Hancock has Magnetite in its Sights
WA mining billionaire Gina Rinehart has pressed the button on $9m investment that could result in multibillion-dollar magnetite project in the Yilgarn region shipping high-grade iron ore products to India. Mrs Rinehart’s Hancock Prospecting will take 30 per cent
stake in the Mt Bevan magnetite project west of Leonora under an agreement with joint venture partners, the Indian Government controlled Legacy Iron and junior explorer Hawthorn Resources.
Hancock can then boost its holding to 51 per cent by sole funding pre-feasibility study. The company announced on Thursday that its subsidiary Atlas Iron had been appointed as the manager of the joint venture project and would conduct the study. The deal, which comes after Hancock began due diligence over Mt Bevan in November, follows days after the signing of the Australia-India Economic Cooperation agreement. Legacy is 90 per cent owned by the Indian Government’s National Mineral Development Corporation.
Hancock chief executive Garry Korte said the project offered an excellent opportunity for Hancock and could provide options for additional higher grade, lower impurity iron ore products. The trend has seen host of juniors dust off mothballed magnetite projects, particularly in the Yilgarn region east of Perth.
Hancock Prospecting takes the Mt Bevan plunge
Hancock Prospecting is looking to expand its iron ore portfolio by earning into the Mt Bevan project in the Central Yilgarn region of Western Australia. Through its wholly owned subsidiary, Hancock Magnetite, Hancock will make an initial investment of $9 million to acquire a 30 per cent interest in the project.
By funding the pre-feasibility study (PFS) costs of Mt Bevan, Hancock has the potential to earn an additional 21 per cent interest, resulting in a 51 per cent stake in the project. Current owners of Mt Bevan, Legacy Iron Ore (60 per cent) and Hawthorn Resources (40 per cent), would hold a 29.4 per cent and 19.6 per cent stake respectively following the completion of the PFS.
Located 250 kilometres (km) north of Kalgoorlie and 100km west of Leonora in WA, the Mt Bevan project is situated on the large tenement E29/510, which holds 1170 million tonnes of magnetite resource at a grade of 34.9 per cent iron (Fe). As part of Hancock’s initial $9 million investment, $8 million of cash will be paid to Legacy and Hawthorn in proportion with their interest in the project, with the additional $1 million used as working capital in the JV.
Once the PFS is completed, and the desired outcomes have been established, additional programs will be undertaken with the intention to advance the project into a bankable feasibility study.