Hardey Resources Ltd. secured a 40-day option to acquire 100% of Nelly Vanadium Pty. Ltd., owner of the 53-hectare Nelly vanadium mine in Argentina's San Luis province, according to a July 3 news release.
Nelly Vanadium will soon lodge an application with the San Luis mines department to re-open the mine and plans to fast-track the restart of production. The mine owner has six shareholders with 22,100 common shares on issue.
To exercise the option, the company will issue 737.5 million common shares and the same number of listed options, exercisable at 2 Australian cents per share before April 30, 2020.
Hardey will also pay a 3% net smelter return royalty to Nelly Vanadium's founding shareholders for all minerals produced from the mine. The deal is scheduled to close Aug. 27.