DevEx selling NSW copper-gold assets to focus on uranium and REEs

DevEx is focusing its exploration efforts on the Nabarlek uranium project and Kennedy clay-hosted REE discovery, after reaching a deal to sell its New South Wales copper-gold portfolio for $7.5m.

While the Junee, Basin Creek and North Cobar projects have considerable potential for a major copper-gold discovery with multiple drill targets identified, the company believes that simplifying its portfolio will allow it to give both Nabarlek and Kennedy the attention they deserve.

That’s not to say that DevEx Resources’ (ASX:DEV) involvement in the projects will end following the sale to Lachlan Star (ASX:LSA).

Consideration for the acquisition comes in the form of $7.5m worth of shares, which will make DevEx the single largest shareholder in Lachlan Star with a 36.46% holding. DevEx will also appoint two directors to the Lachlan Star board.

In addition, the company will have a 2% net smelter royalty, ensuring that it is exposed to any production upside.

Trimming portfolio for greatest impact

Managing director Brendan Bradley said that while the NSW assets are located in prominent areas – with Junee in Australia’s copper-gold porphyry heartland and North Cobar along strike from the world-class Cobar mining centre – and have delivered exciting early-stage results, they needed sustained and focused exploration effort to unlock their full potential.

“In light of the success we have been enjoying at our Nabarlek uranium project – where we have an exceptional opportunity to discover and delineate high-grade uranium resources at a very favourable time in the uranium cycle – and the immense potential of our Kennedy ionic clay-hosted REE project, we believe it is in shareholders’ best interest to focus on these outstanding opportunities,” he explained.

“This transaction will see the NSW assets transferred into a well-backed exploration company where they will become the key focus.

“DevEx shareholders will retain exposure to the upside as LSA’s major shareholder, and we expect to have considerable input into ongoing exploration strategy through representation at board level.”

NSW tenements

The Junee, North Cobar and Basin Creek projects cover a total area of 1,956km2 across 11 tenements and host a number of exploration targets, including the advanced Nangus Road prospect.

Nangus Road is a large-scale drill target that hosts shallow, high-grade gold mineralisation that is open to the north, south and at depth while anomalous copper and other pathfinder elements are open to the south.

This article was developed in collaboration with DevEx Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.