interesting events unfolding

http://www.theedgesingapore.com/the-daily-edge/business/8268-transview-holdings-unit-buys-10-stake-in-asx-listed-trafford-for-195m.html

Transview Holdings says wholly-owned subsidiary Transview Resources has signed a share placement agreement with Trafford Resources to purchase 6,203,486 new shares representing 10% of the share capital of Trafford at A$0.25 per share or a total of A$1,550,871.50 ($1,954,098).

Transview Resources also has the option to acquire a further 5% (3,101,514) of new Trafford shares at A$0.25 per share. Upon exercise of the options, Transview Resources will own 9,305,000 ordinary shares in Trafford, which represents 15% of Trafford’s current share capital. The investment is funded by the group’s internal resources.

Trafford is an Australia-based mineral exploration company listed on the Australian Stock Exchange (ASX) since June 2006. Trafford’s primary focus is the exploration and commercialisation of Iron Ore, Copper, Gold and Uranium deposits.

Trafford has interests in two other ASX-listed companies — a 50% stake in IronClad Mining Limited and 14.79% interest in Robust Resources (with the option to increase it to 20.66% through the exercise of 3.6 million options at 30 cents per share).

Both companies have since their listings made substantial investments in geological and drilling programmes yielding positive results.

IronClad owns 80% of the Wilcherry Hill Iron Ore Project in South Australia’s Gawler Craton. Through its 50% interest in IronClad and 20% direct interest in Wilcherry Hill, Trafford effectively owns 60% of Wilcherry Hill. IronClad has recently discovered large quantities of high grade crystalline magnetite iron ore, which is very low in contaminants and generally suitable for low cost beneficiation with concentrate grades likely to exceed 67% Fe.

The availability of Direct Shipping Ore for export can greatly improve the economics of iron ore mining because it enables the production of iron ore at lower capital and operating costs than for ore which requires upgrading.

IronClad announced on 25 August 2009 a drilling programme to identify near-surface DSO as a fast track development option.

Also, Robust recently announced the discovery of 52 metres of potentially economic gold and silver mineralisation, which is the widest zone of mineralization of this type identified to-date on Romang Island. Since Robust began its Romang Island drilling programme in November 2008, it has received assay results from 28 diamond drill holes, of which 27 have identified reportable intersections of gold/silver/lead/zinc/copper having potential economic significance.

Work is also underway to identify drilling targets at the Solat Caldera, which forms the northern two thirds of Romang Island, where exploration has revealed strong evidence for the existence of at least one gold- rich multi-commodity porphyry system.

The investment in Trafford will enable Transview Holdings to gain exposure in the booming resources market. Both Transview and Trafford will work together to create greater value for shareholders.

Under the deal, Transview will be offered a board seat in Trafford when Transview Resources exercises its options in Trafford.