Straits considering to divest in Mt Muro

By Romel S. Gurky

ASX-listed Straits Resources Limited (Straits) is undertaking a review of options to divest its copper and gold businesses in Mt Muro.

Straits believes the value of its copper and gold businesses are not properly recognized in the market and that there is considerable benefit in examining a separation of the copper and gold businesses, the company said in press statement received by Petromindo on Thursday.

Recently, various parties have approached Straits expressing interest in potentially acquiring Straits? Mt Muro Gold-Silver Mine (Mt Muro).

To assist Straits in considering all value enhancing options of separating its gold business, Straits has engaged Investec Bank ( Australia ) Limited to review and solicit interest for a potential divestment of Mt Muro. Selected parties will be invited to conduct due diligence and submit proposals.

A divestment or demerger of Mt Muro would separate Straits? copper and gold assets and potentially enable greater management focus, flexibility and an investment re-rating. This decision marks the next phase for the successful ongoing development of Mt Muro.

Straits will provide updates on the process as appropriate.

Editing by Benget Besalicto Tnb.