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Adavale Resources executes uranium portfolio sale
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Adavale Resources executes uranium portfolio sale

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  • Adavale Resources finalised the sale of its Marree Embayment Uranium Portfolio to Orpheus Uranium.
  • The deal delivers $650,000 in cash and 5,000,000 shares valued at $575,000 to Adavale.
  • Proceeds will fund exploration at Adavale's core gold-copper Parkes Project in New South Wales.

Adavale Resources (ASX:ADD) signed a sale agreement to divest its Marree Embayment Uranium Portfolio to Orpheus Uranium (ASX:ORP) for $1.2 million in cash and shares.

The sale follows a binding agreement between the two exploration companies announced on June 11 for seven granted exploration licences.

"The execution of the sale agreement with Orpheus not only crystalises value in non-core assets for ADD but enables ADD shareholders to maintain exposure to the uranium assets and potential within the broader ORP project portfolio," said Adavale Resources Executive Chairman Allan Ritchie.

Completion remains subject to standard conditions, including the assignment of two native title mining agreements and regulatory approvals to transfer the tenements.

Adavale stated that the transaction sharpens its strategic focus on its gold-copper assets while retaining a 1.25% equity stake in Orpheus.

Following the announcement, the Adavale Resources share price was unchanged at $0.038, while Orpheus Uranium’s share price was $0.12.

The company stated that cash from the sale will fund ongoing drilling at the Parkes Project in the Lachlan Fold Belt.

Adavale stated that it is targeting an updated mineral resource estimate for the London-Victoria deposit within the current quarter.

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