Perth, Jan 7, 2009 AEST (ABN Newswire) - Dear Shareholder, In these difficult economic times Terrain Minerals Limited (ASX:TMX) like most companies has been looking at its funding requirements and ways to conserve cash without compromising its goals. Terrain has cut costs by: reducing the size of the office, reducing staff numbers, introducing a wages freeze, minimising exploration expenditure and relinquishing lower priority tenements at the Redcastle and Euro projects.
Terrain has also been considering the possibility of increasing its cash reserves by selling non-core assets and has recently reached agreement to sell the Coogee gold deposit at East Kambalda for $3.25million. The sale agreement involves a series of staged payments, which means some additional funds are still required in the short term to maintain your Company as a going concern and enable effective exploration programs to continue on the exciting projects at Bundarra and East Kambalda.
At Bundarra a recent soil sampling program; targeting a series of prospective shear zones, in the western half of the tenement area; has outlined a number of strong, gold anomalies, including one over 1,000m in length extending west from the historic Craig prospect. These anomalies, together with the potential depth extensions of the established gold resources represent immediate drilling targets and the opportunity to build on the resource base announced in August 2008.
At East Kambalda work completed during 2008 including: geological mapping, a gravity survey and EM/IP geophysical surveys have progressively strengthened the comparisons between the Aztec Dome and the Kambalda Dome, with its associated nickel deposits. Further EM/IP geophysical surveys are required ahead of drilling programs to test for high grade, nickel sulphide deposits.
The Board of Terrain commends this rights issue, which together with the proceeds from the sale of the Coogee gold deposit will enable your Company to build on past successes. The Board would also like to take this opportunity to thank shareholders for their past support and looks forward to a return to more normal stock market conditions and a Terrain share price reflecting the value of its high quality exploration assets.
Yours sincerely
Mr. Keith Wells
Managing Director
The information in this report that relates to Exploration Results is based on information compiled by Mr. Keith Wells, who is a full-time employee of Terrain Minerals Ltd. Mr. Wells is a member of The Australian Institute of Geoscientists and has sufficient experience which is 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. Wells consents to the inclusion in the report of the matters based on information in the form and context in which it appears.
FULLY UNDERWRITTEN NON-RENOUNCEABLE RIGHTS ISSUE
Summary of Key Information
Underwriting: The Rights Issue is fully underwritten by Bligh Capital Melbourne Pty Ltd and sub-underwritten by Manna Resources Pte Ltd.
Type of offer: Non-renounceable pro rata entitlement offer to shareholders of up to 11,064,250 Shares.
Offer price: 5 cents per Share.
Offer ratio: 1 Share for every 7 shares held at the Record Date. Fractions will be rounded up.
Amount to be Raised: Approximately $553,212-------------------------------------------------------------Lodgment of Offer Document 6 January 2009Notice to shareholders 7 January 2009Ex date 12 January 2009Record date for determining shareholder entitlements 16 January 2009Opening date and dispatch of Offer Document to shareholders 19 January 2009Offer closing date 9 February 2009Shares quoted on a deferred settlement basis 10 February 2009Allotment and dispatch of holding statements 17 February 2009-------------------------------------------------------------
Summary ASX Securities
------------------------------------------------------------Quoted Securities Security Description Number------------------------------------------------------------TMX Ordinary 77,449,748------------------------------------------------------------TMXO Options Expiring 31.07.2010 exercisable at 25 cents 51,624,141------------------------------------------------------------Unquoted Securities Unlisted Options 3,490,000------------------------------------------------------------
Summary Rights Issue Total Entitlement Securities
------------------------------------------------------------Quoted Securities Security Description Number------------------------------------------------------------TMX Ordinary 11,064,250------------------------------------------------------------
Summary of Securities on Completion
------------------------------------------------------------Quoted Securities Security Description Number------------------------------------------------------------TMX Ordinary 88,513,998------------------------------------------------------------TMXO Options Expiring 31.07.2010 exercisable at 25 cents 51,624,141------------------------------------------------------------Unquoted Securities Unlisted Options 3,490,000------------------------------------------------------------
Contact
Mr. Keith Wells
Managing Director
PH: +61-8-9481-2455
EM: terrain@terrainminerals.com.au
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