Augur Resources has announced a potential $6.75 million placement by the Rajawali Group into the company. This injection into the company will be used to complete a scoping study of the Randu Kuning Gold-Copper Project, further exploration and for ongoing working capital.

The binding subscription agreement, subject to a number of conditions precedent, provides for Rajawali to initially subscribe for 60 million Augur shares equivalent to 22.6% of the issued shares for cash consideration of Aus$3 million. Additionally, Rajawali has an option to subscribe for a further 50 million Augur shares for Aus$3.75 million. Upon receipt of the additional consideration, Augur will cause its subsidiary Wonogiri Pty Ltd to sell a 35% interest in its subsidiary PT Alexis Perdana Mineral to Rajawali for Aus$50,000. Wonogiri is the 90% owner of PT Alexis.

Founded in 1984, the Rajawali Group is one of Indonesia’s largest private conglomerates. Core interests include mining, infrastructure, transportation, hospitality and agriculture. Rajawali owns a 52.6% share in Archipelago Resources, owners of the Toka Tindung gold mine, which produced 139,012 gold equivalent ounces in 2012 at a cash cost of US$635 (net of silver credits). Rajawali also has a 57.1% ownership of Indo Mines, the owners of the Jogjakarta iron project in Java.

Augur is a resource developer focused on the Wonogiri Gold-Copper Project in Indonesia. Augur also has interests in exploration projects in central New South Wales, Australia. It holds an 80% interest Wonogiri project with PT Oxindo (a subsidiary of MMG Ltd) holding 10% and four individual shareholders controlling the remaining 10%.

The Wonogiri project lies in central Java and incorporates Randu Kuning deposit. Detailed exploration has defined this porphyry deposit which consists of 1.54 million gold equivalent ounces and remains open at depth and to the east and south. Numerous additional advanced targets have been identified at Wonogiri.

Metallurgical testing has been highly favourable with recoveries of more than 89% gold and 95% copper. Concentrates of up to 90.6 grams/tonne of gold and 21.2% copper have been achieved during initial concentrate optimization studies.

Randu Kuning is only one of a number of gold and copper prospects at Wonogiri which has quality support infrastructure. It is 30km south of the provincial city of Solo and is accessible by daily flights from the capital Jakarta and a one-hour drive on sealed roads. The surrounding area has grid power, a large dam and numerous river and stream systems.

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