Investment firm Bentley Capital (ASX:BEL) has sold its wholly owned unlisted rare earths subsidiary, Scarborough Resources, to Lithium Energy (ASX:LEL) to allow it to resume trading on the Australian Securities Exchange (ASX).
The sale follows discussions with the ASX about Bentley’s plans for its portfolio of five exploration licences spanning 887km2 in the Musgrave region of Western Australia.
Bentley says it was planning to undertake exploration and other “value-adding” activities over the tenements so it could onsell them or spin them out into a rare earths-focused ASX-listed resources company.
However, the ASX says the company’s plans are inconsistent with its status as a listed investment company under Chapter 19 of the ASX Listing Rules.
Bentley went into a trading halt in September last year and has been in voluntary suspension since then.
In order to exit voluntary suspension, Bentley decided to sell Scarborough Resources to Lithium Energy for a 0.5% net smelter royalty and $10,000 in reimbursed expenditure.
Bentley believes the consideration negotiated with Lithium Energy is appropriate and reflects the “fair market value” for Scarborough Resources and the tenements, given they are at the application stage.
Write to Angela East at Mining.com.au
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