Funding Uncertainty Looms Over KGL’s 2026 Jervois Construction Timeline
KGL Resources is making significant strides in preparing the Jervois Project for construction, leveraging higher copper, silver, and gold prices to optimise the project and secure funding. Exploration efforts and strategic partnerships are positioning the company for a 2026 construction start and 2027 production.
- Progress on enabling works and procurement for Jervois Project construction
- Project optimisation driven by rising copper, silver, and gold prices
- Active funding discussions with multiple partners including Resource Capital Fund
- Advanced exploration plans using 3D geophysical modelling to expand resources
- Completed $11 million share placement to support development activities
Project Development and Construction Readiness
KGL Resources has continued to advance the Jervois Project with a clear focus on construction readiness. Key activities include detailed planning for enabling works, procurement of major work packages, and the appointment of experienced project execution partners to integrate with KGL’s team. The company is tendering the open cut mining contract and preparing civil and infrastructure works such as airstrip and road construction, camp upgrades, and water supply installations. These efforts aim to derisk the project and maintain the delivery schedule, with enabling works expected to commence in late 2025 or early 2026.
Optimising for Higher Metal Prices
In response to a favourable commodity market, KGL has initiated further optimisation of the project economics. The focus is on expanding the open cut mine plan to increase copper feedstock using existing plant capacity and reducing capital and working capital costs across civil works and processing infrastructure. Discussions with potential off-takers are underway to address bismuth penalties and explore value recognition. These optimisation efforts are timely given the multi-year highs in copper, silver, and gold prices, which underpin the project’s long-term viability.
Funding Progress and Strategic Partnerships
KGL is actively engaged with a shortlist of potential funding partners, supported by advisors Cutfield Freeman & Co and amicaa Advisors. The company has received positive interest and non-binding indicative term sheets, advancing due diligence including site visits and management presentations. Resource Capital Fund (RCF) became a substantial shareholder during the quarter, reinforcing confidence in the project. Additionally, KGL completed an $11 million share placement in October 2025 to bolster its cash position and support early-stage construction activities.
Exploration and Resource Growth Potential
Beyond development, KGL is finalising a 12-month exploration and drilling plan targeting resource expansion near existing deposits and high-priority targets identified through advanced 3D joint inversion geophysical modelling. The company is extending magnetotelluric survey coverage and integrating new data to refine targeting, aiming to unlock further value and support future resource growth. This data-driven approach highlights the potential for a larger and deeper mineral system than previously understood, which could extend the mine life and enhance project economics.
Market Context and Strategic Positioning
The Jervois Project is well positioned amid a structural shift in demand for copper, silver, and gold driven by electrification, renewable energy, and technology sectors. Copper prices are forecast to rise sharply due to supply deficits, while silver and gold benefit from industrial demand and safe-haven appeal. KGL’s production profile, including approximately 1 million ounces of silver and 8,400 ounces of gold annually, adds strategic value and cost competitiveness. The company’s alignment with these market tailwinds enhances its attractiveness to investors and funding partners.
Bottom Line?
With construction readiness advancing and funding discussions gaining traction, KGL is poised to capitalise on strong metal markets, though securing final financing remains critical to meet its 2026 construction target.
Questions in the middle?
- What are the final terms and structure of the funding package KGL aims to secure?
- How will ongoing exploration results impact the project’s mine plan and valuation?
- What risks could delay the Financial Investment Decision or construction commencement?