KPR - Kupang Resources

Kupang Resources Ltd (KPR) was formerly known as Chameleon Mining NL (CHM).

Previous discussion of this company can be found in the CHM thread: https://www.aussiestockforums.com/forums/showthread.php?t=1621

ACQUISITION OF FURTHER 25% INTEREST IN MANGANESE PROJECT


● Kupang has increased its interest in a significant manganese project in Indonesia with potential for early production to 55% following a further A$6.5M investment
● Extensive exploration program and plans to commence trial production activities

Kupang announce that it has acquired a further 25% interest in the Kupang Project located in (Kupang) West Timor, in the Indonesian province of Nusa Tenggara Timur (NTT), a region well known globally as a source of high-grade Manganese ore (Kupang Project).

Further to previous announcements, following payment of the final A$6.5M, the Company, through its wholly owned subsidiary NTT Manganese Pty Ltd (NTT) now holds a 55% interest in the Kupang Project. Following the final investment by the Company, the interest of the parties in the joint venture associated with the project are now being restructured.

The additional funding provided by the Company will be applied towards accelerating the plans to define the identified manganese endowment including bulk sampling leading to limited pilot production at the project.

The project is located 6km by road from the planned processing area and only 16km by road from the port facilities of Kupang, where it is proposed ore from the Kupang Project will be shipped. Due to the close proximity of the project to this infrastructure, the project has a low start-up cost.

Commenting on the investment, Kupang Director Mr Tony Sage, said "The acquisition of a 55% interest in the project through this further investment signifies the Company’s commitment to and confidence in the project and desire to bring the project to production as soon as possible.”

MC - $11.7m
SP - 6.5c
Shares - 179m
Options - NQ
Cash - $15m (+ $1.2m in term deposit to fund bank guarantees and litigation)

There is a high spend this quarter of $5.6m, but this is to increase the Company’s interest in the Kupang Project to 55%.

June Quarter – Highlights
 Change of Company status, name and ASX code
 Consolidation of capital completed
 Appointment of experienced Manganese executive
 Acquisition of initial 30% interest in the Kupang project completed
 Change of registered office, contact details and share registry completed
 High Court hearing of ILP matter completed
 Date of hearing set for application for special leave to appeal to the High Court filed by Phillip Grimaldi

Kupang Project
The Kupang Project areas are well serviced by sealed road infrastructure and within 20km from the port facilities of Kupang, where it is proposed ore from the Kupang Project will be shipped. The Kupang Resources Joint Venture has secured the available land for the production area and is finalising negotiations with the relevant parties for the lay down area at Kupang port.
The geological setting for the manganese mineralisation is found at the base of the tertiary limestones. The regional geological setting is a suitable host for extensive bedded manganese deposits. The geological mapping and target generation exploration work continues with a view to understanding the regional high grade Manganese endowment and establishing an economic resource in the project area. A sampling program from existing stockpiles is underway with analysis results expected in the July to September 2012 Quarter.
An extensive exploration program and plans to commence trial production with a view to test marketability of the high-grade Manganese oxide are underway at the project. Due to the close proximity of the project to infrastructure and stockpiled bulk samples, this pilot project has a low startup cost.
Discussions are underway with shipping and engineering consultants advising on the trial production. The intent is for a full engagement of these consultants for feasibility study purposes once a JORC Resource and mineable reserve is evident. The purchase of equipment for a bulk sample processing facility is under negotiation. Commitment to this equipment purchase is expected early in the next period. The bulk sample and market trial is expected to be established during the October to December 2012 Quarter.
Once the trial processing facility is established there are further opportunities for the Kupang Resources Joint Venture to further expand its tenement holdings in the area. The joint venture is currently in negotiations for a further 10,000 ha tenement package in the immediately adjoining area of Soe, an area also known for its high-grade manganese deposits.
The Kupang Resources Joint Venture has established excellent working relationships with the local communities, businesses and Government in Indonesia. As a sign of its commitment and willingness to engage with the local stakeholders, the Kupang Resources Joint Venture will appoint prominent local, Mr Refafi Gah, to its Management Committee.