Archer Fulfils Contract Conditions For The Sugarloaf Land Sales

Archer Fulfils Contract Conditions For The Sugarloaf Land Sales

Archer Exploration Limited (ASX: AXE) is a mineral exploration company based in Wayville, Australia, engaged in the discovery, development, and commercialisation of graphite, cobalt, manganese, copper, magnesite, barite, and gold deposits as well as online sale of carbon material products. 

On February 8th, 2019, Archer Exploration informed that the prerequisite for the settlement under the contract for the sale of the Sugarloaf farmland had been fulfilled. In November 2018, the company had announced that concerned site had been sold for $1.35 million, while the buyer was due to fetch finances within the deadline of February 1st, 2019. Of late, the latter has been successful in doing so, and the settlement will occur on July 1st, 2019 as scheduled.

The farmland lies within Archer tenement EL 5920 which also contains the proposed site for the Sugarloaf Graphite Processing Facility, to be developed for excavation of graphite from the Campoona mining lease.  While Archer has entirely sold the Sugarloaf farmland, it has kept an option to buy back ~30% of it under the terms of the agreement anytime within 20 years for the probable construction of the Sugarloaf Graphite Processing Facility. Following the last transaction, the company has realised AUD 3.35 million in asset sales including the sale of Leigh Creek Magnesite Project in July 2018.

Archer recently released an update on the Reverse Circulation Drilling Program at the Hood prospect, a part of the Blue Hills Copper-gold Project, located approximately 240 km north of Adelaide, South Australia. It is scheduled to be completed within a week as reported.

Besides, the company has collaboration and research service agreements with The University of New South Wales and The University of Adelaide for the development of carbon-based electrical energy storage technology and graphene and carbon-based materials for use in complex biosensing targeting applications in human health respectively. Also, the University of Sydney Commercial Development and Industry Partnerships (CDIP) extended an exclusive licence to Archer under an agreement in December 2018, which allows the company to develop and commercialise room-temperature quantum computing technology.

In April last year, Archer Exploration and Flex-G Pty. Ltd entered into a Strategic collaboration agreement to develop graphite and graphene-based advanced materials for high- performance computing systems, thermal management of electric vehicle batteries, and internal combustion engines.

As per the Mining exploration entity and oil and gas exploration entity report for the quarter ended December 31st, 2018, the company posted Cash and cash equivalents at the end of the quarter at AUD 1.60 million, down from AUD 2.10 million in the previous quarter. There were cash outflows from operating activities resulting from payments in exploration, evaluation, administration and corporate costs. The financing activities added inflows of AUD 9000 to the net cash while there were no investing activities in the period. Essentially, there was excess net cash at the beginning of the quarter at AUD 2.1 million.

At the end of the trading session on February 8th, 2019, AXE stock closed at a market price of AUD 0.072, down by 4% or 0.003 points.


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