Lincoln Minerals said it has received informal approaches regarding transactions related to its uranium assets in South Australia.
This has prompted Lincoln to launch a third-party funding strategy where the company could partially divest or sell assets.
“This third-party funding strategy aims to unlock the substantial value which Lincoln believes resides in its uranium portfolio, which it considers is not currently reflected in its valuation,” Lincoln said.
Lincoln holds a significant uranium footprint on the Eyre Peninsula, represented by its Eridani and Yallunda uranium projects.
The company has identified high-grade uranium mineralisation at Eridani, with a recent first-pass reconnaissance program confirming high levels of carnotite uranium mineralisation.
Lincoln is also investigating a 7km-long uranium anomaly at Yallunda, located south-west of Eridani.
The company will conduct soil, calcrete and rock-chip sampling along the 7km trend, with a follow-up geophysical survey to take place after initial results are returned in late November.
Lincoln chief executive officer Jonathon Trewartha said funding from the third-party program would go towards supporting the company’s flagship Kookaburra graphite project.
“Lincoln is blessed with an exploration and development asset base spanning multiple commodities that are considered critical, built up over the 15-plus years the company has been active on Eyre Peninsula,” Trewartha said.
“The company’s focus remains its high-grade Kookaburra graphite project, via which we aim to become Australia’s next graphite producer due the exceptionally high-grade mineralisation at surface as well as the anticipated substantial demand growth for flake graphite in forth coming years.”
“Much like our Green Iron project, it is Lincoln’s view that within our current share price, very little value is ascribed to our uranium portfolio, despite its high-quality and potential.”
Trewartha said given recent informal approaches, it was in the company’s and shareholders’ best interests to commence the third-party funding strategy.
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