Brisbane, July 21, 2008 AEST (ABN Newswire) - The Board of Republic Gold (ASX:RAU)("Republic" or the "Company") announces that the Company and Staldor Mining Pty Limited have now signed a Joint Venture Agreement ("Joint Venture") to explore and mine on a series of granted exploration and mining leases and lease applications that are highly prospective for tin and other heavy minerals.
The Company's initial share of the Joint Venture is 51%, which is subject to certain expenditures by the Company.
The Joint Venture parties will now establish the Joint Venture Committee expeditiously and commence activities at Kangaroo Creek, once a formal work programme and budget are agreed to by the Joint Venture Committee.
As stated in the Company's initial announcement on 4 June 2008, the ability to generate a cash flow from the Kangaroo Creek project in the near future is of prime importance. Nearly all of the lease areas that are part of the Joint Venture have considerable potential for tin, with the aim of the Joint Venture being to establish a number of operating tin plants on the project areas.
The price of tin has soared since the beginning of 2008, rising from US$16,000 per tonne in January to a May high of over US$25,000 per tonne. Tin's current price remains buoyant at over US$23,000 per tonne. Solder is one of the main uses of tin, with worldwide demand for solder strong. Tin has been replacing lead in solder for environmental reason.
Contact
John Kelly
Managing Director
Republic Gold Limited
TEL: +61-418-577-759
Tony Nagy
TEL: +61-413-645-126
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