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Straits sells off more assets

22nd April 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Straits Resources on Monday announced that it would sell off additional noncore assets, including its pressure oxidation plant and its South Australian exploration leases, as part of an ongoing strategic review.

“The sale of these two noncore assets at competitive prices is a good outcome for Straits and helps to further simplify the organisation as we focus on the company’s two core assets, the Tritton copper mine, in New South Wales, and the Mt Muro gold mine, in Indonesia,” said Straits executive chairperson Andre Labuschagne.

The pressure oxidation plant, located at the Hillgrove mine, was specifically excluded from the sale of the Hillgrove assets to Bracken Resources.

Labuschagne said that subsequent to the sale of the Hillgrove assets, Brackan had approached Straits to purchase the pressure oxidation plant for A$3.2-million. The sale was completed on April 19.

Meanwhile, Straits has also accepted an offer from Oz Minerals to purchase the Stuart Shelf exploration project for a total consideration of A$2.2-million.

The South Australian project comprises seven exploration licences located in close proximity to Oz’s Carrapateena licences.

Labuschagne said that the purchase was subject to due diligence and finalisation of a sale and purchase agreement with a number of conditions precedent. The due diligence would likely be completed by the end of April.

Meanwhile, Labuschagne noted that the company’s largest remaining noncore asset was the Temora copper/gold project, in New South Wales.

“This is a high-quality project targeting copper porphyry deposits in the proven and highly prospective Lachlan Fold belt. We are currently assessing the various options for maximizing the inherent value in this project, which we don’t believe is currently being recognised by the market,” Labuschagne said.

Edited by Creamer Media Reporter

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