Iron Bear sells Australian unit for $300,000
- Iron Bear Resources executes a binding term sheet to sell Australian subsidiary Mining International.
- The transaction generates $300,000 cash consideration alongside an ongoing net smelter royalty.
- Divestment aligns with strategic refocusing towards the flagship Canadian asset.
Iron Bear Resources (ASX:IBR) has executed a binding term sheet to sell its Australian subsidiary, Mining International, to Copperhead Investments for $300,000.
The cash consideration comprises an immediate $75,000 initial payment with the remaining balance due within 90 days.
"The disposal of this non-core asset is consistent with the company's strategy to focus on its flagship Iron Bear Project in Canada," said Iron Bear Resources.
The transaction also includes a 0.5% net smelter royalty on mineral production, which the buyer can repurchase for $500,000.
Following the announcement the Iron Bear Resources share price was unchanged at $0.028.
The company's primary focus remains on developing its flagship magnetite iron ore project in Canada.
The divestment eliminates non-core holding expenses to simplify operations and allocate resources towards primary exploration goals.
