Rajawali may acquire a stake in Wonogiri gold mine

By Puspita Maylana Devi

ASX-listed Augur Resources Ltd announced on Monday it had entered into a binding subscription agreement with the Rajawali Group, one of Indonesia?s largest privately owned conglomerates, which will enable the latter to have a stake in the former?s gold and copper mine in Wonogori, Central Java.

The agreement, which is subject to a number of conditions precedent, including approval of Augur shareholders, provides for Rajawali to initially subscribe for 60,000,000 Augur shares equivalent to 22.6 percent of the company?s issued shares for cash consideration of $3.0 million.

Additionally, Rajawali has an option to subscribe for an additional 50,536,400 Augur shares for $3.75 million (Additional Consideration). Upon receipt of the Additional Consideration, Augur will cause Wonogiri Pty. Ltd, its subsidiary, to sell a 35 percent interest in its subsidiary PT Alexis to Rajawali for $50,000. Wonogiri Pty Ltd is the 90 percent owner of PT Alexis, the company said in a statement.

Funds will be used to complete a scoping study of the Randu Kuning gold-copper deposit, further exploration and for ongoing working capital.

Managing Director of Augur, Grant Kensington comments: ?The opportunity to team up with a well respected Indonesian company, with significant Indonesian mining experience, such as Rajawali Is an exciting and important step for Augur and bodes well for the ongoing development of the Wonogiri project and for Augur itself.?

Detailed exploration by the company has defined the Randu Kuning gold-copper porphyry deposit. The resource consists of 1.54 Moz AuEq and remains open at depth and to the east and south. A number of additional advanced targets have also been identified at Wonogiri.

Editing by Johannes Simbolon