Reach Resources Secures Additional Funding Through Non-Core Asset Sale
Reach Resources Limited (ASX: RR1) has strengthened its financial position through the sale of selected non-core assets to Delta Lithium Limited (ASX: DLI). The transaction will provide total consideration of AU$800,000, comprising AU$400,000 in cash and AU$400,000 worth of Delta Lithium shares, valued using a 30-day VWAP prior to the execution date. The sale relates to tenements previously covered under an earn-in and joint venture agreement with Delta, which will terminate upon completion of the transaction.
The divestment enables Reach to retain exposure to potential future value creation through its Delta Lithium shareholding while eliminating ongoing holding costs and future expenditure commitments associated with the non-core assets. Management noted that the transaction enhances funding flexibility and supports the advancement of the Company’s flagship Murchison South project.
According to CEO Jeremy Bower, the proceeds, combined with approximately AU$6 million recently raised through shortfall shares, placement shares, and option-related payments, leave the Company with close to AU$7 million in aggregate funding. This stronger balance sheet is expected to support accelerated exploration activities and the pursuit of additional growth opportunities.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Reach Resources Secures Additional Funding Through Non-Core Asset Sale
Reach Resources Limited (ASX: RR1) has strengthened its financial position through the sale of selected non-core assets to Delta Lithium Limited (ASX: DLI). The transaction will provide total consideration of AU$800,000, comprising AU$400,000 in cash and AU$400,000 worth of Delta Lithium shares, valued using a 30-day VWAP prior to the execution date. The sale relates to tenements previously covered under an earn-in and joint venture agreement with Delta, which will terminate upon completion of the transaction.
The divestment enables Reach to retain exposure to potential future value creation through its Delta Lithium shareholding while eliminating ongoing holding costs and future expenditure commitments associated with the non-core assets. Management noted that the transaction enhances funding flexibility and supports the advancement of the Company’s flagship Murchison South project.
According to CEO Jeremy Bower, the proceeds, combined with approximately AU$6 million recently raised through shortfall shares, placement shares, and option-related payments, leave the Company with close to AU$7 million in aggregate funding. This stronger balance sheet is expected to support accelerated exploration activities and the pursuit of additional growth opportunities.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au