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Archer Exploration to seek alternatives in divesting exploration assets

Last updated: 15:13 09 Oct 2018 AEDT, First published: 00:13 09 Oct 2018 AEDT

South Australia map
Archer will find alternate means of monetising exploration assets which include Blue Hills in South Australia

Archer Exploration Limited (ASX:AXE) has terminated the spin-out of non-graphite assets to a new company and will drill targets at its South Australian Blue Hills Copper-Gold Project from next month while it identifies alternate divestment routes.

The South Australia-based company had formed newco Ballista Resources Ltd with a view to seeing the subsidiary list itself on the Australian Securities Exchange last month.

However, Archer has now axed the plan-in-play for an initial public offering (IPO).

 

Archer reported today Ballista had told it a Ballista IPO would not take place this year.

Parent company Archer’s response was to cancel its share-sale divestment agreement using a clause that allowed termination if Ballista did not achieve a September 30 listing date.

Advanced materials-focused Archer now plans to identify alternatives to monetise its non-graphite assets.

Archer chairman Greg English told the market: “While the directors are disappointed at this outcome, the board remains confident in the potential of the non-graphite assets and we intend to commence drilling at the Blue Hills Copper-Gold Project in November.”

READ: Archer to produce disease-detecting biosensor from graphene with leading German biotech

First results from the latest drilling campaign at Blue Hills 240 kilometres north of Adelaide are expected in December.

The campaign will focus on large, district-scale gold-and-copper soil targets.

Archer previously discovered the Hood, Hawkeye and Katniss large-scale gold-and-copper in-soil anomalies at the Blue Hills tenements but has not explored the ground since announcing its planned divestment in July.

Today English said the tenements had “tremendous potential” and were prospective for copper, cobalt, gold and manganese.

The company’s corporate strategy is focused on targeting globally-relevant advanced materials markets of human health, reliable energy, and quantum technology.

Mr English concluded: “We are committed to growing our advanced materials and technology business and will look for alternatives to monetise the non-graphite assets”.

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