BULLABULLING GOLD LIMITED
31 May 2013 ASX Code: BAB, AIM Code: BGL
RESULTS OF ANNUAL GENERAL MEETING
At the Annual General Meeting of shareholders of Bullabulling
Gold Limited held today, all resolutions put to shareholders were
carried on a show of hands.
Proxy votes were received from 127 shareholders representing
96,886,780 shares in the Company, and were cast as follow:
For Against Abstain
Resolution 1: Directors' Remuneration 76,139,956 12,917,701
662,963 Report
Resolution 2: Election of Director- Brett 80,953,422 15,792,358
141,000 Lambert
Resolution 3: Election of Director- Peter 78,005,550 18,607,797
273,433 Mansell
Resolution 4: Election of Director- Ronnie 78,214,864 18,398,483
273,433 Beevor
Resolution 5: Election of Director- Tim 94,036,912 2,683,868
141,000 Netscher
Resolution 6: Ratification of Issue of 74,897,144 1,492,016
247,620 Shares
Resolution 7: 10% Placement Capacity 95,092,477 1,658,646 135,657
Tim Netscher advised the Board
prior to the meeting that due to the recent extension of his tenure
as managing Director and Chief Executive Officer at Gindalbie
Metals, he would not be seeking re-election as a director of
Bullabulling Gold.
Accordingly, ordinary resolution 5 was not put to shareholders,
and Mr Netscher ceases to be a director of the Company. The Board
of the Company thank Mr Netscher for his efforts during the period
that he has been a Director, and in due course the Board will
commence a process to find a replacement Board member with the
skills that Mr Netscher brought to the Board.
The Board has also advised that it is mindful of the need to
preserve cash in light of the current economic climate and market
conditions, and in this regard has resolved to put in place a
scheme effective 1 July 2013 whereby
non executive directors will receive 50% of their directors fees in
shares. The pricing of the shares, and accordingly the number of
shares to be issued, will be based on a 5 day VWAP at the end of
each calendar quarter. As this proposal requires shareholder
approval, the value of fees deferred will accrue until such time
that shareholders approve the issue of the shares. In due course,
when the Company's funding requirements have been fully addressed,
this interim solution will be reconsidered.
Attached is a copy of comments addressed to shareholders by the Chairman at the
meeting.
David McArthur
Company Secretary
For information, contact:
Brett Lambert Westhouse Securities Limited
Bullabulling Gold Limited (UK Broker & Nominated Adviser)
Level 2, 55 Carrington Street Martin Davison/Jonathan Haines
Nedlands, WA, 6009, Australia Tel: +44 20 7601 6100
Tel: +61 8 9386 4086
Neil Boom John Gardner / Rupert Dearden
Gresham PR Ltd (UK media) MAGNUS Investor Relations. Corporate
Communication. (Australian Media)
Tel: +44 7866 805 108
Tel: +61 8 6160 4900
jgardner@magnus.net.au rdearden@magnus.net.au
CHAIRMAN COMMENTS:
While the year in review and the subsequent period have been
very difficult, we must not lose sight of what has been achieved by
the Company. On any measure, the Company has made significant
progress, most notably:
1. Following two relatively modest, but well targeted drilling
programs, the
Company was able to add some 330,000 ounces of gold to the
Bullabulling
resource. Significantly, these programs also increased the
average grade of
the resource by more than 5%.
2. In December last year we acquired an additional mining lease
from Resolute
Mining. This has removed a potential constraint on development of the
Bullabulling Gold Project and provided greater scope to further expand the
resource base and to optimise the layout of the proposed mine. Resolute
remains a supportive shareholder and recently took up its full entitlement
to new shares in the rights issue.
3. The prefeasibility study that had been commenced in 2011,
prior to the
merger of the Company's predecessors, was completed, confirming that the
Bullabulling Gold Project has potential to support development of a large
scale, long life, profitable gold mine. Whilst there was clearly scope to
improve on some aspects of the study, the PFS demonstrated that progression
to definitive feasibility study was justified and provided a solid
foundation for embarking on this phase of the project's development.
4. Another important accomplishment has been the establishment
of the team
that will steer the project through DFS, and if all goes to expectations,
through construction and commissioning. The benefits of having a skilled
in-house group with ownership and total focus on the project are already
evident. As we reported to the market a fortnight ago, initial results
from re-optimisation of the mine plan are pointing towards a material
improvement in forecast cash production costs relative to the PFS. This
work has shown that even at gold prices below recent trading lows, the
Bullabulling Gold Project is projected to deliver substantial gold
production at a health cash margin.
Subsequent to the year end, the Company pursued a rights issue
to raise the capital required to fund the Company's Definitive
Feasibility Study. The Board chose to proceed by way of rights
issue to give all shareholders the opportunity to maintain their
proportionate shareholdings in the Company and not to be diluted
unduly and unwillingly. As it subsequently transpired, the collapse
of the gold price just before the rights issue closed could not
have occurred at a worse time and only a portion of the funds
sought were raised. The Company is assessing the potential funding
avenues available to it, including the placement of the rights
issue shortfall within the permitted three months from the closing
date of the issue.
The Board, like all shareholders, is extremely disappointed with
the poor performance of the Company's shares. Shareholders need to
be aware that, notwithstanding the very difficult external
conditions confronting the Company, the Board and Management will
continue to do everything within their control, with a view to
enhancing shareholder value to the best of their abilities. The
Board remains committed to and confident in the future of this
Company and will not be distracted as it continues to work hard to
bring this project to fruition.
The Board would like to express its thanks to Brett and his team
for their work over the year, often in very challenging
circumstances. They have done extremely well in the face of the
constraints that they have had on them. I would also like to
complement management on a clean safety record for the year. The
Board take the safety of its employees very seriously, and it is
pleasing to see the positive results of this focus.
Finally, I would like to advise the board is mindful of the need
to preserve cash in light of the current economic climate and
market conditions. To this end the board has resolved to put in
place a scheme effective 1 July whereby non- executive directors
receive 50% of their directors fees in shares. The pricing of the
shares, and accordingly the number of shares to be issued, will be
based on a 5 day VWAP at the end of each calendar quarter. As this
proposal will require shareholder approval at the next meeting of
shareholders, the value of fees deferred will accrue until the date
of that meeting and the subsequent issue of the shares (assuming
shareholders approve the issues). In due course, when the Company's
funding requirements have been fully addressed, this interim
solution will be reconsidered by the Board and shareholders will be
advised of any change.