Salim Group buys stake at E. Nusa Tenggara gold project

Australia-listed metal exploration firm Robust Resources Limited announced on Tuesday that conglomerate Salim Group through its subsidiary PT Kilau Sumber Perkasa (KSP) will acquire a 22.5% interest in Robust?s 100% owned Indonesian subsidiary, PT Gemala Borneo Utama (GBU) for AUD $30.7 million.

GBU is the local Indonesian entity that owns the mining rights to the company?s Romang Island gold project in East Nusa Tenggara. The new partnership will fully satisfy the future statutory requirement for Indonesian participation in project development, the company said.

In April 2010, Robust took the decision to acquire the remaining 25% of GBU that it did not own from the original vendors. ?Since this time, and following the progress Robust has made in advancing the Romang Island project, the Directors have been seeking a well-credentialed, strategic Indonesian partner that has in-country experience, government relationships, and a track record of developing greenfield projects into successful operating companies,? the company said.

The Salim Group, which is controlled by the Salim family, has diversified business interests including commodities, infrastructure and logistics. As part of this transaction, a representative of the Salim Group will join the board of GBU.

?As well as attracting a strong partner, this transaction means that the consolidated group will, on final settlement, have in excess of $60 million in cash, which gives us the necessary funding to take the Romang Island project through to the feasibility and development phases. This is an excellent outcome for our shareholders, as the company is unlikely to require additional capital to fund its ongoing exploration programme on Romang Island,? the company said.

The transaction is subject to due diligence and final approval by the Indonesian government. (alex)