Stirling Resources Limited (ASX:SRE)
Perth, May 8, 2009 AEST (ABN Newswire) - Australian Resources developer Stirling Resources Limited (ASX:SRE) announced today it has finalized payment for the acquisition of the high grade zircon assets previously owned by Matilda Minerals (ASX:MAL).
The final settlement for the transaction will occur immediately after the reconvened shareholder meeting approves the transaction. In anticipation of settlement, Stirling has today paid the balance of the A$4.525 million purchase price into trust pending completion and the shareholder meeting will be convened via a separate notice to be sent next week.
Stirling announced in February it had agreed to purchase the mineral sands assets via Administrators Ferrier Hodgson for A$4.8 million, following Matilda's entry into voluntary administration in October 2008.
The assets include previously producing projects located on the Tiwi Islands in the Northern Territory, and the zircon tenements at the Cape York Peninsula in Queensland which include more than 300 kilometres of highly prospective coastline.
"To show our willingness to complete this transaction we have placed the funds in our solicitor's, Pullinger Readhead Lucas, trust account pending the required approvals. There are no foreseeable issues to affect the transfer of tenements and we look forward to settlement occurring shortly," Mr Kiernan said.
"Once the transaction is complete, we intend to recommence mining at the Tiwi Islands zircon project and commence a significant exploration programme on the Cape York tenements as soon as practicable.
"The Cape York Peninsula and Urquhart Point area potentially encompasses what is arguably the largest unexplored prospective mineral sands terrain in the world," Mr Kiernan said.
A General Meeting convened by Stirling in April which was postponed as a result of the delay in obtaining the necessary approvals will be reconvened shortly and further details will be announced in the next few days.
As announced this week, Stirling has reached an agreement to transfer its zircon assets to Olympia Resources (ASX:OLY), as part of Stirling's mineral sands initiative.
The arrangement will bring together Stirling's zircon projects on the Tiwi Islands and Cape York, with the Olympia mineral sands assets in WA, NT and Indonesia. Following the transaction, Stirling will hold 285m Olympia shares, or 82% of Olympia.
"This is in line with the strategy announced when we acquired the Matilda projects - to transfer these assets into a listed vehicle in which Stirling Resources retains a substantial investment," Mr Kiernan said.
Contact
Michael Kiernan
Managing Director
Tel: +61-8-6389-6800
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