PERTH-BASED mineral exploration company Trafford Resources has expanded its portfolio and its horizons by taking a 24% stake in private exploration company Orinoco Resources, which has projects in Brazil.
(the image above this caption can be viewed on IFE -seachange)
Onsite at Wilcherry Hill
Orinoco is currently the subject of a takeover offer from the Australian Securities Exchange-listed Strickland Resources with a view to positioning it as a Brazilian-focused explorer and developer.
Orinoco’s appeal lies primarily in its Curral de Pedra project in central Brazil, which has returned underground channel samples of 2500 grams per tonne. The project is about 20km along strike from the highly successful Sertão gold mine previously owned by Troy Resources and has established infrastructure.
The project comprises four granted tenements and one tenement application covering a total area of 23.5 square kilometres.
Trafford will underwrite a A$1.5 million placement as part of Strickland’s planned 2.7 million capital raising to fund exploration and, after the equity raisings, will retain 18.17% of Strickland and a seat on the board.
Trafford is using the funds raised from the sale of its interest in gold explorer Robust Resources.
Trafford shares were trading at 21c, unchanged on small volume, this morning.
TRF Price at posting:
20.0¢ Sentiment: None Disclosure: Not Held
