EV Resources (ASX:EVR) announces it has converted its memorandum of understanding with Lucero Grupo Minero de Puebla (Chinantla) into a binding five-year ore supply agreement, establishing the commercial framework for antimony deliveries to the Tecomatlán Processing Plant.
Chinantla’s ore has been extensively tested through EVR’s metallurgical program, achieving 81.1% antimony (Sb) recovery and producing a 42.4% Sb concentrate through flotation testwork.
This compares with a 29.25% Sb recovery and a 20.54% Sb concentrate using gravity concentration alone.
Executive Chairman Shane Menere says the agreement represents an important milestone in bringing together the components required for the Tecomatlán proof-of-concept campaign.
“Chinantla is particularly important to us. It is approximately 8km from Tecomatlán, we have already extensively tested its ore, and flotation testwork achieved those impressive recoveries,” Menere says.
“Our strategy is to establish Tecomatlán as a regional processing hub supplied by multiple nearby antimony producers.
“Converting Chinantla from an MoU into a five-year binding commercial relationship is another important step in moving that model from concept to execution.”
EVR notes that alternative regional facilities are located up to approximately 1,200km away.
The agreement establishes a five-year initial term with automatic renewals for successive one-year periods. Pricing for individual ore purchases will reference international antimony benchmarks, final payable antimony grade, and agreed commercial adjustments for treatment, refining, and transportation charges.
EVR’s existing feedstock MoUs contemplate volumes representing more than 50% of Tecomatlán’s nameplate capacity. The Chinantla agreement represents the first conversion from non-binding arrangements into documented commercial relationships.
The company says it is still progressing the separate acquisition of an initial 200-tonne ‘high-grade’ Chinantla stockpile intended as feed for its planned proof-of-concept processing campaign.
Meanwhile, it continues advancing the 70%-owned Los Lirios Project towards a maiden JORC mineral resource, which represents a potential future proprietary antimony source.
EV Resources is a critical minerals explorer and developer focused on securing the North American antimony supply chain.
Write to Paula Fabe at Mining.com.au
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