EV Resources Secures $700K Cash and Royalty in Khartoum Project Sale

Strategic Portfolio Streamlining

EV Resources Limited (ASX – EVR) has taken a decisive step to refine its asset portfolio by agreeing to sell its 100% owned Khartoum Project in Queensland to fellow ASX-listed Koba Resources Limited (ASX – KOB). The deal, valued at $700,000 in cash plus a 1% net smelter return royalty, aligns with EVR’s broader strategy to reduce non-core expenditures and concentrate efforts on its antimony assets.

This move reflects a growing trend among junior miners to focus on core commodities with strong market potential, particularly critical minerals that are increasingly in demand globally. By divesting the Khartoum Project, EVR aims to free up capital and management bandwidth to accelerate exploration and development in areas where it sees greater strategic value.

Financial and Regulatory Considerations

EVR has already received a $100,000 non-refundable deposit, providing immediate cash flow benefits. The transaction’s completion hinges on receiving indicative approval from the Queensland Minister administering the Mineral Resources Act 1989, expected within 60 days. This regulatory step is standard for tenement transfers and introduces a degree of uncertainty, though the company appears confident in a smooth process.

The inclusion of a 1% net smelter return royalty ensures EVR retains upside exposure to the Khartoum Project’s future production without bearing ongoing holding costs. This royalty structure is a common mechanism for sellers to benefit from potential future resource development while offloading operational responsibilities.

Focus on Antimony and US Critical Minerals

Proceeds from the sale will be directed towards advancing EVR’s antimony assets, a critical mineral with growing importance in battery technologies and flame retardants. Additionally, EVR plans to bolster its US-focused critical minerals initiatives, including cultivating a relationship with the US Department of Defense. This strategic pivot underscores the company’s intent to position itself within supply chains deemed vital for national security and emerging technologies.

Non-Executive Chairman Shane Menere highlighted the transaction as a “significant step” in EVR’s strategy, emphasizing the dual benefits of strengthening the company’s cash position and eliminating non-core project costs. The move is expected to enhance EVR’s operational focus and financial flexibility amid a competitive and evolving mining sector.

Looking Ahead

While the sale marks a clear shift in EVR’s asset management, the company remains exposed to typical exploration and development risks, including commodity price fluctuations and regulatory approvals. Investors will be watching closely how the freed-up resources translate into progress on the antimony front and how effectively EVR leverages its US critical minerals strategy.