- Cauldron Energy (CXU) is selling its 51 per cent stake in the Victorian Blackwood gold project
- The sale is part of a strategic review
- The company is shifting its focus toward exploring the energy transition
- Cauldron remains open to opportunities for “prioritised commodities”
- Shares last traded at 0.7 cents
Cauldron Energy (CXU) has announced the sale of its 51 per cent stake in the Victoria-based Blackwood gold project as the company shifts its focus towards critical minerals and uranium.
Blackwood will be sold to privately held Currawong Resources for $300,000, with $200,000 of that amount due within 30 days of shareholders approving a sale date, and the final portion due before the one-year anniversary of the sale.
The company intends to use the proceeds to concentrate on its Melrose nickel-copper project in Western Australia. A recent electromagnetic study has identified high-priority target anomalies underground, indicating the potential for commercial-scale deposits of critical base metals. Platinum group elements are also believed to be present at Melrose.
Significantly, Melrose is located in the West Yilgarn Craton in Western Australia, a geological area known for high-grade discoveries.
Meanwhile, Cauldron continues to develop its Yanrey uranium project, also in Western Australia, which, according to the company’s description, is one of the largest undeveloped deposits in the world.
“This transaction demonstrates the management is delivering on its plan for the strategic turnaround of Cauldron,” Caldron CEO Jonathan Fisher said.
“Strategically, the Blackwood gold project did not fit within the current strategy of the company to focus on minerals critical to the global decarbonisation strategy.
“In addition, the current environment for mineral exploration and mining in Victoria was considered better suited to be managed by others with significant interests in Victoria and resources.”
CXU shares last traded at 0.7 cents.