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OAR Resources Announces Strategic Divestment

21 November 2023 11:12
ASX: OAR

Latin Resources Limited (ASX: LRS, OTC: LRSRF) wholly-owned subsidiary, ESG Minerals Pty Ltd, has initiated the mutually beneficial acquisition of the Gibraltar Halloysite-Kaolin Project, located in South Australia, from OAR Resources Limited (ASX: OAR) for $500,000 cash providing ample strategic opportunities for both Companies.

Cash Infusion for Core Asset Advancement

OAR Resources’ divestment of the Gibraltar Halloysite-Kaolin Project demonstrates the Company’s commitment to its development strategy to optimise its non-core assets, directing internal funds toward the advancement of exploration initiatives on its core assets.

The $500,000 cash infusion from the sale of the Project will significantly contribute to the acceleration of OAR’s critical minerals exploration program, particularly in South Australia, where there is evident potential for Rare Earth Elements (REEs) and critical minerals.

Divestment Structure and Area Coverage

The divestment involves the sale of a portion, approximately 80 square kilometres, of Exploration License EL6506 which covers a total area of 316 square kilometres.

This strategically identified portion contains significant high-grade Halloysite, a mineral with valuable applications. ESG Minerals plans to further explore the area unlocking this potential.

The retained portion of EL6506, estimated at 236 square kilometres, will continue to support OAR’s Western Eyre Peninsula REE exploration program.

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Figure 1: Excised area of Gibraltar Halloysite-Kaolin Project

Utilisation by ESG Minerals Pty Ltd

ESG Minerals Pty Ltd has plans to leverage the excised area for the ongoing development of methane emission reduction and carbon capture technologies.

The high-grade Halloysite discovered during OAR’s 2021 aircore drilling program positions the excised south-west portion of the tenement as a valuable resource for ESG’s technological endeavours.

Harnessing Halloysite

Latin Resources, the owner of ESG Minerals, is engaged in a groundbreaking research project in partnership with CRC CARE. This three-year, $3.2 million initiative aims to explore the potential of halloysite in developing innovative emission reduction technologies for the cattle industry.

The Project seeks to customise Australian halloysite/kaolinite minerals to create material-based solutions, including cattle feed supplements, spreadable materials, and halloysite shale, with the goal of effectively inhibiting and adsorbing methane emissions in this dynamic sector.

Future Outlook and Exploration Commitment

OAR Resources Managing Director, Paul Stephen, expressed the significance of this strategic divestment in funding the Company’s exploration initiatives.

“This strategic divestment will provide funding for the Company to accelerate exploration activity across its tenements in South Australia which have demonstrated their prospectivity for REE and critical minerals,” he said.

“OAR continues to advance exploration work across the Company’s tenement package in South Australia while also investigating new opportunities to bolster its position as a graphite, REE and critical minerals player.”

OAR’s Australian Stock Exchange-listed share price is currently trading at $0.004 (10:00am UTC+ 8 hours).

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