November 15, 2002
Report For The Six Months Ended September 30, 2002 And Private Placement
TORONTO, CANADA - Tsodilo Resources Limited (TSX Venture Exchange: TSD) is pleased to announce the closing of the private placement previously announced on October 25, 2002 and provide an update on its activities for the six months ended September 30, 2002.
In a non-brokered private placement, 236,130 units of the Company (the "Units") were issued at a price of $0.50 per Unit for proceeds to the Company of $118,065. Each Unit consists of one common share of the Company and half a warrant of the Company, each full such warrant entitling the holder to purchase one common share of the Company at a price of $0.50 for a period of two years. Mr. James M. Bruchs, the Chief Executive Officer and a director of the Company is the beneficial purchaser of 33% of the Units, to hold 1,878,910 common shares or 35.10% of the issued and outstanding common shares of the Company, with arms length third parties subscribing for 67% of the Units. Closing of this transaction is subject to regulatory approval. Proceeds from this financing will be added to the Company's working capital.
The Company is pleased to report that the coming months promise to be an exciting period for Tsodilo Resources as we continue to develop our primary project, the Ngami project in northwest Botswana, and seek to increase shareholder value. There is very compelling evidence for the existence of several virgin pipes in the west of the Ngami property, one of which would rank with some of the world's largest kimberlites. In addition, an isolated kimberlitic indicator mineral anomaly in the east of our property could be our first glimpse of a virgin kimberlite field in this area.
During September an exploration program and budget for the period to March 31, 2003 was approved and adopted for our operating subsidiary in Botswana, Newdico. This was accomplished in cooperation with Trans Hex Group, which holds a 25% interest in Newdico. Work crews are expected to be in the concession area in November, commencing with gravity surveys over priority magnetic targets in the Nxau Nxau and Guma areas.
As at September 30, 2002 the Company had a net working capital deficiency of $86,000 (March 31, 2002: $904,000), which included cash and equivalents of $17,000 (March 31, 2002: $48,000). Included in accounts payable and accrued liabilities at September 30, 2002 was $78,000 received in terms of the private placement that closed on October 15, 2002. These funds were credited to Share Capital on the closing of the private placement.
Since the restructuring of Tsodilo Resources, the Company has been successful in raising $336,000 through private placements. Our efforts to raise finance on terms favourable to the Company will intensify as the activities in Botswana increase. Please direct your attention to the Company's website (www.tsodiloresources.com), which is updated on a regular basis.
Significantly, Tsodilo has no debt and only 5,117,139 issued and outstanding common shares as at November 14, 2002 (March 31, 2002: 14,597,856), with fully diluted common shares currently outstanding of 6,784,559 (March 31, 2002: 15,597,856).
On a consolidated basis Tsodilo recorded a net loss of $145,000 in the quarter ended September 30, 2002 (3 cents per common share), all in the form of General and Administration expenses, compared to a net loss of $7.57 million (51 cents per common share) in the comparable period of fiscal 2002, which included General and Administration expenses of $328,000. Exploration expenditure incurred during the three months ended September 30, 2002 at the Ngami project totalled $55,000 (2002 exploration expenditure on all projects: $765,000).
Tsodilo Resources is an international diamond exploration company engaged in the search for economic kimberlites at its Ngamiland project in northwest Botswana. The design and conduct of the Company's exploration program is the responsibility of Dr. Andrew Moore, a professional geologist registered with the South African Council for Natural Scientific Professions.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
James M. Bruchs - President and Chief Executive Officer: E-Mail email@example.com
Dr. Andrew E. Moore - Vice President, Exploration: E-Mail firstname.lastname@example.org
Stephen Woodhead - Chief Financial Officer and Corporate Secretary: E-Mail email@example.com
Head Office: Telephone +1 416 572 2033 Facsimile + 1 416 572 4164
2003 Second Quarter Report attached in PDF Format: