PERTH (miningweekly.com) – Diversified junior Balamara Resources has reached an agreement to divest of its portfolio of noncore base metals assets in the Balkans in a deal valued at A$15.2-million.
The company announced on Wednesday that it had reached an agreement with a European consortium to sell its Monty, Varesh and RSC projects as part of its divestment strategy for its noncore assets.
MD Mike Ralston said that the divestment programme would significantly reduce the company’s current cash burn while strengthening its balance sheet and financial capability to advance its major projects.
“Bringing in a substantial amount of cash is a very positive achievement in the current challenging junior resources market and will greatly assist Balamara in the future by significantly reducing any requirement for further capital raising and dilution,” Ralston said.
He added that the sale represented a substantial return on investment on the assets, and reinforced Balamara’s commitment to its corporate strategy, which was to focus on its flagship assets and return value to shareholders through the divestment of noncore assets.
“We are now well positioned to develop Balamara to the next level with a significant cash balance and ownership of the high-quality Nowa Ruda coking coal project in Poland, which we are progressing rapidly towards production, plus the potential to add a further top-tier project into our portfolio in the future in the shape of the Togo phosphate project."