EV Resources Relinquishes Peru Licenses Amid Cash Focus, Betting Big on Mexican Antimony
EV Resources appoints two seasoned mining executives to its board and secures AU$650,000 in placement funding to advance the restart of its Los Lirios Antimony Mine in Mexico, signaling a sharpened strategic focus.
- Appointment of Shane Menere as Non-Executive Chairman and Justin Werner as Non-Executive Director
- AU$650,000 placement secured, with AU$200,000 committed by new directors
- Focus shifted to restarting high-grade Los Lirios Antimony Mine in Mexico
- Parag licenses in Peru relinquished to conserve cash and streamline operations
- Directors to receive remuneration in shares and options, pending shareholder approval
Strategic Board Changes Signal New Direction
EV Resources Limited (ASX – EVR) has announced a significant reshaping of its leadership with the appointment of two new non-executive directors – Shane Menere as Chairman and Justin Werner as Director. Both bring extensive global mining experience, particularly in resource development and project execution, which aligns with EVR's renewed focus on its high-grade antimony assets in Mexico.
Menere, known for his leadership roles in Australian gold and exploration companies, currently heads Far East Gold Ltd and has a track record of successfully listing and growing mining ventures. Werner, managing director of Nickel Industries Limited; the world’s largest pure nickel producer; adds deep operational expertise and strategic insight from his extensive career in mining across Southeast Asia and Australia.
Capital Raise to Fuel Los Lirios Restart
Alongside these appointments, EVR has secured AU$650,000 through a placement of approximately 216.7 million shares at $0.003 each. Notably, the new directors have committed AU$200,000 collectively, underscoring their confidence in the company’s direction. The funds are earmarked primarily for restarting operations at the Los Lirios Antimony Mine in Mexico, where EVR holds a 70% interest.
Los Lirios represents a rare open-pit antimony opportunity with high-grade ore confirmed through recent sampling. The project’s restart is timely given favourable market conditions for antimony, a critical mineral with growing demand in various industrial applications, including battery technologies and flame retardants.
Streamlining Focus by Relinquishing Non-Core Assets
In a strategic move to conserve cash and sharpen operational focus, EVR has decided to relinquish its Parag licenses in Peru. Despite promising copper and molybdenum exploration results, the scale of investment required and current market conditions make further development unfeasible for EVR. The licenses will revert to the original joint venture partner, allowing EVR to concentrate resources on the Los Lirios project and working capital needs.
The board’s decision reflects a disciplined approach to capital allocation, prioritising projects with the highest potential for near-term value creation and shareholder returns.
Remuneration and Governance
The new directors have agreed to receive remuneration in shares and options, with 20 million shares and 20 million options each proposed for the first year, subject to shareholder approval. This aligns their interests closely with those of shareholders and signals a commitment to long-term value creation.
Luke Martino, the outgoing non-executive chairman, will remain on the board as a non-executive director, ensuring continuity during this transition.
Bottom Line?
EV Resources’ leadership overhaul and targeted capital raise set the stage for a pivotal restart of its Los Lirios antimony mine, but execution risks and market dynamics remain key watchpoints.
Questions in the middle?
- Will shareholder approval for director remuneration in shares and options be secured smoothly?
- How quickly can EVR progress the Los Lirios mine restart amid current market conditions?
- What impact will relinquishing the Parag licenses have on EVR’s long-term growth prospects?
