Mineral Resources (ASX:MIN) has confirmed its receipt of $780M from Gina Rinehart’s Hancock Prospecting for the sale of two gas permits to the latter.
Hocking off Western Australian-based exploration permits EP368 and EP426, the deal sits in the foreground of an existing JV operation that saw both Hancock and MinRes step towards gas plays in recent history.
In between the lines, both companies are looking to lower costs by owning a gasfield they can use to power a plant that generates electricity for each company’s respective mining operations in the engine room state.
That JV, however, doesn’t cover the two EPs sold today.
Instead, it relates to MinRes’s existing acreage overlying the Perth and Carnarvon basins respectively. Hancock is set to purchase half of a MinRes drill rig and other infrastructure for an additional $24M. That’s tipped to be wrapped up by Q2 2025.
MinRes noted on Wednesday it could net a further $327M in future asset sales depending on how ongoing drilling at a target called Moriary Deep Prospect turns out.
MinRes last traded at $34.69/sh.
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