Cash-strapped Maximus Resources has put its assets up for sale, including its stake in the Windimurra uranium deposit in WA, as it resigns itself to the belief it will not be able to raise enough funds to develop its first major mine.
Cash-strapped Maximus Resources has put its assets up for sale, including its stake in the Windimurra uranium deposit in WA, as it resigns itself to the belief it will not be able to raise enough funds to develop its first major mine.
Cash-strapped Maximus Resources has put its assets up for sale, including its stake in the Windimurra uranium deposit in WA, as it resigns itself to the belief it will not be able to raise enough funds to develop its first major mine.
Adelaide-based Maximus said its high-grade Bird-in-Hand gold project in the Adelaide Hills has also been put on the market under the company's previously flagged asset rationalisation program.
It hopes the sale will boost its cash reserves, allowing it to focus on other projects with nearer term production potential.
Maximus had only $148,000 cash at the end of March.
The company began producing nuggets from its Sellheim gold operation in northeast Queensland under a trial program in December, with cashflow earmarked for development of the Bird-in-Hand project.
But managing director Kevin Wills said the global financial crisis had severely restricted the company's ability to bring Bird-in-Hand to commercial fruition, "something more likely possible with a future owner able to ensure the project's long-term viability".
"By offering Bird-in-Hand on a preferred whole-of-project basis, and with a large proven resource, we believe it will have wider market appeal," Dr Wills said.
"While we will entertain part asset disposals, a total project sale for Bird-in-Hand would seem preferable to a joint venture in ensuring this exciting gold project matures as early as possible to its full potential."
Maximus also reiterated its plans to sell all or some of its stake in the Windimurra uranium deposit, which is part of the Narndee project in Western Australia's Mt Magnet region, and the Ironstone Well gold project, also in WA.
The company is retaining a base metals project at Windimurra-Narndee, where it believes there are strong nickel and copper-zinc prospects.
"The sale process, for all or part of the assets offered, can lead to Maximus emerging in a much stronger financial position," Dr Wills said.
The company sold its Canegrass magnetite iron and vanadium prospect, which is part of the Narndee project, early this month to Flinders Mines for $200,000 cash, $1.1 million worth of Flinders shares and a net smelter royalty.
Shares in Maximus were steady at three cents at 1142 AEST.