Hillgrove and Heavy Minerals sign garnet tailings processing agreement

Core Viewpoint - Hillgrove Resources and Heavy Minerals have entered into a tailings processing agreement aimed at extracting and selling garnet from the Kanmantoo tailings storage facility in South Australia, which is expected to generate income and extend the operational life of the facility [1][4]. Financial Terms - Hillgrove will receive gross revenue payments (GRPs) of 15% from garnet sales during mining operations, decreasing to 5% post-closure. Additionally, $25 per tonne will be received for out-of-specification garnet [2]. - A minimum GRP of A$720,088 (US$500,000) per annum is guaranteed, increasing to A$1 million when production reaches 100,000 tonnes per annum [2]. Initial Payments and Obligations - An initial payment of A$50,000 will be made upon agreement execution, followed by A$150,000 at the final investment decision [3]. - After Hillgrove's mining operations conclude, Heavy Minerals may utilize the tailings storage facility for further garnet extraction and will assume site rehabilitation obligations [3]. Operational Developments - Heavy Minerals will construct and operate a garnet processing plant at the Kanmantoo copper mine to recover garnet from the existing process stream [4]. - Heavy Minerals is projected to produce up to 50,000 tonnes per annum for the first three years, increasing to 100,000 tonnes per annum in the fourth year [5]. Additional Financial Support - In October 2024, Hillgrove secured a A$10 million standby debt facility with Freepoint Metals and Concentrates to enhance operations at the Kanmantoo copper mine [5].