Australia’s largest listed independent copper producer, Sandfire Resources, announced on Thursday a binding term sheet with Havilah Resources to advance the Kalkaroo copper/gold project in north-eastern South Australia and establish a regional exploration alliance across the Curnamona province.

Under the agreement, Sandfire can earn an 80% interest in Kalkaroo through a two-stage earn-in structure valued at up to A$210-million.

Stage 1 includes an upfront payment of A$105-million, comprising 70% in Sandfire shares and 30% in cash, to secure the right to earn an interest, while Stage 2 allows Sandfire to acquire the stake for an additional A$105-million following completion of a prefeasibility study (PFS).

The new PFS will include at least 20 000 m of drilling to upgrade and expand the project’s 224-million-tonne mineral resource, which currently holds 0.49% copper and 0.36 g/t gold. The project also has a 100-million-tonne ore reserve, grading 0.47% copper and 0.44 g/t gold.

In parallel, Sandfire will spend A$30-million over two years on regional exploration under a strategic alliance aimed at discovering additional copper resources within Havilah’s Curnamona tenement package.

Sandfire CEO Brendan Harris said the agreement was aligned with the company’s growth strategy. “We are thrilled to have the opportunity to work with the Havilah team to derisk the Kalkaroo copper/gold project, which is in a preferred jurisdiction with ready access to key infrastructure and skilled labour,” he said.

“The decision to move into the Curnamona province in South Australia is fully aligned with our strategy and has the potential to replicate our successful entry into the Kalahari Copper Belt.”

Havilah technical director Chris Giles said the agreement would immediately deliver value to shareholders while positioning the company for long-term growth.

“Immediate value for Havilah shareholders will be realised via an upfront payment, which also gives Havilah a direct stake in Sandfire's successful global mining operations via the share component,” he said.

“The funding under the exploration strategic alliance will allow us to accelerate regional exploration in South Australia with the objective of transforming the highly prospective Curnamona province into Australia’s next major copper province.”

Havilah will retain a 20% free-carried interest in Kalkaroo through to the final investment decision, after which Sandfire will arrange development financing, to be repaid from future project cash flows.

The proposed transaction remains subject to Havilah shareholder approval and regulatory consents, with the vote expected to take place by January 30, 2026.