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Aeris Resources (ASX:AIS) is selling off its “non-core” copper assets in North Queensland to a private company called Dingo Minerals in a deal that nets the former $15.5 million, comprising up to $5 million in immediate cash, the “release of ~$6.5M of environmental bonds” and other deferred payments.
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This has led at least one HotCopper user to reflect that “a dingo took our baby.” Dingo Minerals is a South Australia-based company, according to its latest ASIC listing; it appears another company by the same name deregistered in August before re-registering a month later.
That’s neither here nor there. Aeris’s sale of its FNQ copper acreage, it says, aligns with a simplification strategy aimed at streamlining its portfolio. The company highlighted it didn’t need shareholder approval for the transaction.
With the company the beneficiary of this month’s critical metals deal momentum, AIS currently retains intact recently-inked YoY gains of +155%.
Perhaps to the point of the company’s strategy, liquidity has recently increased when it comes to daily share volumes and the stock currently remains rated ‘buy’ by two brokers according to public data.
So what will the $15.5M be used for? Either investment into growth projects, and/or the repayment of debt, per its Executive Chair Andre Labuschagne.
“The sale of the North Queensland copper assets is a positive step for… [it] aligns with our strategy to simplify the portfolio to focus on core assets,” Labuschagne added.
AIS last traded at 58cps.
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