Adavale Resources Ltd. has agreed to divest its Marree Embayment uranium portfolio to Orpheus Uranium in a cash-and-share deal valued at more than AU$1.2 million.
Under the agreement, Adavale will transfer seven granted exploration licences, EL5892, EL5893, EL6553, EL6597, EL6598, EL6821, and EL6890, to Orpheus.
In return, Adavale receives AU$650,000 in cash and five million Orpheus shares, currently valued at AU$575,000 based on a share price of 11.5 cents per share.
Completion remains subject to customary conditions precedent, including the assignment of two Native Title Mining Agreements and standard regulatory approvals for tenement transfers.
The divestment sharpens Adavale’s focus on its gold-copper assets within the Parkes Project, located in the Macquarie Arc of New South Wales’ renowned Lachlan Fold Belt.
The cash injection will directly fund ongoing exploration efforts, primarily aimed at upgrading the mineral resource at the London-Victoria deposit this quarter.
Simultaneously, the equity component provides Adavale shareholders with a 1.25 per cent stake in Orpheus, retaining exposure to the broader uranium sector.
Adavale Resources Executive Chairman Allan Ritchie said the transaction establishes value from non-core assets while sharpening the company’s operational focus.
“The execution of the sale agreement with Orpheus not only crystallises value in non-core assets for ADD but enables ADD shareholders to maintain exposure to the uranium assets and potential within the broader ORP project portfolio,” Ritchie said.
“Since entering the binding agreement, Orpheus’ share price has nearly doubled, reflecting the market’s positive engagement with the exploration activity currently being undertaken by Orpheus.
“We know the team at Orpheus and have every confidence in their abilities to continue to return great value to all stakeholders including Adavale.”
Adavale continues to progress exploration across its 610 square kilometre tenure at the Parkes project under Managing Director David Ward, with an updated mineral Resource estimate expected later this quarter.
