EV Resources (ASX:EVR) has taken another step towards commercialising its Tecomatlán antimony processing hub in Mexico, securing its first binding five-year ore supply agreement as it prepares for a proof of concept processing campaign.
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The agreement, signed through Mexican subsidiary Stibcorp with Lucero Grupo Minero de Puebla, converts a previously announced memorandum of understanding into a long-term commercial supply arrangement.
The Chinantla mine, located around 8 kilometres from the Tecomatlán processing plant, will provide high grade antimony ore under pricing linked to international antimony benchmark prices and payable antimony grades.
The company said Chinantla ore has already been validated through metallurgical testing, with flotation testwork delivering antimony recoveries of 81.1% and producing a concentrate grading 42.4% antimony. By comparison, gravity concentration alone achieved 29.25% recovery and a 20.54% concentrate grade.
EV Resources is also progressing the separate acquisition of an initial 200-tonne stockpile of high-grade Chinantla ore, which is intended to supply feed for the upcoming proof-of-concept processing campaign.
Executive chairman Shane Menere said the agreement brings together several key pieces of the company’s strategy.
“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.
EV Resources said its immediate priorities include completing acquisition of the 200-tonne ore stockpile, finishing commissioning activities at Tecomatlán, launching the proof-of-concept processing campaign and converting additional supply agreements into long-term commercial contracts.
The company believes demand for non-Chinese antimony supply remains supported by export restrictions introduced by China in 2024, with antimony designated as a critical mineral by the United States, European Union and Australian governments due to its use in defence, semiconductors, energy storage and flame retardants.
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