Hillgrove Strikes Garnet Tailings Deal to Boost Income and Cut Closure Liabilities

Hillgrove Resources Limited ( (AU:HGO) ) has shared an update.

Hillgrove Resources has signed a binding tailings processing agreement with Heavy Minerals Limited to extract and sell garnet from process tailings and the tailings storage facility at its Kanmantoo Copper Mine in South Australia. Under the deal, Heavy Minerals will build and operate a garnet processing plant on site, with Hillgrove to receive a 15% gross revenue payment from in-specification garnet sales during mine operations (reducing to 5% after closure), fixed payments for out-of-specification garnet, and initial milestone payments, alongside a guaranteed minimum revenue stream once production begins. The agreement is expected to extend the operational life of the Kanmantoo tailings storage facility, with anticipated garnet output rising from up to 50,000 tonnes per year in the first three years to 100,000 tonnes in year four, and may ultimately transfer certain rehabilitation obligations for the site to Heavy Minerals, enhancing Hillgrove’s income diversification and reducing long-term closure liabilities in the industrial minerals market.

The most recent analyst rating on (AU:HGO) stock is a Hold with a A$0.05 price target. To see the full list of analyst forecasts on Hillgrove Resources Limited stock, see the AU:HGO Stock Forecast page.

More about Hillgrove Resources Limited

Hillgrove Resources Limited is an Australian mining company focused on the Kanmantoo Copper Mine in South Australia. Its operations centre on copper production, and through partnerships it is seeking to unlock additional value from by-products and existing mine infrastructure, including its tailings storage facilities.

Average Trading Volume: 18,203,947

Technical Sentiment Signal: Buy

Current Market Cap: A$177.5M

For detailed information about HGO stock, go to TipRanks’ Stock Analysis page.