HARANGA Resources has entered into an agreement for the sale of its Selenge Iron Ore Project in Mongolia. The company has executed a formal share sale agreement with Ambaatar Bilguun for the sale of its 100% interest in Mongolian subsidiary Haranga Iron LLC.
Haranga Iron holds an 80% interest in Haranga Khuder, which holds the Selenge project in the country’s north. The project comprises a mining licence and exploration licence.
The ASX has advised Haranga that it will require shareholder approval and the company is preparing the necessary notice of meeting, which it intends to hold in July.
On execution, the buyer will pay to Haranga a non-refundable deposit of US$100,000. After receiving shareholder and other regulatory approvals, the buyer will then pay US$1 million.
Twelve months from the first date that proceeds from the sale or other disposition of product from the Selenge project are received, the buyer will pay a further US$3.5 million.
In a release to the ASX, Haranga said the decision to divest the project was taken following a sustained period of investor disinterest in the project. It said, “The Board continues to actively pursue other opportunities to restore shareholder value.”
The company also advises that Peter Youd has been appointed to the Board of Directors while Brian McMaster has resigned as non-executive chairman. A chartered accountant, Peter Youd has extensive experience within the resources and oil and gas services industries. He has held a number of senior management positions and directorships for publicly listed and private companies in Australia and overseas.