Oar Resources Divests Non-Core Iron Ore Project
THE BOURSE WHISPERER: Oar Resources (ASX: OAR) has cashed up in the week before the 2020 RUI Explorers Conference by entering a definitive and binding Tenement Sale Agreement for the sale of the company’s non-core Bramfield iron ore project in South Australia.
Oar Resources has sold the Bramfield project to Vietnamese based company, The Hoa Phat Group via its subsidiary Dragon Resource Investment Pty Ltd for all-cash consideration of $500,000.
The company explained the Bramfield sale is part of its ongoing strategic review to rationalise its portfolio and where possible, generate cash from non-core assets, to apply towards its core assets.
“The sale of the Bramfield iron ore project is a great outcome for Oar Resources,” Oar Resources CEO and managing director Justin Richard said in the company’s ASX announcement.
“The company will continue to evaluate opportunities to sell other non-core assets that generate non-dilutive cash and improve its balance sheet.
“Anyone who knows mineral exploration, knows the early stages in a project’s lifecycle present high-risk, high-reward opportunities.
“OAR is in a favourable position compared to many of its peers, having a diverse project portfolio that includes several promising projects with potential to become standalone mining companies in their own right.
“The current review of the company’s project portfolio includes divesting any projects that are not part of OAR’s key focus moving forward, mainly our South Australian projects.
“Some factors being considered as part of the strategic review include a project’s stage of development, the commodities it offers and its impact on shareholder value.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE
Email: info@oarresources.com.au