PERTH (miningweekly.com) – Junior explorer Archer Exploration has struck a A$2-million share sale agreement with an unlisted company to divest of its Leigh Creek magnesia project, in South Australia.
The Leigh Creek project hosts 48% of the world’s cryptocrystallin magnesite resources and consists of two granted exploration licences.
Under the share sale agreement, the unlisted Australian company will own all the shares Archer subsidiaries Leigh Creek Magnesite and CH Magnesite.
Archer executive chairperson Greg English told shareholders on Monday that while the company saw potential for the eventual development of the magnesia project, the funds from the sale would be used to develop the company’s advanced and speciality materials business.
English said that the company remained excited about its Blue Hills copper project, and the prospectivity of its extensive cobalt tenements.
“Given the depth of opportunities within the Archer portfolio, it is imperative for us to concentrate on the projects that we believe will create most shareholder value and where we are less dependent on third party decisions to drive projects forward.”