Sandfire, Havilah sign binding term sheet for Kalkaroo alliance

Canadian mining institution Sandfire Resources and Havilah Resources from Australia person signed a binding word expanse to beforehand their concern astatine the Kalkaroo copper-gold task and signifier a strategical exploration confederation crossed the Curnamona Province successful north-eastern South Australia.

This statement aims to accelerate the improvement of 1 of Australia’s largest undeveloped open-pit copper-gold deposits.

Under the terms, Sandfire tin gain up to an 80% involvement successful the Kalkaroo task via a two-stage earn-in structure. The archetypal information totals A$105m ($68.61m), paid arsenic 70% scrip and 30% successful cash.

An further A$105m (C$96.39m) volition beryllium payable upon completion of a caller pre-feasibility survey (PFS), which volition incorporated a minimum 20,000m of infill and an hold drilling programme.

Sandfire volition perpetrate A$30m to determination exploration implicit a minimum of 24 months nether the exploration strategical alliance.

This inaugural is designed to unlock caller discoveries wrong the wider Havilah exploration tenement bundle successful the Curnamona Province.

The transaction creates a accelerated pathway to beforehand the Kalkaroo deposit by pairing Sandfire’s excavation plan and task improvement capabilities with Havilah’s geological expertise.

Havilah method manager Chris Giles said: "We are precise pleased to person reached a binding statement with Sandfire that provides for completion of a caller Kalkaroo PFS, including a important drilling programme targeting assets upgrade and expansion.

"Immediate worth for Havilah shareholders volition beryllium realised via an upfront payment, which besides gives Havilah a nonstop involvement successful Sandfire's palmy planetary mining operations via the stock component. Exposure to longer-term worth is besides achieved via Havilah's retained 20% involvement successful Kalkaroo.

"The backing nether the exploration strategical confederation volition let america to accelerate determination exploration successful South Australia with the nonsubjective of transforming the highly prospective Curnamona Province into Australia's adjacent large copper province, centred connected the Kalkaroo task development."

Kalkaroo presently hosts an ore reserve of 100 cardinal tonnes (mt) (90% proved), with a copper people of 0.47% and a golden people of 0.44 grams per tonne (g/t), supported by a sulphide mineral assets of 224mt astatine 0.49% copper and 0.36g/t of gold.

The caller PFS volition measure the unfastened grade of the Kalkaroo orebody on onslaught and astatine depth.

Completion of the PFS is targeted wrong 18–24 months from the finalisation of definitive transaction agreements.

This is expected to trim the task hazard and perchance grow the existing ore reserve.