Today's Investor Features, TNK Resources; A Well Financed Junior Exploration Company On Strike & On Target.NEW YORK--(BUSINESS WIRE)--Oct. 21, 1996--TNK Resources Inc. (TOR (The Onion Router) The largest implementation of onion routing, which is a method for transmitting data anonymously over the Internet. Run by volunteers, there are approximately a thousand Tor proxy servers on the Internet that provide the routing paths. : TNKR C$2.05) is a Canadian-based junior exploration company that has been prospecting for gold and diamonds in countries considered among the best sources of each. TNK's Marunda Wahau Prospect on the Indonesian island of Kalimantan is strategically located only 40 miles north of and on strike to Bre-X Mineral's Ltd.'s deposit which is estimated to contain 100 million ounces of gold making it potentially one of the world's largest deposits. In the stable country of Botswana, TNKR has several properties in various stages of development in the center of the most promising diamond region in the world. The Company recently raised $9.2 million in a private placement this past April to finance its ongoing activities in Indonesia and Africa. The Company also recently filed a Form 20F with the Securities and Exchange Commission (SEC) making it a full reporting company and eligible to trade directly in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , a significant advantage for U.S. investors. "TNK's strategy is to develop programs that will locate, evaluate and identify the sources of gold, diamonds and other natural resources around the world," said Elizabeth Kirkwood, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of TNK TNK Tank TNK Tenecteplase TNK Tomorrow Never Knows (Beatles song) TNK Tanak TnK Tenshi Na Konamaiki (anime) TNK Tyumenskaya Neftyanaya Kompaniya (Tyumen Oil Company, Russia) Resources Inc. "What separates us from most other junior exploration companies is that we plan to have our projects acquired by a 'major' once the ground work is done and the total scope of the project is clearly defined. Our chosen niche is exploration, not production. To attract that kind of interest, we hire world-class geologists and mining consultants so that our findings do not have to be re-examined and re-evaluated. Since we know the percentages the majors are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. , we plan the future of each project to maximize the return for our investors." "A good example," said Kirkwood, "is the recent acquisition of Diamond Field Resources, Inc. by Inco Ltd. for $3.1 billion. It was a win-win situation for all shareholders involved, especially DFR's." [Editor's note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : In 1994, the low for Diamond Field Resources Inc. (TOR: DFR DFR Defer DFR Division of Forest Resources DFR Design For Reliability DFR Duty of Fair Representation DFR Dounreay Fast Reactor (fast breeder nuclear reactor) DFR Decreasing Failure Rate DFR Digital Fault Recorder ) was $0.825 and the high, $3.375; in 1995, the low was $2.1875, while the high was $27.375; and in 1996, the low was $30.50 and the high was $42.80 this past August 21, 1996.] "We feel that by crossing our t's and dotting our i's and aiming for quality, we can accomplish our goals in a much more timely manner," Kirkwood stated. "TNK's reputation is known; and as a result, we were able to complete a $9.2 million special warrant financing through Taurus Capital Markets Ltd. and Griffiths McBurney & Partners this past April to finance our Botswanan and Indonesian exploration activities." Botswana, Africa Botswana, a former British protectorate protectorate, in international law protectorate, in international law, a relationship in which one state surrenders part of its sovereignty to another. The subordinate state is called a protectorate. that became independent in 1966, has been the fastest growing country in the world over the past twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights. 2. , according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. The Wall Street Journal. It is a stable, democratic country where foreign natural resource companies have been welcome to conduct business. TNK holds a 100% interest in prospecting licenses covering 1.69 million acres in the Gope (pronounced "Hopey") area in central Botswana and, indirectly, a 65% interest in 700,000 acres in the Middlepits area in southern Botswana. The existence of a new head frame and large capacity processing plant constructed to test the Gope 25 kimberlite kimberlite: see diamond. kimberlite or blue ground Dark, heavy, often fragmented igneous rock that may contain diamonds in the rock matrix. owned by DeBeers appears to demonstrate the presence of an economic diamondiferous pipe cluster in the Gope area. TNK's Gope licenses and the Gope 25 kimberlite in particular are located in the center of the Kaapvaal Craton The Kaapvaal craton (Limpopo province of South Africa), along with the Pilbara craton of Western Australia, are the only remaining areas of pristine 3.6-2.5 Ga crust on Earth. , the most productive diamond mining area in the world. Interpretation of the integrated aeromagnetic surveys An aeromagnetic survey is a common type of geophysical survey carried out using a magnetometer aboard or towed behind an aircraft. The principal is similar to a magnetic survey carried out with a hand-held magnetometer, but allows much larger areas of the Earth's surface to be completed over 95% of the licensed area yielded a total of 159 targets spread over the entire property. More than 55 of these targets were located in areas with scattered kimberlitic indicator minerals at surface. In September 1995, TNK conducted a sample collection program on the property to test these 55 targets and to also test the previously un-sampled ground which wraps around three sides of the known Gope 25/136 kimberlite pipe clusters. The primary goal of this program was to identify "the best" geophysical ge·o·phys·ics n. (used with a sing. verb) The physics of the earth and its environment, including the physics of fields such as meteorology, oceanography, and seismology. anomalies with co-incident kimberlitic indicator minerals. TNK is awaiting results of its recently completed drilling program on the Gope prospect which was designed to test magnetic anomalies Magnetic Anomaly may refer to:
TNKR is also proceeding with plans to develop its Middlepits Prospect, which covers 2,843 square kilometers (0.71 million acres), for several reasons: -DeBeers conducted preliminary tests at the Middlepits Prospect almost 20 years ago on 22 sites in a 250 square kilometer area and reported the presence of a "fairly homogenous homogenous - homogeneous distribution of diamonds in the gravels with an average thickness of 3.5 meters. Also, 4.43 carats from 62 diamonds (all diamonds greater than 1 mm in size) were recovered from 68.2 metric tonnes of material. At least one of the diamonds was greater than 0.55 carats in weight." -The Middlepits Prospect is contiguous to DeBeers' current prospect which has a large-bore drill bulk sampling program underway on two pipes and a new, large capacity processing plant added. - The Middlepits Prospect also straddles a major north-east trending structure which hosts the Jwangeng and Venetia diamond mines The Venetia Diamond Mine is South Africa's largest producer of diamonds. It is situated close to the South African town of Alldays in the Limpopo province and is located within the 360 km² Venetia Limpopo Nature Reserve. and is localized between two diamond-bearing kimberlite swarms. - The Middlepits Prospect was found to have "diamondiferous gravels reclassified as a "diamond resource" as a result of TNKR's efforts. The Company currently has a 25,000 ton bulk sampling program underway and is awaiting results. Indonesia On the eastern side of the island of Kalimantan, TNKR has an advanced exploration project, the Marunda Wahau Prospect which covers 14,060 hectares (30,092 acres) and is 40 miles north of and on strike with the Bre-X Busang deposit estimated to contain over 100 million ounces of gold. While Marunda has been continuously explored by TNK's joint venture partner since 1987, it is in a remote, highly inaccessible area. TNK arranged for the use of satellite radar, a new technology that has only been around for the past five years, to further analyze the area this past April. Subsequent sampling, both for hard rock exploration and for alluvial al·lu·vi·al adj. Of, relating to, or found in alluvium: alluvial soil; alluvial gold. alluvial Adjective of or relating to alluvium Noun (river bed) testing purposes, showed extensive gold with pan concentrate values of up to 254.9 grams per tonne gold. TNK has now retained Watts, Griffis, & McQuat, international geological and engineering consultants, to formulate and implement its initial exploration programs. TNK has a 55% interest in the Marunda Wahau Prospect through a "Contract of Work" originally issued in 1987 to its partner P.T. Hutan Nauli. A Contract of Work (CoW) is an official document first issued in the 1960s by the Government of Indonesia through an Act of Parliament and signed by President Sukarno to encourage foreign investment and the development of Indonesia's natural resources, oil, tin and bauxite bauxite (bôk`sīt, bŏk`–), mixture of hydrated aluminum oxides usually containing oxides of iron and silicon in varying quantities. during a time of political unrest. It is a very binding document providing the holder with cradle to grave exploration rights through a 30-year mining lease. While the CoW mandates a set percentage of the licensed territory be returned to the government annually, it also provides the original owner with the right of first refusal Right of First Refusal In general, the right of a person or company to purchase something before the offering is made available to others. Notes: For example, a football team may have the right of first refusal on a player's contract. on any mining authorization to be issued within the area. The original CoW for the Marunda Wahau Prospect covered 180,067 hectares. TNK purchased this interest for US$500,000 and 1.5 million shares of common TNK stock and has the option to increase its share up to 80%. P.T. Hutan Nauli is a company 50% owned by Mispec Resources Inc. (ME: MPE MPE abbr. Master of Public Education ) and P.T. Hunamas Putra Interbuana of Indonesia. TNK has also been able to acquire a 10% interest in four other Contracts of Work because of its relationship with P.T. Hutan Nauli-the 5,000 hectare hectare (hĕk`târ, –tär), abbr. ha, unit of area in the metric system, equal to 10,000 sq m, or about 2.47 acres. Bulangsi Prospect; the 3,000 hectare Sarolangun Prospect on the Island of Sumatra; the 9,000 hectare Buntok Prospect; and the 26,000 hectare Cempaga Prospect located on Kalimantan Island-for US$1 million and 250,000 common shares. The Future TNKR has been systematic in its development because of its President, Elizabeth Kirkwood, who also founded the Company in 1985 and is its CEO and a principal shareholder as well. Kirkwood is also the President of Midswana Diamond Exploration Corp. in which TNKR has a 65% interest. Kirkwood is quite optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about TNKR's future, as she said, "TNK stands for 'The Next Kimberly' which was the first diamond mine discovered in South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. ." Considering the recent private investment of $10 million in TNK Resources Inc., Kirkwood must be doing something right. TNK Resources Inc. has the potential to strike in two areas: gold and diamonds. Kirkwood has been laying a strong foundation to create a win-win exit strategy for investors and make TNK Resources an attractive acquisition candidate. It has the management, as well as the key advisors and consultants in place. Considering its current prospects, Kirkwood's ultimate plan may be closer than anyone thinks. TNKR's recent move to become eligible to trade directly in the U.S. can only add to the stocks' liquidity and visibility making it even more attractive to investors.
Highlights
Shares Outstanding 32,733,008
Fully Diluted Shares Outstanding 40,633,008
Estimated Insider Holdings 16%
52-Week
High C$3.15
Low C$.50
YTD Change C$0.95
% Change 146.15%
1 Year Total Return 10.34%
Source: Bloomberg Financial Services, Inc.
Financial Data
Year Ended April 30,
1995 1996
Revenue $25,379 $105,141
Year End Deficit $888,135 $1,420,485
Loss Per Common
Share $0.03 $0.02
Balance Sheet
Year Ended April 30,
1995 1996
Current Assets $747,090 $8,197,795
Cash & Short-Term
Advancements 477,534 8,061,487
Current Liabilities 109,055 152,813
Editor's Note: For additional information on TNK Resources Inc., contact Investor Relations Investor relations The process by which the corporation communicates with its investors. U.S. Toll Free (800) 444-9214, Canada Toll Free (800) 663-9214. CONTACT: TNK Resources, Canada Investor Relations, U.S.800/444-9214 Canada, 800/663-9214. |
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