Astute Metals (ASX:ASE) says it will focus on its copper-gold and lithium projects after selling its diamond assets in Western Australia to privately held JBJ Capital.
Pursuant to the agreement, Astute has sold its East Kimberley Diamond tenement E80/4210 and the Heavy Mineral Separation plant to JBJ for $125,000 in cash, and formally disposed of its subsidiaries, East Kimberley Diamonds and Argyle Resources.
Astute, which has a market capitalisation of $13.25 million, says the sale allows the company to focus on the Georgina Basin Iron Oxide Copper-Gold Project in the Northern Territory and the Red Mountain Lithium Project in Nevada, US.
“I am pleased that this transaction has been completed, realising cash that will assist in strengthening our cash position while simplifying our portfolio and allowing management time and resources to be dedicated to our two core assets,” Chairman Tony Leibowitz says.
Yesterday, Astute revealed it had identified new zones of lithium mineralisation at the Red Mountain Project, after receiving the first assay results from a diamond drilling program.
The company reported results are higher-grade than previously reported drill intercepts, returning 25.9m @ 1,530 parts per million (ppm) lithium, including 13.1m @ 1,820ppm lithium.
The remaining assay results are expected in the coming fortnight.
Astute Metals is focused on exploring and developing critical mineral projects in tier one jurisdictions globally. Red Mountain is considered a highly prospective lithium-in-claystone project, while Georgina Basin covers 4,522km2 and lies in the highly prospective East Tennant Mineral Province.
Write to Aaliyah Rogan at Mining.com.au
Images: Astute Metals
