JOHANNESBURG (miningweekly.com) – Indonesia-focused miner Robust Resources has signed a memorandum of understanding with London-based public company Mentum to list its Kyrgyzstan assets on London’s Aim.

In return, Mentum would issue Robust with new shares valued at A$50-million.

Upon completion of the deal, Mentum would hold 100% of Robust’s assets in Kyrgyzstan and would change its name to Tengri Resources.

Robust would hold 87.3% of the enlarged capital of Tengri, which would have a proforma market capitalisation of A$57-million and would hold some A$7.4-million in cash to advance development of its projects.

As part of the transaction, Robust chairperson David King and MD Gary Lewis would join the board of Tengri as nonexecutive chairperson and executive director respectively, with London-based financier Idris Khan joining as nonexecutive director.

“This is an excellent transaction for Robust and unlocks significant unrealised value for our shareholders. Since August last year, we have assembled a first class portfolio of assets in the Kyrgyz Republic and we believe it makes sense that these assets are housed in a standalone company,” Lewis said in a statement on Tuesday.

CONTROLLED ASSETS

The Kyrgyzstan assets are located within the Central Asian Orogenic Belt, which hosts several multimillion-ounce gold deposits, including Muruntau and Almalyk, in Uzbekistan, and the giant Oyu Tolgoi copper/gold mine, in Mongolia.

Following completion of the transaction, Tengri would control the Andash copper and gold project, which boasted a Joint Ore Reserves Committee-compliant measured and indicated resource of 19.2-million tons at 1.1 g/t of gold.

Tengri would also take 100% ownership of the Talas project, at which previous owner Gold Fields had defined a large gold and copper asset known as Taldybulak, located 20 km west of Andash.

Twenty-one prospective targets had been identified at Taldybulak, which had an indicated South African Mineral Codes-compliant mineral resource estimate of 116.5-million tons of gold at 0.6 g/t.

Following finalisation of the transaction, Tengri would further earn-in an up to 70% interest in Bashkol, a 17 986 ha property located 60 km along strike from the multimillion-ounce-producing Kumtor gold mine, in the Tien Shan Gold Belt.

Recent prospecting at the tenement had identified 15 km of strike length potential for gold mineralisation, while surface gold and copper had been traced over 3 km.

PROSPECTING POTENTIAL

Lewis noted that Robust had also been assessing additional opportunities in the Central Asian region to add to its portfolio, adding that these opportunities would now be pursued through Tengri.

“There is a great deal of positive sentiment for this region at present and we intend to capitalise on this through the growth and development of the newly formed company.

“With A$7.4-million in the bank, Tengri will be fully funded for its next phase of exploration and development work and will not require further capital for at least 12 months,” he commented.

Lewis further outlined that part of the rationale for the transaction was to ensure that Robust remained focused on advancing its asset portfolio in South-East Asia, with particular emphasis on its flagship gold, silver and base metal-rich polymetallic Romang Island project, in Indonesia.

“The development of Romang is our immediate priority and, once this transaction and our recently announced rights issue have been completed, we will be sufficiently funded to continue its development,” he said.

The Tengri transaction remained subject to Robust and Mentum entering into a sale and purchase agreement, approval by Mentum shareholders and admission of the enlarged share capital to trading on Aim.