Sandfire Resources and Havilah Resources have executed definitive transaction agreements to advance the Kalkaroo copper-gold project in South Australia.
Under the deal, Sandfire can earn up to an 80 per cent interest through a two-stage earn-in structure, involving upfront and subsequent payments tied to a pre-feasibility study and drilling program.
Agreed by Havilah shareholders, Sandfire has an exclusive right for an 80 per cent interest at a cost of approximately $117 million, comprising around $30 million in cash and over four million shares.
A strategic exploration alliance will see Sandfire commit to $30 million in regional exploration over two years, aiming to unlock broader copper potential in the Curnamona province.
Recognised as one of Australia’s largest undeveloped open-pit copper-gold projects, the advancement offers greater opportunity to bolster the nation’s copper supply as critical minerals demand grows globally.
The area contains around 1.1 million tonnes of copper, 3.1 million ounces of gold and 23,200 tonnes of cobalt with a 100 million tonne ore reserve.
“Execution of the definitive transaction agreements is an important milestone for our company as it provides the right to earn a controlling interest in a copper-gold resource and reserve that remains open along strike and at depth, and has the potential to underpin a large scale, long life and low cost development project located in a preferred jurisdiction,” Sandfire managing director Brendan Harris said.
“Sandfire will bring the substantial capital and technical expertise that are required to fully evaluate and develop the large Kalkaroo copper-gold project at an optimum scale,” Havilah technical director Chris Giles said.
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