Havilah Resources Ltd (ASX:HAV) advises that an extension to the permitting approval process for the divested North Portia Copper-Gold Project will result in a $3.5 million payment being delayed.
Under the divestment agreement with Consolidated Mining and Civil Pty Ltd (CMC) for the South Australian project, the second payment of $3.5 million is dependent on stage I permitting approval.
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Approval of the updated Portia Program for Environmental Protection and Rehabilitation (PEPR) document was expected by the end of 2018, but this has been extended to the second quarter of 2019.
The extension is required to incorporate proposed modifications into the processing flowsheet and tailings storage facility design, which CMC has undertaken at its expense.
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These modifications will necessitate revisions to the updated PEPR document prepared by Havilah on behalf of CMC under the North Portia divestment agreement for stage I permitting.
Havilah’s CEO Walter Richards said: “Completion of the updated PEPR, once the additional information is provided by CMC, can be addressed by Havilah within a reasonable time frame and at limited cost.
“This will delay the receipt of the second divestment payment of $3.5 million, but Havilah has access to adequate funds to allow the company to manage through this extended permitting process.”
Following provision of the details from CMC and with the cooperation of the regulator in rescheduling the approvals process, Havilah believes permitting approval in the first half of 2019 is achievable.
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The Benagerie Mining Lease, which is being divested to CMC and is west of Broken Hill, comprises the pre-development North Portia project and the adjoining Portia open pit gold operation.