Xstate Resources Limited (ASX:XST) Divests Crest Jinn Assets
Divestment Details
Xstate Resources Limited has agreed to sell its 25% working interest in the Crest Jinn assets to Blue Sky Resources Limited. The company will receive a 3% overriding royalty on 25% of production from existing and future wells in the 10,240 gross acres. The transaction, effective January 1, 2025, is valued at approximately A$11,715.
Commercial Rationale
The board decided to divest due to an impasse in negotiations with Blue Sky and uncertain political, economic, and environmental conditions in Canada. This move allows Xstate to focus capital elsewhere and alleviate restoration liabilities.
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