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PERTH (miningweekly.com) – ASX-listed diversified junior Moreton Resources has launched a strategic review of its assets and subsidiaries, in order to determine its core and noncore assets.
Moreton told shareholders on Monday that the review would allow the potential for the business to streamline its asset ownership and narrow its focus on the most valuable areas of business development.
The decision to review the asset base resulted from a number of factors, including several approaches pertaining to the company’s asset base and potential transactions, as well as the movement in the thermal and pulverised coal injection-coking coal markets, which, given the value of the company’s assets and the multiple opportunities, meant a deviation from the company’s established strategy.
Moreton said that the company was also continuing to advance its Granite Belt project, the Granite Belt exploration project, and the South Burnett coal project. However, given the issues surrounding the commissioning of the Granite Belt base metals project, resources and expertise have been drawn from other key company activities, and as such, Moreton now needed to re-evaluate its priorities, and the structure of each of these assets, and to consider the benefits of potential third-party assistance either through partnerships, funding or alternate transactions.
Moreton noted that the continued challenges presented by the Granite Belt project meant that company resources, expertise and time have been consumed by the project, which, in turn, have stifled the rapid advancement of key targets for the South Burnett coal project, an the Granite Belt exploration project.
In addition to having issues with the pH levels of the operation, Moreton is also facing challenges with the Department of Environment and Science, with the company and the department reportedly differing in view not only on the financial assurance interpretations and the plan of operations, but also the day-to-day interpretation of the environmental authority.
Moreton will appoint a legal adviser in the coming weeks to assist in navigating and negotiating any potential offers and transactions, while the internal review is being undertaken.