EV Resources has secured its first binding five-year ore supply agreement with Chinantla, underpinning its Proof-of-Concept antimony processing campaign at Tecomatlán and advancing its regional hub strategy.
- First binding five-year ore supply agreement executed
- Chinantla ore metallurgically validated with 81.1% antimony recovery
- Ore source located just 8km from Tecomatlán plant
- Agreement includes benchmark-linked pricing tied to international antimony prices
- EVR progressing acquisition of 200-tonne Chinantla stockpile for initial processing
Binding Ore Supply Agreement Secures Regional Feedstock
EV Resources (ASX:EVR) has converted its previously non-binding Memorandum of Understanding with Lucero Grupo Minero de Puebla (Chinantla) into a binding five-year Ore Supply Agreement, marking a pivotal step towards operationalising its Tecomatlán Processing Plant in Mexico. This deal formalises the commercial framework for ongoing deliveries of high-grade antimony ore, a critical feedstock for EVR's planned Proof-of-Concept processing campaign.
Chinantla’s proximity, approximately 8 kilometres from Tecomatlán, provides a logistical advantage, significantly reducing haulage costs and delivery times. The ore has already undergone extensive metallurgical testing through EVR’s program, yielding an impressive 81.1% antimony recovery rate and producing a concentrate grading 42.4% Sb via flotation, validating its suitability for the plant’s integrated processing flowsheet.
Advancing the Proof-of-Concept Campaign
With the flotation circuit at Tecomatlán commissioned and the processing flowsheet established, EVR is now systematically assembling the essential components to demonstrate its regional antimony processing model. The binding agreement with Chinantla is the first of several regional feedstock MOUs, representing over half of the plant’s nameplate capacity, to be formalised into long-term commercial contracts.
EVR is also progressing the acquisition of a 200-tonne high-grade Chinantla stockpile, intended as feed for the upcoming Proof-of-Concept campaign. This separate commercial arrangement complements the supply agreement and aims to provide the bulk sample material for processing through the Tecomatlán flowsheet.
Benchmark-Linked Pricing Aligns with Market Dynamics
The ore pricing under the agreement is linked to the international antimony benchmark price, adjusted for payable antimony grade, treatment, refining, transportation costs, and any penalties for impurities. This transparent commercial framework ensures that feedstock purchasing aligns with prevailing market conditions and ore quality, supporting EVR’s objective to produce a marketable concentrate competitive in global markets.
Building a Regional Antimony Supply Network
Tecomatlán is positioned as a regional processing hub catering to antimony producers across Puebla, Oaxaca, and Guerrero, many of whom currently face haulage distances up to 1,200 kilometres to alternative facilities. EVR’s strategy aggregates ore from multiple nearby producers, offering a local route to market and enabling smaller operations to economically supply antimony concentrate.
Chinantla’s conversion into a binding agreement exemplifies this approach, anchoring EVR’s broader hub processing strategy. The company plans to advance additional regional feedstock MOUs into binding contracts as it progresses through Proof-of-Concept and towards commercial production.
Parallel Development of Proprietary Feed Sources
Alongside its third-party feedstock strategy, EVR is advancing its 70%-owned Los Lirios Antimony Project, approximately 50 kilometres from Tecomatlán, towards a maiden JORC Mineral Resource. This project represents a potential future proprietary ore source, complementing the regional supply network and enhancing EVR’s integrated North American antimony platform.
EVR’s broader vision includes combining regional ore supply and processing in Mexico with direct exposure to US antimony assets in Nevada, positioning the company to serve the critical mineral needs of North American markets amid tightening global supply chains.
Bottom Line?
EVR’s first binding ore supply agreement anchors its regional processing hub ambitions but hinges on successful Proof-of-Concept outcomes and further commercial partnerships.
Questions in the middle?
- Will EVR secure binding agreements for the remaining regional feedstock MOUs to fully supply Tecomatlán?
- How will the acquisition and processing of the 200-tonne Chinantla stockpile influence Proof-of-Concept results?
- What strategic partners might EVR engage to scale its North American antimony supply chain post-Proof-of-Concept?