EV Resources (ASX: EVR) has signed a restructured “option to purchase” agreement for refurbishment of the Tecomatlán antimony processing plant in Mexico.
The company expects the agreement will deliver an accelerated and capital-efficient pathway to near-term production from the Los Lirios project.
The updated agreement represents a material improvement in commercial terms, with payments directly linked to key permitting and operational milestones to ensure that capital is deployed as value is realised.
It offers EV a USD$10,000 capital entry cost which significantly reduces its upfront risk and helps preserve shareholder value while delivering rapid progress toward production.
Previous Plant History
Located on private land some 50 kilometres from Los Lirios, the 150-tonnes per day Tecomatlán plant was previously used to crush and process ore sourced from the region’s artisanal antimony and precious metal mines.
EV secured the plant in October under a lease with option to purchase, and is carrying out a Phase 1 low-capex refurbishment to upgrade its production capacity to 400tpd.
The company has applied for Tecomatlán to be connected to the national grid to significantly reduce operational costs, with a generator included in the deal to be used for back-up power supply.
EV expects the plant to provide a rapid entry point into antimony production, underpinned by high-grade feed from Los Lirios and additional regional material to support continuous throughput.
Metallurgical test work has already demonstrated recoveries of up to 90.8%, confirming the suitability of the plant and reinforcing confidence in the production model, while modifications and upgrades are being implemented to align the plant with EV’s processing strategy and move it toward commissioning and production in the near-term.
Tecomatlán ‘Significantly De-Risked’
Managing director Mike Brown said the restructured agreement would be a win for shareholders.
“By shifting the bulk of our capital commitment to the back end of the permitting process, we have significantly de-risked the Tecomatlán acquisition,” he said.
“This agreement ensures that our capital is deployed in line with the delivery of soil use permits and final flotation approval, providing a clear and incentivised path to first antimony production.”
EV is strategically positioned within the global antimony supply chain, targeting a market characterised by supply constraints and strong demand driven by defence applications, energy storage and battery technologies and high-tech and industrial uses.
The company’s work aligns with an increasing global focus on securing critical mineral supply, particularly within North American and allied markets.
