Sandfire Resources Ltd. and Havilah Resources Ltd. have signed definitive transaction agreements to advance the Kalkaroo copper-gold project in South Australia.
Under the terms of the agreement, Sandfire has an exclusive right to earn an 80 per cent interest in Kalkaroo for a consideration of up to AU$117.6 million, comprising AU$31.5 million in cash and 4,640,833 Sandfire shares.
Sandfire can acquire the 80 per cent interest after completing a pre-feasibility study, which will include a minimum 20,000 metres infill and resource extension drill program.
Sandfire will also commit AU$30 million to regional exploration across a minimum 24-month period.
Sandfire Managing Director Brendan Harris said: “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.”
Kalkaroo is one of the larger undeveloped open pit copper deposits in Australia, containing 1.1 million tonnes of copper, 3.1 million ounces of gold and 23,200 tonnes of cobalt.
Havilah technical director Chris Giles 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.”
