PERTH (miningweekly.com) – Iron-ore developer Hancock Prospecting has taken a 3% shareholding in ASX-listed Mineral Resources (MRL), by exercising five million options, at a cost of around A$30,2-million.

In 2008, the two companies announced that they would jointly develop Nicholas Downs manganese operation, in Western Australia, which has since started early-stage commissioning and ramp-up.

As part of this agreement, Hancock was issued with 15-million options in MRL, at an exercise price of A$6,05 a share. Hancock still holds ten-million options after exercising this tranche.

“We welcome Hancock’s larger presence on the register and we anticipate having Hancock as a more significant shareholder will further reinforce our excellent working relationship at both corporate and operational level,” said MRL executive chairperson Peter Wade.

The Nicholas Downs operation, which is owned by Hancock, has started production at a target rate of 60 000 t a month.