PNN - Power Minerals

Dividend Distribution
Based on the financial results for the year ending 30th June, 2007 the Directors of PepinNini Minerals Limited are pleased to announce the payment of a fully franked special dividend of five cents per share to all shareholders of the Company. The record date to determine dividend entitlements will be 10th December, 2007. The dividend will be paid on 17th December, 2007. In accordance with Company policy to reward shareholders for their investment in PepinNini Minerals Limited the Directors believe shareholders should share directly in the financial success of the Company over the past year. The dividend payment will not significantly affect the Company’s cash reserves which will be approximately $30Million after the dividend payment At
the current share price it represents an attractive return and may assist some shareholders to invest in more shares in the Company if they so wish.

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Crocker Well Uranium Project Update
The management company for the Sinosteel PepinNini Joint Venture Alliance has instigated a number of actions to facilitate the rapid development of the Crocker Well Uranium Deposit in line with its strategy to be in production by early 2010.
• An experienced Uranium Process Manager, Mr Andrew Querzoli, has been employed to oversee the development of an optimum process to extract uranium from the Crocker Well ore.
• An experienced Uranium Exploration Geologist, Mr David Rosewall, has been employed to manage resource definition drilling at Crocker Well and investigation of nearby uranium prospects. David has previously been employed by AREVA, Heathgate Resources and Cameco Australia.
• Discussions have been held with consultant groups and South Australian Government Departments to establish guidelines and a timeframe for the development of the Crocker Well Uranium Deposit.
• Metallurgical tests aimed at improving the previously reported recoveries for processing the Crocker Well uranium ore have been commissioned with ANSTO and Amdel Laboratories. A 200kgs bulk sample with an average grade of 750ppm uranium has been collected from the mullock heaps beside historic shafts at Crocker East deposit and is currently undergoing metallurgical testing at the Adelaide laboratory of Amdel. Another 150kgs composite sample of core from a recently drilled borehole at Crocker Junction deposit has been submitted to Ansto at Lucas Heights in Sydney.
• Independent resource consultants Hellman & Schofield have been commissioned to upgrade the current JORC compliant uranium resource at Crocker Well from an Inferred category to an Indicated and Measured category.
• A drilling contractor and two drilling rigs have been secured to commence drilling programs in February 2008. Resource definition drilling will be undertaken at Crocker Well and at least five other prospects in the vicinity of Crocker Well will be investigated with substantial drilling programs.
• Adelaide based URS Australia Pty Limited has been appointed to commence the Regulatory Approvals and Environmental Impact Statement (EIS) work for the Crocker Well Uranium Project. URS is the world’s largest engineering design services consultant group and operates in more than 30 countries with an annual revenue of over $US4.4billion. The Adelaide based URS division has had extensive experience in uranium regulatory approvals and the preparation of EIS documentation particularly within South Australia. It is expected that the Regulatory Approvals and EIS will take approximately 18 months to complete.

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Rafa said:

Very strange.... What the hell is a non producing company giving dividends

I am wondering whether this mob has so much money at their disposal they don't know what to do with it.

I still beleive this has the potential of being the next Uranium mine in SA, but what is the point of giving money away when they would need that money later on to build the mine

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reece55 said:

Rafa
It's actually sensible - they have franking credits to distribute, why not distribute them because otherwise they will be locked away forever....

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reece55 said:

Rafa
It's actually sensible - they have franking credits to distribute, why not distribute them because otherwise they will be locked away forever....

Cheers

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The Federal government has a role to play here too.

One of the secrets of Canada's success has been a flow through share (FTS) scheme.

Because exploration companies have no income, when they spend money on expenses that would be tax deductible for a company with income, they build up tax credits.

If they find something and develop a mine they can use these tax credits to reduce their tax.

However, most exploration companies don't find anything and so their credits disappear into the ether.

An FTS scheme allows these credits to be passed onto shareholders (almost like a franking credit).

This makes investment in exploration companies more attractive to investors and makes it easier to raise money.

Such a scheme is estimated to cost only $250 million over 4 years - beer money in a $17 billion a year surplus.

The Canadian results have been outstanding. Ours could be too.

I am told that in last year's budget deliberations, Resources Minister Ian Macfarlane had arranged with the Prime Minister to have FTS included in the budget.

The story goes that when the PM went out to do some media, Treasurer Costello took the opportunity to scuttle the plan.

The new Labor government has talked about a flow through scheme. They should act quickly to implement one.

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• still no action on their buy-back scheme but potentially can come in to underpin the shareprice - maybe at $1?...
  
• Also with about $30m in the bank, another $11m committed from Sinosteel for exploration => market cap of under $70m now looks a bit on the low side considering they also have JORC for almost 20m lbs uranium...
  
• made some small purchases recently...

PepinNini Minerals has acquired 51% of the share capital of Eagle Gold Mines Limited for a total cost of AUS$5.5million. Eagle Gold owns the Peak Hill Gold Project including the Fortnum Gold Mine processing plant and a JORC compliant Indicated (670,000 ozs) and Measured (1,900 ozs) Resource of gold with an additional 335,000 ozs classified as Inferred. PepinNini Minerals has also entered into a Farm-In Agreement to explore for iron ore in seven tenements held by Eagle Gold in the Robinson Range area of Mid West, WA.

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PepinNini Minerals Limited has entered a heads of agreement with Australian Gold Holdings Limited (AGH) and its subsidiaries Uranium Capital Limited and Goldrox Limited to acquire eleven tenements in north Queensland. Subject to due diligence on the tenements PepinNini will pay AGH $150,000 and issue 900,000 shares in PepinNini Minerals Limited for the tenements. The acquisition will significantly increase the area currently held under exploration tenure by PepinNini in North Queensland and is consistent with the Company’s strategy to target uranium, gold and base metal mineralisation in the region

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lows_13 said:

Your looking at the next uranium mine in Australia

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