Astro Resources NL (ASX:ARO) will fully focus its resources on advancing its primary US lithium and Australian mineral assets after deciding not to progress a proposed strategic alliance with Nevada Exploration Inc. (TSX-V:NGE)
Core assets include the recently secured Kibby Lithium Project and Needles Gold Project, both in Nevada, USA, and the Governor Broome Mineral Sands Project in WA, together with the proposed acquisition of the Georgina Basin IOCG Project in the Northern Territory from Greenvale Energy.
In addition, Astro is looking at increasing its lithium footprint in Nevada to take advantage of the strong lithium skills base and expertise within the company.
Astro recently announced a sale agreement with Greenvale to acquire the Georgina Basin IOCG Project in exchange for 1.15 billion ARO shares.
Read: Astro Resources stakes claim in IOCG project thanks to deal with Greenvale Mining
As part of the deal, Greenvale CEO Matthew Healy will become the Astro chief executive, while Greenvale directors Neil Biddle and Tony Leibowitz will join the Astro board.
ARO will not proceed with alliance
Astro chairman Jacob Khouri said the decision not to pursue the strategic alliance with Nevada Exploration was consistent with a reprioritisation of its focus and resourcing in light of the proposed transaction with Greenvale Energy and its acquisition of significant US lithium interests.
“Given the strong lithium background and capabilities of the incoming directors and management team as a result of the IOCG acquisition from Greenvale Energy, together with a reappraisal of our priorities in light of current market conditions, the board has had had to make the difficult decision not to proceed with the NGE Strategic Alliance,” he said.
“We wish NGE every success going forward.”