Queensberry Mining is set to acquire a 23.7% stake in St Augustine Gold & Copper through a strategic partnership agreement that outlines the sale of secondary shares and a private placement option.
Russell Mining and Minerals (RMMU) is the largest shareholder of St Augustine and has agreed to option up to 70 million of its shares to Queensberry in order for it to become a strategic partner. RMMU will remain the largest shareholder of St Augustine.
St Augustine will also action a private placement of 25 million shares which will bring Queensberry’s stake to 23.7% on a fully diluted basis. The placement is expected to raise US$4.7 million as working capital for exploration at the company’s King-king project. Queensberry has also agreed to acquire a 25% shareholding in Nationwide Development Corporation, St Augustine’s joint venture partner in the King-king project.
As part of the private placement transaction, Queensberry’s president and chief executive officer Manuel Paolo A Villar will be nominated to a director position on St Augustine's board, replacing Andrew Russell who has agreed to step down as a director, while staying on as chief executive officer. Manuel Villar brings a tremendous amount of experience in public Philippine operations and currently holds senior positions on two very large national corporations in the Philippines.
St Augustine’s chief executive officer Andrew Russell says, “We greatly welcome the involvement of Queensberry in St Augustine and believe it is a very positive development for the company. By partnering with the Villar group, we are confident that it will assist St Augustine in being able to move the King-king project forward over the coming months and years for the benefit of all stakeholders in the project.”
King-king is one of the largest undeveloped copper-gold deposits in the world and is listed as one of the top priority projects by the Philippine Mines and Geosciences Bureau. It is in the southeast of the island of Mindanao, 35km east of Davao City and 13km from the coast.
King-king hosts measured and indicated mineral resources of 962.3 million tonnes @ 0.254% total copper, 0.062% soluble copper, and 0.334 grams/tonne gold for 5.4 billion pounds of contained copper and 10.3 million troy ounces of contained gold. Inferred mineral resources are an additional 188.8 million tonnes @ 0.215% total copper, 0.048% soluble copper, and 0.265 grams/tonne gold.