EV Resources signs first ore supply agreement
EV Resources (ASX: EVR) has secured a five-year binding ore supply agreement for its Tecomatlán processing plant in Mexico, bringing the facility a step closer to proof-of-concept production.
The five-year binding agreement was signed with Lucero Grupo Minero de Puebla SA de CV which operates the Chinantla antimony mine, located about 8km from Tecomatlán.
The agreement converts the non-binding memorandum of understanding signed between the two companies on May 14 into a binding commercial framework with a five-year initial term and automatic renewals for successive one-year periods.
Chinantla’s ore has already been extensively tested through EVR’s metallurgical program, and flotation testwork achieved 81.1% antimony recovery and produced a 42.4% antimony concentrate.
EVR continues to systematically bring together the plant, feedstock and commercial arrangements required to demonstrate its regional antimony processing model and is also progressing the separate acquisition of an initial 200t high-grade Chinantla stockpile, which the company intends to use as feed for its proof-of-concept processing campaign.
EVR executive chairman Shane Menere comments on the agreement.
“This is an important milestone because we are progressively bringing together every component required for the Tecomatlán proof-of-concept campaign: the plant, the processing flowsheet, tested high-grade ore and now our first binding long-term commercial supply relationship,” he said.
“We see Tecomatlán as more than a standalone processing plant.
“Our objective is to build an integrated antimony value chain, combining regional ore supply and processing in Mexico with a pathway into the US market, complemented over time by our 100%-owned antimony prospects in Nevada.
“We believe that creates a compelling platform for groups seeking secure, strategically located antimony supply into North America.”
The planned proof-of-concept campaign is intended to demonstrate the processing of regional antimony ore through Tecomatlán and provide operational and commercial information to support the EVR’s subsequent development strategy.
The company also continues to progress work towards a future proprietary source of antimony supply at its 70% owned Los Lirios antimony project in Oaxaca, Mexico, alongside the company’s broader third-party regional supply strategy.
“We are building the platform, demonstrating processing capability and establishing the supply network,” Mr Menere said.
“We are currently in, and open to, new discussions with the right strategic partners who can help us accelerate the next stage.”
