Proactiveinvestors Australia

Download the Baru Resources Limited prospectus 2011

http://baru.com.au/prospectus.php

Baru Resources is an Australian public company that is focused on the identification and development of export hard coking coal and export thermal coal projects.

The Company’s project area is described as The West Galilee Project in the Eromanga Basin within 200kms of Hughenden and within 375 kms of Mount Isa in Queensland and intersecting the main railway line that runs to the port, as shown on the map below: 



Baru Resources beneficially holds an interest in seven coal exploration tenures including six EPCs (Exploration Permits for Coal) and one EPCA (Exploration Permit for Coal Application) as shown below.



Corporate Objectives

The key objective of Baru Resources is to create wealth for its shareholders by identifying and developing commercially viable coal deposits. Baru Resources aims to:
(i) Aggressively assess and explore the tenements in the West Galilee Project;
(ii) Seek to establish initial resources to the JORC Standard on the project as quickly as possible;
(iii) Expand its resource base over the medium term;
(iv) Where appropriate acquire additional coal assets complimentary to the West Galilee Project;
(v) Develop projects through to commercial production; and
(vi) Seek to inject new projects into the Company including coal and non coal mineral assets.
Exploration

The Company will fund its exploration programme from the proceeds of the Offer. A summary of the proposed exploration budget expenditure for the first 2 years of the Company’s operations is as follows:

In the event the Company receives money in excess of the Minimum Subscription (but less than the Maximum Subscription), those funds will be retained as working capital and may in the discretion of the Directors be applied towards further drilling programmes within the Tenements or for the acquisition of new projects. The proposed budget will be subject to ongoing review and amendment depending on results obtained and other market factors.


Future Exploration

Further drilling in these Tenements would be required, including a 2D seismic program and a 200mm large diameter coal quality testing program for coal processing simulations.

Details of the West Galilee Project
• Location: Between Mt Isa and Hughenden and north-west of Winton in Queensland.
• Target: Hard coking coal and thermal coal.
• EPCs: 2072, 2073, 2074, 2076, 2077, 2078 and EPCA 2075
• Area: Approximately 7,140km2

The West Galilee project is initially targeting coal deposits located in the Eromanga Basin. The Company is seeking to establish a low ash, high energy quality, coking coal project as a priority as well as pursuing a large quantity thermal coal target.

The primary focus will be on EPCs 2078 and EPCA 2075 which will be explored with the objective to prove up an initial open cut mineable resource of high quality coking coal.

Whilst the immediate area around The West Galilee Project has not been historically mined for coal, the area remains relatively unexplored in terms of finding coal deposits. The Eromanga Basin is known to contain economically exploitable coal seams of thermal coal. Evidence of the presence of thermal coal has been uncovered on EPCs 2076, 2077 and 2078. Additionally, EPCA 2075 covers the Millungera Basin and the Galilee Basin which has various geological features encouraging the company that exploratory drilling on this permit would be one of our priorities.

The Company aims to attract sufficient funding:
1. To explore (by drilling) EPCs 2076, 2077 and 2078; and
2. To drill first pass rotary chip holes on EPCA 2075.

The Company’s drilling programme in Queensland is planned to extend over the first two years commencing from the Company’s ASX listing and quotation date.

Richard Anthon – Non-Executive Chairman
LLB MAICD

Mr Anthon is the managing partner of Hemming + Hart Lawyers, a commercial and property focused CBD law firm in Brisbane. Mr Anthon has practised extensively in the corporate and mining law area for more than 15 years including having worked in-house for listed mining companies. He has acted as company secretary for listed companies and has been a director of a number of listed companies since 1996. He regularly advises on a range of corporate and mining related matters including venture capital raising, public listings, mergers and acquisitions, titles and tenure, native title issues, project finance, construction and development. Mr Anthon holds a Bachelor of Laws and is also a member of the Australian Institute of Company Directors.


Kevin Nichol – Executive Director
B.Comm (Hons) CFA

After finishing his honours thesis in the energy sector, Kevin worked as a financial analyst for the late Kerry Packer’s private company, Consolidated Press Holdings Pty Ltd (now Consolidated Media Ltd). In the mid 80s he joined Norths Stockbrokers, where he learnt his trade in the marketplace as an advisor. Kevin also spent several years on the trading floor of the Sydney Futures Exchange and traded commodities as well as interest-rate futures for several banking houses.

In recent times, Kevin has been involved in raising funds for several mining floats, as well as associated corporate advisory roles in other listed companies. In October 2008 he left his latest role as founding Managing Director of listed Bowen Energy Ltd and has concentrated on companies involved in the mining industry. Most recently in 2009 Kevin, as Chairman, was instrumental in the listing of Victorian Gold Mines NL (now Celamin Holdings NL) on the ASX. Kevin continues to be a director of Celamin Holdings NL.

Kevin has been involved in corporate, institutional and private client advisory roles as well as research for several broking and investment houses during the past 25 years. He is widely experienced in the equities market with substantial capital raising experience, in particular in the resource sector. He brings to the Board many years of market knowledge.


Peter Avery – Non-Executive Director

Peter Avery has over 20 years professional experience within the stockbroking industry. During the previous 10 years, Peter has held a senior role as a private client advisor at Perth broking firm, DJ Carmichael (DJC). Prior to joining DJC, Peter developed specialist skills as an equity advisor at Todd Partners managing client portfolios.

Peter is currently a director of Celamin Holdings NL.

Peter’s industry experience includes extensive capital raisings within the resource and mining sectors and he holds a Diploma of Financial Planning from Deakin University.


Melanie Leydin - Company Secretary

Ms Leydin is a Chartered Accountant and a Registered Company Auditor.

She graduated from Swinburne University in 1997, became a Chartered Accountant in 1999 and since February 2000 has been the principal of chartered accounting firm, Leydin Freyer.

In the course of her practice she audits listed and unlisted public companies involved in the resources industry. Her practice also involves outsourced company secretarial and accounting services to public companies in the resources sector. This involves preparation of statutory financial statements, annual reports, half year reports, stock exchange announcements and quarterly ASX reporting and other statutory requirements.

Ms Leydin has 19 years experience in the accounting profession and is a director and company secretary for a number of oil and gas, junior mining and exploration entities listed on the Australian Stock Exchange.

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