SYDNEY, AUSTRALIA: Alliance Nickel Limited (ASX: AXN), an emerging battery metals producer, has announced that it has sold its gold exploration subsidiary, Golden Cliffs NL, to a subsidiary of Zeta Resources Limited (ASX:ZER), a major shareholder of Alliance. The sale price was $400,000 in cash.
The move is part of Alliance’s strategy to focus on developing its flagship NiWest Nickel-Cobalt Project, located near Leonora, WA. The project aims to produce high purity nickel sulphate and cobalt sulphate, which are key ingredients for battery cathode manufacturers. Alliance says the project will target sustainable and ethical production of battery metals.
Golden Cliffs held a number of prospective gold tenements in the Murrin Murrin/Laverton area, but Alliance’s board decided that they were no longer core to the company’s vision. Alliance notes that one of its directors, Peter Sullivan, is also a director of Zeta Resources, the buyer of Golden Cliffs.
Alliance says that the sale did not require shareholder approval under the ASX Listing Rules, as Golden Cliffs was not a substantial asset of the company. Alliance’s total equity interests as of 30 June 2023 were $50,166,765, as stated in its financial report.