Carpentaria Resources has purchased the Pure Metals’ majority share of the Hawsons iron project in New South Wales for around $4.2 million.
The Hawsons project is a 69.8 per cent/30.2 per cent joint venture (JV) between Carpentaria and Pure Metals, respectively.
Carpentaria has reached an agreement to purchase 24.149 per cent of Pure Metals’ share in the project for around $4.2 million (90.8 million Carpentaria shares).
In March, Carpentaria stated that Pure Metals had not upheld its deal to sell 24 per cent of its stake in Hawons and that it was in breach of its obligations.
The deal involved 24 per cent of Pure Metals’ stake to be acquired by Carpentaria, with the remaining 6 per cent of Pure Metals’ stake acquired by Starlight Investment Company.
However, announcement of the agreement has closed the chapter on the deal.
Carpentaria executive charimain Bryan Granzien said the agreement would finally allow the company to develop what he hoped to be a promising exploration prospect.
“We now expect to be able to do justice to the Hawsons project and raise the funds necessary to complete the bankable feasibility study then proceed to development of the project,” Granzien said.
“Carpentaria will look to take advantage of the huge demand for the highest-quality iron ore products worldwide, and do so for the benefit of Carpentaria shareholders, the community of Broken Hill and other stakeholders.”
The transaction was approved by Carpentaria shareholders at the company’s annual general meeting on November 2, 2020.
The deal should be complete by May 19, 2021 as Pure Metals receive the shares by way of off-market transfers, to be facilitated by Shaw and Partners’ Wholesale Trading.
A pre-feasibility study of the Hawsons project projected 10 million tonnes of iron ore product could be delivered each year for 20 years.