EV Resources has signed a strategic Memorandum of Understanding with Wogen Resources and Xcelsior Capital Advisors to fund and advance its Los Lirios Antimony Project in Mexico, aiming to establish a 100 tonne-per-day processing plant.
- US$2–3 million secured debt facility proposed to fund Los Lirios development
- Exclusive offtake rights granted to Wogen Resources, pending study outcomes
- Technical and market support included to optimize product specifications and marketing
- 10 million unlisted options issued to partners as part of the agreement
- MOU aligns with critical minerals supply chain priorities amid geopolitical tensions
Strategic Partnership to Propel Antimony Production
EV Resources Limited (ASX, EVR) has taken a decisive step forward in developing its Los Lirios Antimony Project in Oaxaca, Mexico, by executing a tri-party Memorandum of Understanding (MOU) with Wogen Resources Ltd and Xcelsior Capital Advisors Ltd. This agreement outlines a proposed US$2–3 million secured debt facility aimed at advancing the project towards production, alongside granting Wogen exclusive rights to offtake antimony products, subject to positive internal scoping studies and definitive agreements.
Funding and Offtake, Cornerstones of Development
The proposed funding structure is designed to underpin the construction and operation of a 100 tonne-per-day antimony processing plant. This facility is expected to process ore from Los Lirios as well as third-party sources, positioning EV Resources to become a reliable supplier in the critical minerals market. The exclusivity offtake arrangement with Wogen, a UK-based global trading house specializing in exotic metals, is a significant endorsement of the project's commercial potential.
Technical Expertise and Market Intelligence
Beyond financing and offtake, the partnership brings valuable technical and market support. Wogen and Xcelsior Capital Advisors will assist EV Resources in refining product specifications, pricing strategies, and marketing approaches. This collaboration is particularly timely given the current geopolitical tensions affecting critical minerals supply chains, notably between China and the United States, which have already led to price volatility and supply challenges in the antimony market.
Project Progress and Future Outlook
EV Resources is actively advancing exploration and metallurgical test work, with encouraging results confirming high-grade antimony mineralization and low impurities. The company is also engaging with equipment suppliers to design a pilot processing plant utilizing proven gravity and flotation recovery methods. These developments build on previous surface sampling that revealed exceptionally high antimony grades, underscoring the project's potential scale and quality.
Navigating Risks and Next Steps
While the MOU is non-binding except for confidentiality and legal provisions, it sets a clear framework for future binding agreements. Due diligence, regulatory approvals, and final contract execution remain critical milestones. The issuance of 10 million unlisted options to Wogen and Xcelsior further aligns interests as EV Resources seeks to secure its position in the global critical minerals supply chain.
Bottom Line?
EV Resources’ strategic MOU marks a pivotal move to capitalize on rising antimony demand, but execution risks remain as definitive agreements and pilot plant development progress.
Questions in the middle?
- Will EV Resources secure definitive agreements and complete due diligence within the MOU’s 12-month term?
- How will evolving geopolitical tensions influence antimony pricing and supply chain dynamics for Los Lirios?
- What are the timelines and capital requirements for commissioning the 100 tonne-per-day pilot processing plant?