The first shipment of tin from Australian resource company
Gippsland Ltd's Abu Dabbab alluvial project in Egypt will take
place in the fourth quarter of its financial year, or the three
months ending June 30 this year.
During the three months ended March 31, mining commenced at the
alluvial project on time and on budget, according to the company's activity report
for the third quarter of its financial year.
Commissioning at the project is now close to completion,
Gippsland said, and drilling is about to begin in Eritrea.
At the Abu Dabbab alluvial project, the mining contractor was
ready on site on February 17, and began work on February 18
Site manning has reached full strength, Gippsland said, with
operations on a round-the-clock basis by the end of the
The product finishing, bagging and despatch facilities are all
but complete within the Free Zone area, the company added, in
preparation for shipment.
Later in the period, Gippsland gained approval from Tantalum
Egypt to enter a toll smelting contract for the treatment of
cassiterite output from alluvial operations.
Gippsland has said it expects final testing to be complete
during the first two weeks of May, pushing the first project
shipment into the coming quarter. A separate announcement is to
be made as soon as this is achieved.
In Eritrea, the company's 100% owned subsidiary
Adobha Resources (Eritrea) holds the Adobha exploration licence
covering 2,100 sq km, and the Gerasi South exploration licence
covering 100 sq km.
During the quarter, the company carried out a gravity survey
within the Adobha project over all of the high and medium
priority electromagnetic anomalies identified in an airborne
survey in 2011.
Gippsland also carried out geological mapping, additional
geochemical sampling and site access preparation work ahead of
drilling, expected to start in the coming days.
In January, the company also divested its stake in the
Heemskirk tin project
, in Tasmania.
Explorer-developer Stellar Resources acquired the 40% Heemskirk
by Gippsland in exchange for 43.5 million Stellar shares, as
well as a royalty.
Stellar Resources' shares were trading at 8 Australian cents
(8.5 cents) on the Australian Stock Exchange (ASX) on Tuesday
January 31, making the stake worth about A$3.48 million ($3.7
million at the time).
In terms of financing, discussions with major banks and
sovereign funds located in the Middle East and North Africa are
under way, Gippsland said.
On February 7, it also announced a rights issue to shareholders
at the record date of February 16, with one new share for every
five existing shares.
The aim was to raise about A$2.44 million ($2.55 million)
before costs, at an issue price of 1.5 Australian cents per new
share. The issue was completed in March 2012.
In total, 78%, or more than 127 million, of the shares on offer
were subscribed for. The remaining 35 million shares were taken
up by sub-underwriter Gandel Metals.
As part of its capital management programme, Gippsland also set
up a sale facility for "unmarketable parcels" of its shares.
These parcels of shares are those valued at less than A$500 as
at the close of trading on the Australian Stock Exchange (ASX)
on March 26 this year.
Shareholders holding an unmarketable parcel have been sent a
notice telling them to advise the company's share registry by
17:00 AWST on May 11 that they want to keep their shares.
Otherwise, the shares will be sold, and they will be given the
Gippsland's shares were trading at 1.5 cents each as of the
close of trading on April 30 on the ASX.