Robust to acquire 100% Romang gold project

Gold and base metal explorer Robust Resources Limited said on Tuesday it has reached agreement to purchase the remaining 25 percent minority interest in the Romang gold project, East Nusa Tenggara from local firm PT Gemala Borneo Utama.

Upon execution of the final Sale and Purchase Agreement (SPA), Robust will own 100 percent of Romang, with the sellers waiving any obligation to fund the additional A$3 million, the company said.

Under the terms of the SPA, Robust agreed to the payment of A$20 million in two tranches, A$6 million cash plus 5,714,285 shares and A$2 million cash contingent on announcing 1 million ounce gold-equivalent resource (measured or indicated), respectively

Managing director Gary Lewis said: ?It is the Board?s belief that given the value of this world class asset is ever increasing, it was in the best interests of our shareholders to lock in the acquisition at the earliest possible date. With close to a 100% success rate from drilling, and an aggressive +20,000 metre drilling programme scheduled for FY 2011, the company remains focussed on continuing to extend the identified zones of mineralisation at this exceptional project,?

?Indonesia is an exciting country to be working in at this time - not only is its reputation as one of the world?s most prospective and mineralised domains well established, but with the implementation of new mining laws, and a stable government and economic environment, Indonesian assets are appreciating at a rapid rate. This transaction provides Robust with greater exposure to this increasingly mining development friendly location and we believe this is a very positive development for the Company and its shareholders.?

The transaction is subject to shareholder approval, it added. (denny)