Havilah has received the offer of a transformational capital injection of up to $100 million from OneSteel Manufacturing Pty Ltd (trading as “SIMEC Mining”) (SIMEC), a member of the GFGAlliance (GFG), which will fully fund Havilah’s work programs for its iron ore assets and its copper prospects in the Mutooroo Copper-Cobalt District, including the Mutooroo deposit, and provide a clear pathway to possible commercialisation.
For the past twelve months SIMEC Mining has been carrying out due diligence on Havilah’s iron ore projects under an exclusivity arrangement. This has involved scoping level studies on infrastructure, services and ore processing. Metallurgical test results on Maldorky drill core have demonstrated that the target product grade of 65% Fe can be achieved for a product yield of 40% and with high total iron recovery of 85%.
The proposed capital injection will occurs via a share subscription arrangement that will deliver GFG a 51% interest in Havilah. The transaction will be put to shareholders for approval at a specially convened shareholders meeting.
Haviah is presently preparing a Notice of Meeting that will include an Independent Expert’s report.
Updated information on the transaction and shareholder meeting date will be provided here as it comes to hand.
Presently the only information available about the SIMEC Mining offer terms, pending finalisation of the Notice of Meeting document and Independent Expert’s report, is the ASX announcement made on 1 May 2019 that may be accessed by clicking on this link.