Sandfire Resources to advance Kalkaroo copper-gold project
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The news: Sandfire Resources has executed a binding term sheet with Havilah Resources to develop the Kalkaroo Copper-Gold Project in South Australia and undertake regional exploration.
The numbers: Sandfire has the right to earn an up to 80% interest in Kalkaroo for upfront consideration of $105 million, comprising $31.5 million cash and 4,640,833 Sandfire shares based on their volume-weighted average price for the 20-day trading period between 16 October and 12 November.
In a second stage, Sandfire will have the first right of refusal over Havilah’s remaining 20% interest in Kalkaroo and its wholly-owned Kalkaroo pastoral station.
The context: At Sandfire’s cost it will need to commit to at least a 20,000m drilling program and the investment of $30 million for regional exploration over an initial 24-month period.
What they said: "We are thrilled to have the opportunity to work with the Havilah team to de-risk the Kaikaroo copper-gold project, which is in a preferred jurisdiction with ready access to key road, rail and energy infrastructure and ground water supply, and skilled labour from Adelaide, Broken Hill and the broader regional community,” Sandfire CEO and managing director Brendan Harris said.
The source: ASX
