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Magnis Resources (ASX:MNS) announced an update to shareholders on its plans for divesting the Company’s non-core assets.
Magnis Resources (ASX:MNS) announced an update to shareholders on its plans for divesting the Company’s non-core assets.
As quoted from the press release:
In recent times, the Board has fielded a number of proposals for its uranium assets and as such will be looking to unlock maximum value for shareholders, as
well as maintaining strong focus on its world class graphite project. The Board is of the opinion that Magnis’ current share price attributes minimal value to our noncore assets and shareholders would gain more value through a demerger of the assets into another vehicle with all shares received by Magnis as consideration, being distributed to shareholders via an in specie distribution.
In addition to Magnis’ three uranium projects which have a combined Mineral Resource of approximately 44M lbs U3O8, there are projects for other commodities within the Company’s portfolio which may be included in the divestment.
Magnis Resources Chairman Frank Poullas stated:
We believe the best way to unlock value from our noncore assets and create additional value for shareholders is by spinning them off. The uranium
spot price is starting to rise and the supply and demand dynamics point to higher uranium prices ahead. The Board believes the time is right for a spin-off and is encouraged by the strong interest shown from parties looking at funding the new vehicle. Furthermore, this enables Magnis to fully focus on developing the world class Nachu graphite project in Tanzania.
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