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18 Feb 2009 07:05
Dwyka Resources Limited ('Dwyka' or the 'Company')
Shareholder Letter
The Directors of Dwyka Resources Limited ('Dwyka' or the 'Company') advise that the following CEO's update letter was posted to shareholders today.
Dear Shareholder
We are living in turbulent times so I thought it was appropriate that I update about your Company's activities. Over the past 3 months we have worked hard to reduce expenditures to a minimum to ensure that Dwyka can take advantage of the current downturn and capitalise on growth opportunities that will arise when financial and commodity markets begin to show signs of recovery. Preservation of the Company's cash assets of GBP7.3m (AUD15.5m) has been of paramount importance to ensure Dwyka remains in a strong position to pursue these opportunities.
Dwyka has three key areas of focus at present:
1. The Muremera Nickel Project in Burundi - extremely good exploration progress has been made on this project to date. Over US$7m has been spent on building a camp, drilling and other geophysical activities. This expenditure was designed to maximise the likelihood of discovering a large nickel sulphide orebody, much like the nearby Kabanga Project which is owned by Barrick and Xstrata. In April a second round of drilling of high priority targets will commence.
2. The SwaziGold Project - Dwyka has earned 45% of this project by undertaking a drilling programme over the past 2 years. All drilling and other exploration results are currently being analysed to determine whether Dwyka will continue to sole fund further exploration of the project (to increase its ownership level) or pursue other joint venture mechanisms to progress the project to the next stage.
3. Assessment of acquisition opportunities to leverage Dwyka's cash reserves - Whilst we find ourselves in very difficult times, Dwyka is assessing a number of opportunities to become involved in projects which are in production or near to production, but which require a capital injection to resolve project cash flow constraints. These opportunities are being carefully assessed but they do offer Dwyka the chance to become involved in projects which, even 6 months ago, would have had an entry price beyond the Company's reach. We aim to bring you good news on this front in the near future.
I assure you that the Company is active and the Board is very aware of its duties to deliver value to shareholders. I will write to you again in the near future with a progress report. If you would like more detailed information on any of the areas I have mentioned above please do contact me directly on melissa@dwyresources.com. I would be happy to email you or speak with you. I encourage you to subscribe to automatically receive Dwyka's stock exchange announcements by logging onto the website at www.dwyresources.com and entering your details.
With warm regards.
Yours sincerely,
Melissa Sturgess
CEO
For further information please contact:
Melissa Sturgess
(+44) 7825 555 1307 or melissa@dwyresources.com
Dwyka Resources Limited
Richard Brown (+44) 20 7634 4700
Ambrian Partners Limited
Press Enquiries
Charlie Geller/Leesa Peters (+44) 20 7429 6604 or (+44) 7970 067 320
Conduit PR
or visit http://www.dwyresources.com
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