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Archer Exploration brings in $250,000 cash with magnesite asset sale

The company’s chairman confirmed Archer is considering divestment alternatives for its non-graphite assets.
Accessing unique technology by licence is a key goal for Archer

Archer Exploration Limited (ASX:AXE) has reported its collaboration achievements for the September quarter on the back of a $250,000 cash inflow from the sale of subsidiary Leigh Creek Magnesite Pty Ltd.

The advanced materials-focused company, which is examining options for its exploration assets, spent $279,000 on exploration and evaluation in the quarter.

READ: Archer Exploration to seek alternatives in divesting exploration assets

Once staff, administration and corporate costs were added on, it reported a $943,000 loss from operating activities.

Archer held $2.75 million cash and cash equivalents at the start of the quarter and ended with $2.1 million cash and cash equivalents.

Among the collaboration agreements the company highlighted today were its University of Sydney Commercial Development and Industry Partnerships negotiations for carbon-based quantum computing technology, its Collaboration with The University of Adelaide ARC Graphene Hub for printing graphene inks and University of New South Wales battery production for consumer and electric vehicle markets.

Archer executive chairman Greg English said the negotiation for a final licence agreement with USyd continued during the quarter, reporting an improved expected timetable for negotiations.

English said: “At this stage, we expect to execute the final form licence agreement and commence development work by the end of this year.”

The technology was created by Archer chief executive officer Dr Mohammad Choucair during his former employment with the university.

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

The company holds the Campoona graphite deposit in South Australia, with English highlighting recent collaboration work had been a win for demonstrating the value of the asset.

English said: “During the quarter we made considerable progress in the development of a biosensor to be used in the detection of infectious diseases.

“The University of Adelaide ARC Graphene Hub, in collaboration with Archer, prepared graphene-based ink from Campoona graphite to print electrodes for biosensing device application.

"The signing of the material transfer agreement with a leading German biotechnology company will allow a study to be performed using these biosensors in diagnostic products for infectious disease serology.

“The successful assembly and testing of commercially scalable full-cell configuration lithium-ion batteries using Archer’s Campoona graphite was a great achievement and should assist the company as it continues its search for offtake partners.”

Speaking in the company’s quarterly activities report today, English acknowledged Archer’s recent decision not to spin out non-exploration assets into a subsidiary known as Ballista Resources Ltd that it had planned to list on the Australian Securities Exchange.

English reported: “The spin-out of the non-graphite assets will not proceed in its current form, and we plan to consider alternatives to divest these projects, while commencing with the drilling of the Blue Hills Copper-Gold Project next month.”

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

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