mineral resources (ASX:MIN) has completed the sale of a 100% interest in exploration permits 368 and 426 to Hancock Prospecting for a down payment of $780 million.

In addition to the sale, Mineral Resources and Hancock Prospecting have agreed to form two 50/50 joint ventures for Mineral Resources’ remaining exploration permits in the Perth and Carnarvon Basins. As part of the deal, Hancock will acquire a 50% stake in the Mineral Resources Explorer drilling rig and associated infrastructure for an additional $24 million. The joint venture arrangement is expected to close in the first quarter of 2025.

The total transaction value could rise further. Potential purchase price adjustments of up to $327 million will be made depending on the achievement of certain resource thresholds at the Moriary Deep Prospect, Lockyer Gas and Eregra Oil discoveries. Definition drilling at the Moriary Deep prospect is currently underway, with additional drilling of the Lockyer-6 well scheduled for fiscal year 2025.

Mineral Resources stock is trading 0.2% higher at $34.76.