Heavy Minerals sells Port Gregory royalty for $500,000

Heavy Minerals (ASX:HVY) is set to raise $500,000 from the sale of a production royalty at its Port Gregory Garnet project in Western Australia.

Binding subscription agreements signed with unrelated subscribers will see them granted an aggregate 0.25% royalty, 60% of which can be bought back by Heavy Minerals within 24 months at a 125% premium to today’s sale price.

Subscribers will also receive one unquoted option for each dollar they spend, exercisable at $0.25 for a period of two years.

Managed by Foster Stockbroking as lead arranger for the funding, the proceeds will go towards the development of a Pre-Feasibility Study at the Port Gregory Project over the next few quarters.

“We are extremely pleased with the participation of subscribers in the non-dilutive royalty funding and believe it adds significant value to the company and shareholders and aids in our goal of developing Western Australia’s next world-class industrial garnet mine at Port Gregory,” Heavy Minerals Chairman Adam Schofield says.

the non-dilutive royalty funding … aids in our goal of developing Western Australia’s next world-class industrial garnet mine at Port Gregory”

“The company will look to raise future funding via its royalty funding as funds are required and has significant interest from subscribers.”

The grant of the royalty remains subject to the execution of the royalty agreements, with the related options to be issued on or around 20 October 2023.

In addition to Port Gregory, Heavy Minerals owns the Red Hill Project in Western Australia and the Inhambane Mineral Sands Project in Mozambique.

Write to Oliver Gray at Mining.com.au

Images: Heavy Minerals
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Written By Oliver Gray
Originally from Perth, Oliver has a keen interest long-form journalism. He has written for a number of publications and was most recently Contributing Editor of The Market Herald’s opinion section, Art of the Essay.