logo-loader
viewHavilah Resources Ltd

Havilah Resources proposed $100 million investment “mutually beneficial”: Sanjeev Gutpa

Shareholders will vote in Adelaide on September 12, 2019, on the proposed investment in the company by SIMEC Mining/GFC Alliance.

Havilah Resources Ltd - Havilah Resources proposed $100 million investment “mutually beneficial”: Sanjeev Gutpa

Havilah Resources Ltd (ASX:HAV) has been provided a letter of support for its proposed $100 million partnership arrangement with SIMEC Mining/GFC Alliance written by that group’s executive chairman Sanjeev Gupta.

The letter outlines the reasons why SIMEC and GFC wish to “partner with Havilah in a long-term and mutually beneficial manner”.

SIMEC/GFC has proposed a $100 million funding arrangement structured over the next three years, thus becoming a long-term partner.

“New exciting growth strategy”

Gupta wrote: “Our priority will be to support Havilah’s traditional exploration business, complemented with a new exciting growth strategy to become a commercial producing miner. In particular, facilitating the complete exploration and realisation of the potential of the Curnamona region.”

The chairman said: “I believe this investment will strengthen Havilah’s ability to generate future value from its portfolio through the DFS, project development and commercial production.

“Together with Havilah’s skills and expertise, the significant cash contribution from our equity investment should deliver substantial value to all shareholders by unlocking the value of the early-stage mining assets owned by Havilah.

A “future customer”

“Along with our direct investment, GFG intends to be a future customer, providing Havilah with access to an end-user steelworks and export facility at Whyalla and globally.

“We expect Havilah products will be an important future input into GFG’s supply chain and our global steel making businesses.”

Gupta said that, as a principle, GFG expected any future supply contracts with Havilah to be negotiated on a commercial, arms-length basis.

“It is GFG’s current intention that Havilah's projects continue to be managed by the existing senior management.

“We recognise how important it is for Havilah to build its in-house management skills and experience as the company transitions to an ore producer, as well as harnessing and further developing its exploration capabilities. We will look for opportunities to support this process.

“We support Havilah’s commitment to maintaining an independent board and an independent chairperson. GFG will only increase its Board representation incrementally, in line with its equity position, reflecting its commitment to Havilah.

“Protecting” shareholder interests

“We understand how important it is that the interests of all shareholders are protected and they all have a say in the company’s future.

“Finally, as a global firm, with deep, longstanding relationships in international markets, GFG will also be well placed to facilitate global access for Havilah – potentially unlocking further value.

“In summary, we are excited with the prospects of a partnership between Havilah and GFG. I am confident that the two groups will prosper in a mutually beneficial way and, as the development plan is executed, Havilah will create significant future value for all shareholders.”

Quick facts: Havilah Resources Ltd

Price: 0.105 AUD

ASX:HAV
Market: ASX
Market Cap: $22.92 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Havilah Resources Ltd named herein, including the promotion by the Company of Havilah Resources Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Havilah Resources fast-tracks North Portia sale agreement with common sense...

Havilah Resources Ltd (ASX:HAV) technical director Chris Giles updates Proactive Investors on the exploration company's revised North Portia sale agreement.   "For us a big improvement is more cash up-front, so we've already been paid $2 million and a further $4 million is due in...

on 11/4/19

3 min read