Investment Strategy
India Star was established in order to invest in or acquire interests in projects, businesses or companies in the resource sector with a focus on energy.
Since its formation, it has been the intention that India Star Energy would target investments where:
1. the application of recently developed low-cost technologies can make a significant value added contribution;
2. there is proven management;
3. there maybe restricted access to public capital; and
4. modest amounts of capital can sharply accelerate the value of such projects.
Geographically the Company will concentrate on investment opportunities in areas in the Indian subcontinent as well as China, the FSU, South East Asia and Africa, and opportunities relating to uranium initially in areas where there has already been production, such as Canada, Australia and South Africa. One of the Board’s key objectives will be to manage the risk profile of the Company and the Board’s preference therefore is to focus on projects that are capable of producing early positive cash flows. Once internal funds start to flow these are likely to be targeted for reinvestment in more aggressive exploration opportunities as they arise.
The Directors intend that India Star Energy will be an active investor and that, subject to the availability of financing, it will seek one or more investments in businesses which are considered by the Directors to have the potential for generating sustainable growth and profitability. Haresh Kanabar has been involved in corporate deals in the mineral extraction and non renewable energy sectors. He therefore believes that he has the necessary contacts to ensure that a satisfactory deal flow is obtained and to assess the quality of that deal flow for investment purposes.
Haresh Kanabar was a founder shareholder and director of AIM quoted Silvermines Media Plc (subsequently Cambrian Oil & Gas Plc) and held the position of Finance Director. In 2005, Silvermines Media Plc entered the field of energy investment through the acquisition of Zhibek Resources Plc, the business of which includes oil production and exploration interests in the Kyrgyz Republic.
In the first instance investments are assessed by the Directors in consultation with the Company’s advisers. If they conclude that a transaction is of sufficient size and complexity to require expert evaluation, other suitably qualified advisers may be appointed as appropriate.
The company obtained shareholder approval for the continuation of their investment strategy on 8 February 2008.
India Star Energy Plc has attractive investments in companies developing platinum, palladium and uranium projects. These include:
Canadian Golden Dragon
Canadian Golden Dragon (www.goldendragon.ca), which is quoted on the TVX, is developing its mineral rights for two high grade platinum and palladium properties in Ontario, Canada. India Star, with its holding of 7 million shares, is Golden Dragon's largest independent shareholder.
The Norton Lake Ni-Cu-Co-PGE Property is located 130km north of Armstrong, Ontario and has previously experienced very positive results from drill programmes with assays returning values up to 3.30% Cu, up to 1.43% Ni, up to 2.07 lbs Co, and PGE up to 1.51 g/t. This asset already has an audited Canadian NI 43-101 standard report stating it contains approximately 2.5 million tonnes of mineralized resource. The Norton deposit is open to expansion in all directions and there is excellent potential to establish significant additional resources with further drilling. The large size of the resource, together with the long-term requirement for these commodities, holds the possibility of a large-scale mining operation with a very long life.
The Seagull PGE-Ni Property is located 52km southeast of the Lac Des Iles Mine, which ranks as Canada's only primary producing platinum group metals mine. Seagull is within one of only a handful of North American bodies of rock showing platinum and palladium concentrations of more than a gram per tonne. An understanding of the deposit continues with the first drilling results for Seagull during 2006 showing elevated levels of platinum group elements (Osmium, Iridium, Rhodium, Ruthenium), which contribute a high value credit to the primary Platinum and Palladium and raise the 5E + Au (five element & gold) total up to 4.7 grams.
Following a decision by Golden Dragon's former partner to concentrate its efforts on its late stage South African holdings, where it is in partnership with Anglo Platinum, Golden Dragon and East West, each have each a 50% interest in the Seagull Property.
East West Resources
East West Resources (http://www.eastwestres.com) is carrying out geological evaluations on a number of PGE properties in Ontario including Seagull. The Directors believe that the long term demand for platinum group elements will remain strong with higher standards for exhaust emissions taking effect around the world. Over half of the annual palladium production is consumed in the manufacture of auto catalysts whilst fuel cells will also create future demand for platinum.
Additionally, East West has a substantial portfolio of early stage properties containing gold, platinum group and base metals. Crucially it has recently highlighted a copper zinc property called Marshall Lake where it owns a 50% interest which is rapidly emerging as a prospective near surface mining opportunity.
Joint Venture Uranium property
India Star has recognised and taken the opportunity to invest directly in uranium, a mineral which is benefiting from the resurgent market for nuclear energy. We acquired our first interest in North Western Ontario via a 50:50 joint venture with East West and we continue the exploration process.
The tenements that form the Magotte joint venture has seen further work. This land package comprises 112 claim units and covers 18km2 of prospective uranium properties in North Western Ontario.
The tenement shows potential for uranium mineralisation based on geology and geophysical data.
The joint venture has now acquired a digital data set of the airborne radiometric surveys, which will assist with initial ground reconnaissance. Evaluation of this data has provided at least two significant radioactive anomalies. A team based in Canada is being assembled to undertake further exploration work in 2007.
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