Republic Gold Limited (ASX:RAU) Sale Of Burraga Assets To Burraga Copper Pty Ltd
Brisbane, Aug 9, 2010 AEST (ABN Newswire) - Republic Gold Limited (ASX:RAU) today announce that the Company has entered into an arrangement with Burraga Copper Pty Ltd ("BCPL") where BCPL is buying the Company's Burraga assets in New South Wales for A$800,000.
Under the arrangement, the Company also has the right to buy back the Burraga assets at 3 different times and 3 different prices during the next 12 months. BCPL will also enter into a Management Agreement with the Company to ensure the proper management of the licences and tenements.
The transaction is in line with the Company's strategy of focusing its efforts and resources on its flagship Amayapampa project in Bolivia. On 15 July 2010, the Company announced that it was reviewing its Australian properties and that as part of the review, the Board would consider options to farm-out or divest these properties.
The Company's Burraga assets consist of two tenements, located in the Lachlan Fold Belt in New South Wales, including the historic high grade Lloyds copper mine.
The Company's Managing Director, John Kelly, said the arrangement would bring cashflow into the Company and allow it to progress its Amayapampa gold project. Last week, the Company announced it had finalised the Bankable Feasibility Study ("BFS") for the Amayapampa gold project, which is forecast to produce around 90,000 ounces a year.
"The Amayapampa gold project BFS shows an estimated ore reserve of 19,900,000 tonnes at 1.3 Au g/t for 817,000 contained ounces and this is the impetus for planned acceleration of a nearmine exploration programme to extend the resource base," Mr Kelly said.
"The Company will be focusing on the US$136 million needed to get the Amayapampa gold project into production and extending the project's resource base with an accelerated near mine exploration programme. The Burraga assets are important to the Company as we have previously indicated. However, the Company wants to move into production as quickly as possible and the cash injection it is receiving from BCPL through this arrangement will go towards the Amayapampa exploration programme," Mr Kelly concluded.
John Kelly Managing Director Republic Gold Limited Tel: +61-7-4092-2594 Mob: +61-418-577-759