What is the immediate financial commitment for Hillgrove Resources (ASX:HGO) under this agreement?

Hillgrove has committed to investing up to $10 million over a 24-month earn-in period. This expenditure includes funding a 5,000-metre drilling programme for resource definition.

How does the Mutooroo deal change the investment thesis for Havilah Resources (ASX:HAV)?

This deal transitions Havilah from sole developer to a carried partner, significantly de-risking the project by leveraging Hillgrove's infrastructure and cash flow. Havilah secures a commercial pathway for its asset with minimal capital outlay.

What infrastructure advantage does Hillgrove Resources (ASX:HGO) bring to the Mutooroo Copper Project?

Hillgrove plans to process the Mutooroo ore through its existing, operational Kanmantoo processing facility. Utilizing this established infrastructure lowers capital intensity (capex) and reduces project execution risks.

What are the main production metrics and resource estimates for the Mutooroo Copper Project?

The Mutooroo project holds a JORC sulphide mineral resource estimated at 192,000 tonnes of copper. If development succeeds, processing this ore has the potential to push Hillgrove's total annual copper production beyond 20,000 tonnes.

What regulatory and operational hurdles must be cleared before the transaction is finalized?

The transaction's upfront consideration of $5 million in shares is strictly conditional on the successful renewal of exploration licence (EL) 6592. Operationally, advancing to the joint venture stage depends on positive metallurgical test work in Phase 1 and completing a successful pre-feasibility study.

Image for illustrative purposes only. Not a real photo.

Hillgrove and Havilah partner for Mutooroo Copper Project

Q: What are the key details of the partnership between Hillgrove Resources (ASX:HGO) and Havilah Resources (ASX:HAV)?

Hillgrove Resources and Havilah Resources have signed a binding farm-in agreement to develop the Mutooroo Copper Project in South Australia. Hillgrove can earn an 80% interest in the project by reaching a Final Investment Decision.

Written by Brie CarterPublished May 21, 2026, 12:44 AM

Hillgrove Resources (ASX:HGO) and Havilah Resources (ASX:HAV) have entered into a binding farm-in agreement to develop the Mutooroo Copper Project in South Australia’s Curnamona Province.

Under the unincorporated joint venture, Hillgrove can earn an 80% interest in the project upon making a final investment decision.

The transaction includes an upfront consideration of $5 million in Hillgrove fully paid ordinary shares, conditional on the renewal of exploration licence 6592.

Hillgrove has committed to investing up to $10 million over a 24-month earn-in period, which includes a 5,000-metre drilling programme aimed at resource definition.

The expenditure is structured across two phases: a $2 million Phase 1 focusing on rail logistics and metallurgical test work, followed by Phase 2 funding for a pre-feasibility study to process Mutooroo ore through Hillgrove’s existing Kanmantoo facility.

The processing pathway offers low capital intensity and reduced execution risks for developing Mutooroo's 192,000-tonne copper JORC sulphide mineral resource, with the potential to push Hillgrove's annual copper production beyond 20,000 tonnes.

Upon electing to proceed at the investment decision stage, Hillgrove will pay a stage 2 consideration of $35 million, comprised of 30% to 70% cash with the balance in ordinary shares.

Additionally, a tolling and marketing agreement will be finalised post-PFS, ensuring minimal capital outlay for Havilah while leveraging Hillgrove's established infrastructure and cash flow to mitigate material risks early in the work programme.