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On the 24th October 2023 Belararox Limited (ASX: BRX) (Company) made a market announcement titled: “Quarterly Activities Report for the Period Ended September 2023.”
It has come to the Company’s attention that the disclosures required under ASX Listing Rule 5.3.4 were inadvertently omitted from the Quarterly Activities Report lodged. The attached document sets out the Company’s actual use of funds to date in relation to the outlined use of funds included within its Prospectus in accordance with ASX Listing Rule 5.3.4.
In accordance with ASX Listing Rule 5.3.4, summarised below are the Company's expenditures to date in relation to the outlined Use of Funds included within its Prospectus.
The material variances noted above are as a result of a number of factors, including:
- As announced in previous quarterly activity reports, the Company’s exploration efforts for the Belara project were higher than originally anticipated, partly due to weather conditions, which limited drill productivity, as well as labour shortage and machinery supply pressures, and their impact on costs.
- The Company remains open to future acquisitions and incurred costs associated with the FOMO transaction noted above.
- The Company has incurred higher than anticipated working capital costs, including:
- Expansion of the Administration team to support operations;
- Costs associated with the equity instruments offered including the non-renounceable entitlements issue and the recently completed capital raising for $2.5 million (before costs); and
- Consumer Price Index and associated inflationary pressures experienced across a broad range of working capital costs.
- The Company completed a capital raising of $2.5m (before costs) in the quarter ended 30 June 2023. The proceeds from this capital raising in conjunction with those conducted in previous quarters will be applied towards the Company’s strategic and operational cash flow needs, including those as originally included within the Company’s Prospectus (as outlined above).
For the quarter ended 30 September 2023, the Company had cash outflows from operating and investing activities of $692,264. This included $268,048 in exploration and evaluation expenditure which was capitalised during the quarter. The remaining expenditure incurred was attributed primarily to corporate and administration costs.
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BRX:AU
Belararox Limited
Overview
Belararox Limited (ASX:BRX) is an Australian mineral exploration and development company focusing on its 100-percent-owned base and precious metals projects, targeting zinc, copper, gold, silver, nickel and lead resources, and aiming to be. The company aims to be a significant contributor to help meet the world’s growing demand for battery and renewable energy metals.
The Australian government is investing nearly AU$70 billion to boost renewable energy initiatives to meet its 2030 net-zero goals, which not only provides Belararox opportunity to access government funding but also allows it to benefit from a supportive policy regime.
Belara, the company’s flagship project in New South Wales, has an inferred resource estimate of 5 million tonnes of base and precious metals. Belararox also recently acquired a new asset in Argentina, which the company will soon begin exploration work on.
Belararox has completed Phase 1 drilling, confirmed historical mineralizations, and upgraded the JORC-compliant inferred resource estimate at its flagship Belara asset. The updated resource estimate resulted in a 100-percent increase in mineralized tonnes, a 65-percent increase in copper, and a newly defined 33,762 ounces of gold. The company is now moving towards Phase 2 drilling.
Bullabulling, the company’s secondary asset in Western Australia, is slated for lithium permatite exploration work to be completed by middle of 2023, with results being available by the end of the year.
In March 2023, Belararox entered a binding agreement to acquire 100 percent of the Toro-Malambo-Tambo (TMT) Base Metals and Cu-Au Porphyry project in Argentina (TMT Project) from Fomo Ventures. As part of the transaction, Belararox will enter into royalty deeds with Fomo shareholders with respect to a one-percent net smelter royalty. The TMT project is believed to be highly prospective for zinc, an in-demand clean energy metal used in processes to reduce carbon emissions.
Company Highlights
- Belararox Limited is a mineral exploration and development company focussing on its 100-percent-owned precious and base metal assets.
- The company’s focus on battery metals creates an opportunity to gain access to funding from the Australian government, which is investing in mining projects to reach its 2030 net-zero goals.
- Belara, the company’s flagship asset, has an inferred resource of 5 million tonnes of base and precious metals, including zinc, lead, copper, silver and gold.
- Belararox Limited will soon begin the next phase of drilling at Belara.
- The company’s secondary Bullabulling project in Western Australia has a planned drilling campaign for 2023.
- Belararox’s recently acquired Toro-Malambo-Tambo (TMT) project in Argentina includes untested assets. The company inspected and reviewed key mineralised sections of historical drill core stored in trays as part of its due diligence process in acquiring the project and has verified the presence of zinc mineralisation.
- An experienced board and management team leads the company towards exploring and developing its asset portfolio with expertise throughout the mining industry.
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Developing Precious and Base Metal Assets to Meet Future Demand