Havilah Resources Limited (ASX: HAV), a mining and exploration company primarily focused on developing mineral projects within South Australia’s highly prospective Curnamona Province, has announced a significant return of value to its shareholders. The company’s Board of Directors has resolved to make a fully franked dividend payment of approximately $26.6 million, equivalent to 7.514 cents per Havilah share. Additionally, Havilah will seek shareholder approval at its Annual General Meeting on Thursday, 17 December 2026, for a proposed equal capital reduction of roughly $18.0 million, translating to 5.085 cents per Havilah share. This combined distribution amounts to approximately $44.6 million for eligible shareholders.
Both the dividend and the proposed capital reduction are intended to be effected through a pro rata in-specie distribution of shares in Sandfire Resources Limited (ASX: SFR), which Havilah currently holds. This strategic return of value arises from the non-refundable Stage 1 upfront consideration received under the Kalkaroo earn-in agreement with Sandfire. Havilah has indicated that the dividend payment is expected to proceed independently of whether the capital reduction receives shareholder approval, subject to Board discretion and applicable legal requirements. Shareholders registered on the record date of 31 December 2026 will be eligible to receive Sandfire shares.
Havilah’s Chairman, Mr Simon Gray, commented on the distribution, stating it “enables Havilah to return a significant portion of the value realised from the Kalkaroo transaction Stage 1 consideration directly to Shareholders in a tax effective manner, while maintaining a robust balance sheet.” Mr Gray added that this aligns with the company’s stated strategy of monetising advanced mineral projects to generate shareholder returns, while also retaining a 20% project equity and continuing active exploration programs across its Curnamona Province tenement holdings. The final number of Sandfire shares distributed will be determined by the five-trading-day volume-weighted average price of Sandfire shares immediately preceding the record date. Havilah’s total number of ordinary shares on issue will remain unchanged following this distribution.
