EV Resources Secures Potential Financing Pathway for Los Lirios Antimony Project

EV Resources (ASX: EVR) has signed a memorandum of understanding (MOU) with specialist trading company Wogen Resources and critical minerals company financial backer Xcelsior Capital Advisors to advance its Los Lirios antimony project in Mexico.

The strategic MoU will investigate the potential for a secured debt facility of between $3.1 million and $4.6m to support Los Lirios.

It would also cover EV’s proposed antimony processing plant, which would treat 100 tonnes of ore per day from both Los Lirios and third-party sources.

Ongoing Technical Input

Wogen and XCLR will provide EV with technical input and market intelligence on developing product specifications for the antimony project.

The two companies will also advise EV on pricing and marketing strategies, as well as the company’s plans to pursue downstream processing of the Los Lirios product.

EV Resources believe the agreement establishes a framework for future binding agreements that will help it develop a reliable antimony supply chain in alignment with US and global critical minerals needs.

Critical Mineral Tensions

“The current tensions between China and the US over rare earths and critical minerals are already being felt in the antimony market, with sharp price increases and supply challenges emerging for end users,” executive director Hugh Callaghan said.

“Antimony is a critical material in defence-related applications, and with military stockpiles continuing to deplete worldwide, we anticipate growing demand supported by increased government spending and funding initiatives.”

“With consistently high grades, clean metallurgy, and a simple, low-cost processing pathway, Los Lirios has the potential to become a significant new supplier of antimony to the global critical minerals supply chain.”

Fast-Tracking Re-Start

The MoU comes a week after EV launched an extended exploration program at Los Lirios to support the acceleration of a near-term production re-start.

The exploration program includes 15 trenches at 50-metre spacing across historical open pits, targeting vein and shear zone structures, along with mapping and sampling across a 7km strike length between pits to assess scale potential.

EV will utilise the sampling results – which it expects receipt of by late October – in the design of a drilling program in the December quarter that will feed directly into resource estimation work.

EV is also advancing plans for the proposed processing plant, with negotiations for the site and permitting already underway, as part of its strategy to capture early cash flow and secure market share during the current global supply shortfall.