Warriedar Resources sale of Golden Range camp assets to Fenix Resources

Warriedar Resources Limited (ASX: $WA8) has signed a binding agreement to sell its residual Golden Range camp assets to Fenix Resources Limited (ASX: $FEX) for A$2 million in cash. The transaction is set to be completed on 5 August 2024, with Warriedar retaining the first right of refusal to repurchase the camp in the future. The cash proceeds from the sale will be utilized for ongoing exploration drilling of Warriedar's highly prospective 25km-long 'Golden Corridor'.

Warriedar Managing Director and CEO, Dr Amanda Buckingham, on the sale agreement

The Golden Range camp is a fully established mining camp designed to support operational mining activity. This sale unlocks capital for Warriedar while also maintaining the operational support required for our regional explorational activities. The transaction provides us with significant additional cash for value-adding exploration via the sale of a highly underutilised asset. It also avoids unnecessary duplicative camp construction, while providing an option for Warriedar to resume ownership of the facilities when we are in a position to fully utilize them. It really is a winning outcome for all parties.

Warriedar Resources sale of Golden Range camp assets summary and outlook

Warriedar Resources (ASX: $WA8) has successfully entered into a binding agreement to sell its residual Golden Range camp assets to Fenix Resources for A$2 million in cash. The sale agreement includes provisions for Warriedar to retain the first right of refusal to repurchase the camp in the future, as well as operational support for its regional exploration activities. The cash proceeds from the sale will contribute towards ongoing exploration drilling of Warriedar's highly prospective 'Golden Corridor'. This strategic move not only unlocks capital for Warriedar but also ensures the maintenance of operational support required for its explorational activities. The company's ability to repurchase the camp in the future provides flexibility, while the additional cash generated from the sale will aid in value-adding exploration. Looking ahead, this sale positions Warriedar to continue its exploration efforts and leverage the potential of its 'Golden Corridor' with the support of the proceeds from the asset sale.