PERTH (miningweekly.com) – ASX-listed Crusader Resources has entered into a conditional sales agreement to divest of its Posse iron-ore mine, in Minas Gerais, Brazil.
Inter Invest will pay A$3.2-million for the asset over a 17-month period, with the sale conditional on Crusader receiving a first payment of A$400 000 by August 10.
The divestment of the Posse mine and its one-million-tonne-a-year processing plant forms part of Crusader’s strategic decision to focus on the development of its gold assets, and is part of the company’s merger with London-listed Stratex International.
“We are very pleased to realise value for Posse that will help us focus on our goal to becoming a gold producer in Brazil. As at December 31, Crusader had impaired the carrying value of Posse on its balance sheet to nil. However, Posse will be a cornerstone asset for Inter Invest’s new iron-ore business, who are seeking to deploy the capital required in order to beneficiate the remaining itabirite resource,” said Crusader MD Rob Smakman.
Management of the Posse mine will transition to Inter Invest over the coming months, and it is understood that the new owner will retain the existing Posse employees and continue with the project’s various current active contracts.