Divestment of non-core assets is a key factor in upholding responsible capital management for junior resource companies. By making the sale of an asset for financial, legal or personal reasons. Asset divestments can assist in raising capital or to consolidate the business to focus on its core assets.
Separating core assets from the non-core has become a vital way for junior resource companies to raise capital and re-position themselves to ensure that they are in line with strategic goals and corporate objectives.
Asset Divestment, the process of selling an asset is commonly carried out due to financial, social or political goals. Assets that can be divested include a subsidiary, business department, mining tenement, mineral rights, equipment and other property.
Divestment is a form of retrenchment strategy used by businesses when they downsize the scope of their business activities. Divestment usually involves eliminating a portion of a business. Firms may elect to sell, close, or spin-off a strategic business unit, major operating division, or product line.
Golden Dragon Capital Limited assists natural resource companies in selling their assets in order to increase the financial resources of the firm or as a tactical move for the company. This consists of preparing an appraisal report of the mineral asset, followed by seeking out a buyer, and solicit a sale by equity, cash or joint venture for the project according to your corporate objectives.
Divestiture transactions are often conjoined with the mergers and acquisitions process. Most people think of the buy-side of these transactions (buying businesses) but corporations also actively look to sell non-performing or non-core assets to optimise their business.
Constantly reviewing a company’s portfolio of mining assets and optimising it for the best performance in line with industry trends is an important part of corporate growth strategy.