Transcription of Finance News Network Interview with Zeus Resources Limited (ASX:ZEU) CEO, Renzie Duncan
Lelde Smits: Hello I’m Lelde Smits for the Finance News Network and joining me today from Zeus Resources Limited (ASX:ZEU) is CEO, Renzie Duncan. Renzie welcome to FNN.
Renzie Duncan: Thank you Lelde.
Lelde Smits: Could you start by introducing Zeus Resources. When were you established and what’s the Company’s focus?
Renzie Duncan: Sure, we established in 2009, focused in Western Australia on palaechannel uranium deposits. We’ve also recently signed a deal with the State Owned Enterprise from China to take 32 per cent of the Company, prior to our listing in early December this year.
Lelde Smits: And could you detail the experience that you have on the Zeus Resources’ Board?
Renzie Duncan: We’re led by our Dr Michael Etheridge, who’s a PhD Geology from Director of Lihir Gold and also founded SRK (Company) in Australia. Also joining him is Greg Hall, the former worldwide geologist for Placer Dome and myself who comes on as a lawyer and mining entrepreneur.
Lelde Smits: As you’re focused on identifying and acquiring uranium exploration projects in Australia, where are your interests located and what are they prospective for?
Renzie Duncan: We’ve got about 6,000 square kilometres in Western Australia, they’re spread across seven project areas. First project area is east of Kalgoorlie, that’s the Mulga Rock area. We’ve got another project area just to the west of Wiluna, we call that our Lake Way project. Just south of Wiluna, we’ve got the Yeelirrie South project and the Hinkler Well project. We’ve also got a very large palaechannel system at Percival Lakes, that’s about 1,000 kilometres north of Wiluna. We’ve got some other projects near Meekatharra.
Lelde Smits: From the 23 tenements that you hold, which projects are the most advanced?
Renzie Duncan: Most advanced is our Lake Way project, which has had some significant historical drilling. Also the Yeelirrie area and our
Mulga Rock deposit out at Narnoo.
Lelde Smits: At what stage are they?
Renzie Duncan: They’re all fairly greenfields projects; some have had more historical drilling than others. But most of them have not been drilled for probably 20 years, since when the ban on uranium mining first started in Western Australia.
Lelde Smits: Zeus Resources is currently an unlisted company but has plans to list as you mentioned. Why did you choose to list?
Renzie Duncan: We chose to list because working with our cornerstone investor, the plan was to create a platform in Australia to one, pursue the projects that we already have. But also to aggressively acquire further developed projects in the near future.
Lelde Smits: And when does Zeus Resources expect to start trading on the ASX?
Renzie Duncan: Prospectus is open now, we’re taking applications and we hope to be up and running by 6th December.
Lelde Smits: So what is your issue price and what market capitalisation does that put on the Company?
Renzie Duncan: Issue price is 20 cents and the market cap will be around $36 million.
Lelde Smits: Now looking closer at your cornerstone investors and strategic partners. Who are your main backers?
Renzie Duncan: Our main backer is China Metallurgy and they’ve invested via their investment vehicle, Zhengyuan International Mining Company - it’s another company registered in Beijing. Zhengyuan is the offshore investment vehicle for the State Owned Enterprise China Metallurgy.
Lelde Smits: And how has Zhengyuan International Mining supported you ahead of the listing?
Renzie Duncan: Zhengyuan has supported us with the signature on our cornerstone investment agreement. They’re investing $11.5 million and this I think is the first time a Chinese State Owned Enterprise invested pre-float, in respect of an Australian company.
Lelde Smits: And post-listing, what stake will Zhengyuan hold in Zeus and what role do you expect they will play in the Company’s development?
Renzie Duncan: They’ll have a post-float holding of 32 per cent. As they are one of China’s largest mining companies, they’re going to have an active day to day part in our Company, as far as exploration management is concerned.
Lelde Smits: Finally Renzie, following your listing what will be Zeus’ main priorities heading into next year?
Renzie Duncan: Our main priority really is getting our drill program rolled out. We will be drilling, probably $4.5 million worth of drilling and then we’ll be really focused on acquisition of advanced, more advanced projects than what we currently hold.
Lelde Smits: Renzie Duncan, thank you for the introduction to Zeus Resources.
Renzie Duncan: Thank you very much Lelde.