Mineral Resources (ASX:MIN) has finalised the sale of 100% of its interest in Exploration Permits 368 and 426 to Hancock Prospecting for an initial payment of $780m.
In addition to the sale, Mineral Resources and Hancock Prospecting have agreed to form two 50/50 joint ventures over Mineral Resources’ remaining exploration permits in the Perth and Carnarvon Basins. As part of this arrangement, Hancock will acquire a 50% stake in the Mineral Resources Explorer drill rig and associated infrastructure for an additional $24m. Completion of this joint venture arrangement is expected in the first quarter of 2025.
The total value of the transaction could rise further. A potential purchase price adjustment of up to $327m is tied to the achievement of certain resource thresholds for the Moriary Deep Prospect, Lockyer Gas, and Erregulla Oil discoveries. Definition drilling at the Moriary Deep Prospect is currently underway, and additional drilling for the Lockyer-6 well is scheduled for the 2025 financial year.
Shares in Mineral Resources are trading 0.2% higher at $34.76.