Havilah Resources (ASX:HAV) to sell Kalkaroo to OZ Minerals (ASX:OZL) for $205m

• Havilah Resources (HAV) signs a conditional binding terms sheet with OZ Minerals (OZL) for the sale of the Kalkaroo copper-gold project for $205 million
• OZ Minerals plans to undertake a study program over Kalkaroo over 18 months to confirm and expand the existing mineral resources and optimise the project scale and value
• Havilah and OZ Minerals have also entered a strategic alliance to explore for copper across Havilah’s tenement holding in the Curnamona Province of South Australia
• Under the alliance, OZ Minerals will provide up to $18 million to Havilah with at least half to be used for the exploration of new copper deposits
• Shares in Havilah are up 103 per cent and trading at 33.5 cents while shares in OZ Minerals are up 1.44 per cent and trading at $21.77 as of 12:23 pm AEST

Havilah Resources (HAV) has signed a conditional binding terms sheet with OZ Minerals (OZL) for the sale of the Kalkaroo copper-gold project for $205 million.

OZ Minerals plans to undertake a study program over Kalkaroo over an 18-month period to confirm and expand the existing mineral resources and optimise the project scale and value.

This work will determine whether OZ Minerals will proceed with the purchase of Kalkaroo and OZL may choose not to exercise the option provided 5000 metres has been drilled or a shortfall payment is made to Havilah.

Havilah and OZ Minerals have also entered a strategic alliance to explore for copper in Havilah’s tenements holding in the Curnamona Province of South Australia.

Under the alliance, OZ Minerals will fund up to $18 million to Havilah with at least half to be used for the exploration of new copper deposits.

The Kalkaroo purchase and strategic alliance are subject to Havilah shareholder approval, entry into form definitive binding agreements and an independent expert confirming the sale is in the best interest of Havilah shareholders.

“We are very pleased to have formed a strategic alliance with OZ Minerals, which aims to harness the respective skills of both companies to explore and develop Australia’s next great copper region in the Curnamona Province,” Havilah Technical Director Dr Chris Giles said.

“Exercise of the Kalkaroo option by OZ Minerals would result in the monetisation of Kalkaroo and provide what we believe is a fair return for our shareholders without Havilah taking on the longer-term development and financing risks inherent in a large new mining project at this time.

“Funding provided under the Strategic Alliance would allow us to accelerate exploration for new copper deposits in the region that could potentially be additive to Kalkaroo, as well as advancing our other promising mineral projects south of the Barrier Highway.”

Shares in Havilah were up 103 per cent and trading at 33.5 cents while shares in OZ Minerals were up 1.44 per cent and trading at $21.77 as of 12:23 pm AEST.