Hiru Corporation (HIRU) to Fund Exploration and Mining Operations for Balfour Project
Rhea-AI Summary
Hiru (OTC Pink: HIRU) has announced a significant development in its mining operations. The company has signed an agreement with Zebs Minerals Pty and D & B Mining Pty to fund and manage exploration and mining operations at the Balfour Project in Western Tasmania. HIRU has exclusive rights to explore, develop, and exploit mineral resources in the concession area, with an expected exploration phase of five years followed by exploitation activities.
Key aspects of the agreement include:
- HIRU will make royalty payments of 2.5% of annual mine profits to Zebs Minerals or D & B Mining
- HIRU will cover all tax obligations related to the project, except corporate income tax
- The company has secured funding through a complex financial arrangement described as an off-market traditional PIPE with a credit derivative swap
HIRU's Chairman, Sheikh Khalid Nasser Al Thani, emphasized the company's commitment to developing the Balfour Project in a financially sustainable and efficient manner.
Positive
- Exclusive rights to explore, develop, and exploit mineral resources in the Balfour Project concession area
- Secured funding through a complex financial arrangement (PIPE with credit derivative swap)
- Full control over exploration and mining operations at the Balfour Project
- Company is well-capitalized and does not anticipate disturbing its common share structure
Negative
- Obligation to make 2.5% royalty payments on annual mine profits
- Responsibility for all tax obligations related to the project, except corporate income tax
- Five-year exploration phase before potential exploitation activities begin
News Market Reaction
On the day this news was published, HIRU declined 31.58%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Toronto, Ontario--(Newsfile Corp. - September 12, 2024) - Hiru Corporation (OTC Pink: HIRU) $HIRU www.otchiru.com, www.hirumining.com the Company is thrilled to share following updates. Hiru Corporation (OTC Pink: HIRU) has exclusive rights to explore, develop, and exploit mineral resources in the concession area. The exploration phase is expected to be completed within five years, followed by the commencement of exploitation activities within six months thereafter.
As part of its newly signed agreement with Zebs Minerals Pty Limited and D & B Mining Pty Limited, HIRU will take full responsibility for funding and managing exploration and mining operations at the Balfour Project in Western Tasmania.
As outlined in the agreement, Hiru Corporation (OTC Pink: HIRU) will make royalty payments of
(Reference: https://www.investopedia.com/terms/c/creditderivative.asp and https://www.investopedia.com/terms/p/pipe.asp#:~:text=%EE%
To that end, the Company is well-capitalized and does not anticipate disturbing its common share structure to reach this targeted goal.
"The management agreement is a testament to Hiru Corporation's (OTC Pink: HIRU) commitment to developing the Balfour Project in a financially sustainable and efficient manner," said Sheikh Khalid Nasser Al Thani, Chairman, of Hiru Corporation (OTC Pink: HIRU). "By fully funding the exploration and mining activities, we are ensuring the smooth and successful progress of this project."
Additional updates will follow shortly.
About Hiru Corporation:
Hiru Corporation (OTC Pink: HIRU) is a mining company headquartered in Toronto, Canada, with a focus on copper and other essential metals. The company's flagship operation, the Balfour Project, is located in north-western Tasmania, Australia. Hiru is committed to ethical mining practices and is actively exploring new opportunities in resource-rich regions across the globe.
Disclaimer Regarding Forward-Looking Statements
Certain statements that we make may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions and divestitures, anticipated results of litigation and regulatory developments or general economic conditions. In addition, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects," "forecasts," and future or conditional verbs such as "will," "may," "could," "should," and "would," as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements.
Contact:
Corporate Communications
Irina Veselinovic (Secretary)
Website: www.otchiru.com & www.hirumining.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/223138
FAQ
What is Hiru 's (HIRU) role in the Balfour Project?
How long is the exploration phase for HIRU's Balfour Project?
What royalty payments will HIRU make for the Balfour Project?
How has HIRU secured funding for the Balfour Project?
