Sandfire Resources has inked a binding term sheet with Havilah Resources to acquire up to an 80 per cent interest in the Kalkaroo copper-gold project, situated in South Australia. The agreement also establishes a regional exploration alliance between the two companies. Sandfire Resources is an Australian mining and exploration company focused on developing copper resources. Havilah Resources is an Australian resource company focused on its portfolio of copper, gold, cobalt, iron, and other mineral deposits.
The earn-in agreement is structured in two stages. It includes $105 million in upfront consideration, comprising 70 per cent in Sandfire shares and the remaining 30 per cent in cash. A further $105 million will become payable upon the completion of a new pre-feasibility study, anticipated within 18 to 24 months. Kalkaroo is estimated to host an Ore Reserve of 100 million tonnes grading 0.47 per cent copper and 0.44g/t gold.
In addition to the acquisition terms, Sandfire will invest $30 million in regional exploration activities. This investment will be made under a strategic alliance spanning the Curnamona Province. This alliance underscores both companies’ commitment to discovering and developing additional resources in the region.
Sandfire’s chief executive, Brendan Harris, commented on the transaction, highlighting that the Kalkaroo project provides a “rapid pathway to unlock one of Australia’s largest undeveloped copper-gold deposits”. The deal is subject to customary conditions precedent.
