PERTH (miningweekly.com) – ASX-listed Kentor Gold has sold off its Andash gold/copper project, in the Kyrgyz Republic, to fellow-listed Robust Resources for A$15-million.
Under the terms of the agreement, A$1-million would be payable immediately, with the balance of the fee payable on the completion of the transaction.
A 2010 definitive feasibility study had confirmed that the Andash project could deliver some 70 000 oz/y of gold and 7 400 t/y of copper, over a six-year life-of-mine, with the project having a net present value of $241-million.
The project has a reserve of some 539 730 oz of gold and some 63 486 t of copper, with significant exploration upside.
The acquisition also included an inventory of mining plant and equipment, which had already been deployed in the Kyrgyz Republic.
Robust told shareholders on Wednesday that the acquisition was in line with the company’s strategy of creating an Asia-focused low-cost mining and exploration company.
“The transaction is in line with our strategy of building a pipeline of advanced, low-cost, precious metal projects in the Asia region, a strategy we have articulated for some time,” said Robust MD Gary Lewis.
He noted that the Andash project would be the most advanced project in the Robust portfolio, and noted that the company would have the funding support and in-country team in place to start the development of Andash on an accelerated time line.
“The Andash acquisition is an excellent transaction for Robust. Our strong cash position, and a supportive largest shareholder that has experience in the region, has allowed us to capitalise on this unique opportunity, and acquire a project that has significant unlocked value,” Lewis said.
The divestment of the Andash project would likely be finalised by the end of June, with the transaction subject to shareholder approval, the completion of a due diligence, and regulatory approvals.
Meanwhile, Kentor noted that the divestment of the Andash project was also in line with its own strategy, as the board had taken a strategic decision to focus on the exploration and development of the potentially large, and financially robust Jarvois copper/gold project, in the Northern Territory.
The miner said that having now secured funding at a corporate level, Kentor would focus on the reinstatement of share trade.