Archer Exploration has signed an agreement for the sale of all of the shares in Leigh Creek Magnesite (LCM) and CH Magnesite (CHM) to an undisclosed buyer.
LCM and CHM are wholly owned subsidiaries of Archer which hold the Company’s Leigh Creek Magnesia Project.
The Leigh Creek Magnesia Project is located near the township of Leigh Creek, South Australia and consists of two granted exploration licences – EL 5730 (held by LCM) and EL 6019 (held by CHM) (together the Tenements).
Completion of the sale of the shares under the Agreement will result in the buyer owning all of the shares of LCM and CHM and the buyer owning the Tenements they hold.
Archer is currently undertaking a strategic review of all its assets with the goal of focusing future investment and management attention towards areas that will deliver the best risk weighted returns for its investors.
The sale of the Magnesia Project allows Archer to intensify its focus on its emerging advanced and speciality materials business with the associated development of the Campoona graphite mine.
Archer executive chairman Greg English said: “We believe this is a good deal for our shareholders.
“Whilst we still see the potential for the eventual development of the Magnesia Project, the funds from the sale announced today can be used more immediately to drive greater shareholder value through the development of our advanced and speciality materials business.
“We want to focus on our areas of strength, and we have excellent capability with Mohammad who is driving our graphite, graphene and advanced materials strategy, as highlighted by our recently announced collaboration agreements for the development of carbon based bio-sensors and quantum computing technologies.
“We also remain excited about our Blue Hills copper project and the prospectively of our extensive cobalt tenements.
“Given the depth of opportunities within the Archer portfolio, it is imperative for us to concentrate on the projects that we believe will create most shareholder value, and where we are less dependent upon third party decisions to drive projects forward.”
Source: Company Press Release