Havilah Resources Limited (Havilah) is pleased to announce that it has entered into a Share Subscription Agreement (SSA) with SIMEC which is part of GFG.
The Directors of Havilah believe this is a strategic transformational opportunity for Havilah.
The transaction contemplates GFG providing an investment of up to $100 million with respect to the Maldorky, Grants and Grants Basin iron ore assets and a copper project (consisting of the Mutooroo deposit and nearby copper prospects) in the Mutooroo Copper-Cobalt District in the Curnamona Craton of South Australia.
The investment consists of a committed staged equity investment in Havilah of $50 million, plus a further $50 million in conditional or discretionary funding. Funds will be applied via agreed work programs to advance the Projects to completed DFS over an anticipated and relatively short three-year period, as well as potentially providing funding for exploration, corporate and administration costs.
The transaction establishes a strategic alliance with GFG, which has a major investment in South Australia via operation of the Whyalla Steelworks and Whyalla port and export facility. GFG has the capacity to support and facilitate the future growth of Havilah through access to global capital markets, capital investment, technical assistance and commercial offtake agreements. The transaction will position Havilah as a fully funded minerals explorer and developer. It provides the opportunity to rapidly advance two of Havilah's major projects to production at a scale and within a timeframe to meet GFG's ambitious growth plans in South Australia.
Why Havilah's Directors consider this to be a compelling opportunity: It provides access to capital that will allow Havilah to confidently advance two of its key projects to DFS milestones within the next three years.
Project value creation remains within Havilah for the benefit of shareholders.
A strategic alliance with GFG which has already made a significant investment commitment in South Australia.
Havilah maintains control of its destiny and its projects as an independently directed and managed ASX listed entity
Opens the door to international capital markets and commercial support that would otherwise not be available.
Access to an end user steelworks and export facility at Whyalla facilitating potential development of iron ore projects.
Methodical exploration of the highly prospective Mutooroo Copper-Cobalt District, for the first time in Havilah's history, with excellent discovery prospects.
Opportunity for shareholders to participate on attractive terms via a pro-rata rights issue.
Havilah will continue to seek the best investment options for Kalkaroo and will maintain an active regional exploration program on its high conviction targets.
Flexible investment terms that are governed by Havilah's achievement of a series of technical milestones and agreed targeted project economics.
Mr Walter Richards
Tel: (08) 8155-4500
The GFG Alliance is a London-headquartered international group of businesses, founded and owned by the British Gupta Family, with annual revenue of over US$15 billion and around 15,000 staff. It combines energy generation, metal manufacturing, engineering, natural resources and financial services, working together to deliver a common business strategy. The Alliance comprises Liberty - an integrated industrial and metals business - SIMEC - a resources and infrastructure group - Wyelands - a banking and financial services arm - JAHAMA - a division that manages and develops the Alliance's global property holdings - and the GFG Foundation that focuses on retention and creation of engineering and industrial skills. The acquisition of the ArcelorMittal European assets will increase the group's workforce to 30,000 people and turnover to over US$20 billion.