www.robustresources.com.au
Robust Resources Limited (ASX: ROL) is a Sydney-based miner exploring for Gold-Silver and Base Metals on Romang Island in Indonesia’s richly endowed Banda Magmatic Arc, 650km northwest of Darwin.
Robust is exploring highly prospective ground previously explored by Biliton (1990s). An initial 2000m drilling program with the Lakuwahi Caldera Project has identified wide zones of gold-zinc-silver-lead-copper mineralisation. All holes completed in the first round of drilling by Robust were open in every direction and at depth.
Robust is accelerating its exploration program in the 2010 financial year with a target of 5000m to be drilled using owner-operated diamond drill rigs and a local labour force for continuing economic efficiency.
With experienced management who have a track record of major discoveries, Robust holds a 51% interest in five mineral titles totalling 25,000ha covering the entire Romang Island, with an option to increase to 75%.
Robust Resources in key deal to develop Romang Island project
Robust Resources (ASX: ROL) has entered a joint venture agreement whereby PT Kilau Sumber Perkasa (PT KSP) will acquire a 22.5% interest in Robust’s 100% owned Indonesian subsidiary for A$30.7 million.
Robust's subsidiary, PT Gemala Borneo Utama (PT GBU), is the local Indonesian entity that owns the mining rights to the company’s Romang Island project.
PT KSP is an affiliate of one of Indonesia’s leading business groups, the Salim Group, with interests in a diverse range of commodities, infrastructure, logistics and upstream processing.
The company also has access to other exploration and mining opportunities in Indonesia.
The Salim Group is Indonesia's biggest conglomerate and employs about 135,000 people. It has assets including the world's largest instant noodle producer, a large flour-milling operation, and major oil palm plantations and logging concessions.
Importantly, the deal satisfies future statutory requirements for Indonesian participation in project development.
Robust shareholders will retain a 77.5% interest. The additional funding will bring total cash to over A$60 million, positioning Robust well to advance the Romang Project into feasibility and development phases.
In April 2010, Robust took the decision to acquire the remaining 25% of PT GBU that it did not own from the original vendors.
As part of this transaction, a representative of the Salim Group will join the board of PT GBU.
Gary Lewis, Robust’s managing director, said "we have been working for 12 months to identify and secure a strong Indonesian partner that has the experience, an understanding of domestic politics and bureaucracy, and the skills to help us take the Romang Island project through to successful development. Salim Group has all these attributes in abundance."
The company is unlikely to require additional capital to fund its ongoing exploration programme on Romang Island. Now well cashed up, Robust will be able to move towards a maiden JORC Resource around mid-2011.
The transaction is subject to due diligence and final approval by the Indonesian Government.
