Coretrack clears decks after losing key asset

Embattled drilling technology developer Coretrack will be looking for opportunities to either merge with or buy other companies once it picks up the pieces from losing its key asset.

Chief executive Bernie Kelly said $11 million of Globe Drill equipment would be auctioned off in four to six weeks as part of its moves to wind down the subsidiary.

Coretrack is selling off the assets after inventor Warren Strange private company's Strange Investments terminated a licence agreement for the experimental GT3000 drill rig Globe Drill had been developing.

The company, chaired by former WA Liberal leader Matt Birney, has sued Strange Investments for damages and lost earnings.

Mr Kelly said Coretrack was also preparing to vacate its leased Bibra Lake headquarters.

He said the sell-off would leave the company in a position to consider merger or acquisition proposals.

In the meantime, Coretrack would be focusing on commercialising its remaining technology, a core sample testing device.

The investment group that controls the company's biggest shareholding yesterday moved to shore up Coretrack's financial position ahead of the asset sales.

Cygnet Capital took over $2 million worth of Coretrack-issued convertible notes that were due to expire yesterday and extended them for another two years.

"I basically see it as a bank loan," Mr Kelly said. Coretrack had about $3 million in the bank, he said.

The company's share price has fluctuated dramatically since the loss of the drill rig became known earlier this month.

Yesterday they recovered by 5 per cent to close at 2¢.

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Coretrack clears decks after losing key asset