Hillgrove Resources Logo

$6m Funding Agreement For The Sale Of Kanmantoo Royalty

Hillgrove Resources Limited (Hillgrove, the Company) (ASX:HGO) is pleased to announce that it has entered into a royalty agreement with Freepoint Metals & Concentrates LLC (Freepoint) in relation to its 100% owned Kanmantoo copper gold project located in South Australia.


Summary
  • Hillgrove has entered into a royalty agreement with Freepoint Metals & Concentrates LLC.
  • Hillgrove to receive cash payment of $6 million in return.
  • Freepoint Metals & Concentrates LLC to receive 2.5% of net smelter returns for the first 85,000 tonnes of payable copper, reducing to 0.5% thereafter.
  • Royalty payments will only occur from future production.

Commenting on the agreement, Hillgrove CEO and Managing Director, Lachlan Wallace said:

“Freepoint is a long-standing partner and supporter of our Company, both as a significant shareholder, and as our offtake partner. We are very pleased to continue this partnership with Freepoint through the Royalty agreement, which, given the Royalty is based on future production from Kanmantoo, demonstrates their strong commitment to the development of the Kanmantoo underground project and appreciation of the on-lease exploration upside.

The agreement highlights the robustness of the Kanmantoo Underground project, as demonstrated in the Economic Assessment1, with subsequent updates to the Kavanagh2 and Nugent3 Mineral Resource Estimates expected to increase mine life. Moreover, both Nugent and Kavanagh remain open at depth and along strike, and are only two of nine mineral systems that have either been drilled or partially mined within the permitted lease, representing an excellent opportunity to expand the mine life with further drilling.

The consideration for the royalty immediately boosts our cash position without shareholder dilution, enabling the Company to consider a range of restart and resource expansion options, particularly in light of recent changes in the global copper market.”


Click here for the full ASX Release

This article includes content from Hillgrove Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

HGO:AU
The Conversation (0)
Augustus Minerals

Augustus Minerals Limited (ASX: AUG) – Trading Halt

Description

The securities of Augustus Minerals Limited (‘AUG’) will be placed in trading halt at the request of AUG, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Tuesday, 16 July 2024 or when the announcement is released to the market.

Keep reading...Show less
Pan Asia Metals

Tama Atacama Lithium Project –Exploration Concessions Granted

Battery and critical metals explorer and developer Pan Asia Metals Limited (ASX: PAM) (‘PAM’ or ‘the Company’) is pleased to advise that substantially all Exploration Concessions in its holdings under Option Agreement have been granted at its Tama Atacama Lithium Project, increasing the total area of granted Exploration Concessions under Option Agreements and MOU to ~1,234km2 or 123,400Ha, see Figure 1.

Figure 1. Tama Atacama Lithium Project: Granted Exploration Concessions under Option and MOU

Keep reading...Show less
High-Grade Rock Chip Assays Extend Prospective Lithium Horizon at Red Mountain Project, USA

High-Grade Rock Chip Assays Extend Prospective Lithium Horizon at Red Mountain Project, USA

Grades up to 4,150ppm Li identified along 1.4km trend north of recent discovery


Keep reading...Show less
Firetail Resources

Firetail Resources

FTLABX

Keep reading...Show less
Auric Mining (ASX:AWJ)

Auric to Bank $3M Cash this Quarter. Toll Milling of 150,000 Tonnes to Start in 3 Weeks.

Auric Mining Limited (ASX: AWJ) (Auric or the Company) is pleased to announce that the second gold milling campaign of 2024 from the Jeffreys Find Gold Mine (the Project) near Norseman, WA, is expected to commence on 24 July 2024.

Keep reading...Show less
  Rimfire Pacific Mining Limited

Successful Placement

Rimfire Pacific Mining (ASX: RIM, “Rimfire” or “the Company”) is pleased to advise that it has received firm commitments to raise $1.15M through a Share Placement pursuant to Section 708 of the Corporations Act (Cth).

Keep reading...Show less

Latest Press Releases

Related News

×