Getting widespread coverage today across a number of different mediums.
Have a good weekend.
cheers Aussie
Exco Resources (ASX: EXS) shareholders have approved the sale of the Cloncurry Copper Project sale to Xstrata (LON: XTA) for $175 million - after a general meeting.
Importantly, Xstrata has received confirmation from the Foreign Investment Review Board that there are no objections to the proposed sale in terms of the Australian Government?s foreign investment policy.
The outcome for Exco is that the company will now return around $135 million to shareholders, which will leave the company will a very healthy cash balance between $50 million to $60 million.
Exco is not only well funded for exploration, but has also outlined the possibility of an acquisition or farm-in in the near future, with these projects not necessarily having a copper focus.
The decision to sell the Cloncurry Copper Project was a strategic one for Exco, allowing the company to realise early value from the project, rather than the approach of many peers which continue down the path to full development - which can extend the value realisation timeline out for many years.
Exco though still maintains a significant ground holding in the Cloncurry area, which hosts the highly prospective Hazel Creek copper gold project.
The company has already allocated a multi-million exploration budget to Hazel Creek, which will comprise reverse circulation then diamond drilling to follow-up on advanced targets.
A final positive for Exco is that the company will soon start receiving cash flow from the Great Australia royalty, with payments expected to gross around $30 million based on a copper price of US$4.20 a pound.
EXS Price at posting:
65.0¢ Sentiment: Hold Disclosure: Held
