Shareholders in Subiaco-based Western Metals have approved a name change to Indago Resources and a 1-for-10 share consolidation.
Shareholders in Subiaco-based Western Metals have approved a name change to Indago Resources and a 1-for-10 share consolidation.
The announcement is below:
Western Metals Limited ("WMT") will accelerate work at its flagship Nyanzaga Gold Project in Tanzania following strong shareholder support for its corporate restructure and strategy to establish an international gold business.
At the general meeting in Perth today, all resolutions set out in the Notice of Meeting lodged on 17 March, to support the implementation of the Company's gold development strategy, were passed on a show of hands. The key agenda items were resolutions to change the Company's name to Indago Resources Limited (pronounced In-dar-go) and a 1-for-10 share consolidation.
Shareholders also approved the appointment of Mr John Fitzgerald as a non-executive director and the associated issue of unlisted options to Mr Fitzgerald.
Consequently, the Company will start trading under the name Indago Resources Limited with the ASX code IDG on or about 6 May 2009 subject to the required ASIC and ASX approvals.
Indago comes from the Latin "to hunt, investigate or explore" and better reflects the Company's new strategic direction as an international gold explorer and developer.
The 1-for-10 share consolidation will deliver an enhanced capital structure and make investing in the company more appealing to sophisticated and institutional investors, locally and internationally. This is an important step in achieving our objective of introducing cornerstone investors to the Company and leaves the Company well placed for future access to capital markets as required. It is also important to note that this initiative will not dilute the interests of any shareholder, as all shareholders interests will be consolidated on the same pro rata basis. Trading in consolidated shares is expected to commence on a deferred settlement basis on 28 April 2009.
Managing Director George Bauk welcomed today's vote of support from shareholders as a landmark on the Company's path to building a substantial gold business.
"Today's vote represents a major step toward our goal of becoming a successful gold producer and explorer, built on our advanced Nyanzaga Gold Project and other holdings in the world class Lake Victoria gold province in Tanzania," he said.
The Board believes Nyanzaga represents an opportunity to become the foundation of a successful gold business.
The Company owns a managing 49% interest in the Nyanzaga Project, and may earn up to 68% by completing a bankable feasibility study. Our joint venture partner, Barrick Exploration Africa Ltd ("BEAL"), has to date spent in the order of $US13 million on the project.
The Nyanzaga project covers more than 350 km2 in the Lake Victoria goldfields and hosts the Tusker gold deposit, for which a resource of 4.54 million ounces estimated in accordance with JORC guidelines, was reported inSeptember 2006.
Tusker is located just 36km from BEAL's multi-million ounce Bulyanhulu mine, and is Tanzania's largest undeveloped gold deposit.
The Company has commenced a concept study for the Tusker deposit, which includes evaluation of higher grade mineralisation internal to the larger global resource and mineralisation proximal to Tusker that has not been previously included in resource estimation. The study is on track for completion in the current quarter. Subject to the findings of the study, the Company intends to immediately commence feasibility studies into development of the Tusker resource
The Company will also work towards identifying additional gold opportunities within the further 520 km2 of highly prospective gold tenements outside the Nyanzaga project area it has acquired from Sub-Sahara Resources NL in the Lake Victoria Goldfields region of Tanzania. These include 51% interests in both the Nyakafuru JV and Kahama JV with Resolute Mining Ltd and the 100% held Kahama Project. A detailed targeting programme has commenced using existing geochemical, geophysics and geological data to establish priority targets in the licence holdings.
The Company will continue to evaluate additional opportunities to grow its gold portfolio as appropriate, particularly in the Lake Victorian Goldfields in Tanzania.
