Robust to sell more shares in Romang Island project to Salim Group
Tuesday, July 9 2013 - 01:53 AM WIB
ASX-listed Robust Resources Limited announced Tuesday that it plans to raise A$9.41 million to complete the acquisition of the Andash Gold-Copper project in the Kyrgyz Republic, through the sale of a further 17.5 percent interest in its Romang Island project in Indonesia for $5 million and a 1-for-6 fully underwritten rights issue at 30 cents per share.
Under the rights issue, each new share subscribed for will have a free attaching option to acquire one new share for every twelve existing shares held, exercisable at 50 cents per share within two years of the offer closing date. The rights issue is fully underwritten by Droxford International Limited.
The company said in a statement that the sale of a further 17.5 percent interest in Romang Island for $5 million cash is being made to PT Kilau Sumber Perkasa (PT KSP) a member company of Robust?s strategic partner the Salim Group, which already holds a 22.5 percent interest in the project. Robust will retain a 60 pervcent interest in the Romang Island project following this transaction.
Upon completion of the partial sale of Romang Island and the fully underwritten rights issue, there will be minimal dilution to Robust?s share register. An additional 14,689,904 million shares will be issued, taking the total number of shares on issue to 102.8 million shares.
The financing arrangements are expected to be completed in August 2013, following which time Robust will emerge with a diversified portfolio of advanced projects across Asia with exposure to multiple commodities.
Editing by Reiner Simanjuntak