Hancock invests $30m in Min Resources

Mineral Resources has substantially bolstered its balance sheet this week, obtaining a $30 million capital injection from Gina Rinehart's Hancock Prospecting one day after finalising a deal to extract itself from the costly Windimurra Vanadium project.

Hancock Prospecting Pty Ltd (HPPL) has become a major shareholder in Mineral Resources (MRL) by exercising five million options at $6.05 per share.

Hancock Prospecting will hold 3 per cent of Mineral Resources shares.

Mineral Resources executive chairman Peter Wade said, "We welcome HPPL's larger presence on the register and we anticipate having HPPL as a more significant shareholder will further reinforce our excellent working relationship at both the corporate and operational levels."

In 2008, Hancock Prospecting and Mineral Resources announced they would jointly develop the Nicholas Downs manganese operation in the Pilbara which has since commenced early stage commissioning and ramp-up.

As part of this agreement Hancock Prospecting was issued with 15 million options in Mineral Resources at an exercise price of $6.05.

Hancock Prospecting will still hold 10 million options after exercising this tranche.

Hancock Prospecting chairman Mrs Rinehart said, "We are pleased to see the commencement of work at Nicholas Downs to commission and ramp-up the operation, and look forward to seeing the expansion of this project, together with the assistance of MRL."

"West Australia needs more energetic companies like MRL to continue investing and pursuing developments in West Australia and our north and we at HPPL, by making this investment, are showing our support for MRL, and would like to congratulate MRL on their endeavours to date."

The Hancock deal followed yesterday's complex series of deal with Atlantic Ltd over the Windimurra Vanadium project.

The proposed deals include Atlantic paying $16 million to acquire MRL's proposed 27.5 per cent interest in Midwest Vanadium Pty Ltd, lifting its stake in the project company to 90 per cent.

MVPL, which owns 100 per cent of the project, will also pay $60 million to MRL to acquire the project's beneficiation plant.

MRL has announced that it will be repaid all outstanding debts totalling approximately $20 million upon financial close, expected in mid to late August 2010.