The Mineral Resources Ltd (ASX: MIN) share price is charging ahead of the benchmark today.
Shares in the S&P/ASX 200 Index (ASX: XJO) lithium miner and diversified resources producer closed yesterday trading for 34.69. In morning trade on Wednesday, shares are changing hands for $35.54 apiece, up 2.5%.
For some context, the ASX 200 is just about flat at this same time.
Here's what's happening.
Mineral Resources share price gains on Hancock deal completion
ASX investors are bidding up the Mineral Resources share price today after the miner announced the completion of the sale of two of its oil and gas exploration permits in the Perth Basin to Gina Rinehart's Hancock Prospecting.
Mineral Resources said it has received the initial consideration of $780 million for exploration permits 368 and 426.
The miner first reported on the asset sale on 31 October, citing a total cash consideration of up to $1.13 billion. The Mineral Resources share price closed up 9.2% on the day.
Today, management reiterated that a potential purchase price adjustment of up to $327 million is subject to meeting certain resource thresholds and classification for the Moriary Deep Prospect, Lockyer Gas and Erregulla Oil discoveries.
Commenting on the deal in October, chief executive of energy Darren Hardy said, "This transaction maximises the value of our exploration success for shareholders and again showcases our ability to unlock significant capital from MinRes' portfolio of assets."
Hardy added:
The new exploration joint ventures with Hancock in the Perth and Carnarvon basins immediately derisk and accelerate our future exploration programs across this highly prospective onshore petroleum acreage.
The major asset sale to Hancock follows Mineral Resources' sale of its 49% interest in the Onslow Iron Haul Road to Morgan Stanley Infrastructure Partners, valued at some $1.3 billion, last quarter.
Joint exploration efforts
Also potentially supporting the Mineral Resources share price today, the company reported that it has agreed to form two 50/50 exploration joint ventures with Hancock. These joint ventures will cover the ASX 200 miner's remaining exploration permits in the Perth Basin and Carnarvon Basin.
As part of the joint ventures, Hancock will purchase 50% of Mineral Resources' explorer drill rig and associated infrastructure.
Management expects this separate agreement, which includes payment of an additional $24 million, to be completed in the first quarter of the calendar year 2025.
Mineral Resources share price snapshot
Amid the ongoing, medium-term global oversupply of lithium and tepid iron ore prices, the Mineral Resources share price has tumbled a painful 50% in 2024.
The miner has been actively working to cut costs this year, including cutting 570 jobs across its head office and various work sites.
