Havilah Advances Kalkaroo Prefeasibility with Sandfire and Mutooroo Farm-In Progress

Sandfire Advances $70 Million Kalkaroo Prefeasibility Study

Sandfire Resources Limited (ASX:SFR) has established an 80-person camp and commenced a ~130 km infill and extension drilling program at Havilah Resources' (ASX:HAV) Kalkaroo copper-gold project. This work supports a US$70 million prefeasibility study (PFS) slated for completion in the second half of FY28. The drilling faced initial delays due to heavy rain but is now underway with multiple rigs expected to join.

The PFS covers a comprehensive range of studies including environmental, heritage, groundwater, mining, metallurgical, and infrastructure assessments. Sandfire retains an exclusive right to earn an 80% interest in Kalkaroo by paying staged consideration totaling $210 million, having already paid $105 million upfront, including cash and shares.

Mutooroo Farm-In Deal Progresses with Kantra Copper

Havilah and Kantra Copper Limited (formerly Hillgrove Resources Limited) have advanced their binding farm-in agreement for the Mutooroo copper project. Kantra paid $5 million upfront in shares and options and has commenced Phase 1 of a prefeasibility study to assess processing sulphide ore at its Kanmantoo facility. Kantra plans up to $10 million in investment over 24 months, including a 5,000-metre drilling program and metallurgical test work using existing drillcore samples.

Kantra shareholders recently ratified the share issues to Havilah, and a capital consolidation and name change will take effect in September 2026. The full prefeasibility study will proceed only if early assessments confirm economic viability.

Exploration Activity Accelerates Despite Weather Delays

Under the Strategic Alliance with Sandfire, Havilah has commenced reverse circulation drilling at its 100% owned Brooks Dam prospect, approximately 12 km from Kalkaroo. The program targets the Kalkaroo stratabound mineralised horizon (K2 unit), with 13 drillholes completed for 2,915 metres and assays pending. This drilling is part of a $30 million, two-year regional exploration commitment by Sandfire.

Havilah is also preparing follow-up drilling at other prospects like Croziers and Birksgate, although heavy rains have delayed some regional programs. Heritage surveys and geochemical sampling have cleared the way for further work on several 100% owned prospects.

Shareholder Distribution Planned Before Year-End

Havilah is working through legal and tax considerations to distribute a portion of the net proceeds from Sandfire's Stage 1 payment to shareholders. The company aims to deliver a combination of a franked dividend and a share capital return, optimising shareholder benefit through franking credits generated by tax payments for the 2025/26 financial year.

Key prerequisites include finalising the 2025/26 tax return, obtaining an Australian Taxation Office opinion on the capital return, and shareholder approval of the capital reduction. The company targets completing these steps before the end of calendar year 2026.

Financial Position and Equity Investments

As at 31 July 2026, Havilah held cash and equivalents of $40.9 million, including $13.8 million restricted for Sandfire Strategic Alliance exploration. Exploration and evaluation expenditure for the quarter was $1.2 million. Corporate costs included a $2.08 million fee to advisors related to the Kalkaroo earn-in agreement.

Havilah maintains strategic equity holdings in Sandfire (valued at $87.9 million), Kantra Copper ($6.5 million), Koba Resources, Heavy Rare Earths, FireFly Metals, and Bellavista Resources. Notably, half of the Kantra shares and options are under voluntary escrow until late 2026 and mid-2027.