EVR Shares React to China Molybdenum Export Controls and High-Grade Antimony Samples
EV Resources Limited has responded to ASX inquiries confirming the material impact of China's molybdenum export controls and recent high-grade antimony assay results on its securities.
- China's export controls on molybdenum deemed materially price sensitive by EV Resources
- EV Resources first aware of export controls via Reuters article on 4 February 2025
- High-grade antimony samples from Los Lirios project confirmed as price sensitive information
- Clarification on sample collection, laboratory analysis, and timing of assay results
- Company confirms compliance with ASX continuous disclosure obligations
Background on Export Controls Announcement
EV Resources Limited (ASX:EVR) recently addressed the Australian Securities Exchange (ASX) following queries about its announcements concerning Chinese export controls on molybdenum and new exploration results from its Los Lirios Antimony Project. The company confirmed that the imposition of export restrictions by China on certain molybdenum products is material information that could reasonably be expected to influence the price or value of EVR's securities.
EVR first became aware of these export controls around 5 February 2025, following a Reuters article dated 4 February. Initially, the company did not consider immediate disclosure necessary. However, shareholder inquiries and market commentary during the week ending 7 February prompted the board to prepare a formal announcement, which was released on 11 February 2025. This disclosure was marked as 'price sensitive' given EVR's significant exposure to molybdenum through its 70% interest in the Parag copper-molybdenum project.
Details on New Exploration Results Announcement
The following day, EVR released assay results from four rock chip samples collected at the Los Lirios Antimony Project. The company confirmed these results are also price sensitive. The samples were gathered in early January 2025, with three collected on 6 January and four on 12 January, sent to two separate laboratories in Mexico for analysis. The first assay result was received on 5 February, but incomplete data from the Monterrey laboratory led EVR to retrieve two samples for further testing at ALS Geochemistry in Nevada.
Complete assay results from the Coahuila laboratory were received on 10 February and verified by the company's geologist and managing director across different time zones. The announcement was drafted and approved promptly, with the release occurring before market open on 12 February 2025. EVR clarified an earlier error in its announcement regarding the laboratories used, emphasizing transparency in its disclosure process.
Compliance and Market Impact
Throughout its response to ASX, EV Resources reaffirmed its compliance with Listing Rule 3.1 and continuous disclosure obligations. The company highlighted its commitment to timely and accurate market communication, especially given the niche and complex nature of the molybdenum market, which is not widely understood by investors. The announcements coincided with a notable increase in EVR's share price, reflecting market sensitivity to these developments.
EVR's detailed explanation of the timing and handling of sensitive information underscores the challenges junior mining companies face in balancing confidentiality, regulatory compliance, and investor relations. The company's proactive engagement with ASX and transparent disclosure practices aim to maintain market confidence amid evolving geopolitical and exploration dynamics.
Bottom Line?
EV Resources’ transparent handling of export controls and assay disclosures sets the stage for investor scrutiny as geopolitical and exploration factors converge.
Questions in the middle?
- How will China's export controls on molybdenum affect EVR's Parag project economics and timelines?
- What further assay results can investors expect from Los Lirios, and how might they influence resource estimates?
- Could ongoing geopolitical tensions prompt additional regulatory or market risks for EVR’s molybdenum exposure?
