THE BOURSE WHISPERER: Perth-based Trafford Resources is primed to take a significant interest in several Brazilian gold projects.
Trafford is taking an initial 24 per cent stake in private exploration company, Orinoco Resources, which in turn is to be acquired by ASX-listed Strickland Resources.
Trafford will retain a final 18.17 per cent interest in Strickland after various transactions and capital raisings have been completed.
“This acquisition by Trafford is a result of Trafford’s previously announced intention to use proceeds from the sale of Trafford’s holding in Robust Resources to fund involvement in new opportunities that will be of value to Trafford shareholders,” Trafford Resources explained in its announcement to the Australian Securities Exchange.
Orinoco has an established presence in Brazil having assembled a portfolio of three prospective gold projects, including its 70 per cent-owned, Curral de Pedra gold project, located near the high grade Sertão gold mine, previously operated by Troy Resources.
Orinoco’s Brazilian gold projects. Source: Trafford Resources announcement
Curral de Pedra is located in Goiás state, approximately 250 kilometres from the capital city of Brasilia.
Strickland Resources comes into the picture having entered into a binding agreement to acquire all of Orinoco’s stock.
Under that agreement two Orinoco directors will be appointed to the Board of Strickland.
Orinoco Resources managing director Mark Papendieck, will assume the role of managing director, Trafford Resources managing director Ian Finch will take up a non-executive position.
In addition Dr Klaus Peterson will become an alternate director.
Both Papendieck and Peterson played instrumental roles in the establishment of successful Brazilian iron ore developer Centaurus Metals Limited.