Alara Resources Ltd. said Dec. 19 that it agreed to sell 19% of its 70% shareholding in the Al Hadeetha Resources LLC joint venture to a member of the Al Tasnim Group, for 3 million Omani riyal, or about A$10.7 million.
Al Tasnim is an Omani construction and infrastructure business group.
Al Hadeetha Resources, the joint venture between Al Hadeetha Investments LLC and Alara, owns the Al Hadeetha copper project in Oman.
Alara will receive the sale proceeds following the transfer registration with Omani authorities, expected within the week of Dec. 17. Alara intends to use the proceeds from the sale, along with other debt financing, to complete the project's capital requirements.
Al Hadeetha is on track to become Oman's next producer of copper concentrate, with a 1 million-tonne-per annum processing plant planned for the Washihi Mazzaza site.
Alara remains in discussions with potential equity partners and continues to assess opportunities where prospective parties can add value to its existing project portfolio, including the Al Hadeetha, Daris and Awtad copper projects in Oman, and the Khnaiguiyah zinc project in Saudi Arabia.
As of Dec. 21, 1 Omani riyal was equivalent to 38.5 U.S. cents.