Havilah takes steps to secure SIMEC funding

The Maldorky iron ore project. Image: Havilah Resources.

Havilah Resources has established an agreement with SIMEC to secure up to $100 million to fund programs on its iron ore assets, copper projects and Mutooroo deposit in South Australia.

The ASX-listed explorer is expected to convene an extraordinary general meeting (EGM) in August to obtain shareholders’ approval for the transaction.

Havilah is undertaking the required regulatory reviews before the EGM, namely an independent expert report, which is reportedly nearing finalisation, and a notice of meeting.

The company has commissioned an independent expert to launch this preparatory work, ahead of review by the Australian Securities Exchange (ASX) and Australian Securities and Investments Commission (ASIC).

When successful, GFG will provide funding to Havilah through a series of equity placements over three years, potentially providing GFG with a 51 per cent stake in Havilah if all equity placements are made.

This proposed deal establishes Havilah’s strategic partnership with GFG, which has a major investment in South Australia through operation of the Whyalla Steelworks and Whyalla port and export facility.

GFG will also have the potential to acquire direct equity interests in Havilah’s iron ore assets subsequent to the equity placements.

In turn, the funding will provide capital for Havilah’s Maldorky, Grants and Grants Basin iron ore assets in South Australia, while providing a pathway to Mutooroo’s commercialisation.

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