10 December 2009
NEW BOARD TO DRIVE GROWTH STRATEGY
The Board of Catalpa Resources Limited today announced the appointment of Mr Peter Maloney as Non-Executive Chairman and Mr Graham Freestone as Non-Executive Director.
As the merger is now finalised Mr John Rowe steps down as Non-Executive Chairman and continues as a Non-Executive Director of the Company. Under Mr Rowe?s skilled leadership, Catalpa has achieved the successful transition from explorer to producer. The Board is highly appreciative of Mr Rowe?s ongoing commitment to the Company?s direction which remains focussed on cost effective production, Resource, Reserve and Company growth to continue to provide shareholder value.
The restructuring of Catalpa?s Board follows its successful merger with the gold assets of Lion Selection Limited. The additional M & A experience and financial and commercial expertise will assist Catalpa achieve its vision of becoming Australia?s next mid-tier gold producer.
Mr Maloney has broad commercial, finance, M & A and management expertise and experience. In a long career with WMC Resources, he held the positions of Treasurer, Executive Vice President Americas, and Manager Commercial and Marketing ? WA. He has also been Executive General Manager, Finance at Santos and Chief Financial Officer at FH Faulding. Mr Maloney has managed varied debt and equity financings, mergers, takeovers, acquisitions, divestments, joint venture negotiations, commodity sale agreements, commodity and currency hedging programs, gold and nickel sales, and has been involved in a number of IPOs.
Mr Freestone has over 30 years experience in finance and in the resources industry in Australia and internationally. He has a broad finance, corporate and commercial background obtained during various senior finance positions with the Shell Group, Acacia Resources and AngloGold. Mr Freestone was comprehensively involved in the float of the Shell Group?s mineral interests through Acacia Resources Limited.
Mr Nigel Johnson has resigned as a Director of the Company. The Board wishes to express its sincere appreciation to Mr Johnson for his valuable contribution to the growth of the Company.
For further enquiries contact:
Catalpa Resources Limited
Tel (08) 9321 3088
Warrick Hazeldine/Annette Ellis
Media and Investor Relations
Tel: (08) 6314 6300
ABOUT CATALPA RESOURCES
Catalpa Resources Limited (ASX: CAH) has two exciting gold assets; a 30% interest in the 100 000+ ounces per annum Cracow Gold Operations - a producing gold mine in Queensland (70% Newcrest Mining Limited); and the 100 000+ ounces per annum Edna May Gold Operations in Western Australia (100%) - an advanced gold project on schedule to commence production in June 2010.
The A$92 million Edna May Gold Project is fully funded, and, as part of the finance facility, Catalpa has sold forward 352,316 ounces of gold at A$1,557.50 per ounce. At an average gold price of A$1,400 per ounce Catalpa will realize an average cash operating margin of A$72 million per annum from the Edna May Gold Operations alone.
With a combined Mineral Resource of more than 1.9 million ounces and a combined Ore Reserve of more than a million ounces of gold, the Cracow and Edna May Operations will provide a sustainable cash flow to fund Catalpa?s growth strategy.
Catalpa is confident that both the Cracow and Edna May Gold Operations offer further Reserve and Resource growth potential, with ongoing exploration programmes at both operations. In parallel, the Company continues to proactively identify and assess other production growth opportunities.
The Company has a committed and technically accomplished management team and a highly-experienced and supportive Board, committed to realising shareholder value from the Company?s growing asset portfolio.
Catalpa has adopted best practice standards across all its activities, including health and safety, environmental management, corporate governance and social responsibility.
EDNA MAY OPERATIONS (100%)
Catalpa?s wholly-owned Edna May Gold Operations is conveniently positioned just two kilometers from the infrastructure of Westonia, on the eastern edge of WA?s Wheatbelt region. The mine is half way between Perth and Kalgoorlie and ideally situated to be serviced by either of these major mining centres..
With its robust economics, geologically and metallurgically well defined ore-body, high Ore Reserve confidence and excellent recovery rate of more than 92%, Catalpa?s Edna May Gold Operations offers an attractive, long-term platform to grow a mid tier gold producer.
Catalpa?s mine and processing schedule demonstrate average gold production at Edna May in excess of 100,000 ounces of gold recovered per annum for a life of mine of more than nine years, with production planned to commence in June 2010.
CRACOW GOLD OPERATIONS (30%)
Catalpa owns 30% of the Cracow Gold Operations in Queensland with Newcrest Mining Limited, and also has a pre-emptive right over Newcrest?s 70% stake in the asset. The Cracow Gold Project is well managed and operated by Newcrest, allowing Catalpa to remain focused on constructing the Edna May Gold Project on time and within budget.
The Cracow Gold Project has a history of steady gold production of over 100,000 ounces per annum for the past four years and it is considered to have considerable exploration upside.
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