BHP has told Havilah Resources it will not exercise an option to acquire its copper project near Broken Hill, triggering a 24 per cent slump in the explorer’s share price. BHP inherited an option to buy Havilah’s Kalkaroo copper and gold project through its $9.6 billion acquisition of OZ Minerals this year. However, the company confirmed yesterday that it would not take up those rights.
Michelle Ash, BHP’s copper growth vice president, said it would instead channel its efforts on integrating OZ’s Carrapateena and Prominent Hill copper mines with BHP’s Olympic Dam and Oak Dam assets. ‘‘We believe that Kalkaroo is an attractive copper asset that will be developed, but our focus is on optimisation of the Gawler Craton copper assets,’’ Ms Ash said.
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BHP also inherited the Peake and Denison JV set up by OZL/A1M nee DRM. Three drill holes last year with traces to show suggests BHP will politely walk from P&D too.
AC & team have been near-silent on P&D. We retail holders cant know if there is anything worthwhile there.
Knowing the technical data collected likely reverts to A1M is cold comfort indeed.
Ash
A1M Price at posting:
34.0¢ Sentiment: Buy Disclosure: Held
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