Hillgrove Resources Limited (ASX: HGO) and its subsidiary Mutooroo Copper Pty Ltd (together, Hillgrove) and Havilah Resources Limited (ASX:HAV) and its subsidiary Copper Aura Pty Ltd (together, Havilah) have entered into binding agreement that give Hillgrove the right to earn an 80% interest in the Mutooroo Copper Project (Mutooroo or project) in South Australia’s Curnamona Province, subject to certain conditions being satisfied.

The parties have executed a Farm-In Agreement (FIA) which includes the formation of an unincorporated Joint Venture Agreement (JVA). This enables Hillgrove to complete a Prefeasibility Study (PFS) to process Mutooroo ore through Hillgrove’s existing Kanmantoo processing facility (Kanmantoo).

The Mutooroo Copper Project is a high-grade massive sulphide deposit located in northeastern South Australia, approximately 60 kilometres (km) southwest of Broken Hill, and lies within Exploration Licence (EL) 6592. The project is situated approximately 16km south of the Transcontinental railway line and Barrier Highway, providing direct access to established freight routes across South Australia. The Transcontinental railway line operates within 200m of the Kanmantoo processing facility. This creates an opportunity to potentially rail Mutooroo ore to Kanmantoo for processing. Whilst subject to further test work, Mutooroo ore is expected to be amenable to processing at the Kanmantoo processing plant. There is also potential upside from on‑site ore sorting at Mutooroo, which could reduce transport volumes and lower rail costs.

Figure 1 Location of the Mutooroo Copper Project and proposed rail route to Hillgrove’s Kanmantoo processing facility in South Australia

Mutooroo hosts an existing JORC Sulphide MRE² of 12.5Mt at 1.53% Cu, 0.16% cobalt (Co) and 0.20 g/t gold (Au) comprising 191,700t of Cu, 20,000t of Co and 80,600 ounces of Au within copper‑cobalt massive sulphide mineralisation with demonstrated geological continuity. Drilling over several decades has defined wide and continuous sulphide zones, with only a portion of the known strike drilled to date. Recent geophysical and drilling results confirm that the mineralisation remains open along strike and at depth, highlighting strong potential for further extensions. This established resource base provides a sound platform for the proposed PFS, enabling Hillgrove to focus on mine design, logistics and processing pathways.

Table 1 Mutooroo JORC Mineral Resources as per Havilah 2025 Annual Report²

Note: All figures in this table are rounded.

From Hillgrove’s perspective, the proposed farm‑in to Mutooroo provides a lower risk, capital efficient copper development option at a time when new high-grade copper discoveries are scarce and greenfield copper project grades continue to decline globally. The transaction also aligns with Hillgrove’s strategy of leveraging its existing Kanmantoo processing facility to unlock value from regional deposits. Subject to further test work and a PFS, Hillgrove believes Mutooroo has the potential to lift its copper production beyond 20kt per annum.

Hillgrove’s operational team, logistics network, and permitting experience potentially further de‑risk Mutooroo’s pathway to production.

The concept underpinning the transaction is a centralised processing hub model, where Mutooroo ore is mined, crushed and transported to Kanmantoo for processing. This concept is preliminary in nature and is insufficient at this stage to provide assurance of an economic development case or certainty that the concept plan will eventuate. It will be subject to detailed assessment through the proposed PFS.

Key elements of the concept plan are shown in the table below.

Table 1 Key elements underpinning the Mutooroo concept plan

Pre‑production capital is expected to comprise initial open‑pit stripping, crusher, logistics infrastructure, and surface non‑processing infrastructure. Further definition of these items will be developed through the PFS. Funding of the pre-production capital requirement will form part of the FID.

Figure 1 Conceptual Mutooroo mine design. This concept is preliminary in nature, based on the MRE stated in the Havilah 2025 Annual Report⁵ and will be subject to detailed assessment through the proposed PFS.

A staged gate approach will be undertaken with an early assessment of rail logistics and metallurgical performance to confirm potential project viability (Phase 1). The full PFS program will proceed only if these early workstreams demonstrate that the project has an economic pathway to development (Phase 2).