Buxton Resources completes copper asset sale for $5.9M
- Buxton Resources has finalised the sale of its 49% interest in the Copper Wolf Project joint venture assets.
- The transaction generated immediate cash proceeds of $5.9 million and US$168,000 in property acquisition funds.
- The company intends to use the capital to reinforce its balance sheet and accelerate exploration activities.
Buxton Resources (ASX:BUX) has completed the sale of its 49% co-ownership interest in the Copper Wolf Project joint venture assets to IGO’s (ASX:IGO) IGO US Project for $5.9 million and US$168,000.
The divested asset was originally acquired by the company solely for pegging costs, contrasting with the multi-million-dollar cash consideration realised upon completion.
"Completion of the Copper Wolf asset sale materially strengthens Buxton's balance sheet and provides the financial flexibility to accelerate our exploration activities in Arizona and Western Australia," said Buxton Managing Director Martin Moloney.
The transaction also terminates the right of first refusal held by IGO and restores full autonomy to the company over its Arizona copper projects.
Following the announcement, the Buxton share price was up at $0.044.
The company retains 100% ownership over approximately 30.5km2 of exploration ground within the porphyry copper belt of Arizona, including the Wolverine, Sun Devil, and Aztecs targets.
The company stated that its strengthened balance sheet provides a secure platform to advance its existing exploration pipeline and pursue new project acquisitions.
