ASF Group divests coking coal portfolio for $3.1M

ASF Group (ASX:AFA) has finalised a share sale and purchase agreement to divest its entire coking coal asset portfolio for $3.1 million in cash.

Under the terms of the binding agreement, Terra Mineral Resources Investment will acquire 100% of the issued shares in ASF Coking Coal, a wholly-owned but non-core subsidiary of the parent company.

The transaction hands TMR full control over a portfolio consisting of nine coal tenements strategically located across Queensland.

The ASF board expressed strong confidence in the strategic divestment, stating that the transaction represents an excellent outcome for the company and its shareholders by unlocking tangible value from its resource portfolio.

The transaction is scheduled for official completion within fifteen calendar days following the execution date of the agreement.

ASF Group plans to strategically redeploy the $3.1 million in capital proceeds to fuel its future growth initiatives, fund new investment opportunities, and strengthen its ongoing working capital position.

Following the divestment, ASF Group intends to maintain its primary focus on pioneering high-value, cross-border trade and investment opportunities across its remaining core focus sectors, which include property, technology, and financial services.