Heavy Minerals to Extract Garnet from Kanmantoo Tailings Under New Agreement

Heavy Minerals Ltd ( (AU:HVY) ) has issued an update.

Hillgrove Resources has signed a binding tailings processing agreement with Heavy Minerals Ltd for the extraction and sale of garnet from process tailings and the Tailings Storage Facility at the Kanmantoo Copper Mine in South Australia, under which Heavy Minerals will construct and operate a garnet processing plant on site. The deal provides Hillgrove with a new revenue stream via gross revenue payments, guaranteed minimum annual payments once production begins, and upfront payments tied to key milestones, while also extending the life of the tailings facility and potentially transferring future site rehabilitation obligations to Heavy Minerals, enhancing long-term value creation from Kanmantoo beyond copper production and positioning Heavy Minerals to scale garnet output to as much as 100,000 tonnes per year.

The most recent analyst rating on (AU:HVY) stock is a Sell with a A$0.56 price target. To see the full list of analyst forecasts on Heavy Minerals Ltd stock, see the AU:HVY Stock Forecast page.

More about Heavy Minerals Ltd

Heavy Minerals Ltd is an ASX-listed industrial minerals company focused on the extraction and sale of garnet, a specialised abrasive mineral used primarily in water jet cutting and other industrial applications. Through partnerships with mining operators, the company targets secondary mineral recovery opportunities from existing processing streams and tailings facilities to supply the global garnet market, where demand from waterjet cutting alone is estimated at around 500,000 tonnes per year.

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Technical Sentiment Signal: Buy

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