NGL1 May 2012 08:12
· Pit Optimisation for potential near term future production from other historical open pit mines is soon to commence.
· Exploration objectives are being reviewed as the Norseman Gold tenements have numerous targets with existing resources that the management aims to prioritise.
· To ensure working capital is sufficient for all aspects of the operations, Norseman Gold agreed to place a total of 64 million shares at 6 cents (or 4 pence) per share and 32 million warrants exercisable at 12 cents each on or before 27/4/2015 to Tulla Group to raise A$3.84 million. The Tulla Group interest will increase from 7.15% to 18.93%. The warrants will be subject to shareholder approval.
· Strategy to become a consistent 100,000 ounce gold producer within one year is in place with the additional aim of increasing our resource base through both mine and regional exploration - current resources inventory of 3.4 million ounces of gold at an average grade 4.7 grams per tonne.
· Corporate Restructuring and Financing arrangements agreed by shareholders on 30 March 2012 have been finalised with the issue and allotment of 20,000,000 ordinary shares and 149,833,333 warrants completed. The ordinary shares and warrants, where applicable, have been issued to the Tulla Group, L2 Project Management-Norseman Pty Ltd, EXP T1 Ltd and the directors or nominees. Application has been made for admission of the 20,000,000 ordinary shares in the Company to be admitted to trading on AIM with effect from 7 May 2012.
· New Board appointments proposed to be made in forthcoming quarter.
· Norseman Gold is keen to work with the local community and shire of Norseman for the benefit of the town and the operations. A number of initiatives will be discussed in the coming months.