Hancock Prospecting, through its subsidiary Hancock Magnetite Holdings, with joint venture (JV) partners Legacy Iron and Hawthorn Resources, is advancing the Mt Bevan magnetite project to the pre-feasibility study (PFS) stage.
An agreement between the three parties has seen Hancock Magnetite Holdings make an initial investment of $9 million to earn a 30 per cent interest.
After the completion of the PFS, Hancock’s interest will increase to 51 per cent, while Legacy will hold 29.4 per cent and Hawthorn 19 per cent.
Atlas Iron, a subsidiary of Hancock Prospecting, has been appointed as the manager for the JV and will conduct the PFS.
The advancing of the project comes after the recent signing of the Australia-India Economic Cooperation and Trade Agreement.
Legacy has the backing of major shareholder NMDC Limited, a Government of India enterprise.
Hancock Magnetite Holdings’ CEO Mr Sanjiv Manchanda stated: “The Mt Bevan project provides the basis to expand the iron ore business with Atlas growing its project capacity and expertise to support these large and complex undertakings.”
Hancock CEO Mr Garry Korte stated: “We look forward to collaborating with our joint venture partners.
“This could provide options for additional higher grade, lower impurity iron ore products consistent with the direction the iron ore markets are progressing in.”