Why did OAR Resources choose to sell the Gibraltar Halloysite-Kaolin Project?

South Australia - OAR Resources Limited (ASX: OAR), a prominent player in the exploration of critical minerals, has announced the strategic divestment of its non-core Gibraltar Halloysite-Kaolin Project. The project has been sold to ESG Minerals Pty Ltd (ESG), a wholly owned subsidiary of Latin Resources Limited (ASX:LRS), for an all-cash consideration of $500,000.
Rationalizing the Portfolio

The sale marks an important step for OAR as it continues its strategic review to rationalize its non-core asset portfolio. By divesting the Gibraltar Halloysite-Kaolin Project, the company aims to generate its own funding while focusing on its core assets and critical minerals exploration. This approach allows OAR to direct resources where they are most needed and maintain non-dilutive working capital.
The Divestment Details

Under the binding Tenement Sale Agreement, a select portion of EL6506, covering approximately 80km², will be excised for the divestment. This area was identified as containing significant high-grade Halloysite during OAR's 2021 aircore drilling program.

Story Continues.. after this ad because we need some dollarydoos

ESG Minerals plans to utilize this excised area for the ongoing development of their methane emission reduction and carbon capture technologies.

Meanwhile, OAR will retain the remaining portion of EL6506, covering 236km². This retained area will contribute to OAR's exploration program for Rare Earth Elements (REE) on the Western Eyre Peninsula. Analysis of historic drill samples from this region has already revealed anomalous REE results, further highlighting its prospectivity.
Fueling Exploration

Managing Director of OAR Resources, Paul Stephen, expressed his enthusiasm for the strategic divestment and its implications for the company's exploration efforts. Stephen stated, "This strategic divestment will provide funding for the Company to accelerate exploration activity across its tenements in South Australia, which have demonstrated their prospectivity for REE and critical minerals. "

OAR Resources remains committed to advancing exploration work across its broader tenement package in South Australia. The company is also actively seeking new opportunities to strengthen its position as a player in the graphite, REE, and critical minerals space.

The market will receive further updates once the settlement has been finalized. In the meantime, OAR Resources continues its pursuit of unlocking South Australia's mineral potential and solidifying its role in the critical minerals sector.

Promote your business on our growing investor platform: Advertise With Us

Like

182 Share

Trending