Aldoro Resources has agreed to sell its non-core projects for approximately $3.3 million, enabling a sharpened focus on its flagship Kameelburg Niobium-REE Carbonatite Project in Namibia. The deal includes a significant share distribution in Sultan Resources to Aldoro shareholders.
- Sale of Niobe, Narndee, Wyemandoo projects and EPL 7895 for ~$3.3 million
- In-specie distribution of 286.4 million Sultan Resources shares to Aldoro shareholders
- Focus shifted exclusively to Kameelburg Niobium-REE Carbonatite Project (EPL 7372 and 7373)
- Deferred cash payments contingent on resource milestones and mining decisions
- New drilling rigs arriving to advance exploration at Kameelburg
Strategic Divestment to Refocus
Aldoro Resources Limited (ASX – ARN) has announced a strategic divestment of its non-core assets, including the Niobe, Narndee, and Wyemandoo projects, as well as EPL 7895 in Namibia. The combined transaction is valued at approximately $3.3 million and is designed to streamline Aldoro’s portfolio, allowing the company to concentrate its resources and efforts on its flagship Kameelburg Niobium-Rare Earth Elements (REE) Carbonatite Project.
The divestment involves two sale agreements – one with Sultan Resources Limited (ASX – SLZ) for the Niobe, Narndee, and EPL 7895 assets, and another with Coppermoly Limited (ASX – COY) for the Wyemandoo project. Sultan Resources will issue 286.4 million shares to Aldoro shareholders on a one-for-one basis, with Aldoro retaining a portion of these shares. Additionally, deferred cash payments of $1.5 million are structured to be paid upon achieving specific resource and mining milestones within three years.
Sharpened Focus on Kameelburg
By divesting these peripheral assets, Aldoro is positioning itself to intensify exploration and development at Kameelburg, located on EPL 7372 and 7373 in Namibia. The company has recently identified high-grade niobium zones and is preparing for Phase 2 drilling campaigns, including targeting heavy rare earth elements at the Omuronga EPL 7373.
The arrival of two new diamond drilling rigs, the Nock 600 and Nock 800, scheduled for late September, underscores Aldoro’s commitment to advancing its core project. Early assay results from scout drilling have revealed anomalous mineralisation associated with magnetite zones and carbonatite formations, supporting the potential for a consolidated resource base.
Shareholder Engagement and Approvals
The transaction is contingent on customary conditions, including due diligence and regulatory approvals. Crucially, Aldoro shareholders will vote on the in-specie distribution of Sultan shares at a general meeting planned for 22 October 2025. Eligible shareholders in Australia and New Zealand will receive Sultan shares directly, while others will receive proceeds via a nominee.
Chairperson Quinn Li highlighted the strategic nature of the move, emphasizing the company’s intent to capitalise on the dynamic critical minerals market, particularly in rare earth elements and niobium. The board views this repositioning as a platform for future growth and value creation.
Looking Ahead
With the divestments expected to complete by early November, Aldoro’s streamlined focus on Kameelburg could accelerate exploration success and potentially unlock significant shareholder value. The company’s next steps will be closely watched, especially the outcomes of the upcoming drilling programs and shareholder approvals.
Bottom Line?
Aldoro’s divestment clears the path for intensified exploration at Kameelburg, setting the stage for potential resource growth and shareholder value uplift.
Questions in the middle?
- Will Aldoro’s shareholders approve the in-specie distribution of Sultan shares as planned?
- How will Sultan Resources integrate and develop the newly acquired projects?
- What impact will the upcoming Phase 2 drilling results have on Kameelburg’s resource estimates?