Why EV Resources Sold Coyote Creek But Keeps Antimony Exposure
EV Resources Limited has agreed to sell its Coyote Creek Antimony Project in Utah to Trigg Minerals, securing upfront cash and shares while maintaining exposure to antimony through equity stakes.
- Sale of 100% owned Coyote Creek Antimony Project to Trigg Minerals
- Upfront cash payment of AUD 225,000 plus Trigg shares issued at completion
- Deferred consideration contingent on JORC resource estimate within four years
- EV Resources retains antimony exposure via Trigg shareholding and Los Lirios Mine acquisition
- Transaction supports cost reduction and strategic focus on Americas antimony assets
Strategic Asset Sale to Trigg Minerals
EV Resources Limited (ASX: EVR) has announced the sale of its wholly owned subsidiary holding the Coyote Creek Antimony Project in Utah, USA, to fellow ASX-listed company Trigg Minerals (ASX: TMG). The deal includes a combination of upfront cash, shares in Trigg, and deferred payments tied to future resource milestones. This move marks a significant step in EVR's strategy to streamline its portfolio while maintaining exposure to the antimony market.
Transaction Details and Financial Considerations
The agreement provides EVR with AUD 225,000 in cash upon execution, alongside an equivalent value of fully paid Trigg shares issued at completion. Additionally, EVR stands to receive up to AUD 450,000 in cash or Trigg shares upon the announcement of a JORC-compliant resource estimate for the project within four years. This deferred consideration is subject to shareholder approval at Trigg and is priced to reflect market conditions at the time of announcement.
Maintaining Exposure Amid Cost Reduction
While EVR divests the Coyote Creek asset, it retains indirect exposure to antimony through its shareholding in Trigg Minerals and its 70% acquisition of the Los Lirios Antimony Mine in Mexico. This dual approach allows EVR to reduce its monthly expenditure and recover prior acquisition costs without fully exiting the antimony sector. The company continues to focus on open pit mining opportunities in the Americas, a region with growing strategic importance given global supply shortages of antimony.
Market Context and Strategic Implications
The United States currently imports all of its antimony concentrates, underscoring the potential significance of domestic projects like Coyote Creek. EVR’s decision to sell to Trigg, a company focused on advancing the project, may accelerate development timelines and resource definition. For EVR shareholders, the transaction offers immediate value and potential upside linked to Trigg’s success, while aligning with EVR’s broader strategy to optimize its asset base.
Looking Ahead
Completion of the sale is expected within 20 business days, subject to formal documentation. Investors will be watching closely for Trigg’s progress on resource estimation and EVR’s ongoing developments at Los Lirios. This transaction exemplifies how junior miners are navigating capital constraints and market dynamics by leveraging partnerships and equity stakes rather than sole ownership.
Bottom Line?
EV Resources trims costs but keeps a foothold in antimony through strategic partnerships and asset realignment.
Questions in the middle?
- When will Trigg Minerals announce the JORC-compliant resource estimate for Coyote Creek?
- How will EVR’s shareholding in Trigg evolve as the project develops?
- What impact will the Los Lirios acquisition have on EVR’s overall antimony production profile?
