Mineral Resources announces exploration permit sale

Mineral Resources (ASX:MIN) has successfully completed a significant transaction with Hancock Prospecting. The company sold its Exploration Permits 368 and 426 for an initial $780 million. They also formed two 50/50 joint ventures for further exploration in the Perth and Carnarvon Basins.

Summary of Mineral Resources' strategic move

Mineral Resources has finalized the sale of its Exploration Permits 368 and 426 to Hancock Prospecting for $780 million. This move includes forming two joint ventures to explore additional permits in the Perth and Carnarvon Basins. Hancock will acquire half of MinRes's Explorer drill rig and infrastructure, with an expected $24 million payment in Q1 2025. A potential purchase price adjustment of up to $327 million depends on resource thresholds for the Moriary Deep, Lockyer Gas, and Erregulla Oil projects. Drilling for Moriary Deep is ongoing, with Lockyer-6 drilling planned for FY25. This transaction aligns with MinRes's strategy to expand its resource development in Western Australia, focusing on sustainable growth and value maximization.

Executive commentary on strategic transaction

The transaction and joint ventures with Hancock enhance our exploration and resource development capabilities, securing significant value for our shareholders while reinforcing our commitment to growth in Western Australia's resource sector.