Blackstone Resources sells exploration interests for CHF 22 million
BAAR, Switzerland – (16 May 2020) – Blackstone Resources AG (SWX: BLS) is pleased to announce that it has sold its invested rare earth interests in Norway for CHF 22 million. In total, Blackstone held 50 sq. km exploratory mining concessions located across three different rare earth sites in Norway, which it successfully developed prior to the transaction.
Blackstone will retain its remaining mining concessions for past producing gold and silver mines. It also has a buyback option for these invested interests in the future. Furthermore, Blackstone has a 2% royalty agreement in place until 2030.
Since 2018, Blackstone has carried out substantial geological works in Norway, through its subsidiary. In 2018, its London-based geological team organised three teams to visit these sites. Each team consisted of between two to four geologists and geophysicists from Cambourne School of Mines, at the University of Exeter. Overall, more than 900 samples were collected and analysed.
Blackstone decided to sell its position in the project to focus on other areas which are more aligned with its business interests. The company plans to build a vertically integrated battery company that spans the battery supply chain in the coming years. The business felt these rare earth interests were less of a fit for Blackstone’s business model, when compared to other battery metal opportunities.
During the sale, there was strong interest from both Canadian and Australian investors. The sale amount of CHF 22 million equates to a profit of CHF 0.52 per share. The transaction increased Blackstone’s equity (excluding non-controlling interests) from CHF 25 million to CHF 47 million, which equates a book value of CHF 1.10 per share.
Blackstone Resources AG
Blackstone Resources is a Swiss Holding Company, with its legal domicile in Baar, Kanton Zug and is concentrating on the battery metals market as primary metals. In addition, it sets up, develops and manages refineries used for gold and battery metals. It offers direct exposure to the battery metal revolution that is being driven by the demand of electric vehicles that need vast quantities of these metals. These include cobalt, manganese, molybdenum, graphite and lithium. In addition, Blackstone Resources has started a research programme on new battery technologies.
For more information please visit www.blackstoneresources.ch or contact:
Blackstone Resources AG
Blegistrasse 5 T: +41 41 449 61 63
CH-6340 Baar F: +41 41 449 61 69
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