Mineral explorer Havilah Resources Limited (ASX: HAV) announced that the company had inked a Native Title Mining Agreement for Kalkaroo, a copper-gold-cobalt project in South Australia. The deal was signed between the native title group of Ngadjuri Country named ‘Ngadjuri Adnyamathanha Wilyakali Native Title Aboriginal Corporation’ and Havilah Resources Limited.
In today’s market announcement, the company told that agreement was signed on the terms of profit-based compensation payment instead of “off-the-top” revenue-based royalty payment method. It underscores a fair profit-sharing arrangement under which Havilah would have no burden in times of low profits while NAWNTAC will have a substantial share in Havilah’s earnings especially in times of high profitability driven by future mining operations.
This signing of this agreement was an essential requirement for the granting of a Mining Lease by the Department for Energy and Minerals (DEM) of South Australia. The company expects to receive the Kalkaroo Mining Lease from DEM on completion of the statutory process for registration of native title mining agreements following the lodgment of the latest contract.
Havilah’s newly appointed Chairman Mr. Mark Stewart stated that “the importance of the execution of this Agreement cannot be overstated and represents a massive leap forward in the implementation of Havilah’s Copper Strategy – Enhanced by Cobalt, as it should now result in the grant of the Kalkaroo Mining Lease.”
This agreement represents another very significant milestone on the path to the potential development of the Kalkaroo project as a significant new copper-cobalt-gold mine in South Australia’s northeast. But it has been finalized after five years of rigorous negotiations and meetings held between representatives of the native title holders and Havilah.
Mr. Stewart said that “It is the culmination of many years of patient and persistent negotiation, introducing innovative concepts such as EBITDA, by Havilah executives, namely Chris Giles and Walter Richards. Acceptance of EBITDA profit sharing arrangement is a significant outcome for all parties.”
Moreover, the agreement was also driven by numerous non-financial benefits such as employment, training, and business development opportunities for the native title holders over the life of the mine. In the concluding statement, Mr. Stewart acknowledged the support of their legal advisor Abigail Steed, as well as the co-operation and goodwill of the native title holder groups and their legal advisors over an extended period.
Havilah Resources is an ASX listed mineral exploration company. Broadly, the company is into the production and exploration of gold, copper, and cobalt across Australia. Its flagship projects include North Portia Copper-Gold Project, Portia Gold Project, Kalkaroo Copper-Gold-Molybdenum Project, and Mutooroo Project.
HAV traded flat in today’s trade, however, 181,583 shares changed hands as at 19 December 2018. It last traded at $0.160 with a market capitalization of $34.92 million.
Over the past one year, Havilah’s stock has fallen by 15.79% while since the past six months to 19 December 2018, it is down by 21.95%.
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