Robust Resources Limited (‘Robust’ or ‘the Company’) is pleased to announce that it has agreed to acquire the Andash Mining Company in the Kyrgyz Republic (“Andash”) from Kentor Gold Limited (ASX:KGL). Andash owns 80% of the Andash Copper-Gold project, which is located in the Central Asian Orogenic Belt, which hosts some world-class gold deposits, including Muruntau (110 Moz Au), Almalyk (80 Moz Au Eq) and Oyu Tolgoi (50 Moz Au Eq). The government of the Kyrgyz Republic will own the balance of the project.
Robust will acquire Andash for a total cash consideration of A$15 million including a deposit of A$1 million. The transaction is subject to certain conditions precedent and due diligence, and is expected to complete by the end of June. Funding of the acquisition will be non-dilutive to existing shareholders, with funds to be raised via the partial sell-down of the Romang Island Project, with the balance coming from existing cash reserves.
The acquisition is in line with Robust’s strategy of creating an Asian-focused low-cost mining and exploration company. The transaction has the support of its largest shareholder and project partner in the Romang Island project, the Salim Group, who have a strong presence in the region, including high-level strategic relationships in the adjacent People’s Republic of China.
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