Australian miners Sandfire Resources and Havilah Resources have executed definitive transaction agreements to advance the Kalkaroo copper/gold project and establish an exploration strategic alliance in South Australia’s Curnamona province.

Havilah shareholders last week approved the transaction, enabling the parties to formalise arrangements to progress the development of the project.

Under the agreements, Sandfire has secured the exclusive right to earn an 80% interest in Kalkaroo for an effective upfront consideration of about A$117.6-million, comprising A$31.5-million in cash and 4 640 833 Sandfire shares.

Following completion of a new prefeasibility study, which will include a minimum 20 000 m infill and resource extension drilling programme, or within 24 months, Sandfire may elect to acquire the 80% interest by completing a second-stage payment.

In parallel, Sandfire has committed A$30-million to regional exploration over a minimum 24-month period under the strategic alliance.

“Execution of the definitive transaction agreements is an important milestone for our company as it provides the right to earn a controlling interest in a copper/gold resource and reserve that remains open along strike and at depth, and has the potential to underpin a large scale, long life and low cost development project located in a preferred jurisdiction,” said Sandfire CEO and MD Brendan Harris.

“We look forward to working with the Havilah team, the South Australian government, the Traditional Owners and other local stakeholders to bring the Kalkaroo copper/gold project to life and create meaningful opportunities for the broader community.”

Havilah technical director Chris Giles added that the partnership would strengthen the project’s development prospects and accelerate exploration activity in the region.

“Sandfire will bring the substantial capital and technical expertise that are required to fully evaluate and develop the large Kalkaroo copper/gold project at an optimum scale,” he said.

“Havilah would hold a significant stake in the outcome via its retained 20% carried interest in the project.”

He added that the exploration funding commitment would support regional growth.

“The A$30-million strategic alliance funding commitment over two years will allow us to accelerate regional exploration with the objective of transforming the highly prospective Curnamona Province into Australia's next major copper province, centred on the Kalkaroo copper/gold project development,” Giles said.