Petrosea enters alliance agreement with Australian gold project

Australian mining firm Renison Consolidated Mines NL announced Wednesday it had entered into an Alliance Agreement with PT Petrosea Tbk to provide underground mining and maintenance services at the Tom?s Gully Gold Mine in the Northern Territory of Australia.

?PT Petrosea will also make a $2 million equity investment in Renison and provide additional funding support to the project through provision of underground mine fixed assets, mine services and the underground mining fleet. This equity investment is subject to Renison finalising its debt funding for the Tom?s Gully development,? Renison said in a statement.

According to the statement, this loan will be converted into $1 million worth of Renison $1 convertible notes (ASX code: RSNG) at an issue price of $2.50 per note. PT Petrosea will also subscribe for an additional $1 million worth of Renison ordinary shares at an issue price of 12.5 cents per share to provide funding towards the underground mine development.

The Tom?s Gully gold project is located about 90km to the south east of Darwin. Renison completed a Feasibility Study for the commencement of a 45,000 ounce per annum underground mining operation at the project earlier this year. PT Petrosea also has provided funding for the completion of the studies via a loan of $1 million.

Renison added commencement of gold production is targeted for within four months from the decision to commence mining. (Robert)