Kentor Gold has sold its Andash Gold-Copper Project to fellow Australian-based explorer Robust Resources.
The Aus$15 million sale is in line with Kentor’s strategy to focus on the exploration and development of the potentially large and financially robust Jervois Copper-Gold project in the Northern Territory.
Under the terms of the agreement, $1-million will be paid immediately, with the balance of the fee payable on completion of the transaction in June once shareholder approval, the completion of due diligence, and regulatory approvals have been received.
A 2010 definitive feasibility study confirmed the Andash project could annually deliver 70,000 ounces of gold and 7400 tonnes of copper over a six-year life of mine, with the project having a net present value of $241 million.
Andash has a reserve of 539,730 ounces of gold and 63,486 tonnes of copper, with significant exploration upside. Robust’s purchase also includes an inventory of mining plant and equipment which has already been deployed in the Kyrgyz Republic.
Robust managing director Gary Lewis says the acquisition is an integral step in creating an Asian-focused low-cost mining and exploration company. “The transaction is in line with our strategy of building a pipeline of advanced, low-cost, precious metal projects in the Asian region, a strategy we have articulated for some time.”
The Andash project will be the most advanced project in the Robust portfolio. The company has the funding support and in-country team in place to fast-track development of the operation.
“The acquisition is an excellent transaction for Robust. Our strong cash position, and a supportive largest shareholder that has experience in the region, has allowed us to capitalize on this unique opportunity, and acquire a project that has significant unlocked value,” says Gary Lewis.
The Andash project is in Kyrgyzstan’s north-west, within the Tien Shan Gold Belt that extends across central Asia. It is 280km from the capital Bishkek with a major rail line, water and power line nearby.