Hardey Resources Ltd has entered into a share sale agreement with Vanadium Mining Pty Ltd to acquire six vanadium projects in Queensland and the Northern Territory
Hardey Resources Ltd (ASX:HDY) has entered into a share sale agreement with Vanadium Mining Pty Ltd to acquire six highly prospective vanadium projects in Queensland and the Northern Territory.
Together with Hardey’s proposed acquisition of the Nelly Vanadium Mine in Argentina, the company believes it can rapidly build a strong scalable global platform to meet growing demand for vanadium.
Shares in Hardey were up 20% to 0.6 cents in intra-day trading.
Hardey Resources executive chairman Terence Clee said the company’s board had taken the decision to evolve Hardey into an emerging vanadium supplier to the renewable energy sector.
Terence said the new projects will complement the Nelly Vanadium Mine in Argentina and deliver Hardey Resources a solid, yet geographically diversified, platform to develop moving forward.
Four of the projects are in west Queensland near Intermin Resources Ltd.’s (ASX:IRC) Richmond project, which has an inferred mineral resource of 2,579 million tonnes at 0.32% vanadium oxide at a cut-off grade of 0.29%.
The other two in the Northern Territory are contiguous to TNG Ltd.’s (ASX:TNG) Mt Peake project, which has a total mineral resource of 160 million tonnes at 0.28% vanadium with a cut-off grade of 0.10%.
All six projects are in well-known mining districts with suitable infrastructure and ready access to ports and skilled labour pools.
Hardey secured the 40-day option term to acquire the projects with a $75,000 cash payment.
If the option is exercised, Hardey will issue at settlement 550 million ordinary shares and 550 million listed options to Vanadium Mining’s seven shareholders.
The issued Hardey shares will amount to around 20.76% of Hardey’s expanded issued capital.
Hardey will also pay a 3% net smelter royalty to Vanadium Mining’s founding shareholders for all minerals produced from the six projects.