Havilah Grants Heavy Rare Earths $1.5M Earn-In on Prospect Hill Tin Project
Havilah Resources has struck a binding deal with Heavy Rare Earths, granting earn-in rights to its Prospect Hill tin project with a $1.5 million exploration commitment over three years. The arrangement allows Havilah to focus on its copper assets while retaining significant upside exposure.
- Binding Term Sheet with Heavy Rare Earths for Prospect Hill project minerals
- $1.5 million committed exploration expenditure over 3 years
- Heavy Rare Earths to earn 80% interest through drilling milestones
- Havilah retains substantial shareholding and carried interest
- Deal enables Havilah to prioritise core copper projects
Strategic Partnership Advances Prospect Hill Tin Potential
Havilah Resources Limited has formalised a significant step in unlocking value from its Prospect Hill project in South Australia by entering into a binding Term Sheet with Heavy Rare Earths Limited. This agreement grants Heavy Rare Earths earn-in rights to all minerals on the Prospect Hill exploration licences, with a committed expenditure of $1.5 million over three years, including targeted drilling programs.
The Prospect Hill project, located in the northern Curnamona Province, hosts the advanced South Ridge tin prospect, which has historically delivered encouraging drill results with multiple intercepts exceeding 1% tin. Heavy Rare Earths aims to accelerate resource drilling at South Ridge, potentially transforming the project’s prospects.
Deal Structure Balances Risk and Reward
Under the terms, Heavy Rare Earths will earn an 80% interest in Havilah’s mineral rights across three key exploration licences by meeting expenditure and drilling commitments. Notably, Havilah retains a carried interest until completion of a bankable feasibility study, after which it may opt to convert its stake into a 1.5% net smelter return royalty. This structure allows Havilah to mitigate upfront exploration risk while maintaining significant upside exposure.
Additionally, Heavy Rare Earths will reimburse Havilah $1.8 million for historical exploration costs from future project cash flows, further aligning incentives. The deal is contingent on shareholder and regulatory approvals, reflecting prudent governance.
Strategic Focus on Core Copper Assets
Havilah’s Technical Director, Dr Chris Giles, highlighted that the partnership leverages Heavy Rare Earths’ exploration expertise and capital discipline, enabling Havilah to concentrate on its flagship Kalkaroo and Mutooroo copper projects. The arrangement also preserves Havilah’s ownership of the exploration licences and other mineral rights, ensuring ongoing control and optionality.
This move signals Havilah’s intent to monetise the tin potential at Prospect Hill, which has not yet been fully recognised by the market, while maintaining a foothold through its substantial shareholding in Heavy Rare Earths. The collaboration could unlock new value streams without diverting resources from Havilah’s primary copper development strategy.
Looking Ahead
As Heavy Rare Earths prepares to commence drilling and exploration activities, the market will be watching closely for results that could validate the project’s tin resource potential. The success of this earn-in deal may well influence Havilah’s portfolio valuation and strategic direction in the coming years.
Bottom Line?
Havilah’s deal with Heavy Rare Earths could unlock Prospect Hill’s tin value while sharpening its copper focus.
Questions in the middle?
- Will Heavy Rare Earths meet its drilling and expenditure milestones on schedule?
- How might early drilling results at South Ridge influence Havilah’s future involvement?
- What impact will this partnership have on Havilah’s overall market valuation?
