ASX-listed Mineral Resources (MinRes) on Thursday announced a A$1.1-billion agreement with Gina Rinehart's Hancock Prospecting concerning its oil and gas exploration assets.

The binding sale-and-purchase agreement would see MinRes sell 100% of its exploration permits 368 and 426 in the Perth basin to Hancock, while also entering into two joint venture agreements over its remaining exploration acreage in the Perth and Carnarvon basins.

The deal follows MinRes’ strategic review of options to optimise the value of its gas exploration assets, spurred by interest from both domestic and international parties.

MinRes CEO Darren Hardy remarked that the two companies had a long history, built on a strong relationship. "I’m excited that we are again deepening our ties, this time in energy.”

Under the terms of the agreement, Hancock will pay MinRes an upfront sum of A$804-million for the exploration permits, contingent on certain conditions, including ministerial approvals. Completion of the sale is anticipated by the end of 2024. Further, the agreement includes potential purchase price adjustments totalling A$327-million, dependent on the successful classification of resources at the Moriary Deep prospect and other key discoveries.

Drilling for the Moriary-2 well is set to commence in November, with subsequent drilling activities expected to clarify the purchase price adjustments for the Moriary Deep prospect and the Lockyer gas discovery throughout the 2025 financial year.

Meanwhile, the diversified miner also reported September quarter results on Thursday, with results keeping its full-year volume and cost guidance intact for all operations.

In iron-ore, MinRes produced 1.9-million wet metric tonnes (wmt) and shipped 1.4-million wmt over the September quarter. The miner reported an average quarterly realised price across all hubs of $82/dry metric tonne (dmt), which is a 15% quarter-on-quarter decrease. MinRes said it was on track to reach its nameplate 35-million-tonne-a-year run rate from June 2025.

The lithium division is focused on transitioning to lower-volume, higher-quality production to meet current market conditions, with prices having fallen by about a third in the quarter to $815/dmt SC6. Total lithium production across all three sites was 157000 dmt, with shipments of 178 000 dmt.

Regarding the investigation into matters relating to founder and MD Chris Ellison and an investigation into undeclared payments made to companies linked to him, MinRes stated that the board would issue an announcement to the market regarding the conclusions it had reached and the actions it would take by November 4.