Oar Resources Ltd (ASX:OAR) has completed the sale of its non-core Bramfield Iron Ore Project in South Australia to Dragon Resource Investment Pty Ltd, a subsidiary of Vietnamese steelmaker Hoa Phat Group, for an all-cash settlement of A$440,000.
Previously, the company had refocused efforts on its critical minerals portfolio while the Bramfield Project had been written down by OAR to nil value.
As part of the revised strategy, OAR recently acquired the highly prospective Denchi Lithium Project in Western Australia’s Northern Goldfields region.
Moving forward, the Bramfield sale provides additional non-dilutive funding that will be used to advance exploration at the Denchi Lithium Project.
Bolster cash position
OAR CEO Paul Stephen said of the divestment: “We are pleased to conclude the cash sale of this asset and bolster our cash position to further fund exploration of our core projects.
“That includes further evaluation of our newly acquired Denchi Lithium Project.
“A field team is heading to site this week to investigate multiple pegmatite outcrops across the project area as part of an aggressive exploration campaign.”
Shifts focus to critical minerals
The sale was subject to the successful excise of the exploration area comprising the Bramfield Iron Ore Project by conditional surrender from the company's exploration licence 6558, and the consequent issue to DRI of a new exploration licence covering the Bramfield Iron Ore Project only.
Due to COVID and other factors impacting the state regulator, there were several delays in granting the new licence.
As a result, the parties have agreed to a slight discount on the originally agreed price to conclude the sale on time.
Notably, the sale forms part of an overarching strategy to shift focus to critical minerals.