ASX-listed antimony, copper and gold developer EV Resources has signed its first binding offtake agreement, having converted a non-binding memorandum of understanding with Lucero Grupo Minero de Puebla into a formal five-year ore supply agreement. 

In terms of the agreement, Lucero will provide EV Resources with antimony ore produced from the Chinantla mine, in Mexico, to supply EV Resources' nearby Tecomatlán processing plant. An initial 200 t bulk sample of ore will be sourced to do a proof-of-concept production study at the plant.

The ore has already been extensively tested through EV Resources' metallurgical programme, with flotation testwork having achieved 81.1% antimony recovery rates, producing a 42.4% concentrate.

"Chinantla provides EVR with a nearby source of high-grade antimony ore with demonstrated metallurgical performance, significantly reducing haulage distance and supporting efficient feed delivery into our proof-of-concept and subsequent processing campaigns," says EV Resources chairperson Shane Menere.

EV Resources' existing feedstock memoranda of understanding contemplate volumes representing more than 50% of Tecomatlán's nameplate capacity. Chinantla is the first of these arrangements converted into a binding long-term commercial relationship and provides a commercial framework for progressing additional supply relationships.

The ore supplied will be priced accordingly with reference to international antimony market conditions.

EV Resources continues to progress work towards a future proprietary source of antimony supply at the 70%-owned Los Lirios project, alongside the company's broader third-party regional supply strategy.

The company's strategy is to establish Tecomatlán as a regional processing hub supplied by multiple nearby antimony producers. "We see Tecomatlán as more than a standalone processing plant. Our objective is to build an integrated antimony value chain, combining regional ore supply and processing in Mexico with a pathway into the US market, complemented over time by our 100%-owned antimony prospects in Nevada," Menere concludes.