Oar Resources (ASX:OAR) is looking to funnel more cash towards its critical minerals exploration program as it divests its non-core Gibraltar Halloysite-Kaolin Project for $500,000.
The $10.49 million market capitalisation company says the project is being handed off to ESG Minerals, a wholly owned subsidiary of Latin Resources (ASX:LRS).
Oar reports that this sale is part of an ongoing strategic review to rationalise its non-core asset portfolio, generate its own funding where possible to apply to its core assets, and provide non-dilutive working capital.
The company notes the sale of the project will be completed through a divestment of a portion of tenement EL6506, with the excised area covering about 80km-square of the original 316km-square tenement.
The remaining portion of EL5606 will be retained by Oar, and the company says it complements its Western Eyre Peninsula rare earth element (REE) exploration program.
Key terms of the sale include a sale price of $500,000 plus any applicable GST payable on the fulfilment of the conditions precedent, which include the granting of the Division Application by the Department for Energy and Mining of the Government of South Australia.
Oar Resources Managing Director Paul Stephen says the fresh funds will accelerate exploration across the company’s associated South Australian tenements as it looks to bolster its position as a graphite, REE, and critical minerals player.
Oar Resources is an explorer and developer focused on building and developing a portfolio of battery and critical minerals assets to meet global demand for critical minerals.
The company’s assets include its namesake graphite project in South Australia and its Denchi Lithium Project in Western Australia.
As of 30 September 2023, Oar Resources had $307,000 cash and cash equivalents at hand, although the company is considering various strategies on its project portfolio to bring additional funding for its operations and, if required, will seek to raise equity funding from existing and new investors.
Write to Adam Drought at Mining.com.au
Images: Oar Resources