Western Australia-based Iron ore hopeful Trafford Resources has turned its attention to new acquisitions or joint ventures, after offloading its stake in Indonesia-focused gold and base metals explorer Robust Resources for $7.43 million.
Trafford said it would also use the funds raised from the off-market sale of approximately 5.3 million Robust shares, at $1.40 per share, to ramp up its exploration efforts as it takes its Wilcherry Hill iron ore joint venture with IronClad Mining to maiden production this quarter.
Sydney-based Robust, which was trading on the Australian Securities Exchange at $1.20 this morning, is currently exploring for precious and base metals on Indonesia’s Romang Island.
Trafford company was previously Robust’s third-largest shareholder, with its 5.89 per cent stake.
“The transaction injects immediate cash flow into the Company which allows us to pursue some most promising business opportunities we have identified,” Trafford Resources managing director Ian Finch said.
“The effects of the global financial ‘slow down’ have presented some excellent opportunities, both in Australia and overseas, which are too good to overlook,” he said.
“In that environment, and while the quality of projects within Robust Resources remains first class, we have been investigating a broad range of other opportunities that we believe have the potential to deliver higher and swifter returns to our shareholders than would a longer term investment in Robust.”
Mr Finch said Trafford would focus on drilling programs at its Weednanna gold project tenements, which are located adjacent to Wilcherry Hill on South Australia’s Eyre Peninsula.
He said the company would also “aggressively investigate” a wide range of acquisition or joint venture opportunities.
“The current calendar year is already shaping up to be Trafford’s most active and exciting year since listing on the ASX in 2006,” Mr Finch said.
“We already have parties from around the globe watching with interest our Wilcherry Hill iron ore JV project with IronClad Mining, and we also have our eye on a number of other potential projects which have attracted our own interest.”
At 10:20Am WST, Trafford shares were up 4.7 per cent, at 33.5 cents.
