Trafford cashes up from share sell-off
THE BOURSE WHISPERER: Perth-based mineral exploration play Trafford Resources has sold off a chunk of its share portfolio in order to raise $4.1 million.
Trafford has sold just under 2.5 million shares in Robust Resources with the proceeds earmarked to fund an aggressive exploration program.
The program will focus on what the company considers to be a highly prospective, newly released area of South Australia’s Gawler Craton.
It will also continue work at its two advanced exploration projects at Wilcherry Hill during the remainder of 2011.
Trafford anticipates follow up exploration in 2012 will be funded by its share of revenue from the Wilcherry Hill iron ore Joint Venture with IronClad Mining.
The Wilcherry Hill JV is due to commence production late this year.
Trafford’s shareholding of Robust Resources remains at 5.3 million shares, approximately six per cent.
This maintains its strategic investment in the company with no current plans to liquidate the holding further.
Trafford Resources managing director Ian Finch said in the company’s ASX announcement the company sold part of its Robust Resources shareholding, “In order to take advantage of the opportunity presented by the South Australian Government’s resource industry initiatives to participate in one of the most exciting exploration land releases for hard rock exploration in Australia in the past 50 years.”
“Shareholders would note, that Trafford’s participation in this prime exploration opportunity was being achieved without any dilution of shareholdings.”
Trafford expects to commencement of exploration for iron oxide, uranium, copper and gold (IOCGUs) as soon as the 2000 square kilometre Jumbuck tenements are granted.
These prospective tenements became available when the Woomera Defence Area, previously prohibited from exploration and development, was opened up in May this year by the Commonwealth and South Australian Governments.
The other areas in the firing line for exploration by Trafford in South Australia during the remainder of this year and into next year will be:
– The Telephone Dam project at Wilcherry Hill, where Trafford recently confirmed extensive tabular, near surface zones of commercial grade lead, zinc and silver over a 1,500 metre strike length: and
– The Weednanna gold project, where a drillin program has been planned to test new gold targets defined by geophysical interpretation.
Finch said Trafford’s decision to invest some of its Robust share holdings into exploration of the Jumbuck project and the two advanced exploration projects at Wilcherry Hill was a major step for the Company in exploring and developing its assets in South Australia.
He also said it was consistent with the company’s intention to intensify exploration activity now that the Wilcherry Hill iron ore project was on track for production.