High Grade Metals divests from WA vanadium play
Surefire Resources NL (ASX:SRN) has signed a binding Agreement with High Grade Metals Limited (ASX:HGM), Mutual Holdings Pty Ltd and Acacia Mining Pty Ltd to purchase Exploration Licence 57/1036 at Victory Bore in the mid-west of Western Australia.
The Victory Bore Project is located 560 kilometres north-east of Perth and abuts the northern boundary of Surefire’s Unaly Hill project. The deposit is contained within the Atley Igneous Complex, a layered sequence of gabbros with magnetite rich layers enriched with vanadium and titanium.
The sale of the Western Australian project frees HGM to maximise its efforts and effectively deploy capital in developing the Austrian projects.
News of the divestment comes after HGM earlier this week announced its plans to refocus on its highly prospective Austrian assets.
Sale proceeds include $500,000 in cash, as well as other payments depending on SRN’s progress in terms of completing a prefeasibility study with an internal rate of return of more than 20%, as well as the announcement of a decision to mine.
However it is an early stage of this company’s development and if considering this stock for your portfolio you should take all public information into account and seek professional financial advice.
Regarding the decision to divest from Victory Bore, Managing Director of HGM Torey Marshall said, “We are pleased to have been able to monetise our non-core asset in Western Australia.
“This is a good result for shareholders as it places sole focus on our prospective Austrian projects, delivering a modest increase in our cash and asset position while retaining exposure to some of the potential upside for our shareholders if the WA project reaches two important milestones.
“We look forward to future results of the project under the stewardship of the Surefire team,” he said.
HGM has a portfolio of brownfield cobalt, copper and gold assets in Austria, a country well regarded as a mining friendly destination.
The company’s major projects cover an area of about 84,000 square kilometres across central Europe.
The experienced management aims to grow the value of HGM’s project portfolio to benefit shareholders by leveraging innovation and maximizing value of the assets through systematic exploration.