Straits Resources continues sale of non-core assets

THE BOURSE WHISPERER: Straits Resources (ASX SRQ) has agreed to the sale of additional non-core assets in the form of the Pressure Oxidation Plant and a number of South Australian exploration leases.

The Pressure Oxidation Plant is located at the Hillgrove Antimony mine, which the company recently sold off to Bracken Resources.

Straits explained the plant was specifically excluded from the sale of the Hillgrove assets and Bracken had approached the company after the completion of that sale to purchase the Pressure Oxidation Plant for $3.2 million.

The sale of the plant was completed on the 19 April.

Straits has also bagged an offer from OZ Minerals (ASX: OZL) to purchase the Stuart Shelf exploration project in South Australia for a total consideration of $2.2 million.

The project comprises seven exploration licenses located within close proximity of OZ Minerals 100 per cent-owned Carrapateena Licenses.

The purchase is subject to due diligence and finalisation of a Sale and Purchase Agreement with a number of conditions precedent attached.

Straits indicated it anticipated the due diligence will be completed by the end of April.

“The sale of these two non-core assets at competitive prices is a good outcome for Straits and helps to further simplify the organisation as we focus on the company’s two core assets, the Tritton copper mine in New South Wales and the Mt Muro gold mine in Indonesia,” Straits Resources executive chairman Andre Labuschagne said in the company’s announcement to the Australian Securities Exchange.

“Our largest remaining non-core asset is the Temora copper/gold project in New South Wales.

“This is a high quality project targeting copper porphyry deposits in the proven and highly prospective Lachlan Fold belt in New South Wales.

“We are currently assessing the various options for maximising the inherent value in this project which we don’t believe is currently being recognised by the market.”