Mineral sands investment pays off for Sun shareholders

Sun Resources' shareholders will be able to see out the year without being tapped up for more exploration funds after the directors decided to sell their stake in mineral sands hopeful, Basin Minerals, following a successful takeover by Iluka Resources.
Mineral sands investment pays off for Sun shareholders Mineral sands investment pays off for Sun shareholders Mineral sands investment pays off for Sun shareholders Mineral sands investment pays off for Sun shareholders Mineral sands investment pays off for Sun shareholders

According to Sun managing director, Brad Farrell, who is also MD for Basin, Sun had invested around a million dollars in seed capital in office mate Basin over a six year period. He said they would book an $11.55 million profit on the investment, meaning there would not be any demands on shareholders for funding for the balance of the year.

Reversing the usual flow of cash for an exploration company, Sun said it would pay a four cent dividend to shareholders which would absorb $3.6 million of the funds.

Another $6.5 million would be spent on obligations this year which included the tie back development of the Argos field to the Legendre platform, and a string of Carnarvon Basin wells.

Also earmarked for further exploration were other areas of the Sun portfolio, which includes PNG, California and New Zealand.

Sun's strategy means it joins fellow junior Hardman Resources, who also booked multi-million dollar profits after exiting from strategic stakes in a fellow explorer - Hardman - having exercised at a considerable premium a convertible note which had given it 10% of Arc Energy.

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