There are few copper mines in Australia as close to first production as Hillgrove Resources’ Kanmantoo mine in South Australia.
Having just received approval from the Foreign Investment Review Board (FIRB) for a $17.2 million placement from Freepoint Metals and Concentrates LLC, Hillgrove will complete development of its underground mine before copper production commences in early-2024.
“The placement completes a broader funding package which enables the commencement of the Kanmantoo underground and continuation of mine expansion drilling,” Hillgrove managing director Lachlan Wallace said.
“The company is in the enviable position of starting the mining operation without debt, enabling the team to focus on delivery of the mine plan and growing the mining inventory.”
Hillgrove has also inked a hedging agreement with Freepoint, where up to 16,000 tonnes of copper will be hedged so long as the copper price is above $12,500 per tonne.
Since Hillgrove announced its capital raising in early-March – where a total of $38 million was raised – the company has advanced several other key workstreams, including recruitment, executing major contracts, early works and exploring potential mine-life extension through drill programs.
These developments have paved the way for Hillgrove to make a final investment decision (FID) on Kanmantoo in the coming weeks.
Producing copper mines in South Australia include Olympic Dam, Prominent Hill and Carrapateena – all owned by BHP – while other development projects include Oak Dam, Hillside and Kalkaroo.
But none of these development projects are as close to production as Kanmantoo, nor are there many others Australian-wide.
And with copper’s increasing demand profile, and considering the extensive development timelines for copper mines, Hillgrove is in the box seat to benefit from eager buyers in the years to come.
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