Sydney, Oct 3, 2008 AEST (ABN Newswire) - Shareholders in Robust Resources Limited (ASX:ROL) have today approved the acquisition of a 19.9 shareholding in the company by Trafford Resources Limited (ASX:TFR) through a placement of 7.2 million fully paid shares to be issued at 20c each, raising a total of A$1.4 million.
Key Points:
- A$1.4 million Funding will drive Stage 1 of Romang Island exploration program
- Exploration to begin very shortly
- Drilling rigs, associated infrastructure, personnel and permits now in place
- Robust remains well funded to progress ongoing exploration
The acquisition is a mutually beneficial strategic move:
- It provides Trafford with an interest in the highly prospective 25,000 hectare Romang Island gold and base metal project in Indonesia's Banda magmatic arc. The project's five mineral titles cover the entire volcanic caldera of Romang Island which has a mineralizing system comparable in size to that at Lihir in Papua New Guinea.
- The funds raised will support the first phase of exploration, providing Robust with an earn-in of 51% on the Romang project and the technical expertise required for its exploration. Robust then has an option to earn a further 24 per cent (taking equity to 75 per cent) by expenditure of a further A$3 million.
Trafford has an option to increase its shareholding in Robust to 26.57% within the coming year through the exercise of 3.6 million options at 30c, which will provide another A$1.08 million for ongoing exploration
Trafford also has the right to nominate two directors with exploration expertise to the Robust Board. One will be, Ian Finch, B.Sc. (Hons), who is currently the independent Chairman of Robust. The new Trafford appointment is its independent director, Shane Sadlier, B.Sc. (Hons).
Robust Resources, Executive Director, Gary Lewis said securing the additional exploration funding marked an important milestone for the company. "We now have the financial flexibility to progress the first stage of the exploration program on Romang Island and we are encouraged by the prospects of this program.
"We now have all associated infrastructure in place, the rigs have arrived on Romang, and we have the personnel ready to mobilize. Drilling is expected to commence very shortly and we will update shareholders when this occurs," Mr. Lewis said.
Robust's Romang Island mineral titles have seen only limited exploration in the past by Ashton and Billiton, before it merged with BHP.
Ashton's reconnaissance work, mainly in the north of the island, around Kiahar discovered an extensive base metal vein system with associated gold and silver. Billiton carried out two scout-drilling programmes between 1997and 1999, around Lakuwahi in the south, intersecting economically significant gold/silver/zinc/lead and copper mineralisation in 80% of the holes drilled.
The first job in the Robust exploration programme will be to test for lateral and depth extensions to known gold and base metals intersections from Billiton's shallow drilling.
Contact
Ian Finch
Trafford Resources
TEL: +61-8-9485-1040
Gary Lewis
Managing Director
Robust Resources
TEL: +61-2-8249-4384
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