Article by Haydn Black courtesy of Mining News.
GINA Rinehart’s Hancock Prospecting could spend more than A$30 million to secure the rights to the full basket of metals at the Mt Bevan project in Western Australia, in addition to an ongoing magnetite joint venture agreement.
The Mt Bevan project, 100km west of Leonora, contains 1.17 billion tonnes of magnetite grading 34.9%, but within its 165sq.km borders is the potential for battery metals.
Hancock is already earning 51% of the magnetite from Legacy Iron Ore and Hawthorn Resources and has just committed to a three-stage earn in for up to 51% of all other metals, with a focus on nickel, copper and lithium.
Any lithium discovery is especially important to the juniors as any resource exceeding 5Mt at 1.2% will trigger additional an additional cash payment of up to $10 million.
Delta Lithium, which is racing to develop the adjacent Mt Ida direct shipping ore lithium operation, yesterday secured a $50 million investment from Japan’s Idemitsu to support its plans as a 15% shareholder.
Hancock is increasingly taking an interest in lithium, and will earn an initial 7.5% for its $4 million cash payment to Legacy and Hawthorn, and can move to 51% by spending $22 million over three stages and 3.5 years concluding with a prefeasibility study.
Legacy and Hawthorn will reduce to 29.4% and 19.6% respectively, in line with the iron ore spread.
Legacy will maintain the right to acquire up to 75% of any end product, Hancock 15% and Hawthorn 10%.
Legacy shares were up 35% this morning at 2.3c, valuing it at $147 million, while Hawthorn’s stock was up 21% at 12c, capitalising it at $40 million.
