Oar Resources (OAR) has entered into a definitive and binding tenement agreement sale of its Bramfield iron ore project in South Australia to a Vietnamese based company.
The Hoa Phat Group will purchase the non-core asset for $500,000 in cash, of which $100,000 has been paid as a deposit by the company’s subsidiary Dragon Resource Investment.
Oar Resources said the sale of Bramfield is part of its ongoing strategy of rationalising its portfolio and generating cash from non-core assets to apply funding to key initiatives.
According to the company the Bramfield project has not added value or been one of its priorities at any stage.
The company believes other operations such as its Crown nickel-copper-PGE project in Western Australia and its gold assets offer better opportunities to increase shareholder returns.
Following the Bramfield sale the company said it will continue to evaluate opportunities to sell other non-core assets to generate non-dilutive cash and improve its balance sheet.
Oar Resources CEO and Managing Director Justin Richard described the sale of the Bramfield project as a great outcome for the company.
Read the original article by Financial Times.