Kagara confirms talks to sell Lounge Lizard

Company News

Kagara Limited (ASX:KZL) has confirmed that it is in talks to sell its Lounge Lizard nickel mine in Western Australia.

In September the mineral explorer said it will offload the non-core asset as part of five-year plan to address its disappointing performance.

The company has not as yet disclosed any potential suitors and Kagara's mining partner, Western Areas (ASX:WSA), has indicated that it is not interested.

The target price tag for the Lounge Lizard tenements is also yet to been disclosed but Kagara is understood to have invested up to $60 million in acquiring and developing the asset.

Kagara says it expects to finalise the sale process during the first quarter of 2012.

In the 2011 financial year Kagara booked a net loss of $32.98 million.