Wednesday 1st May 2019
GFG Alliance signed an agreement with Havilah Resources Limited today in Whyalla, South Australia, with the intent to support the development of iron ore and copper concentrate in South Australia to potentially feed its planned landmark Next‐Gen 10 Mt steel plant and its copper smelter project in Whyalla.
The proposed transaction (which is subject to Havilah shareholder approval) contemplates an investment of up to $100.0 million with respect to the Grants/Maldorky iron ore project and the copper prospects in Havilah’s Mutooroo Copper‐Cobalt District, including the Mutooroo deposit in the Curnamona Craton of South Australia.
The investment consists of a staged equity investment over a three‐year period. Funds will be used for agreed work programs to advance the projects to completed definitive feasibility studies, as well as for exploration, corporate and administration costs.
GFG Alliance Executive Chairman, Sanjeev Gupta, said of the agreement, “This is an important step forward in realising our vision for our landmark Next‐Gen steel plant and a copper smelter in Whyalla. We have been working with Havilah extensively since 2018, so this agreement is a strategic progression to create a streamlined partnership into the future. This investment has the potential to deliver significant iron ore feedstock reinforcing our ongoing commitment to support the future of Whyalla as a major steel producer. Havilah’s copper projects can also help underpin key feedstock needed for the copper smelter project we are exploring in Whyalla.”
“We were extremely impressed with Havilah’s work to date and their vision for the future. They share our commitment to South Australia and its industrial communities and we are confident our significant investment in Havilah will provide a platform for further growth in the region.”
The funding package will accelerate the development of the Havilah iron ore and copper and gold projects in South Australia, providing a clear pathway to commercialisation of Havilah’s mineral assets.