Mud Rotary drill hole BW0098 intersected 3 mineralised zones in the Bennet Well channel that was predicted in the mineralisation model and discovered by Cauldron's geology team
BW0098: 1.25 m @ 293 ppm eU3O8, from 82.5 m
BW0098: 1.80 m @ 2900 ppm eU3O8, from 86.0 m
Inc 1.10 @ 4520 ppm eU3O8, from 86.35 m
BW0098: 0.90 m @ 268 ppm eU3O8, from 88.6 m
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Argentina
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Cauldron moved to 51% ownership of the Rio Colorado Project during the period
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Cauldron is awaiting judicial approval to allow the commencement of drilling at Rio Colorado
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Recent National, State and Local election results in Argentina signal a change in attitude to mining which is viewed as positive by the Company
Cauldron Energy Ltd (Cauldron or the Company) is pleased to present its Quarterly Activities Report for the period ended 31 December 2015.
CORPORATE ACTIVITIES
Legal Proceedings
As previously announced, the Company took legal action to enforce its rights under the placement agreements to receive unpaid funds. On 28 January 2016, His Honour Justice Mitchell of the Supreme Court of Western Australia found in favour of Cauldron in respect of its claim that Beijing Joseph Investment Co. Ltd, Joseph Investment International Limited, and Guangzhou City Guangrong Investment Management Co. Ltd have breached their respective placements agreements in 2014 and entered judgment in favour of the Company in the following amounts:
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$3 million plus interest;
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damages of $55,000 plus interest; and
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85% of the Company's legal costs.
As previously announced, the proceedings began on 12 October 2014, when Beijing Joseph Investment Co. Ltd, Joseph Investment International Limited, and Guangzhou City Guangrong Investment Management Co. Ltd (the Plaintiffs) obtained ex parte injunctive relief against the Company in the Supreme Court of New South Wales without notice to the Company. The injunctive orders were discharged by consent on 15 October 2014. On 11 December 2014, Justice Robb of the New South Wales Supreme Court made orders transferring the proceedings to the Supreme Court of Western Australia.
Cauldron counterclaimed seeking to enforce the placement agreements.
The Company will now take steps to enforce the judgment and recover its legal costs as ordered by the Supreme Court.
Annual General Meeting
The Company's Annual General Meeting (AGM) was held 9 November 2015 at 9:00am where all resolutions put to shareholders were passed on a show of hands. For more information, refer to the Notice of Annual General Meeting and Results available via the Company's website www.cauldronenergy.com.au.
Research and Development refund
During December 2015, Cauldron received $1.6 million from the Australian Taxation Office under the Research and Development Tax Incentive Programme relating to the 2015 financial year.
Funding through the Exploration Incentive Scheme
In January 2016, Cauldron received $120,000 from the Department of Mines & Petroleum (DMP) under the Exploration Incentive Scheme 2015-16 for drilling at the Yanrey project. This amount is 80% of the total that may be claimed by the Company.
Placement funding
As previously announced, the Company has entered into a series of placement agreements (Placement Agreement/s) with a range of Chinese investors. Cauldron's Non-executive Director Mr Derong Qiu was a party to a Placement Agreement for placement funds of A$2 million (Placement Funds) at an issue price of $0.118 per share (16,949,178 shares).
During the June 2015 quarter, Cauldron confirmed it had received A$1.71 million in cash from Mr Qiu (Subscription Sum), with the balance of A$0.29 million planned to settle director fee payments owing to Mr Qiu in respect of his services (together, A$2 million). In accordance with the Placement Agreement, the shares to be issued to Mr Qiu were subject to shareholder approval, and as such the cash component of the Subscription Sum was initially held in trust by the Company. In November 2015, Shareholder approval to issue the shares was obtained at the Company's AGM, the shares were issued, and the cash (previously held in trust) became available to the Company.
Mr Qiu's investment underlines the continued interest and confidence in the uranium industry from China and the growing interest in existing uranium resources.
Cash at 31 December 2015
Cash available to the Company at the end of the December 2015 quarter was A$2.2 million.
Shares issued
During the quarter the Company issued the following shares: