Monday, July 21, 2008 Mining firm to start drilling in S. Cotabato
KORONADAL CITY -- A foreign mining firm will start drilling operations next month to validate coal resources in Lake Sebu, South Cotabato.
Dwyka Resources Ltd., which is listed in both the Australian Stock Exchange and the Alternative Investment Market of the London Stock Exchange, confirmed that it has acquired the services of a Philippine drilling firm to complete 5,000 meters of core drilling at the Daguma coal deposit.
Dwyka signed the drilling agreement recently with Construction and Drilling Specialist Inc.
"We are delighted to already be in a position to commence drilling at Daguma. It is testament to the abilities of our local Philippine partners that we have been able to get to this point so quickly," Melissa Sturgess, Dwyka chief executive officer, said in a statement.
The purpose of the drilling is to verify historic work and further define and delineate the coal resources at the Daguma coal project, the company said.
Dwyka expects initial coal quality test results by August. Drilling works will involve about 25 diameter drill holes.
The looming drilling activities follow the exercise by Dwyka of its option to acquire an initial indirect interest of 30 percent in the Daguma coal project, Sturgess said.
Last May, Dwyka raised GBP10.3 million or some P830 million from institutional investors and other exempt offerees in support of the Daguma project.
The amount will be used for the project costs through to January 2009, including initial option exercise expenses, as well as costs related to further exploration and drilling, equipment purchases and staffing, the company said.
Daguma Agro Minerals Inc. and its sister company Bonanza Energy Resources Inc hold the Daguma project.
Dwyka struck the option agreement with Asian Coal Resources Limited (ACRL).
Asian Coal and its local partner, Mana Resources Development Corp., collectively hold options to the Daguma coal project, which, if exercised, would enable them to acquire an initial 30 percent interest in the project, with the possibility of increasing the stake to 100 percent.
Pursuant to the option agreement, Dwyka has an option to acquire 100 percent of the issued shares in Asian Coal. (BSS)
