Havilah to Acquire 100 per cent of Kalkaroo project

THE BOURSE WHISPERER: Multi-commodity junior exploration company Havilah Resources is set to acquire from Glencore International, that company’s rights in the mining tenements and the Feasibility Study of the Kalkaroo project.

The Kalkaroo project is a medium-size copper-gold deposit containing over 320,000 tonnes of copper and almost 1 million ounces of gold in a measured resource of 62 million tonnes of 0.55% copper and 0.44 g/t gold

Havilah describes the deposit to be, “amenable to a bulk mining operation at the rate of 4.5 million tonnes per annum for a period of twelve years”.

Once the transaction has been finalised Havilah will take 100% control of what it considers an attractive copper gold deposit with a completed bankable feasibility study.

“Havilah will now pursue a measured strategy to maximise the value of this large copper‐gold asset and explore various development options,” Havilah Resources chairman Dr Bob Johnson said in the company’s announcement to the Australian Securities Exchange.

‘This will include further drilling to expand shallow gold and copper metal resources along strike and alternative metallurgical processing methods to improve recoveries particularly of gold and native copper.

“Kalkaroo contains almost 1 million ounces of contained gold, and is a large gold deposit in its own right, therefore optimising gold recoveries will be a high priority in future work.”

In accordance with the Heads of Agreement reached between the two companies, Havilah will issue $7million of ordinary shares to Glencore.

Havilah said the shares to be issued should be calculated on the volume weighted average price of the shares on the ASX in the 20 days previous to the date of the Heads of Agreement.

This is calculated to be $2.147 per share resulting in issue of 3.3 million shares representing approximately 3.95% of Havilah’s issued capital.

However, Glencore has taken the view the shares to be issued will be calculated on the volume weighted average price of the shares on the ASX in the 20 days previous to the date of expiry of Glencore’s option to participate.

This is calculated to be 68.94 cents per share resulting in issue of just over ten million shares representing approximately 12.3 % of Havilah’s issued capital.

The two companies are now in discussions regarding the amount of shares to be issued.

If discussions fail to resolve the dispute then the parties are likely to engage in a formal dispute resolution process in due course.