- Following the proposed acquisition of Nelly Vanadium Mine (NVM) in Argentina1, HDY has agreed to acquire six highly-prospective vanadium projects close to proven resources in Queensland and Northern Territory
Four prospects in west Queensland near to Intermin Resources’ (ASX: IRC) globally significant Richmond project (inferred mineral resource 2,579Mt @ 0.32% V2O5, cut-off grade of 0.29% V2O5)2
Two Northern Territory projects contiguous to TNG Ltd’s (TNG) Mt Peake project (total mineral resource – 160Mt @ 0.28% V205 cut-off grade of 0.10% V2O5)3
- Critically, all six projects are in well-known mining districts with supportive infrastructure, ready access to ports and skilled labour pools
- With NVM1 and the six projects in Australia, the HDY Board believes it can rapidly build a strong scalable global platform to meet growing demand for vanadium
- Moving forward, the Board intends to place a greater emphasis on developing the vanadium assets to facilitate HDY evolving into an emerging supplier to the renewable energy sector
- Shareholders will be informed of due diligence findings on the six Australian projects as they materialise
Hardey Resources Executive Chairman, Terence Clee commented: “The Board has taken thedecision to evolve Hardey Resources into an emerging vanadium supplier to the renewable energy sector, which explains the move to acquire these six highly prospective projects across Queensland and Northern Territory. The new projects will complement the Nelly Vanadium Mine in Argentina and deliver Hardey Resources a solid, yet geographically diversified, platform to develop moving forward.”
Hardey Resources Limited (ASX: HDY) (“HDY” or “the Company”) is pleased to announce thatit has entered into a share sale agreement with the major shareholders of Vanadium Mining Pty Ltd (VanMin). Under the terms of this agreement, HDY has been granted a 40-day option to acquire 100% of the issued capital of VanMin, which is a mineral explorer that owns six highly prospective vanadium projects in Queensland and the Northern Territory.
The key terms of the VanMin acquisition are detailed in Appendix A to this announcement.
VanMin was established with the principal objective of acquiring vanadium projects in Queensland and the Northern Territory.
Currently, VanMin has seven shareholders holding 55,900,200 fully paid ordinary shares on issue. HDY has paid VanMin $75,000 in consideration for the grant of an option to acquire 100% of the issued capital in VanMin, exercisable at any time within 40 days following the date of the agreement. During this time, HDY will undertake due diligence in relation to VanMin and six projects in Queensland and the Northern Territory. If the option is exercised, at settlement of the acquisition HDY will issue 550,000,000 fully paid ordinary shares and 550,000,000 listed options (exercisable at $0.02 on or before 30 April 2020) (ASX: HDYOC) to VanMin shareholders.
The HDY shares to be issued at settlement to VanMin shareholders, as consideration for the VanMin acquisition, will account for circa 20.76% of HDY’s expanded issued capital. In addition, HDY will pay a 3% net smelter return royalty to VanMin’s founding shareholders for all minerals produced from the six projects.
VanMin owns four projects in the Mount Isa region of western Queensland – Sharptooth, Spike, Cera and Petrie. These projects are located in an area that favours shallow surface mining for large tonnages of low-grade vanadium mineralisation
For More information visit https://www.asx.com.au/asxpdf/20180719/pdf/43wmcld4k6f680.pdf or http://www.hardeyresources.com.au/projects/nelly-vanadium-mine
Company Name: HARDY RESOURCES LIMITED
Contact Person: SARAH SMITH
Email: Send Email
Phone: +618 6559 1792
Address:Suite 2/1 Altona Street
City: West Perth
State: WA 6005