ASX-listed junior minerals company Hardey Resources has entered into a share sale agreement to acquire 100% of the issued share capital of Nelly Vanadium – a mineral explorer that owns the Nelly vanadium mine in San Luis province, in Argentina.
Nelly will soon lodge an application with the San Luis mines department to reopen the mine, with the aim of fast-tracking the restart of production.
The Nelly vanadium mine is a 53 ha tenement located 170 km from the San Luis capital. Previous assay studies confirmed mineralisation for vanadium peroxide, lead, zinc, copper, gold, silver, molybdenum and bismuth. The historical assay results for vanadium peroxide ranged up to 1.9% vanadium peroxide, with a length weighted sample average of 0.82%.
Currently, Nelly has six shareholders holding 22 100 fully paid ordinary shares on issue. Hardey has paid Nelly $75 000 in consideration for the grant of an option to acquire 100% of the issued capital in Nelly.
If the acquisition reaches settlement, Hardey will issue 730-million fully paid ordinary shares in the capital of Hardey and a further 730-million listed options to acquire shares (exercisable at $0.02 before April 30, 2020).
“Upon finalising the acquisition, the Hardey board will focus on exploration activities to prove up a Joint Ore Reserves Committee-compliant resource and move to reopen the mine.”
“Further, the board is optimistic that demand for vanadium will remain robust over the next few years, as structural changes augur favorably for the continued expansion of the renewable battery sector,” commented Hardey executive chairperson Terence Clee.