV participants were relying on was heard on 6 September 2007. An adverse judgement was handed down today by Justice Hargrave. The BMJV participants, in conjunction with their legal advisors, are now considering an appeal to the Court of Appeal. For further information contact: BEACONSFIELD GOLD MINE TO RETURN TO FULL PRODUCTION FOLLOWING THE RESCISSION OF ALL GOVERNMENT NOTICES The Beaconsfield Mine expects to return to full production rates during the December 2007 quarter following an extensive review of all its mining operations and the withdrawal of all restrictions on the mine’s operations by Workplace Standards Tasmania (“WST”). In May 2006 WST issued notices that required the mine to prepare Cases for Safety before mining could recommence. On the basis of the Ore Production (Stoping) Case for Safety for the Western Zone and the three previously accepted Cases for Safety prepared by the Beaconsfield Mine for the staged recommencement of mining, all of these notices have been rescinded by WST. The Beaconsfield Mine is now operating under the same regulatory environment as other mines in Tasmania. Under the Ore Production (Stoping) Case for Safety for the Western Zone, the mine will use a new, remotely-monitored and operated mining method which means no one will enter the orebody during the production phase. A series of drives will be developed parallel to the orebody to provide a gallery for drilling and firing the stopes. This will also allow access for remotely controlled loaders to extract the ore and subsequently backfill the stopes. Using this method, it is planned to extract 100% of the high grade ore from the Western Zone. Chief Executive Officer, Mr Bill Colvin, said that the workforce and the Australian Workers Union would be fully briefed on the new method prior to recommencement of mining in the Western Zone. “Ongoing consultation with key stakeholders is an important aspect of the Cases for Safety,” Mr Colvin said. The development of the four Cases for Safety has necessarily taken considerable time because of the high level of rigour that has been applied. All aspects of underground operations and safety management procedures have undergone thorough and comprehensive examination. The mine engaged international consultants Coffey Mining Pty Ltd to provide geotechnical expertise and assistance with the preparation of the documentation. Safe Production Solutions Pty Ltd provided an independent peer review of this work. The Beaconsfield Mine recommenced gold production in early April 2007 and has been gradually ramping up since then, with ore being mined from sill drives in all areas and stopes in the Eastern Zone. The rate of gold production will now increase with the development of the new drives to allow access to higher grade ore in the Western Zone. Mr Colvin said that the rescission of all notices was a critical step in returning the mine to full production. “Many people have put a great deal of work into reaching this position and this announcement will be welcomed by the workforce, the Beaconsfield community and the shareholders of Beaconsfield Gold,” Mr Colvin said.
$8.2 MILLION CAPITAL RAISING
Beaconsfield Gold NL (ASX: BCD) has finalised an $8.2 million capital raising. A total of 33.6 million new shares have been placed with sophisticated and professional investors at a price of 23 cents per share. In addition, 2 million convertible notes have been placed at 25 cents each.
Chief Executive Officer Mr Bill Colvin said: "It is pleasing that this $8.2 million raising was well supported by the market. This additional funding leaves Beaconsfield Gold in a strong position as the full re-commissioning of the mine is achieved in the coming months. It will also allow for accelerated regional exploration drilling programs on our gold and copper targets at Beaconsfield and Stavely." For further information contact: Bill Colvin - Chief Executive Officer Beaconsfield Gold NL t: 61-3-9909-7401 e: enquiries@beaconsfieldgold.com.au w: www.beaconsfieldgold.com.au SUMMARY OF FINDINGS OF MELICK INVESTIGATION The report by the Special Investigator Mr Greg Melick QC was today tabled at the re-opening of the Coronial Inquiry in Launceston and a summary of the findings and recommendations was released. A copy of Mr Melick's summary is attached. The recommendations are consistent with the western Case for Safety that has been peer reviewed and submitted to Workplace Standards Tasmania for consideration. Beaconsfield Gold Chief Executive Officer Mr Bill Colvin said: "Beaconsfield Gold mine has undergone the most intense scrutiny of any mine in Australia and possibly the world following an accident. We have now been able to lodge the final Case for Safety to Workplace Standards Tasmania and expect soon to be in a position to announce the resumption of full mining operations." "A staged re-commissioning of the mine has been underway for several months and gold production has been steadily increasing. Production from stopes in the eastern area of the mine has now recommenced and full production levels are expected to be attained with the acceptance of the western Case for Safety," Mr Colvin said. For further information contact:
Off-market takeover bid by Beaconsfield Gold NL for Allstate Explorations NL has closed - Notice under ASX Listing Rule 3.3
We refer to the takeover bid by Beaconsfield Gold NL ABN 22 057 793 834 (Beaconsfield) for ordinary shares in Allstate Explorations NL ABN 27 000 679 023 (Allstate) announced on 30 April 2007.
Yours sincerely Beaconsfield Gold NL Brian Coulter Company Secretary TAKEOVER OFFER FOR ALLSTATE EXPLORATIONS NL The attached letter was mailed to shareholders of Allstate Explorations NL on Thursday 5 July 2007. For further information contact:
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* These dates are indicative only and may be changed at the discretion of Beaconsfield Gold
A broker handling fee of 1.0 cents per share will be paid to facilitate acceptances under the SPP. The consideration will be payable to any participating organisation of the ASX and any holder of an Australian Financial Services Licence whose stamp appears on the completed application form of a shareholder paying by cheque.
If the total value of applications for shares under the SPP exceeds $10 million (considered unlikely by the directors), all applications may be scaled back proportionately.
Funds raised from the SPP will increase working capital. In particular, Beaconsfield Gold intends to rapidly expand its regional exploration efforts at Beaconsfield in Tasmania and Stavely in western Victoria. The priority drill targets that have been developed are compelling and justify significant expenditure.
For further information contact:
Bill Colvin - Chief Executive Officer
Beaconsfield Gold NL
t: 61-3-9909-7401
e: enquiries@beaconsfieldgold.com.au
BEACONSFIELD GOLD MOVES TO MAJORITY OWNERSHIP OF ALLSTATE
Beaconsfield Gold NL (ASX: BCD) today moved to majority ownership and control of Allstate Explorations NL ("Allstate") after Allstate shareholders overwhelmingly confirmed the acquisition of Newmont Australia Limited's ("Newmont") 57.2% shareholding in Allstate for approximately $1.4 million. This will take Beaconsfield Gold's total shareholding in Allstate to 82.8% and its beneficial interest in the Beaconsfield Mine Joint Venture ("BMJV") to over 91%.
Beaconsfield Gold has acquired the majority shareholding in Allstate held by Newmont for 4.0 cents per fully paid share and 0.1 cents per partly paid share. Subsidiaries of Newmont held a total of approximately 35.5 million fully paid shares and approximately 6.6 million partly paid shares, representing 57.2% of the total issued shares in Allstate. 1.5 cents of the fully paid share consideration was paid on the transfer of the shares and a further 2.5 cents will be paid when the Allstate group achieves 30,000 ounces of attributable gold production following the recommencement of mining at the Beaconsfield Mine. As part of the transaction, Newmont has forgiven A$1.6 million receivable from Allstate.
Beaconsfield Gold executives assumed day to day management of Allstate and the BMJV on 27 February 2007 when the Company's proposal to end the Allstate Deed of Administration was accepted by creditors.
Beaconsfield Gold will now proceed with a takeover offer to all remaining minority Allstate shareholders on the same terms accepted by Newmont. Beaconsfield Gold anticipates that the offer will be made within three weeks or before 21 May 2007.
Mr Bill Colvin, Chief Executive Officer for Beaconsfield Gold, said: "The final key step in the resolution of ownership at the Beaconsfield Mine has now been successfully completed. Production has also resumed with gold bullion poured last week and an aggressive exploration strategy is now being planned to test the outstanding potential surrounding this high grade mine."
For further information contact:
Bill Colvin - Chief Executive Officer
Beaconsfield Gold NL
t: 61-3-9909-7401
e: enquiries@beaconsfieldgold.com.au
w: www.beaconsfieldgold.com.au
TRADING OF BEACONSFIELD GOLD SHARES TO RESUME ON ASX
Beaconsfield Gold (ASX: BCD) is pleased to announce that trading in its shares will resume on the Australian Stock Exchange ("ASX") on Friday 20 April 2007 when the market opens.
Trading has been suspended at the Company's request since the tragic incident at the Beaconsfield Mine on 25 April 2006 because of the uncertainty associated with the resumption of operations.
There has been considerable recent progress towards the resumption of gold production at the Beaconsfield Mine:
In light of these significant advances, the Directors of Beaconsfield Gold now consider that there is sufficient technical and economic certainty over the resumption of mining to enable trading in its shares to recommence.
Chief Executive Officer, Mr Bill Colvin, acknowledged the support and understanding of shareholders as the Company and the team at the mine worked through the rigorous processes involved in safely re-opening the mine.
Mr Colvin said that the future for Beaconsfield Gold looked very bright with gold production now resuming as the Company is moving towards 100% ownership of the Beaconsfield Mine and is also planning a significant exploration program both underground and regionally at Beaconsfield, as well as at Stavely in Western Victoria. "Beaconsfield is a high grade orebody being mined by an excellent team and the future potential is very exciting," Mr Colvin said.
For further information contact:
Bill Colvin - Chief Executive Officer
Beaconsfield Gold NL
t: 61-3-9909-7401
e: enquiries@beaconsfieldgold.com.au
w: www.beaconsfieldgold.com.au
SHAREHOLDER UPDATE
Dear Shareholder
This letter and the accompanying Shareholder Update are to inform you of the various breakthrough developments that have occurred in recent months and to explain the exciting prospects which are now in front of Beaconsfield Gold.
Mining of gold ore at the Beaconsfield Mine recommenced in early April 2007 and first production of gold bullion from the ore treatment plant is due in several weeks time.
Recommencement of trading of Beaconsfield Gold shares on the ASX is expected shortly.
On 23 January 2007, Beaconsfield Gold announced two major initiatives in consolidating the ownership of the Beaconsfield Mine:
Following on from those two agreements, on 27 February 2007, the creditors of the Allstate group voted in favour of a proposal from Beaconsfield Gold to bring the Allstate companies out of administration. Beaconsfield Gold is now providing loan funds to the Allstate group during the re-start phase at the mine and Beaconsfield Gold executives now manage the Allstate group and the Beaconsfield Mine on a day-to-day basis.
Many benefits will arise from the consolidation of mine ownership. Apart from obvious savings in overheads, consistent focus can now be placed on mine operating performance and costs. However, possibly the greatest benefit will be that Beaconsfield Gold will be able to design and carry out an extensive regional exploration program at Beaconsfield. The Tasmania Reef has now been shown to contain over 2.0 million ounces of gold from surface to the depth of the current resources and the Mine Series host beds trending to the NW and to the SE of the mine represent one of the most compelling gold exploration targets in Australia.
In conclusion, the future for Beaconsfield Gold, as the Company moves towards 100% ownership of the Beaconsfield Mine and significantly expands exploration at Beaconsfield (both at depth and regionally) and at the Stavely property in western Victoria, looks very bright indeed.
Dr Denis Clarke
Chairman
12 April 2007
GOLD ORE DEVELOPMENT RECOMMENCES AT BEACONSFIELD MINE
Increased mining operations have been given the go-ahead at the Beaconsfield Mine by the relevant safety authority in Tasmania and production of gold bullion from the ore treatment plant is expected shortly. A return to full production levels, however, will not occur until stoping recommences, which is dependant on further approvals being received.
Sill driving (stope development) has re-commenced at the Beaconsfield Gold Mine following the completion of a Case for Safety for that activity and the subsequent notification from Workplace Standards Tasmania rescinding parts of the notices issued after the Anzac Day incident. A period of consultation with key stakeholders including the workforce and the Australian Workers Union was then undertaken before work began.
The resumption of gold ore mining and ore treatment will see the care and maintenance workforce at the site increase by about 30 people and recruitment for those positions is already well advanced. Further increases in the workforce will be necessary when stoping operations resume.
Chief Executive Officer, Mr Bill Colvin, said that the new additions to the workforce would be seen by the local community as a positive indication of the fact that the mine was progressing towards a full re-opening.
This is the first time that gold bearing ore has been mined at Beaconsfield since the notices were issued by Workplace Standards Tasmania in April 2006 and production of gold bullion from the plant is now expected later this month, once ore stockpiles have been established.
Mr Colvin said however that a return to full production levels would not occur until stoping recommences which is dependant on the completion of further Cases for Safety. "These Cases for Safety are well advanced and the submission of an Ore Production (Stoping) Case for Safety for the Eastern Domain of the mine is expected within several weeks, with the Western Domain following thereafter," Mr Colvin said.
The Cases for Safety represent a rigorous and comprehensive approach to designing and implementing hazard controls which mitigate risk associated with each discrete mining activity and work practice. Coffey Mining Pty Ltd has been engaged to provide geotechnical expertise and assist management with the preparation of the documentation, whilst Safe Production Solutions Pty Ltd has provided an independent peer review.
"The safety processes involved with resuming gold production have necessarily been exhaustive and time consuming but there has been strong support for the Beaconsfield Mine and I believe this announcement will be welcomed by the workforce, community, government and AWU" Mr Colvin said. "This is a very positive step forward and the remaining work required for the recommencement of full stoping operations is now well advanced".
For further information contact:
Bill Colvin - Chief Executive Officer
Beaconsfield Gold NL
t: 61-3-9909-7401
e: enquiries@beaconsfieldgold.com.au
w: www.beaconsfieldgold.com.au
$4.85 MILLION SHARE PLACEMENT
Beaconsfield Gold has finalised the placement of 14.25 million new shares at a price of 34 cents per share, raising $4.845 million. This follows the $4.08 million convertible notes raising announced on 13 February 2007.
The shares have been issued in accordance with the approval given by shareholders, at the general meeting held on 10 January 2007, for the placement of up to 60 million shares to sophisticated and professional investors to increase the Company's beneficial interest in the Beaconsfield Mine.
Chief Executive Officer Mr Bill Colvin said: "The recent placements totalling over $8.9 million reflect the very strong market support Beaconsfield Gold has received for its initiatives to consolidate ownership of the mine over the past three months."
For further information contact:
Bill Colvin - Chief Executive Officer
Beaconsfield Gold NL
t: 61-3-9909-7401
e: enquiries@beaconsfieldgold.com.au
w: www.beaconsfieldgold.com.au
BEACONSFIELD GOLD PROPOSAL ACCEPTED AND ALLSTATE NOW OUT OF ADMINISTRATION
A meeting of Allstate Explorations NL (Subject to Deed of Company Arrangement) ("Allstate") group creditors today approved a proposal made by Beaconsfield Gold NL (ASX: BCD) to terminate the Deeds of Company Arrangement. Immediately following the meeting, the Administrators of the Allstate group companies retired and control of the Allstate group companies was returned to their boards of directors.
Under the proposal, Beaconsfield Gold has provided a loan to Allstate to enable Allstate’s unsecured trade creditors to receive 100% of their outstanding claims. Macquarie Bank, the secured creditor of the Allstate group, has restructured its banking arrangements and agreed to a standstill period during which the Allstate group will not be required to deliver gold production into its hedge book or repay its other liabilities to the bank. Allstate will continue to be the Manager of the Beaconsfield Mine Joint Venture and all employees at the mine will continue to work for Allstate.
The Boards of Allstate and its subsidiaries have been restructured to reflect their changed status with the immediate appointment of Dr Denis Clarke, Mr Stephen Gemell and Mr Kevin Perrin, who join current Chairman Mr Rodney Elvish. Dr Clarke and Mr Perrin are also directors of Beaconsfield Gold. The Allstate Board has appointed Mr Bill Colvin and Mr Brian Coulter Acting CEO and Acting CFO/Joint Company Secretary respectively, and they will assume immediate responsibility for the day to day management of Allstate.
Beaconsfield Gold has previously announced that agreement has been reached with Newmont Australia Limited (“Newmont”) to acquire Newmont’s 57.2% shareholding in Allstate for approximately $1.4 million, which will take Beaconsfield Gold’s total shareholding in Allstate to 82.8%. Allstate will shortly convene a general meeting to seek the approval of the minority shareholders of Allstate for this transaction. If the acquisition is approved, Beaconsfield Gold has agreed to make an immediate takeover offer to all remaining minority Allstate shareholders on the same terms accepted by Newmont.
Mr Bill Colvin, Chief Executive Officer for Beaconsfield Gold, said: "It is very pleasing to see Allstate emerge from Administration with all trade creditors paid out in full as a result of the Beaconsfield Gold proposal. Both companies will make the safe resumption of gold production at Beaconsfield their key priority and we are confident that we are very close to achieving this goal."
For further information contact:
Bill Colvin - Chief Executive Officer
Beaconsfield Gold NL
t: 61-3-9909-7401
e: enquiries@beaconsfieldgold.com.au
w: www.beaconsfieldgold.com.au
$4.08 MILLION CONVERTIBLE NOTES RAISING
Beaconsfield Gold NL (ASX: BCD) is pleased to announce that it has placed 12 million convertible notes at $0.34 each, for a total of $4.08 million, with an Australian fund. The proceeds will be used towards increasing Beaconsfield Gold’s beneficial interest in the Beaconsfield Mine to at least 91%.
Principal terms for the notes are:
Mr Bill Colvin, Chief Executive Officer for Beaconsfield Gold, said: "I am delighted to announce this placement on the back of the significant progress that has been made in the last few weeks towards consolidating the ownership of the Beaconsfield Mine. It is the largest single placement ever made by the Company to a fund and a positive sign for Beaconsfield Gold going forward as a mid-sized gold producer and explorer."
For further information contact:
Bill Colvin - Chief Executive Officer
Beaconsfield Gold NL
t: 61-3-9909-7401
e: enquiries@beaconsfieldgold.com.au
w: www.beaconsfieldgold.com.au
BEACONSFIELD GOLD PROPOSES TO BRING ALLSTATE OUT OF ADMINISTRATION
Beaconsfield Gold NL (ASX: BCD) is pleased to announce further progress towards its long term aim of acquiring control of the Beaconsfield Mine in Tasmania.
Beaconsfield Gold has made a proposal to restructure the Allstate Explorations NL (Subject to Deed of Company Arrangement) (“Allstate”) group. The Deed Administrator of the Allstate group has released the attached announcement, stating that he intends to convene an Allstate Creditors’ Meeting on 27 February 2007 to recommend the acceptance of the proposal from Beaconsfield Gold. Subject to approval by the Allstate creditors, the proposal will result in Beaconsfield Gold providing a loan to Allstate to enable unsecured trade creditors to receive 100% of their outstanding claims and the retirement of the Deed Administrator. Allstate will then be returned to the control of its directors. Macquarie Bank, the secured creditor of the Allstate group, is in favour of the proposal and has agreed to restructure its banking arrangements with Allstate. The proposal follows on from two previous initiatives by Beaconsfield Gold that were announced on 23 January 2007. These were:
Transitional arrangements have been agreed between Beaconsfield Gold and the Allstate Deed Administrator for an orderly hand over of management of the Beaconsfield Mine.
Mr Bill Colvin, Chief Executive Officer for Beaconsfield Gold, said: “I am delighted that further and significant progress has been made towards consolidating the ownership of the Beaconsfield Mine. We are now looking forward to promptly finalising all outstanding matters and focusing our energies on the safe re-commencement of gold production and the exploration for additional gold resources.”
For further information contact:
Bill Colvin - Chief Executive Officer
Beaconsfield Gold NL
t: 61-3-9909-7401
e: enquiries@beaconsfieldgold.com.au
w: www.beaconsfieldgold.com.au
ACTIVITIES REPORT FOR THE QUARTER ENDED 31 DECEMBER 2006
Allstate Explorations NL (Subject to Deed of Company Arrangement), Manager of the Beaconsfield Mine Joint Venture ("BMJV"), has not yet released its Activities Report for the quarter ended 31 December 2006.
As Beaconsfield Gold ("Company") is reliant on the BMJV Manager for receipt of information to complete its Activities Report, the Company will release its report for the quarter ended 31 December 2006 as soon as all of that information is available.
| For further information contact: Bill Colvin - Chief Executive Officer Beaconsfield Gold NL t: 61-3-9909-7401 e: enquiries@beaconsfieldgold.com.au w: www.beaconsfieldgold.com.au |
Brian Coulter - Company Secretary |
BEACONSFIELD GOLD MOVES TO RESTRUCTURE ALLSTATE
Beaconsfield Gold NL (ASX: BCD) has significantly advanced its long term aim of acquiring control of the Beaconsfield Mine in Tasmania.
Beaconsfield Gold has:
Results of General Meeting
Beaconsfield Gold NL
As required by Listing Rule 3.13.2 and section 251AA (2) of the Corporations Act, the following statistics are provided in respect to each motion on the agenda. In respect to each motion the total number of votes exercisable by all validly appointed proxies was:
| Authority for the Directors to allot and issue up to 60,000,000 fully paid ordinary shares in the capital of the Company to selected sophisticated and professional investors |
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87,747,262 |
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117,037 |
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3,807,438 |
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| In addition, the number of votes where the proxy was directed to abstain from voting on the motion was |
60,438 |
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| The result of voting on the motion was: |
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| The motion was carried on a show of hands as an ordinary resolution. |
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| Approval of issue of 27,600,000 shares to sophisticated and professional investors on 22 November 2006 |
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58,822,352 |
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332,607 |
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|
2,790,274 |
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| In addition, the number of votes where the proxy was directed to abstain from voting on the motion was |
10,820,270 |
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| The result of voting on the motion was: |
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| The motion was carried on a show of hands as an ordinary resolution. |
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| Dated this 10th day of January 2007 Brian Coulter Company Secretary |
CHAIRMAN'S ADDRESS
ADDRESS BY DR. DENIS CLARKE AT THE EXTRAORDINARY GENERAL MEETING HELD AT
LEVEL 20, CMA CENTRE, 500 COLLINS STREET, MELBOURNE
ON WEDNESDAY 10 JANUARY 2007 AT 11AM.
Since I last addressed shareholders at the Company's Annual General Meeting at the end of November progress has continued at both an operational level, as we move towards a safe reopening of the mine, and on the corporate front.
1 The purpose of this meeting
The purpose of this meeting is explained in the Notice of Meeting and Explanatory Notes. I would, however, like to briefly address the two specific issues that are the subject of this meeting.
The principal aim of this meeting is to seek approval for the issue of up to 60 million new shares to sophisticated and professional investors should the opportunity arise to increase our beneficial interest in the Beaconsfield Mine. This approval, which was originally given by shareholders on 28 June 2006 and renewed by shareholders on 4 October 2006, was only able to be extended for a period of three months and expired on 3 January. In order to preserve the Company's ability to act quickly should an opportunity arise, shareholder approval is again sought at this general meeting. It was not appropriate in the circumstances for the Company to simply request that ASIC grant an extension beyond 3 January, as there was then no formal offer on the table.
We have also taken the opportunity at this meeting to "refresh" the Company's ability to issue up to 15% of the existing shares on issue without further shareholder approval.
On 16 November 2006 the Company announced a placement of 27.6 million shares, at 23 cents, to sophisticated and professional investors. This placement of approximately 15% of existing shares on issue strengthened the Company's cash balance to fund its share of mine reopening and production ramp-up costs during 2007. The additional financial security, and the demonstration of strong investor support, further enhanced the Company's chances of moving to 100% ownership of the Beaconsfield Mine.
Importantly, for the Company to make another placement prior to November 2007, it is necessary that the November 2006 placement be approved by shareholders at a general meeting.
The Directors believe it is prudent and necessary that the Company has the ability to raise further capital quickly if circumstances require it.
2 Corporate Developments
Beaconsfield Gold continues to strive for a restructuring of the ownership of the mine. As I noted at the November 2006 Annual General Meeting, the opportunity for the Company to consolidate ownership of the Beaconsfield mine has never been greater or more realisable.
On 10 November last year the Company announced that negotiations were to take place on a possible restructure of the Beaconsfield Mine Joint Venture.
I am pleased to report that those negotiations, involving all major stakeholders, have commenced. Despite considerable progress, no resolution to the ownership issue has yet been reached, and discussions are continuing in the New Year. Due to the confidential nature of those discussions, I am not able to expand further on progress at this time.
Beaconsfield Gold regards acquisition by it of the Allstate Group's unsecured debt to Macquarie Bank to be a critical step in restructuring the ownership of the mine. The Company has, therefore, made an offer for the debt in accordance with the sale process being conducted by financial consultant Korda Mentha on behalf of Macquarie Bank. A prompt outcome of the sale process seems likely.
Again, due to the confidential nature of the sale process instituted by Macquarie Bank, I am unable to expand further on any aspect of the process or of the nature of the Beaconsfield Gold offer.
3 Progress at the mine
Progress in re-opening the mine has been frustratingly and disappointingly slow, although progress has been made.
Following the recommencement of decline development mining in November, Allstate Explorations, the Manager of the Beaconsfield Mine Joint Venture, announced on 22 December that work on the Ore Drive Case for Safety is now expected to be lodged with Workplace Standards Tasmania in January 2007.
The final step in the reopening process revolves around the Production Case for Safety, and in this regard an important decision has recently been taken by the joint venture manager in conjunction with the team of specialist external consultants.
Due to geotechnical and geological differences between the eastern and western sections of the orebody, a single extraction and ground support approach for the whole mine is now regarded as not the best way to proceed. The decision has been taken by Allstate, as Manager of the Beaconsfield Mine Joint Venture, to present a separate case for safety
