Havilah Advances Kalkaroo with $105M Sandfire Payment and Signs Mutooroo Farm-In

Sandfire’s $105 Million Entry into Kalkaroo

Havilah Resources (ASX:HAV) has received a substantial $105 million upfront payment from Sandfire Resources (ASX:SFR) as part of an exclusive agreement granting Sandfire the right to earn an 80% interest in the Kalkaroo copper-gold project. This deal, approved by Havilah’s shareholders earlier this year, includes $31.5 million in cash and 4.64 million Sandfire shares, with a further $105 million payable within 24 months should Sandfire elect to complete the earn-in.

Sandfire is now laying the groundwork for a sizeable pre-feasibility study budgeted at approximately US$70 million, targeted for completion in the second half of FY28. Preparations include onboarding key personnel, securing contractors for a 130-kilometre drilling program, and establishing camp and drill core handling facilities at Kalkaroo following recent regulatory approvals. The drilling program aims to infill and extend existing resources, bolstering the project’s development potential. The strategic alliance also commits Sandfire to invest a minimum of $30 million over two years in regional exploration across Havilah’s tenements north of the Barrier Highway, with $15 million of this funding already deposited into Havilah’s bank account during the quarter.

This partnership represents a transformative step for Havilah, providing both significant capital and operational support to advance Kalkaroo and surrounding prospects. The transaction builds on prior momentum, including a $31.5 million payment and exploration funding received earlier in the year, which accelerated groundwork and drilling preparations Sandfire partnership details.

Hillgrove’s Farm-In Deal Brings $5 Million Upfront to Mutooroo

Meanwhile, Havilah has signed a binding farm-in agreement with Hillgrove Resources (ASX:HGO) to advance the Mutooroo copper project, a high-grade deposit located within striking distance of Broken Hill. Hillgrove will earn an 80% interest through a two-stage earn-in, starting with a $5 million upfront payment in shares and options, already expected by the end of May. The agreement includes a $10 million investment commitment over 24 months, covering a 5,000-metre drilling program aimed at resource definition.

Hillgrove’s plan to process Mutooroo sulphide ore through its Kanmantoo facility is underpinned by a draft Tolling and Marketing Agreement, which will be finalised post-Pre-feasibility Study. The Stage 2 earn-in consideration involves a $35 million payment, split between cash and shares at Hillgrove’s discretion, contingent on a Final Investment Decision. This deal offers Havilah a pathway to unlock value from Mutooroo without immediate capital expenditure, while retaining upside through its remaining stake and Hillgrove shareholding Mutooroo farm-in agreement.

Regional Exploration and Partner Progress

Havilah’s geologists have been busy preparing for a regional drilling campaign set to commence in June 2026, focusing on priority prospects like Eurinilla Dome and Brooks Dam. Delays caused by unseasonal heavy rains have now eased, enabling access for heavy drilling rigs. This regional program is funded in part by Sandfire’s strategic alliance exploration budget, which aims to extend mineralisation near Kalkaroo and potentially feed a future processing plant.

On the partner front, Koba Resources Limited has reported its thickest and highest-grade uranium intersections to date at the Everest prospect within the Yarramba palaeochannel, including 1.5 metres at 790 ppm eU3O8. This discovery lies just north of Boss Energy’s Jason deposit, highlighting the prospect’s potential for further uranium mineralisation. Heavy Rare Earths Limited is advancing exploration at the South Ridge tin project within the Prospect Hill area, with a maiden 2,500-metre drilling program planned following environmental and cultural heritage clearances.

Financial Position and Equity Stakes

Havilah ended the quarter with a robust cash position of $56.4 million, including $16.5 million restricted for Sandfire alliance exploration. Exploration expenditure for the quarter was just under $1 million, reflecting active project advancement without production or development activities. The company also holds significant equity investments in Sandfire ($75.7 million fair value), Koba Resources, Heavy Rare Earths, and FireFly Metals, collectively valued at nearly $78 million. These stakes are strategic, aligning Havilah with partners advancing exploration and development across its tenements.

Payments to related parties, including director remuneration and marketing services, were disclosed in line with regulatory requirements. The company maintains strong governance and internal controls for its resource reporting, with all material assumptions unchanged since last reported.