Havilah Resources Ltd (ASX:HAV) will hold an extraordinary general meeting (EGM) today to seek approval from shareholders for the proposed transaction with OneSteel Manufacturing Pty Ltd (SIMEC), a member of the GFG Alliance.
Havilah entered an agreement with GFG Alliance that provides for a capital injection of up to $100 million to fund work programs on a number of its iron ore and copper assets.
Havilah shareholders can approve the transaction in vote today at the EGM.
The results of the EGM are expected to be released to the market this afternoon.
Up to $100 million funding to advance projects
Havilah’s chairman Mark Stewart wrote in a letter to shareholders: “The Transaction involves SIMEC providing an investment in the Company of up to $100.0 million and consists of a committed staged equity investment in the Company of $49.5 million, plus a further $50.5 million in conditional funding.
“Funds will be applied via already agreed work programs, designed to advance the Company’s iron ore projects (collectively the “Iron Genesis Project”) and the Mutooroo copper-cobalt project and prospects in the surrounding area (the “Copper Aura Project”) to the completion of definitive feasibility studies over an anticipated three-year period, as well as providing funding for exploration, corporate and administration costs.”
Deal can rapidly advance projects
He added: “Under this Transaction the Company has an opportunity to rapidly advance two major projects, namely the Iron Genesis Project and the Copper Aura Project, to investment decisions that could result in production at a scale and within a timeframe to meet the Company’s ambition to grow and create long term shareholder value, as well as aligning with the GFG Alliance’s ambitious growth plans in South Australia and worldwide.”