Hanwright Gives More Details Of Public Flotation

Press, Volume CX, Issue 32361, 29 July 1970, Page 20

Hanwright Gives More Details Of Public Flotation

Many of the most valuable mineral assets remaining in the hands of Mr Lang Hancock and Mr E. A. Wright, will soon be floated in a listed public company, Hanwright Minerals Ltd. A formal statement from the underwriters confirmed a number of details, but did not indicate how much new capital would be sought ini tially from the public. There will, however, be a public ballot for part of the issue, with some general preference given to residents of north-west Australia. One of the assets of Hanwright Minerals will be the right to a portion of the Hancock and Wright royalties from Hamersley Iron Pty., Ltd. Mr Hancock was the discoverer of the Hamersley and Paraburdoo iron ore deposits, since transferred to the Ham- [ ersley Holdings group.

The royalty rights being received in respect of the Hamersley deposits are 2} per cent of the f.o.b. price received for iron ore produced and sold. Hamersley’s gross sales in 1969 were sloBm, having risen from s7sm in the previous year. The figures are expected to increase considerably in years ahead. According to unofficial reports, it is the intention of Messrs Hancock and Wright to transfer about one-quarter of the royalties to the new public company, giving it an assured initial income. Mr Hancock has consistent ly spoken of his intention to exploit his discovery and sale of the original Harnersley deposits to a predominantly overseas owned group so as to be able to finance a still bigger Australianowned mineral venture. The cash flow from royalties is a means of achieving this.

Mr Hancock has said that the iron ore deposits remaining under his control exceeded in potential those ot Hamersley and Mt Newman combined.

Tito assets specifically listed for transfer to Hanwright Minerals include many of these deposits, but do not include the untested McCamey’s Monster area. The statement confirms reports that B.H.P m C.S.R. and other companies may be associated with some of the mineral ventures of Hanwright Minerals. However, Mr Hancock has made it known for several months that the flotation, of Hanwright Minerals is subject to a satisfactory understanding with the Commissioner of Taxation, ensuring that royalties from Hamersley will not be taxed twice, first in the hands of Messrs Hancock and Wright and again upon being transferred in part to the new company.