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Balamara still awaiting Balkans asset sale

22nd May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Diversified junior Balamara Resources’ sale of its noncore assets in the Balkans has again been delayed.

In February this year, the company announced that it had reached a sales agreement with a European consortium to sell its Monty, Varesh and RSC projects for A$15.2-million, as part of its divestment strategy for its noncore assets.

Under the agreement, the proceeds were due within 30 days, once the final completion requirements were fulfilled.

However, various administration issues cropped up on the side of the consortium, delaying the release of funds. These issues were subsequently dealt with, and the buyer secured an escrow agent who completed all the necessary due diligence.

However, Balamara has again been informed that payment for the Balkans assets would be delayed, as there were some concerns over the support of one of the funding parties within the buyer’s consortium.

Balamara told shareholders that the buyer remained committed to acquire the projects, and was working to fulfill its requirements to pay the agreed-upon sum, with interest on late payments.

Edited by Creamer Media Reporter

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