Havilah Resources has entered a transformative partnership with Sandfire Resources, unlocking $210 million in staged payments and exploration funding to accelerate development in South Australia's Curnamona Province.
- Sandfire to pay $210 million in staged payments including $105 million upfront
- Havilah retains 20% free carried interest in Kalkaroo project
- $30 million committed to two years of regional exploration funding
- Partnership supports Havilah’s multi-commodity project generator model
- Transaction enhances exploration and development prospects in Curnamona Province
Strategic Partnership Unlocks Significant Funding
Havilah Resources Limited (ASX:HAV) has announced a major partnership with Sandfire Resources that is set to transform its exploration and development activities in the Curnamona Province of northeastern South Australia. The deal includes staged payments totalling $210 million, with an initial $105 million received upfront in February 2026, followed by a potential $105 million Stage 2 payment within two years. This second payment would secure Sandfire an 80% interest in the Kalkaroo copper-gold-cobalt project, while Havilah retains a 20% free carried interest through to commercial production.
This transaction significantly enhances Havilah’s financial capacity to advance its portfolio, including the Kalkaroo project and other prospects in the region. The $30 million committed over two years for regional exploration funding further supports drilling and resource definition efforts across multiple targets.
Expanding Exploration in a Highly Prospective Province
The Curnamona Province is recognised for its high geological prospectivity, with mineralisation comparable to major Australian provinces such as the Gawler Craton and Mt. Isa-Cloncurry. Havilah’s portfolio includes four JORC Mineral Resources at Kalkaroo, Mutooroo, Maldorky, and Grants Iron Ore, covering a range of commodities including copper, gold, cobalt, molybdenum, uranium, tungsten, and rare earth elements.
The partnership with Sandfire enables Havilah to accelerate its exploration strategy, leveraging a proven 3P project generative model that focuses on prospecting, proving resources, establishing partnerships, and securing successful deals. This cyclical approach aims to compound shareholder value by advancing projects through to development and monetisation.
Kalkaroo Project Details and Future Outlook
The Kalkaroo project, a key asset in the partnership, hosts JORC Mineral Resources of approximately 100 million tonnes at 0.47% copper and 0.44 grams per tonne gold, including 474,000 tonnes of copper and 1.4 million ounces of gold. The Stage 1 payment from Sandfire has already been received, and a minimum 20,000 metres of resource drilling is planned to support a Pre-Feasibility Study (PFS).
Havilah’s Technical Director, Dr Chris Giles, highlighted the transformational impact of the Sandfire transaction in a presentation at the RRS Gather Round Investor Conference 2026. The deal not only provides substantial funding but also strengthens Havilah’s position as a multi-commodity project generator with exposure to strategic and critical minerals in an under-explored region.
This development follows recent progress at Havilah’s Birksgate prospect, where extensive copper mineralisation was confirmed over a 6 km strike, underscoring the company’s growing exploration momentum in South Australia. The partnership with Sandfire builds on this foundation, enabling more aggressive drilling and resource definition programs across the portfolio, as detailed in the company’s recent Birksgate copper mineralisation update.
Risks and Forward-Looking Considerations
While the partnership unlocks significant financial resources and strategic opportunities, the ultimate value depends on Sandfire’s decision to make the Stage 2 payment within two years and the success of ongoing exploration activities. Mineral resource estimates are subject to revision as further drilling and studies are completed. Havilah cautions investors that forward-looking statements involve inherent risks and uncertainties, and outcomes may differ materially from current expectations.
Bottom Line?
Havilah’s partnership with Sandfire provides a substantial funding platform to advance exploration and development, but future progress hinges on exploration success and Sandfire’s Stage 2 investment decision.
Questions in the middle?
- Will Sandfire proceed with the Stage 2 payment to secure an 80% interest in Kalkaroo?
- How will ongoing exploration results at Kalkaroo and other prospects influence resource estimates and project economics?
- What are the potential timelines and milestones for advancing the Pre-Feasibility Study and subsequent development phases?