Havilah Resources has finalised a significant transaction with Sandfire Resources for the Kalkaroo copper-gold project, receiving $31.5 million in cash and shares, while advancing promising drilling at Birksgate.
- Shareholders approve Sandfire transaction for Kalkaroo project
- Sandfire pays $31.5 million cash plus shares upfront
- Birksgate drilling program completes with encouraging mineralisation
- Mutooroo project activities paused pending Kalkaroo deal finalisation
- Strategic alliance established for regional exploration funding
Transaction Milestone at Kalkaroo
Havilah Resources Limited has marked a pivotal moment with shareholder approval and completion of a major transaction with Sandfire Resources Limited for the Kalkaroo copper-gold project in South Australia's Curnamona Province. The deal, finalised shortly after the quarter ended, includes an upfront payment of $31.5 million in cash and the issuance of over 4.6 million Sandfire shares to Havilah, underpinning a strategic partnership aimed at advancing Kalkaroo's development.
Under the agreement, Sandfire can earn an 80% interest in Kalkaroo through staged investments, including a pre-feasibility study and a minimum two-year exploration commitment. Havilah retains a 20% free-carried interest, positioning the company to benefit from future project cash flows without immediate capital outlay.
Exploration Progress and Regional Focus
While the Mutooroo copper-cobalt-gold project saw minimal activity during the quarter due to management's focus on the Kalkaroo transaction, exploration momentum continues elsewhere. At the Birksgate prospect, approximately 50 kilometres north-northwest of Kalkaroo, Havilah completed an 11-hole reverse circulation drilling program totalling 2,240 metres. Early assay results indicate significant copper-gold-molybdenum mineralisation consistent with skarn-style deposits, with final results pending integration into the geological model.
Complementing these efforts, Havilah has established a strategic alliance with Sandfire to fund regional exploration across the highly prospective Curnamona Province. This partnership aims to leverage Sandfire's resources and expertise to unlock new discoveries beyond Kalkaroo, enhancing the broader portfolio's value.
Financial Position and Investments
Havilah reported a cash balance of $731,517 at the end of January 2026, reflecting significant exploration expenditure of $765,489 during the quarter. The company also holds strategic equity stakes in Koba Resources, Heavy Rare Earths, and FireFly Metals, collectively valued at over $3 million. These investments complement Havilah's core projects and provide additional exposure to uranium, rare earths, and other critical minerals.
The company’s cash flow report highlights ongoing commitments to exploration and corporate costs, balanced by the recent Sandfire payment which substantially strengthens Havilah’s financial runway. Management confirms the ability to continue operations and meet business objectives, supported by the strategic alliance and potential asset sales or joint ventures.
Outlook and Market Context
Commodity prices remain robust, with copper and gold reaching new nominal highs during the quarter, buoyed by geopolitical and economic uncertainties. This favourable market backdrop enhances the attractiveness of Havilah’s projects, particularly Kalkaroo with its polymetallic resource base including copper, gold, cobalt, and other strategic minerals.
Looking ahead, the completion of the pre-feasibility study by Sandfire and ongoing exploration results from Birksgate will be key catalysts. Havilah’s ability to leverage its strategic alliance and maintain financial discipline will be critical to unlocking value for shareholders in a competitive mining landscape.
Bottom Line?
With Sandfire’s backing and promising exploration results, Havilah is poised for a transformative phase; but the next drill assays and study outcomes will be decisive.
Questions in the middle?
- What will Sandfire’s pre-feasibility study reveal about Kalkaroo’s development potential?
- How will final assay results from Birksgate influence Havilah’s exploration strategy?
- What are the prospects for advancing Mutooroo given current funding and strategic focus?