Overview

InterMet Resources Limited (ASX:ITT) is an exploration company with a suite of tenements in northern Queensland.

Since September 2008, when Hillgrove Resources Limited acquired an 84.8% majority interest, considerable time has been spent reviewing the extensive InterMet portfolio with a view to reducing it to a manageable size and defining key projects on which to focus exploration efforts.

Exploration work undertaken by our joint venture partners in South Australian was reviewed and the small exploration team established in Mareeba in North Queensland worked to complete the assessment of the various Queensland projects. This work saw a large reduction in tenement holdings with the focus now being on the remaining Queensland tenures.

The InterMet Board remains committed to positioning the company to enable it to fund projects independently of Hillgrove Resources' financial support. The company no longer has an extensive portfolio with substantial holding costs which now provides a much leaner proposition to consider any additional prospects.

New opportunities are continually being assessed, but it is important with InterMet's limited resources that any opportunity taken up adds real value to the company from a shareholder perspective.

Hillgrove Resources is the holding company and remains supportive of InterMet in terms of continuing financial support until such time that InterMet has the ability to independently fund its activities.

InterMet History

In 2005 the South Australian Government released a large area of highly prospective tenements in the Gawler Craton with several key holdings acquired by a joint venture with Hillgrove. To facilitate future exploration a A$4 million capital raising was proposed late that year. Hillgrove listed their 30% owned subsidiary (down from 77%), InterMet Resources Limited on the Australian Stock Exchange (ASX) on the 20 April 2006. The initial public offering closed oversubscribed by approximately $2 million due to strong support from brokers and Hillgrove shareholders, under a priority shareholder allocation offer.

InterMet ran its uranium, gold and base metals tenement portfolio for two years until 2008 when the global financial crisis arrived in earnest. Then Chairman, David Archer felt that remaining synergies between the companies provided a series of compelling benefits for their re-merging. Bringing together InterMet's predominantly gold and iron ore exploration assets with Hillgrove's copper/gold development, base metals/gold exploration and investment assets would create a more diverse resources group.

Hillgrove successively concluded the takeover of InterMet and its associates on the 30 August 2008, reaching an 84.8% relevant interest. With a controlling interest, Hillgrove has indicated that it has no plans to acquire the remaining portion of the company.