Syrah Resources sells non-strategic assets to concentrate on Mozambique

21 May 2012

Syrah Resources is shedding non-strategic holdings so it can concentrate on exploiting graphite assets in Africa, especially the Balama project in Mozambique, the Australian company indicates in a document accessed by Macauhub.

The company agreed with ANR Resources on the sale for 900,000 Australian dollars of its stake in Syrah Resources (KSA), which controls a stake in Syrah Resouces Saudi Arabia LLC. The latter has 25 licences for mining exploitation in the country.

The money from this sale will be added to that earned by the company following a capital increase of 6.2 million Australian dollars and be used for the African projects, especially the 100 percent controlled Balama project, where drilling has already begun.

The deal follows another announced earlier in the month when Syrah Resources signed an agreement with Copper Strike to sell eight mineral sand prospecting licences in Tanzania.

Those licences, covering 1,350 square kilometres in the country’s northern and central coastal regions, will require much time and major resources to be exploited.

The Balama project in Mozambique is different from other graphite deposits in Canada, Europe and Australia due to its potential reserves, high quality and size of the ore collected after metallurgic testing. (macauhub)