Havilah Resources Limited (HAV: ASX), a South Australian company focused on discovering and developing copper, gold, and cobalt resources, has announced a binding Term Sheet agreement with Heavy Rare Earths Limited (HRE) for its Prospect Hill project. The agreement grants HRE exploration and mining rights for all minerals on Havilah’s Prospect Hill project, located in the northern Curnamona Province of South Australia.
Under the terms of the agreement, HRE commits to spending $1,500,000 over three years, including a minimum of 2,500 metres of drilling in the first 18 months. Upon completion of these obligations, HRE can earn an 80% interest in Havilah’s mineral exploration and mining rights within specific exploration licenses. Havilah will retain a free-carried joint venture interest in any mineral discovery until a bankable feasibility study is completed, after which Havilah may elect to contribute or dilute to a 1.5% net smelter return royalty.
Additionally, HRE will reimburse Havilah $1,800,000 for historical exploration expenditure on the project from future mining or processing operation cash flow. Completion of the transaction is subject to HRE obtaining shareholder approval and all necessary third-party approvals. Havilah’s Technical Director, Dr Chris Giles, expressed confidence in HRE’s ability to explore for tin and other minerals at Prospect Hill, citing their past performance on Havilah’s uranium projects.
The agreement allows Havilah to focus on its primary Kalkaroo and Mutooroo copper projects while maintaining exposure to Prospect Hill through its shareholding in HRE. The company believes this deal provides an opportunity to potentially monetize the tin potential of the project, while retaining full ownership of its exploration licence interests and all other mineral rights.
