TIDMPDZ
RNS Number : 6628Q
Prairie Mining Limited
29 October 2021
PRAIRIE MINING LIMITED
NEWS RELEASE | 29 October 2021
SEPTEMBER 202 1 QUARTERLY REPORT
Prairie Mining Limited (Prairie or the Company) is pleased to
present its Quarterly Report for the period during and subsequent
to 30 September 2021.
HIGHLIGHTS
-- Subsequent to the quarter, Prairie entered into an Earn-in
Agreement (EIA) with Greenfields Exploration Ltd (GEX) to acquire
an interest of up to 80% in the Arctic Rift Copper project (ARC or
Project) in Greenland.
Significant, large-scale project (5,774km(2) license area) with
historical exploration results indicative of an extensive mineral
system with potential to host world-class copper deposits
The ARC mineral system is known to be prospective for basalt,
fault, and sedimentary rock-hosted copper mineralisation however,
it remains virtually unexplored, giving the Company a first mover
advantage in a major new metallogenic province
Historical field programs identified widespread copper-silver
occurrences at surface
High priority target covering 640km(2) already identified with
near-term discovery potential (Minik Anomaly) which has the highest
copper grades that are proximal to a coincident gravity,
conductivity and magnetic anomaly in the north-eastern portion of
ARC
Greenland is a mining friendly jurisdiction with strong
Government support for expanding its mining industry, simple laws
and regulations, and a competitive fiscal regime
Strong pipeline of news flow is expected as Prairie mobilises
the award-winning GEX exploration team who have extensive operating
experience, including managing the Frontier Project in JV with IGO
Limited, and well-established relations with government and other
key stakeholders in Greenland
-- Concurrent with entering into the EIA and to provide funding
for new and current activities, Prairie announced a one (1) for ten
(10) pro rata non-renounceable entitlements issue at $0.20
(GBP0.11/EUR0.13) per share (Entitlements Issue) to raise up to
$4.6 million before costs.
-- The Company will continue to defend its interests in Poland
through International arbitration claims (Claim) against the
Republic of Poland under both the Energy Charter Treaty (ECT) and
the Australia-Poland Bilateral Investment Treaty (BIT) (together
the Treaties).
Prairie's Claim alleges that the Republic of Poland has breached
its obligations under the applicable Treaties through its actions
to block the development of the Company's Jan Karski and Debiensko
mines in Poland which has effectively deprived Prairie of the
entire value of its previous investments in Poland.
Enquiries
Prairie Mining Limited Tel: +44 207 478 3900
Ben Stoikovich, Chief Executive Email: info@pdz.com.au
Officer
Sapan Ghai, Head of Corporate
Development
Kazimierz Chojna, Commercial
Officer
ARC PROJECT SUMMARY
Prairie and GEX consider the observed geological setting and
features of ARC to be indicative of an extensive mineral system
capable of hosting world-class copper deposits.
The large scale of the mineral system, widespread copper
anomalism, combined with dual mineralising events are analogous to
the largest copper systems known worldwide. Accordingly, Prairie
considers that ARC has the potential to be a globally significant
metallogenic province.
Very high-grade copper mineralisation identified at ARC is
associated with the Minik Anomaly, a coincident
magnetic-electromagnetic-gravity feature in an area where there is
a change in oxidation state and widespread native copper in stream
sediments. These features are presented as the footprint of a
large-scale hydrothermal system. The frequency and size of the
native copper clasts, and the high grade of the copper-silver
sulphides that are exposed at the surface, bode well for the
probability of discovery.
There are multiple additional identified targets and favourable
geological settings to be tested within the ARC project area,
including:
-- the highly anomalous basalt is a high priority target that
has not previously been the focus of commercial exploration. These
basalts are the source of the native copper.
-- the sulphide mineralised faults passing through these basalts
into the overlying sediments have been subject to first pass
exploration and shown to be rich in copper and silver. The
high-grade sulphides in these faults will be the focus of further
exploration.
-- the permeable coarse-grained sandstone within the Jyske Ås Fm
has high grade copper that is effectively unexplored. This
stratiform mineralisation adds the potential for significant
lateral extension of the known mineralisation exposed in the faults
of the Discovery Zone.
As such, the extensive ARC mineral system is known to be
prospective for basalt, fault, and sedimentary rock-hosted
('sediment-hosted') mineralisation that despite the attractive
grades, is virtually unexplored.
Exploration Plan
The Company and GEX will take a systemic approach to exploring
ARC in the most cost-effective and sustainable manner. The
near-term forward work program includes:
-- Undertake a widespread geochemical sampling campaign i.e.,
stream sediment and rock chip sampling. Historical data is mainly
clustered, and the southern portion of ARC is mostly unsampled. The
intention is for rock samples to be collected with a handheld drill
(41mm diameter) to produce core that can be subject to
non-destructive analysis.
-- Perform passive seismic over the Minik Anomaly and 3D induced
polarisation (IP) surveys over the Discovery Zone . Seismic and IP
data will also provide more context to the gravity-magnetic
anomaly. Passive seismic tomography does not require explosives or
vibration equipment to collect data, and has a low environmental
impact.
-- Conduct high-resolution satellite mapping . Since the last
exploration activity, commercial products have become available at
a 30cm pixel resolution. These products include multispectral bands
at coarser resolutions that can aid in identifying different types
of alteration type and intensity, lithologies, and structures.
-- Re-analyse historical samples . The assay suite used in the
government-funded work is very restricted. The Company has located
the storage locations of 311 unique samples that are suited to
comprehensive, modern analysis methods. The higher precision and
additional element information, along with mineral species
identification, can provide new insights that can help refine the
exploration search space.
-- Reprocess airborne magnetic data .
-- Create a three-dimensional (3D) model . The available
geological maps, reprocessed geophysics and satellite imagery can
be incorporated into a low-cost 3D model. The purpose of this model
is to provide an initial framework design that can be easily
validated by field inspection.
The intent is for the above work and resultant geological model
to provide refined targets to be tested by deeper diamond drilling
during a second field campaign, and to aid in generating more
advanced exploration targets undercover within ARC and its
immediate surrounds.
The proposed exploration above could be completed within 18
months and creates the potential for discovery from the outset.
This approach has low cost per unit of information gained and
permits a significant increase in the targeting accuracy. The
Company envisages that the proposed work program will yield
relatively high-certainty, drill-ready targets.
ARC PROJECT Overview
The ARC project consists of a single Special Exploration
Licence, covering an area of 5,774km(2) , in northern
Greenland.
ARC is located within an inner-fjord system and covers most of
J.C. Christensen Land, a promontory that is flanked to the north
and northwest by Independence Fjord, and to the southeast by Hagen
Fjord. The expansive cliff faces of the fjords provide a unique
insight into the structural geology of ARC and aid in geological
interpretation.
The project area is uninhabited, with the nearest permanently
inhabited site being the Station Nord military facility, located
approximately 200km to the east.
The region is an Arctic desert, vegetation and wildlife are
minimal and there are no designated sensitive areas within the
Project. Flat, low elevations are typical of northeast J.C.
Christensen Land and the rest of the area consists of high plateaus
with elevations around 800m above sea level, with incised 'U'
shaped valleys.
The big fjords that surround the Project reliably provide
deep-water access throughout the ARC licence. An airstrip which has
been used to land heavy-lift aeroplanes is adjacent to the Project,
and sites suitable for smaller airstrips are located within it.
As a jurisdiction for exploration and mining, Greenland has many
favourable attributes, such as being politically stable, pro
mining, one of the lowest rates of corruption in the world, simple
laws and regulations, low royalties, favourable tax treatment for
mineral projects, and good access to markets.
Project Geology and Exploration Potential
The ARC mineral system is known to be prospective for basalt,
fault, and sediment -hosted copper mineralisation however, it
remains virtually unexplored. This provides the Company and GEX
with essentially a first mover opportunity in a metallogenic
province with the potential to host world class copper
deposits.
ARC is located near an ancient triple junction that is
associated with an ascending mantle plume in Mesoproterozoic times.
This mantle plume emplaced a large amount of basalt lavas over a
short period of time.
ARC contains a sequence of Mesoproterozoic-aged sediments
sandstones belonging to the Independence Fjord Group that have been
intruded by highly altered dolerites and overlain by 1.2km of
Mesoproterozoic-aged flood basalts ('Zig-Zag Fm' basalts). In turn,
the basalts are overlain by 1.1km of Neoproterozoic-aged clastic
and carbonate sediments belonging to the Hagen Fjord Group. The
lower portion of the Hagen Fjord Group is dominated by sandstones
and siltstones, and the upper part by limestone and dolomites.
The metamorphic grade of the Zig-Zag Fm basalts is of the
zeolite facies, and the Hagen Fjord Group sediments show lower
grade metamorphism. Due to the location within a passive margin,
there is adequate preservation aside from mechanical erosion.
The strata dips sub-horizontally (1-3deg) to the northeast and
hosts fault orientations parallel to major regional structures.
Folding is almost non-existent.
Copper mineralisation occurs in both the Zig-Zag Fm basalts and
Hagen Fjord Group sediments. The basalts are known to contain in
situ native copper, which is found extensively in the surrounding
drainage systems. Significantly, native copper specimens weighing
up to 1kg have been recovered during historical exploration
campaigns.
The age, setting and mineral composition makes the Zig-Zag Fm
copper analogous to the copper deposits of the Michigan Upper
(Keweenaw) Peninsula, and a primary source of copper for anomalies
reported in the overlying sediments. Fault breccias observed to
transect the basalts and overlying sediments are interpreted to
represent fluid pathways. These breccias, which are up to 25m wide,
also show copper mineralisation.
Copper and associated silver mineralisation occur in the source
rocks, faults, and in 'classic' deposition sites. The highest
copper grades are close to geophysical gravity, magnetic and
electromagnetic anomalies.
Identified Prospects and Target Areas
Minik Anomaly
The empirical geophysical and geochemical evidence shows
multifaceted anomalism within ARC. The Minik Anomaly is defined by
multiple coincident, and proximal, geophysical
(magnetic-electromagnetic-gravity) and geochemical anomalies over a
640 km(2) area in the north-eastern portion of ARC where high grade
copper mineralisation has been identified. This large scale, high
priority target area will be a key focus of the first field
campaign.
Zig-Zag Formation
Native copper float frequently occurs near the Zig-Zag Fm in the
area around the Discovery Zone and Neergaard Valley. Outside of ARC
a 1.5m long chip sample returned a significant grade of 1.97% Cu,
and a grab sample returned 3.17% Cu from chalcocite filled
vesicles. The Company and GEX consider the widespread occurrence of
low-grade copper mineralisation, the frequent presence of sizeable
native copper, and the sampled grades within the licence to be very
significant.
Discovery Zone
The most advanced prospect within ARC is the copper-silver
bearing Discovery Zone, located at the northern end of Neergaard
Dal. The Discovery Zone was identified in 2010 as a follow up to a
geochemical anomaly identified by the GGS in 1994.
The Discovery Zone is comprised of at least three parallel
breccia faults trending northwest-southeast, with the furthest
faults being around 2km apart. The faults are traced for a minimum
of 2km along strike before they disappear underneath moraine. The
Discovery Zone is open in both directions.
The width of the fault breccias is variable, ranging from 1m to
25m thick. The host lithology is red sandstones of the lower Jyske
Ås Fm, and they are proximal to outcrops of Zig-Zag Fm. The
breccias have copper sulphide and copper oxide mineralisation. The
copper-bearing species include chalcocite, brochantite, bornite,
chalcopyrite, and malachite. The mineralisation is expressed in two
main forms, within which there are two sub-forms:
1. Breccia bound. Mineralisation occurs in thin quartz-dominated
veining within the fault breccia and contains disseminated copper
sulphides. Assays from this material grades up to 53.8% Cu and
2,480g/t Ag.
Within the breccia-bound mineralisation are intensely potassic,
unconsolidated materials known as 'Black Earth'. The multiple but
discontinuous 0.7m to 3m horizons have lengths between 2m to 50m.
The Black Earth material contains high grades of copper and silver,
with reported true widths of 4.5m grading 2.15% Cu and 35.5g/t Ag
(Chip Line #7, sampled interval 5.25m, estimated true width
4.5m).
2. Stratiform. Mineralisation occurs immediately adjacent to the
faults and comprises lenses and blebs of chalcocite and bornite
measuring from mm-scale to 15cm long.
Within the stratiform mineralisation is a poorly consolidated
sandstone that is identified as a potentially vast target horizon
within the Jyske Ås Fm. The outcrop shows pervasive interstitial
chalcocite, bornite and chalcopyrite.
Campanuladal Formation
The Campanuladal Fm was known to contain anomalous copper since
the late 1970s. Government work in the early 1990s managed to trace
chalcopyrite and galena for several kilometres within the central
part of the formation. Disseminated copper sulphides (often
chalcopyrite) are widespread, and one such location is close to the
Discovery Zone in the northeast corner of ARC.
Other Commodities
North Greenland contains multiple indications of mineralisation,
and whilst copper is the target commodity for the ARC, the region
to the north includes a large-scale zinc deposit, and there are
indications of nickel-platinum group elements within the ARC
licence. The known mineralisation occurs across a range of
stratigraphic positions and is believed to be the result of more
than one mineralising event.
The mafic intrusions of the Midsommersø Intrusions are
prospective for magmatic-hosted nickel-copper-platinum group
element ( Ni-Cu-PGE ) mineralisation. The Company and GEX identify
supportive evidence in both the intrusions and their extrusive
equivalents in the overlying Zig-Zag Fm.
The basal flows of the Zig-Zag Fm basalts show a marked
depletion in nickel. Such a depletion suggests that the nickel may
have been deposited into sulphides and conceptually, as nickel
sulphide deposits. There has been no effective commercial work on
testing the nickel sulphide potential of ARC.
Dispute with Polish Government
The Company's Claim against the Republic of Poland is being
prosecuted through an established and enforceable legal framework,
with Prairie and Poland agreeing to apply the United Nations
Commission on International Trade Law Rules (UNCITRAL) rules to the
proceedings .
Both the BIT and ECT claim Tribunals have been constituted, with
both Claim's being registered with the Permanent Court of
Arbitration in the Hague. The BIT and ECT claim proceedings proceed
at pace, with the Company now having filed a Claim for compensation
against Poland with the Tribunal in the amount of GBP 806 million
(A$1.5 billion / PLN 4.2 billion), which includes an assessment of
the value of Prairie's lost profits and damages related to both the
Jan Karski mine and Debiensko mines, and accrued interest related
to any damages. The Claim for damages has been assessed by external
quantum experts appointed by Prairie specifically for the purposes
of the Claim.
In July 2020, the Company announced it had executed a Litigation
Funding Agreement ( LFA) for US$12.3 million with Litigation
Capital Management. The facility is currently being drawn down to
cover legal, tribunal and external expert costs and defined
operating expenses associated with the Claim.
In September 2020, Prairie announced that it had formally
commenced with the Claim by serving the Notices of Arbitration
against the Republic of Poland.
Prairie's dispute alleges that the Republic of Poland has
breached its obligations under the applicable Treaties through its
actions to block the development of the Company's Jan Karski and
Debiensko mines in Poland which effectively deprives Prairie of the
entire value of its investments in Poland.
In February 2019, Prairie formally notified the Polish
Government that there exists an investment dispute between Prairie
and the Polish Government. Prairie's notification called for prompt
negotiations with the Government to amicably resolve the dispute
and indicated Prairie's right to submit the dispute to
international arbitration in the event of the dispute not being
resolved amicably. The Company remains open to resolving the
dispute with the Polish Government amicably. However, as of the
date of this report, no amicable resolution of the dispute has
occurred, since the Polish Government has declined to participate
in discussions related to the dispute and accordingly the Company
has formerly submitted its Claim as discussed above.
Prairie's investment dispute with the Republic of Poland is not
unique, with international media widely reporting that the
political environment and investment climate in Poland has
deteriorated since the change in Government in 2015. As a result,
there are a significant number of International Arbitration claims
being brought against Poland in the natural resources and energy
sectors with damages claims ranging from US$120 million to over
US$1.3 billion and includes Bluegas NRG Holding (Gas), Lumina
Copper (Copper) and InvEnergy (wind farms).
CORPORATE
Change of Name
Following the acquisition of its interest in ARC, the Company is
proposing to change its name to "GreenX Metals Limited" which will
be put to shareholders at the upcoming Annual General Meeting on 24
November 2021.
Entitlement Issue
The Company will undertake a one (1) for ten (10) pro rata
non-renounceable Entitlements Issue at $0.20 (GBP0.11/EUR0.13) per
share to raise up to $4.6 million before costs.
Eligible shareholders will be entitled to acquire one (1) New
Share for ten (10) ordinary shares held at the record date (5
November 2021).
Directors will reserve the right to offer any shortfall shares
from the Entitlements Issue at their discretion (subject to
applicable regulatory requirements).
Board Changes
Subsequent to the quarter, Ms Carmel Daniele, founder and Chief
Executive Officer of CD Capital, stepped down as CD Capital's
nominee to the Prairie Board as a non-executive Director and was
replaced by Mr Garry Hemming, a highly experienced exploration
geologist, effective immediately. Mr Hemming is a senior resource
geologist at CD Capital and brings over 40 years' experience in
exploration and as a mining executive of public companies.
During the quarter, Mr Tom Todd resigned as Director of Prairie
to concentrate on other business and investment opportunities.
Forward Looking Statements
This release may include forward-looking statements. These
forward-looking statements are based on Prairie's expectations and
beliefs concerning future events. Forward looking statements are
necessarily subject to risks, uncertainties and other factors, many
of which are outside the control of Prairie, which could cause
actual results to differ materially from such statements. Prairie
makes no undertaking to subsequently update or revise the
forward-looking statements made in this release, to reflect the
circumstances or events after the date of that release.
Competent Persons Statement
The information in this presentation that relates to Exploration
Results for the Arc Rift Copper Project is extracted from the ASX
announcement dated 6 October 2021. Which is available to view at
www.pdz.com.au.
Prairie confirms that (a) it is not aware of any new information
or data that materially affects the information included in the
original announcements; (b) all material assumptions and technical
parameters underpinning the content in the relevant announcements
continue to apply and have not materially changed; and (c) the form
and context in which the Competent Person's findings are presented
have not been materially modified from the original
announcement.
To view this announcement in full, including all images and
figures, please refer to the Company's website at www.
pdz.com.au
APPIX 1: TENEMENT INFORMATION
As at 30 September 2021, the Company has an interest in the
following tenements:
Location Tenement Percentage Status Tenement Type
Interest
------------------- ----------------------- ----------- -------------- ---------------------
Greenland Arctic Rift Copper -(1) Granted Exploration
Project (Licence Licence
No. 2021-07 MEL-S)
Jan Karski, Poland Jan Karski Mine 100 In dispute(2) Exclusive Right
Plan Area (K-4-5, to apply for
K6-7, K-8 and K-9)(2) a mining concession
Debiensko, Poland Debiensko 1 100 Granted(2) Mining
Debiensko, Poland Kaczyce 1 100 Granted Mining & Exploration
(includes gas
rights)
------------------- ----------------------- ----------- -------------- ---------------------
Notes:
(1) Subsequent to the end of the quarter, the Company announced
that it had entered into the EIA with GEX to acquire an interest of
up to 80% in the Project. As at the date of this announcement, the
Company held no beneficial interest in the Project, other than
through the EIA.
(2) Prairie was commenced international arbitration claims
against the Republic of Poland under both the ECT and the BIT.
Prairie alleges that the Republic of Poland has breached its
obligations under the Treaties through its actions to block the
development of the Company's Jan Karski mine and Debiensko mines in
Poland.
Appendix 2: Related Party Payments
During the quarter ended 30 September 2021, the Company made
payments of $196,000 to related parties and their associates. These
payments relate to existing remuneration arrangements (director
fees, consulting fees and superannuation of ($116,000) and the
provision of a serviced office and company secretarial and
administration
services ($80,000).
Appendix 3: Exploration and Mining Expenditure
During the quarter ended 30 September 2021, the Company made the
following payments in relation to exploration activities:
Activity $000
------------------------------------------------------------ -----
Legal and permitting related expenditure 117
Consultants - technical and Debiensko statutory operations
personnel 106
Other 72
Total as reported in the Appendix 5B 295
------------------------------------------------------------ -----
There were no mining or production activities and expenses
incurred during the quarter ended 30 September 2021.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
-----------------------------------------------------
Prairie Mining Limited
ABN Quarter ended ("current quarter")
--------------- ----------------------------------
23 008 677 852 30 September 2021
----------------------------------
Consolidated statement of cash Current quarter Year to date
flows
$A'000 (3 months)
$A'000
1. Cash flows from operating
activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation (295)* (295)*
(b) development - -
(c) production - -
(d) staff costs (166) (166)
(e) administration and corporate
costs (314) (314)
1.3 Dividends received (see note - -
3)
1.4 Interest received 5 5
1.5 Interest and other costs of - -
finance paid
1.6 Income taxes paid - -
1.7 Government grants and tax - -
incentives
Other (provide details if
1.8 material)
(a) Business Development (19) (19)
(b) Property rental and gas
sales 48 48
(c) Arbitration related expenses (494) (494)
(d) Receipt of arbitration
funding 698 698
---------------- -------------
Net cash from / (used in)
1.9 operating activities (537) (537)
----------------- ----------------------------------- ---------------- -------------
*includes legal and permitting expenditure and payments made
to consultants (Debiensko technical statutory operations personnel).
---------------------------------------------------------------------------------------
2. Cash flows from investing
activities
2.1 Payments to acquire or for:
(a) Entities - -
(b) tenements (30) (30)
(c) property, plant and equipment (2) (2)
(d) exploration & evaluation - -
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal
of:
(a) entities - -
(b) tenements - -
(c) property, plant and equipment 30 30
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other - -
entities
2.4 Dividends received (see note - -
3)
2.5 Other (provide details if
material) - -
---------------- -------------
Net cash from / (used in)
2.6 investing activities (2) (2)
----------------- ----------------------------------- ---------------- -------------
3. Cash flows from financing
activities
3.1 Proceeds from issues of equity
securities (excluding convertible
debt securities) - -
3.2 Proceeds from issue of convertible
debt securities - -
3.3 Proceeds from exercise of - -
options
3.4 Transaction costs related
to issues of equity securities
or convertible debt securities - -
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related
to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details if - -
material)
---------------- -------------
3.10 Net cash from / (used in)
financing activities - -
----------------- ----------------------------------- ---------------- -------------
4. Net increase / (decrease)
in cash and cash equivalents
for the period
Cash and cash equivalents
4.1 at beginning of period 4,762 4,762
Net cash from / (used in)
operating activities (item
4.2 1.9 above) (537) (537)
Net cash from / (used in)
investing activities (item
4.3 2.6 above) (2) (2)
4.4 Net cash from / (used in)
financing activities (item
3.10 above) - -
Effect of movement in exchange
4.5 rates on cash held 1 1
---------------- -------------
Cash and cash equivalents
4.6 at end of period 4,224 4,224
----------------- ----------------------------------- ---------------- -------------
5. Reconciliation of cash and Current quarter Previous quarter
cash equivalents $A'000 $A'000
at the end of the quarter
(as shown in the consolidated
statement of cash flows) to
the related items in the accounts
5.1 Bank balances 4,224 4,762
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
---------------- -----------------
Cash and cash equivalents
at end of quarter (should
5.5 equal item 4.6 above) 4,224 4,762
----------------- ----------------------------------- ---------------- -----------------
6. Payments to related parties of the entity Current quarter
and their associates $A'000
Aggregate amount of payments to related
parties and their associates included in
6.1 item 1 (196)
----------------
6.2 Aggregate amount of payments to related
parties and their associates included in
item 2 -
----------------
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly
activity report must include a description of, and an explanation
for, such payments.
7. Financing facilities Total facility
Note: the term "facility' amount at quarter Amount drawn
includes all forms of financing end at quarter end
arrangements available to $A'000 $A'000
the entity. Add notes as necessary
for an understanding of the
sources of finance available
to the entity.
7.1 Loan facilities 17,000* 5,393
------------------- ----------------
7.2 Credit standby arrangements - -
------------------- ----------------
7.3 Other (please specify) - -
------------------- ----------------
7.4 Total financing facilities 17,000* 5,393
------------------- ----------------
Unused financing facilities available at
7.5 quarter end 11,607
----------------
7.6 Include in the box below a description of each facility
above, including the lender, interest rate, maturity date
and whether it is secured or unsecured. If any additional
financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing
details of those facilities as well.
----------------- ---------------------------------------------------------------------------
On 30 June 2020, the Company executed a Litigation Funding
Agreement (LFA) for US$12.3 million (*now worth A$17 million
with the movement of the A$ compared to the $US) with
LCM Funding UK Limited a subsidiary of Litigation Capital
Management Limited (LCM), to pursue damages claims in
relation to the investment dispute between Prairie and
the Polish Government that has arisen out of certain measures
taken by Poland in breach of the Energy Charter Treaty
and the Australia - Poland Bilateral Investment Treaty
(BIT). LCM will provide up to US$12.3million (A$17 million),
denominated in US$, in limited recourse financing which
is repayable to LCM in the event of a successful Claim
or settlement of the Dispute that results in the recovery
of any monies. If there is no settlement or award, then
LCM is not entitled to any repayment of the financing
facility. In return for providing the financing facility,
LCM shall be entitled to receive repayment of any funds
drawn plus an amount equal to between two and five times
the total of any funds drawn from the funding facility
during the first five years, depending on the time frame
over which funds have remained drawn, and then a 30% interest
rate after the fifth year until receipt of damages payments.
-----------------
8. Estimated cash available for future operating $A'000
activities
Net cash from / (used in) operating activities
8.1 (item 1.9) (537)
8.2 (Payments for exploration & evaluation classified
as investing activities) (item 2.1(d)) -
8.3 Total relevant outgoings (item 8.1 + item (537)
8.2)
8.4 Cash and cash equivalents at quarter end 4,224
(item 4.6)
8.5 Unused finance facilities available at quarter 11,607
end (item 7.5)
-------
8.6 Total available funding (item 8.4 + item 15,831
8.5)
-------
8.7 Estimated quarters of funding available
(item 8.6 divided by item 8.3) >10
-------
Note: if the entity has reported positive relevant outgoings
(ie a net cash inflow) in item 8.3, answer item 8.7 as
"N/A". Otherwise, a figure for the estimated quarters
of funding available must be included in item 8.7.
8.8 If item 8.7 is less than 2 quarters, please provide answers
to the following questions:
8.8.1 Does the entity expect that it will continue to
have the current level of net operating cash flows for
the time being and, if not, why not?
---------------------------------------------------------------------------------------
Answer: Not applicable
---------------------------------------------------------------------------------------
8.8.2 Has the entity taken any steps, or does it propose
to take any steps, to raise further cash to fund its operations
and, if so, what are those steps and how likely does it
believe that they will be successful?
---------------------------------------------------------------------------------------
Answer: Not applicable
---------------------------------------------------------------------------------------
8.8.3 Does the entity expect to be able to continue its
operations and to meet its business objectives and, if
so, on what basis?
---------------------------------------------------------------------------------------
Answer: Not applicable
---------------------------------------------------------------------------------------
Note: where item 8.7 is less than 2 quarters, all of questions
8.8.1, 8.8.2 and 8.8.3 above must be answered.
---------------------------------------------------------------------------------------
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Date: 29 October 2021
Authorised by: Company Secretary
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying activity
report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and
the effect this has had on its cash position. An entity that wishes
to disclose additional information over and above the minimum
required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions
in, and provisions of, AASB 6: Exploration for and Evaluation of
Mineral Resources and AASB 107: Statement of Cash Flows apply to
this report. If this quarterly cash flow report has been prepared
in accordance with other accounting standards agreed by ASX
pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities,
depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market
by your board of directors, you can insert here: "By the board". If
it has been authorised for release to the market by a committee of
your board of directors, you can insert here: "By the [name of
board committee - eg Audit and Risk Committee]". If it has been
authorised for release to the market by a disclosure committee, you
can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market
by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance
Council's Corporate Governance Principles and Recommendations, the
board should have received a declaration from its CEO and CFO that,
in their opinion, the financial records of the entity have been
properly maintained, that this report complies with the appropriate
accounting standards and gives a true and fair view of the cash
flows of the entity, and that their opinion has been formed on the
basis of a sound system of risk management and internal control
which is operating effectively.
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END
QRFEAFENAENFFEA
(END) Dow Jones Newswires
October 29, 2021 02:00 ET (06:00 GMT)
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