Perth, Nov 17, 2008 AEST (ABN Newswire) - Robust Resources Limited (ASX:ROL) today announced two key developments in the company's growth as an emerging exploration company.
Robust has now received the $1.4 million in Stage 1 funding from Trafford Resources Limited (ASX:TFR) through the issue of 7.2 million fully paid shares issued at 20 cents each.
Trafford will now have a 19.9% shareholding in Robust Resources. 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 30 cents each in exchange for a further $1.08 million for ongoing exploration.
The Stage 1 $1.4 million of funds will be used to support the first phase of exploration on the highly prospective 25,000 hectare Romang Island gold and base metal project in Indonesia's Banda magmatic arc.
The company has now secured all relevant exploration licences for Romang Island for a period of three years. This guarantees Robust exclusive exploration rights over this time frame.
The company is also pleased to announce that the two company-owned NQ Core diamond drill rigs have commenced drilling in the Lakuwahi area in the South of Romang Island, where Billiton carried out two scout drilling programs in 1997 and 1999. 80% of Billiton's holes intersected economically significant gold/silver/zinc/lead/copper mineralisation.
Robust Resources Executive Director Gary Lewis said: "these are two very important milestones for Robust. The funding underpins our exploration operations for the next 18 months, which gives the company a significant degree of certainty.
"The partnership with Trafford is also significant as we will be benefiting from their expertise at both a Board and operational level. We welcome Shane Sadlier to the Robust Board, who with Chairman Ian Finch, greatly enhance the company's technical knowledge and capability.
Two of Trafford's senior geologists have been deployed to Romang for this exciting first stage of drilling."
"We look forward to updating shareholders on drilling results. We expect to have first stage results in late December or the first half of January 2009".
Contact
Gary Lewis
Managing Director
04 22 88 00 55
Ian Finch
Chairman
TEL: +61-8-9485-1040
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