Syrah Resources (ASX: SYR) is divesting further non-core assets in a strategic move to increase its focus on its core African graphite portfolio, which includes the large, high grade Balama Project in Mozambique.
The company has entered into a share sale and purchase agreement to sell its interest in Syrah Resources (KSA) to ANR Resources for A$900,000.
Syrah Resources (KSA) holds shares in Syrah Resources Saudi Arabia LLC, which has 25 exploration licence applications in Saudi Arabia.
Syrah is ramping up towards the delivery of a maiden JORC Resource at Balama, committing to 15,000 metres of drilling.
Graphite mineralisation has been geologically mapped over a strike length in excess of 7 kilometres.
A diamond drill has already been mobilised to site to begin at least 5,000 metres of drilling. A further 10,000 metres of reverse circulation drilling is also planned.
Balama has already differentiated itself from graphite deposits in Canada, Europe and Australia through its large tonnage potential, high grade and coarse flake size, which is being revealed through exploration and metallurgical work.
Syrah has previously demonstrated saleable grades of graphite from the project through initial metallurgical testwork.
Graphite has recently had quite a substantial return to interest from the investment community due to its near-term prospects and long-term growth potential.
Prices of coarse flake graphite have risen from around US$600 per tonne to US$3,000 per tonne between 2004 and 2011.
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