Orange Minerals (ASX:OMX) is divesting its 51% stake in the Calarie Project tenements in New South Wales to Adavale Resources (ASX:ADD).
Adavale will pay Orange a total consideration of 23.72 million shares and options, issued over three tranches.
Adavale will issue 7.905 million shares, subject to a six-month voluntary escrow, followed by 7.905 million unlisted options exercisable at $0.10 on or before 31 December 2029; and another 7.905 million unlisted options exercisable at $0.20 with the same exercise date.
Orange describes this divestment as a continuation of its strategy to “rationalise its asset portfolio and realise value from non-core assets”.
The transaction enables the company to maintain continued exposure to the potential upside of the Calarie Project through its interest in Adavale.
It also allows Orange to prioritise its capital allocation and technical resources to its flagship Tepa Gold Project in Ghana and the Lennon’s Find Project in the Pilbara region of Western Australia.
As reported by Mining.com.au in April, Orange was granted ministerial consent for the assignment of three prospecting licences at its Tepa Project, covering the transfer of the Mpasaso, Wioso, and Ohiapae licences to the company’s wholly owned Ghanaian subsidiary, Hunuyesi Resources.
Last year, Orange listed on the OTCQB Venture Market under the ticker symbol ‘ORMXF’ to broaden its international investor base, as reported.
Orange Minerals is an Australian exploration company focused on polymetallic opportunities in Western Australia and New South Wales.
Write to Maddison Elliott at Mining.com.au
Images: Orange Minerals
