(Hawthorn Resources Limited 1% FOB Royalty – Hancock Magnetite Holdings Pty Ltd 63.43% – Legacy Iron Ore Limited 36.57%)
Mt Bevan is one of the largest, high grade magnetite projects in Australia with a current JORC indicated and inferred resource of 1.178 Bt Fe @34.9% Fe, located in the South Yilgarn and south west of Leonora.
Hancock Magnetite Holdings Pty Ltd (Hancock) formed a joint venture with Hawthorn and Legacy Iron Ore on Mt Bevan with key objectives agreed in April 2022. Hancock acquired its initial 30% equity interest in the Mt Bevan JV via a cash payment of $9 million ; $3.2 million paid to Hawthorn and $4.8 million to Legacy. The balance of $1 million is to be used for working capital purposes of the Joint Venture.
Hancock sole funded a Pre-Feasibility Study (PFS) which was announced to the ASX on 16 July 2024 incorporating:
- Resource Drilling of a total of 41 drill holes for 9,008m including 31 RC holes (6,361m), 4 diamond holes (864m) and 6 RC with diamond tails (1,783m).
- Baseline environmental and heritage surveys.
- A comprehensive metallurgical test work program.
- Development of a Mine Plan.
- Process plant and infrastructure design to support a Class 4 Cost Estimate.
- Third party engagement with Arc Infrastructure and Southern Ports for transport Logistics.
Full details of the PFS are contained in our release to the ASX of 16 July 2024
On delivery of the completed PFS, equity interests were Hancock – 51%, Legacy Iron Ore – 29.4% and Hawthorn – 19.6%.
Forward Works Plan:
Following completion of the PFS, the Joint Venture partners committed to a Forward Works Plan to further define, optimise and de-risk the project including:
• Acquiring tenure to support water exploration and service corridors.
• Continuing heritage and environmental surveys for approvals.
• Investigation of other optimisation avenues including:
- o Further assessment of transport options.
- o Further investigation of power supply alternatives.
In consultation with its JV partners, the Directors of Hawthorn elected to convert its 19.6% equity stake in the Mt Bevan JV to a 1% FOB royalty based on revenue which was announced to the market on 20 September 2024.
The company believes that the royalty stream from Mt Bevan magnetite and our exposure to next generation greener DRI steel production, will be of significant value to shareholders once production of premium grade iron ore commences.