Havilah Resources Ltd (ASX:HAV) has received the first payment of $3 million from OZ Exploration Pty Ltd, a subsidiary of OZ Minerals Ltd, for the Kalkaroo Copper-Gold-Cobalt Project in South Australia near the mining centre of Broken Hill.
The payment is part of a strategic alliance agreement signed in July this year, where OZ Exploration will pay Havilah $1 million per month during the alliance period, up to a maximum of $18 million.
Havilah intends to use half of the payment to fund costs and expenses for copper exploration and any work relating to the possible development and exploitation of minerals within the area of interest tenements in the Curnamona Province.
The remainder will be applied to Havilah’s other activities unrelated to the alliance.
Updating Kalkaroo’s pre-feasibility study
OZ Exploration will undertake a study and work program on the nearby Kalkaroo tenements with the aim of progressing and completing an update to Kalkaroo’s current pre-feasibility study.
The results will also help to decide if the option to acquire 100% of the Kalkaroo project will be exercised.
Work to commence in coming weeks
Over the past few months, Havilah and OZ Exploration have worked closely to prepare for the commencement of site activities, including establishing Orexplore Technologies' core scanning facilities and a 30-person accommodation camp.
Havilah has completed, or is in the process of completing, all required heritage surveys, regulatory approvals and landholder notices to facilitate the drilling programs.
Core scanning and drilling are expected to commence in the coming weeks, subject to approvals and required site works.