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quartely report

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    ABN 88 002 522 099
    34 Parliament Place
    West Perth WA 6005
    p +61 8 9488 5200
    f +61 3 9321 6699
    [email protected]
    www.rangeresources.com.au
    31 October 2006
    Companies Announcement Office
    Australian Stock Exchange Limited
    20 Bond Street
    SYDNEY NSW 2000
    By E-Lodgement
    QUARTERLY REPORT
    Please find attached the Companies Quarterly Report.
    Yours Faithfully
    Peter Landau
    Director/Company Secretary
    For Further information, please contact Joanna Kiernan on +61 8 9488 5200 or
    [email protected]
    ABN 88 002 522 099
    34 Parliament Place
    West Perth WA 6005
    p +61 8 9488 5200
    f +61 3 9321 6699
    [email protected]
    www.rangeresources.com.au
    QUARTERLY REPORT FOR PERIOD ENDING 30TH September 2006
    HIGHLIGHTS:
    • MOU signed with Canmex Minerals Corporation for US $50 million oil exploration in
    Puntland
    • Range agrees with Puntland Government to return certain land areas and gets
    further support for the Contract of Work with the Puntland Government from the
    Transitional Federal Government.
    .
    MOU WITH CANMEX MINERALS CORPORATION
    Canmex is a subsidiary of Canmex Minerals Corporation (CXM) a Vancouver based
    company listed on the Toronoto Stock Exchange. The Board and key stakeholders of
    Canmex have been involved in exploration, development and production operations in a
    number of the major oil and gas provinces of the world including the Middle East, Papua
    New Guinea, Malaysia, Vietnam, United Kingdom, Libya, Sudan, Albania, Somalia and
    Russia. Canmex have demonstrated to the Board that they have the financial capability
    and a strong technical team to undertake the exploration and operator functions.
    Key Terms of the MOU
    The key terms of the MOU with Canmex are as follows:
    a) Main conditions precedent of all necessary regulatory approvals (see Puntland
    Government and TFG sign off referred to below), final due diligence and formal
    documentation (a production sharing agreement between the Puntland
    Government, Range and Canmex is expected to be finalised in the next 4 weeks).
    Targeted completion date is 15 November with a drop dead date of 31 December
    2006;
    b) Canmex will be the Operator of the on shore oil and gas exploration effort with an
    obligation to spend US$50m to earn an 80% interest in the two main basin areas in
    Puntland (the Nogal and Darin Basins). The US$50m includes a minimum of 4
    exploration wells to be completed (2 in each basin), a sign on bonus to be
    confirmed upon finalization. There is a further US$3.5m payment upon commercial
    production. Range free carried until exploration moneys spent;
    ABN 88 002 522 099
    34 Parliament Place
    West Perth WA 6005
    p +61 8 9488 5200
    f +61 3 9321 6699
    [email protected]
    www.rangeresources.com.au
    c) Of the Canmex 80% farm in right, 20% (in one or both basins) is available to farm out
    to third parties on terms to be agreed between Range and Canmex. Any sign on
    bonuses with third parties will be split 60% Range , 40% Canmex.
    PUNTLAND AND TFG GOVERNMENT MEETING.
    On July 16th Company Directors Mike Povey, Pete Landau and Liban Bogor senior
    consultants met with the Puntland Government and members of the Transitional Federal
    Government of Somalia in Garowe, Puntland, A presentation was made to both the
    Puntland Government (including His Excellency, President Hersi) and the TFG (including His
    Excellency, President Yusuf) on the Company’s recent activities Mike Povey reviewed the
    activities by Range to date and also explained the rationale involved in the relinquishment
    of ground in Puntland in both the mineral and hydrocarbon areas. Also what the strategy
    moving forward would be with regard to seeking Joint Venture partners for the oil
    exploration programmes that would be required.
    As a result of the discussions with, and presentations to the TFG, the acting TFG Minister for
    Oil and Gas committed the TFG to further support Range in its development of Puntland with
    an agreement that the TFG will recognise and uphold
    The key terms of Range’s Contract of Work within any national framework of mining and
    petroleum legislation enacted as part of the Somali unification process which the TFG is
    involved in.
    PUNTLAND MINERALS EXPLORATION
    The mineral exploration program in Puntland continues to proceed from the base in
    Boosaaso. However access to some areas is still logistically difficult and road access is
    limited. A number of project areas have been visited during the period.
    Tisje Pb-Zn
    25 rock samples were taken from Tisje and sent for assay and 49 stream sediment samples
    collected. All have been dispatched for assay.
    ABN 88 002 522 099
    34 Parliament Place
    West Perth WA 6005
    p +61 8 9488 5200
    f +61 3 9321 6699
    [email protected]
    www.rangeresources.com.au
    Dalan Au
    Awaiting assays on 39 rock samples that were taken from Dalanduring August.
    Kundut Mn
    Area east of Kundut was examined and rock chip sampled. 11 samples have been sent for
    assay. Traverses were 8km east of the reported 1m thick horizon of black Mn occurring in a
    Precambrian mudstone sequence. A Quickbird image has been ordered of the area.
    Geelyeyto Sn
    Occurs near Kundut in probably Miocene limestone-hosted breccias. 7 shafts 3m deep over
    a length of 20m give access and ventilation to a “ballroom” - a probable Sn placer deposit.
    7 sets of rock samples have been sent for assay.
    Qow Mineral Sands
    Three field trips were undertaken to this mineral sands prospect – resulting in two different
    areas being examined andand two sets of sand samples being sent for assay
    CORACHAPI URANIUM – PERU
    The size of the Company’s commitment to the Puntland project area and the huge
    potential for oil and the untested minerals potential have meant that the Company would
    not be able to dedicate sufficient resources to the project. Therefore, it has entered into an
    agreement with Contact Resources Ltd whereby Contact may now acquire 80% of the
    ‘Corachapi’ uranium project located in the Corani and Macusani Districts of the Puno
    Department (State) in south eastern Peru.
    The historical estimated Inferred Resource at Corachapi is 1.6 million tonnes at 0.15% U3O8 for
    an in situ total estimate of 2,400 tonnes of the uranium metal. Please refer to Contact’s June
    quarterly report, 2006 for technical details.
    Although the Company has received many direct approaches by Australian and North
    American exploration companies to acquire the rights to the Corachapi project it decided
    to select Contact as its preferred JV partner. This decision was influenced by favourable
    consideration of the technical strength of Contact’s consultants and directors.
    ABN 88 002 522 099
    34 Parliament Place
    West Perth WA 6005
    p +61 8 9488 5200
    f +61 3 9321 6699
    [email protected]
    www.rangeresources.com.au
    Chief geological consultant is Mr Geoff Blackburn, OAM, who is leading the due diligence
    process on the Corachapi Project for Contact. Mr Blackburn has a wealth of practical
    exploration experience in Australia and several overseas countries that has directly
    contributed to the discovery of numerous mineral deposits. He has co-designed innovative
    exploration techniques (BLEG) that also directly resulted in numerous mineral deposits being
    found by other explorers.
    Contact’s technical directors are geologists Dr Richard Napier and Mr Allen Maynard who
    have a combined 55 years of practical experience over a wide range of commodities and
    locations worldwide. Dr Napier also heads GFMS Mining and Exploration Consulting (GMEC);
    a division of one of the world's foremost metals research groups.
    Subject to completion of final Due Diligence and Shareholder approval the revised terms
    are as follows:
    1. A $50,000 option fee (already paid).
    2. The payment of $250,000 cash and the issue of five million Contact ordinary fully paid
    shares, subject to shareholders approval. Once this transaction is completed Contact
    becomes manager of the project with a 51% interest.
    3. Contact will expend the sum of $500,000 in the first 12 months to earn a further 9%
    which will give the company a total of 60%. Range will hold the remaining 20% which
    becomes a contributing interest after a bankable feasibility study is completed. If Contact
    does not expend the total amount required within 12 months then the balance of the
    difference will be paid to Range in cash.
    4. Contact will expend a further $1,500,000 within the next 12 months to earn another 5%
    bringing its total to 65%. Should this total amount not be expended then the balance in cash
    is to be paid to Range.
    5. To acquire the balance of 15% of the project held by Range, Contact can purchase
    the remaining 15% interest by issuing three million fully paid Contact shares to Range.
    ABN 88 002 522 099
    34 Parliament Place
    West Perth WA 6005
    p +61 8 9488 5200
    f +61 3 9321 6699
    [email protected]
    www.rangeresources.com.au
    Contact is already well underway, through Mr Blackburn, with compilation of the Corachapi
    technical database to enable logical planning and decision making for the upcoming
    exploration program. It is anticipated that drilling will be the major component of the next
    exploration phase. Peruvian geologist Sr W. Herarra who worked on the Corachapi project
    previously for the Peruvian Institute of Nuclear Energy (“IPEN”) and others will also be part of
    the exploration team. Workers will be sourced where possible from the local communities of
    Corani and Macusani.
    MIKE POVEY
    MANAGING DIRECTOR
    Appendix 5B
    Mining exploration entity quarterly report
    + See chapter 19 for defined terms.
    Appendix 5B Page 1
    Rule 5.3
    Appendix 5B
    Mining exploration entity quarterly report
    Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
    Name of entity
    RANGE RESOURCES LIMITED
    ABN Quarter ended (“current quarter”)
    88 002 522 009 30 September 2006
    Consolidated statement of cash flows
    Cash flows related to operating activities
    Current quarter
    $A’000
    Year to date
    $A’000
    1.1 Receipts from product sales and related debtors
    1.2 Payments for
    (a) exploration and evaluation
    (b) development
    (c) production
    (d) administration
    (1,658)
    (502)
    (1,658)
    (502)
    1.3 Dividends received
    1.4 Interest and other items of a similar nature
    received
    9
    9
    1.5 Interest and other costs of finance paid
    1.6 Income taxes paid
    1.7 Other
    Net Operating Cash Flows
    (2,151)
    (2,151)
    Cash flows related to investing activities
    1.8 Payment for purchases of:
    (a)prospects
    (b)equity investments
    (c) other fixed assets
    (7)
    (7)
    1.9 Proceeds from sale of:
    (a)prospects
    (b)equity investments
    (c)other fixed assets
    1.10 Loans to other entities (6) (6)
    1.11 Loans repaid by other entities
    1.12 Other (provide details if material)
    Puntland Mineral & Hydrocarbon Rights
    Garowe Airport Upgrade
    (544)
    (405)
    (544)
    (405)
    Net investing cash flows
    (962)
    (962)
    1.13 Total operating and investing cash flows
    (carried forward)
    (3,113)
    (3,113)
    Appendix 5B
    Mining exploration entity quarterly report
    + See chapter 19 for defined terms.
    Appendix 5B Page 2 30/9/2001
    Note: Item 1.12 refers to an amount paid to Consort Private Limited for the exploitation rights in
    Puntland, Somalia.
    1.13 Total operating and investing cash flows
    (brought forward)
    (3,113)
    (3,113)
    Cash flows related to financing activities
    1.14 Proceeds from issues of shares, options, etc.
    1.15 Proceeds from sale of forfeited shares
    1.16 Proceeds from borrowings 5,000 5,000
    1.17 Repayment of borrowings
    1.18 Dividends paid
    1.19 Costs associated with issue of shares
    Net financing cash flows
    5,000
    5,000
    Net increase (decrease) in cash held
    1,887
    1,887
    1.20 Cash at beginning of quarter/year to date 1,211 1,211
    1.21 Exchange rate adjustments to item 1.20
    1.22 Cash at end of quarter 3,098 3,098
    Payments to directors of the entity and associates of the directors
    Payments to related entities of the entity and associates of the related entities
    Current quarter
    $A'000
    1.23
    Aggregate amount of payments to the parties included in item 1.2 and
    1.7
    278
    1.24
    Aggregate amount of loans to the parties included in item 1.10
    Nil
    1.25
    Explanation necessary for an understanding of the transactions
    Payments of Directors Fees $104,400
    Payments to a Director Related Company $173,217
    Non-cash financing and investing activities
    2.1 Details of financing and investing transactions which have had a material effect on consolidated
    assets and liabilities but did not involve cash flows
    2.2 Details of outlays made by other entities to establish or increase their share in projects in which the
    reporting entity has an interest
    Appendix 5B
    Mining exploration entity quarterly report
    + See chapter 19 for defined terms.
    Appendix 5B Page 3
    Financing facilities available
    Add notes as necessary for an understanding of the position.
    Amount available
    $A’000
    Amount used
    $A’000
    3.1 Loan facilities
    - -
    3.2 Credit standby arrangements
    - -
    Estimated cash outflows for next quarter
    $A’000
    4.1 Exploration and evaluation
    400
    4.2 Development
    1,800
    Total
    2,200
    Reconciliation of cash
    Reconciliation of cash at the end of the quarter (as
    shown in the consolidated statement of cash flows) to
    the related items in the accounts is as follows.
    Current quarter
    $A’000
    Previous quarter
    $A’000
    5.1 Cash on hand and at bank 3,098 1,211
    5.2 Deposits at call
    -
    -
    5.3 Bank overdraft
    - -
    5.4 Other – Term Deposit
    -
    -
    Total: cash at end of quarter (item 1.22) 3,098
    1,211
    Changes in interests in mining tenements
    Tenement
    reference
    Nature of interest
    (note (2))
    Interest at
    beginning
    of quarter
    Interest at
    end of
    quarter
    6.1 Interests in mining
    tenements relinquished,
    reduced or lapsed
    E77/729-730 Owned 100% 0%
    6.2 Interests in mining
    tenements acquired or
    increased
    E77/1206
    E77/1207
    E77/1217
    Owned
    Owned
    Owned
    0%
    0%
    0%
    100%
    100%
    100%
    Appendix 5B
    Mining exploration entity quarterly report
    + See chapter 19 for defined terms.
    Appendix 5B Page 4 30/9/2001
    Issued and quoted securities at end of current quarter
    Description includes rate of interest and any redemption or conversion rights together with prices and dates.
    Total number Number quoted Issue price per
    security (see note
    3) (cents)
    Amount paid up per
    security (see note 3)
    (cents)
    7.1 Preference
    +securities
    (description)
    Nil
    7.2 Changes during
    quarter
    (a) Increases
    through issues
    (b) Decreases
    through returns
    of capital, buybacks,
    redemptions
    7.3 +Ordinary
    securities
    1,132,219,388
    1,132,219,388
    7.4 Changes during
    quarter
    (a) Increases
    through issues
    (b) Decreases
    through returns
    of capital, buybacks
    Nil
    Nil
    7.5 +Convertible
    debt securities
    (description)
    Nil
    7.6 Changes during
    quarter
    (a) Increases
    through issues
    (b) Decreases
    through
    securities
    matured,
    converted
    7.7 Options
    793,584,463
    793,584,463
    Exercise Price
    5 cents
    Expiry Date
    1 October 2007
    7.8 Issued during
    quarter
    Nil
    7.9 Exercised during
    quarter
    Nil
    7.10 Expired during
    quarter
    Nil
    7.11 Debentures
    (totals only)
    Nil
    7.12 Unsecured notes
    (totals only)
    Nil
    Appendix 5B
    Mining exploration entity quarterly report
    + See chapter 19 for defined terms.
    Appendix 5B Page 5
    Compliance statement
    1 This statement has been prepared under accounting policies which comply with
    accounting standards as defined in the Corporations Act or other standards acceptable
    to ASX (see note 4).
    2 This statement does give a true and fair view of the matters disclosed.
    ____________________
    Peter Landau
    Company Secretary
    31 October 2006
    Notes
    1 The quarterly report provides a basis for informing the market how the entity’s
    activities have been financed for the past quarter and the effect on its cash position.
    An entity wanting to disclose additional information is encouraged to do so, in a note
    or notes attached to this report.
    2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in
    mining tenements acquired, exercised or lapsed during the reporting period. If the
    entity is involved in a joint venture agreement and there are conditions precedent
    which will change its percentage interest in a mining tenement, it should disclose the
    change of percentage interest and conditions precedent in the list required for items
    6.1 and 6.2.
    3 Issued and quoted securities The issue price and amount paid up is not required in
    items 7.1 and 7.3 for fully paid securities.
    4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive
    Industries and AASB 1026: Statement of Cash Flows apply to this report.
    5 Accounting Standards ASX will accept, for example, the use of International
    Accounting Standards for foreign entities. If the standards used do not address a
    topic, the Australian standard on that topic (if any) must be complied with.
    == == == == ==
 
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