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Alara Resources reveals potential buyer of Saudi subsidiary

Alara Resources Ltd. has revealed the potential buyer of its Saudi subsidiary Alara Saudi Operations Pty. Ltd. as Riyadh-based Metals Corners Holding Co., which is understood to be linked to one of the shareholders of United Arabian Mining Co. LLC, whose four-year case against the ASX-listed junior was just dismissed by a local judge.

Prompted by the ASX, Alara emerged from a trading halt on Oct. 10 to reveal the company which made the offer referred to in the Oct. 3 announcement of the case's dismissal, sending the stock up by nearly 20%.

Alara has met with Saudi government officials since that decision to discuss a path forward for the Khnaiguiyah zinc-copper project, with more meetings planned for later this month, though the Perth, Australia-based junior said the asset will only become a priority for it if a mining license is granted. Al Hadeetha and Alara's other copper projects in Oman are its focus.

The junior revealed that Metals Corners offered to buy the subsidiary for 1 million Saudi Arabian riyals, or about A$377,000, payable on Nov. 1, though disclosing the amount could potentially reduce the amount which any other interested party would be prepared to offer for it.

However, the offer does not include the purchase of the Khnaiguiyah feasibility study, which Alara will keep until it reaches an agreement to sell it.