EV Resources offloads Arizona copper project to fund antimony focus

In a move to streamline its critical minerals portfolio, EV Resources will sell its La Cienega copper project in the US state of Arizona to fellow ASX-listed explorer Magnum Mining and Exploration.

EV Resources says the deal will include a 2 per cent net smelter return (NSR) royalty on any future copper production at the project, allowing the company to free up capital and retain upside in the United States copper project.

The strategic divestment allows the company to allocate resources towards its flagship antimony and copper projects throughout Peru and Mexico, as well as its newly acquired antimony asset in Utah.

Following China’s critical minerals export bans over the past two years, critical minerals such as antimony and copper have seen huge price increases as future supply concerns push demand.

With the sale of La Cienega, EV Resources is doubling down on its strategy to deliver near-term antimony production and long-term upside from its sizeable copper-molybdenum projects in Peru.

Located in the Cienega district of Arizona’s La Paz County, La Cienega has been a peripheral holding in EV Resources’ Americas portfolio for the past few years.

The deal is conditional on Magnum completing due diligence, securing approvals and finalising a parallel acquisition of the Parker and Mormon Canyon projects in Arizona and Idaho respectively.

EV Resources will likely use the freed-up funds to quickly progress its recently acquired Los Lirios project in Oaxaca, Mexico, which is shaping up as a near-term antimony cash cow.

The company acquired 70 per cent of the past-producing Los Lirios antimony mine, which encompasses 1652 hectares of antimony-rich historic open pits and underground workings.

Previous production from Los Lirios concentrated on antimony ore at direct shipping ore grades. Two grab samples from the Los Lirios 3 open pit returned antimony assays of 62 per cent and 62.99 per cent, respectively.

Antimony prices continue to soar, passing US$50,000 (A$83,800) per tonne last month amid Chinese supply squeezes.

EV Resources says it is fast-tracking metallurgical testing and pilot plant talks at Los Lirios to capitalise on the critical mineral’s continued strong demand, which management believes will remain untapped.

The company’s other recent acquisition of the Coyote Creek antimony project in Utah has shown it is willing to back its antimony in its immediate future. The project’s historical non-JORC resource of 12.7 million tonnes at 0.79 per cent antimony was a cheap pickup by management for a total bill of a little over $150,000.

EV Resources hopes that by unlocking short-term revenue through Los Lirios - while building long-term value at Parag and Coyote Creek - funding and development options will naturally eventuate for its critical minerals portfolio, while Los Lirios’ pilot plant looms ever closer on the horizon.

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