Havilah Resources Limited (HAV: ASX), a South Australian copper and gold explorer focused on developing its Kalkaroo project, has entered into a binding Term Sheet with Heavy Rare Earths Limited (HRE) concerning its Prospect Hill project. The agreement grants HRE exploration and mining rights for all minerals within Havilah’s Prospect Hill tenements in the northern Curnamona Province of South Australia. This arrangement allows Havilah to concentrate on its primary Kalkaroo and Mutooroo copper projects and surrounding prospects, while still benefiting from any potential success at Prospect Hill.
The key terms of the agreement include an expenditure commitment of $1,500,000 by HRE over three years, with a minimum of $350,000 in the first year, including at least 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 the specified exploration licences. Additionally, HRE will free carry Havilah’s joint venture interest until completion of a bankable feasibility study.
Following the earn-in requirements being met, HRE will reimburse Havilah $1,800,000 for historical exploration expenditure on the Project from future mining cash flow. Completion of the transaction is subject to HRE obtaining shareholder approval and the parties securing all necessary legal and third-party approvals. Havilah’s Technical Director, Dr Chris Giles, expressed confidence in HRE’s ability to conduct thorough exploration at Prospect Hill, highlighting Havilah’s substantial shareholding in HRE and the potential to monetise the project’s tin potential.
Dr Giles noted that the agreement provides Havilah with significant exposure to the Prospect Hill project, while the free-carried project interest offers upside in the event of a successful tin or other mineral development. Havilah retains full ownership of its exploration licence interests and all other mineral rights, which HRE’s exploration expenditure will help maintain. The announcement was authorised by Mr Simon Gray on behalf of the Havilah Board.
