South African explorer Askari Metals (ASX:AS2) has entered into a legally binding agreement to sell its Western Australia-based Callawa copper project to privately held company Muccanabout.
“Execution of this agreement with Muccanabout aligns with our mandate to streamline the operations of the company which is focused on uranium and lithium exploration in Tanzania and Namibia,” said Managing Director Gino D’Anna.
Askari will receive AU$125,000 through the sale, which was announced on Friday (August 23). Muccanabout will make an initial cash payment of AU$55,000 (plus GST) within five business days of the deal’s execution.
The remaining AU$70,000 (plus GST) will be paid six months later, also in cash.
Transfer of full ownership will be performed after Muccanabout completes the second payment.
Located approximately 90 kilometres northeast of Marble Bar in the eastern area of the Pilbara region, Callawa was acquired by Askari in 2021. In May, the company identified high-grade copper and silver targets at the site.
Mapping and rock chip sampling performed at the project returned copper grades of 6.78 percent, 4.35 percent, 2.02 percent and 1.85 percent, and silver grades of 11.1 grams per tonne, (g/t) 8.25 g/t and 6.42 g/t.
As mentioned, Askari plans to focus on uranium and lithium moving forward. In February, it acquired the Matemanga uranium project in Tanzania, and it holds the Uis lithium project in Namibia.
The company has a portfolio of lithium and rare earths assets in Western Australia and the Northern Territory.
“The company continues to evaluate other opportunities to monetise its Australian-based exploration projects portfolio which will provide long-term capital savings to the Company and enhance operational transparency,” D’Anna said in Friday’s release, adding that Askari has also implemented several cash-preservation initiatives.
“We look forward to keeping our shareholders and investors updated as we progress.”
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
Credit: Source link
