Sandfire Resources and Havilah Resources have formalised a strategic agreement to advance the Kalkaroo Copper-Gold Project in the Curnamona Province of northeastern South Australia, marking a significant development in Australia’s critical minerals sector.

Under a binding term sheet executed in November two thousand twenty-five, Sandfire may earn up to an eighty per cent interest in the project through a staged earn-in arrangement combining upfront consideration and performance-linked payments, subject to final transaction documentation and shareholder approval.

The first stage of the agreement requires Sandfire to provide approximately one hundred and five million Australian dollars in a mix of cash and equity, enabling the commencement of a new pre-feasibility study and a substantial drilling program aimed at upgrading and extending the existing resource base.

Upon completion of the study, a further payment of around one hundred and five million Australian dollars would secure Sandfire’s full earn-in position.

In parallel, Sandfire has committed additional funding to a regional exploration alliance designed to unlock further copper and gold potential across Havilah’s broader tenement holdings in the highly prospective province.

The Kalkaroo project hosts a large, well-defined mineral inventory and is regarded as one of the most advanced undeveloped copper-gold assets in South Australia.

The renewed work program is intended to refine development options, improve project economics and test extensions of known mineralisation.

Havilah will retain a twenty per cent interest through to a final investment decision, after which its share would be financed from project cash flows.

Both companies have highlighted the strategic importance of the project amid rising global demand for copper driven by electrification, renewable energy deployment and electric vehicle production.

The collaboration positions Kalkaroo as a potential cornerstone development for the Curnamona Province and reinforces Australia’s role as a stable and reliable supplier of critical minerals.