Robust Resources has completed the acquisition of the Andash Mining Company for a total consideration of Aus$15 million. Andash owns 80% of the Andash Copper-Gold Project, which is in the Central Asian Orogenic Belt and has reserves of 539,730 ounces of gold and 63,486 tonnes of copper with significant exploration upside.
The Government of the Kyrgyz Republic owns the balance of the project. Financing of the transaction came from Robust’s existing cash reserves, additional new funding through the close of a $4.41 rights issue, the sale of 7% of the Romang Island project in Indonesia for $2 million and a $3 million loan from Indonesian investment house PT LSL.
Now that Robust has secured ownership of Andash its immediate priority is to strengthen government and community support for the project, and to establish Robust as a credible and committed investor in the Kyrgyz Republic. As part of this process the company has deployed two of its senior executives, Gordon Lewis and Dr Warwick Browne, to manage the project.
Gordon Lewis has more than 40 years’ experience in the mining sector, having brought a number of mines in remote locations into production. He is responsible for the overall management of Andash and will be instrumental in bringing the project into production. Warwick Browne has an extensive track record managing community and social programs in the mining sector and has developed the successful CSR program on Romang Island. This experience will be critical in developing community and social programs at Andash.
Robust’s managing director Gary Lewis says, “Completing the acquisition of Andash is an important milestone for Robust and advancing the project’s development is now a priority. Robust was able to capitalize on the Andash opportunity because the company is well funded and has the support of its major shareholder, the Salim Group. This gives us a major strategic advantage as we advance our portfolio of projects.
“While advancing Andash is now a priority, the development of Romang Island will not be impacted. We have eight rigs exploring across the island, an active development program is continuing and we are working constructively with the relevant Indonesian authorities to advance our mining licence application. We have never been better placed to unlock value for our shareholders.”