THE BOURSE WHISPERER: Trafford Resources has sold off its remaining shareholding in mineral exploration company, Robust Resources resulting in the former pocketing around $7.43 million.
Prior to the sell-off, Trafford was Robust’s third largest shareholder with 5.89 per cent.
Trafford said it the funds from the transaction will be used on strengthening its overall exploration activity, in co-ordination with the Wilcherry Hill iron ore project, operated in South Australia by Trafford’s Joint Venture partner, IronClad Mining.
“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 in the company’s announcement to the Australian Securities Exchange.
“The effects of the global financial ‘slow down’ have presented some excellent opportunities, both in Australia and overseas, which are too good to overlook.”
“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.”
Trafford has carried out large, but relatively low cost, initial air and ground surveys over the bulk of its Weednanna gold project tenements on Eyre Peninsula, in South Australia adjacent to Wilcherry Hill.
Regional Geophysical and Geochemistry Survey areas completed. Source: Company announcement
This has included detailed aeromagnetic and radiometric surveys over the Peterlumbo (including the Death Adder Prospect), Valley Dam, Eurilla Dam (Pier Prospect) and Mt. Miccollo tenements, as well as a large regional soil geochemistry program.
Trafford now plans to drill test the most advanced projects defined by the recently undertaken survey work.