HomeEnergy MineralsMiranda progresses towards becoming a junior miner

Miranda progresses towards becoming a junior miner

Drill team at work
at Miranda’s high
priority Uithoek
Johannesburg, South Africa — 30 May 2012 – Miranda Mineral Holdings Limited reports good progress in formulating and implementing a shareholder-mandated strategy to move the company – currently a diversified minerals holding entity – firmly into the junior coal exploration and mining sector.

Releasing its results for the six months to 29 February 2012, the company said its focus would be on generating cash flow by moving its four key coal projects in KwaZulu Natal into production, starting during 2012.

First priority would be the Sesikhona anthracite project, followed by the Uithoek project, the company statement added. Miranda said it expected mining at Sesikhona to begin during the year, once discussions on sub-contracting and off-take – currently under way – were concluded.

With respect to Uithoek, the company said agreement in principle had been reached to restore the relationship with the current mining right holder.

Approval by the Department of Mineral Resources (DMR) of a mining licence for the Burnside project was imminent, the company added, and in respect of the Boschhoek project, the South African Defence Force had agreed to enter into discussions regarding its concerns relating to unexploded ordinance on one of the constituent farms.

The company reported that, as part of its new strategic focus, a number of projects had been reviewed and had been sold back to the original joint venture partners, with Miranda having recovered its costs. These included the Dannhauser Hillside, Solmar, Klipriver South and Vryheid East projects.

Miranda added that another priority was to resolve with the DMR all overdue and disputed prospecting rights in respect of its non-coal assets.

Various factors impacting on the company’s ability to continue as a going concern – losses of R16.5 million for the period under review compared with R11.0 million for the same period in FY11); current liabilities of R53 million exceeding current assets of R4.6 million by R48.4 million; cash flow; and litigation – were receiving attention, the company assured.

Source: Miranda Mineral Holdings Limited. For more information, click here.