Mineral resources (ASX:MIN) has completed the sale of 100% of its interest in exploration permits 368 and 426 to Hancock Prospecting for an initial payment of $780 million.
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 the deal, Hancock will acquire a 50% interest in the Mineral Resources Explorer drilling rig and associated infrastructure for an additional $24 million. Finalization of this joint venture agreement is expected in the first quarter of 2025.
The total value of the transaction could increase further. A potential purchase price adjustment of up to $327 million is linked to the achievement of certain resource thresholds for the Moriary Deep Prospect, Lockyer Gas and Erregulla Oil discoveries. Infill drilling on the Moriary Deep Prospect is currently underway and additional drilling for the Lockyer-6 well is planned for FY2025.
Shares of Mineral Resources are trading up 0.2% at $34.76.
