Rajawali Group to acquire interest in Wonogiri gold project
Friday, April 11 2014 - 02:09 AM WIB
ASX-listed Augur Resources Ltd said that Indonesia?s Rajawali Group, a well-diversified conglomerate controlled by tycoon Peter Sondakh, has notified the company of its intention of exercising options that would allow Rajawali to have a stake in the Wonogiri gold and copper mine in Central Java.
?Following the positive scoping study results for the Randu Kuning deposit as announced on 11 March 2014, the Rajawali Group has notified Augur of its intention to exercise the Augur Option and the Alexis Option, as announced on 30 September 2013 and approved by shareholders at the company?s annual general meeting held on 29 November 2013,? Augur said in a statement Friday.
Following completion of administrative procedures by Augur, the exercising of the Augur Option will result in the issue of 50,536,400 fully paid ordinary Augur shares for consideration totaling $3.75million, or approximately $0.074 per share, the statement said.
?In addition, upon receipt of this subscription amount, Augur will cause its wholly owned subsidiary, Wonogiri Pty Ltd, to sell a 35 percent interest in its subsidiary PT Alexis Perdana Mineral, the holder of an 80 percent interest in the Wonogiri project, to Rajawali for $50,000,? Augur said.
Augur said recently that the funds will be used to complete a scoping study of the Randu Kuning gold-copper deposit, further exploration and for ongoing working capital.
On March 11, Augur unveiled positive results from a sopping study on its Randu Kuning deposit located within the Wonogiri gold and copper project.
The scoping study result indicates potential for an economic deposit which is driven by a low stripping ratio, good metallurgical recoveries and excellent access to infrastructure giving the potential to generate substantial cash flow for relatively low capital outlay, the company said in a statement.
Augur said the project is anticipated to generate average net cash flows (after sustaining capital and royalties) of US$143 million based on a gold price of $1,250 per ounce and a copper price of $7,900 per ton.
Editing by Reiner Simanjuntak