www.republicgold.com.au
Republic Gold Limited’s vision is to become a leading gold explorer and producer, focusing on gold deposits in Bolivia's and Australia’s slate belt gold provinces. The Directors of Republic Gold offer what they believe is an attractive portfolio of tenements in southern Bolivia, the Hodgkinson Basin in Far North Queensland and in the Lachlan Fold Belt in Central New South Wales.
Republic Gold sells Burraga assets to advance Amayapampa Gold Project
Republic Gold (ASX: RAU) has entered into an arrangement with Burraga Copper Pty Ltd (BCPL) for BCPL to buy its Burraga assets in New South Wales for $800,000 in order to bring cashflow into the company and allow it to progress its Amayapampa gold project.
Under the arrangement, the Republic Gold also has the right to buy back the Burraga assets at 3 different times and 3 different prices during the next 12 months. BCPL will also enter into a Management Agreement with the company to ensure the proper management of the licences and tenements.
The transaction is in line with the company’s strategy of focusing its efforts and resources on its flagship Amayapampa project in Bolivia.
Last week, the company announced it had finalised the Bankable Feasibility Study (BFS) for the Amayapampa gold project, which is forecast to produce around 90,000 ounces a year.
John Kelly, managing director, said “the Amayapampa gold project BFS shows an estimated ore reserve of 19,900,000 tonnes at 1.3 Au g/t for 817,000 contained ounces and this is the impetus for planned acceleration of a nearmine exploration programme to extend the resource base.”
“The company will be focusing on the US$136 million needed to get the Amayapampa gold project into production and extending the project’s resource base with an accelerated near mine exploration programme."
"The Burraga assets are important to the company as we have previously indicated. However, the company wants to move into production as quickly as possible and the cash injection it is receiving from BCPL through this arrangement will go towards the Amayapampa exploration programme,” Kelly said.
On 15 July 2010, the company announced that it was reviewing its Australian properties and that as part of the review, the Board would consider options to farm-out or divest these properties.
The company’s Burraga assets consist of two tenements, located in the Lachlan Fold Belt in New South Wales, including the historic high grade Lloyds copper mine.
Detailed work on financing the Amayapampa Project is continuing with CPM Group advancing the Bolivian bond financing concept and will be in La Paz in the third week of August to participate in a number of meetings with various financial intermediaries in the domestic bond market.
Also, the company’ equity advisors, Carling Capital Partners of Sydney, will be in La Paz in the same week accompanied by the President & Chief Executive Officer of a mid-sized resources investment banking group from Canada.
