EV Resources (ASX:EVR) has outlined a strategically restructured agreement for the Tecomatlán processing plant in Mexico containing an accelerated and more capital efficient pathway to near-term antimony production.
The updated agreement delivers a more commercially-focused structure, with payments directly linked to key permitting and operational milestones, better aligning the capital deployment to project developments.
Managing Director Mike Brown says that the revised agreement “is a win” for shareholders.
“By shifting the bulk of our capital commitment to the back end of the permitting process, we have significantly de-risked the Tecomatlán acquisition,” Brown says.
“We are no longer just paying for a lease; we are paying for results. This agreement ensures that our capital is deployed in lockstep with the delivery of the soil use permits and final flotation approval, providing a clear, incentivised path to first antimony production.”
The updated agreement outlines staged payments including an initial payment of US$10,000 (plus VAT), US$45,000 (plus VAT) upon delivery of the land-use change authorisation, and US$500,000 (plus VAT) upon issuance of flotation, leaching, and smelting permits or the commencement of gravimetric operations.
There will also be performance-linked rental payments commencing 30 days after the initial milestone payments, from US$30,000 to US$50,000.
Refurbishment activities are underway for the plant with early works and site preparation progressing. EVR notes that the company is on track toward commissioning and production in the near-term.
The Tecomatlán plant is an entry point for antimony production and will use ‘high-grade’ feed from the Los Lirios project with additional material from the region to support continuous throughput.
Metallurgical testwork has delivered recoveries of 90.8% antimony.
EVR believes that the company’s strategy is directly aligned with the North American and allied markets’ critical minerals supply chains with their track to production.
EV Resources is a critical minerals exploration and development company focused on transitioning to near-term producer.
Write to Amy Rotman at Mining.com.au
Images: EV Resources
