Can EV Resources (ASX: EVR) become a first mover in North American antimony supply with its Mexico plant deal?

EV Resources Limited (ASX: EVR) closed trading on October 20, 2025, at AUD 0.013, posting an 8.33% intraday gain as it continues its strong performance trajectory for the year. The catalyst behind the renewed investor interest was the company’s announcement of a fully secured processing plant in Puebla, Mexico, under a flexible lease-to-purchase structure. The facility is located just 50 kilometers from EV Resources’ flagship Los Lirios Antimony Project, giving the company a clear operational pathway to near-term concentrate production at a time when antimony is being classified as a strategic mineral by the United States government.

The 150-tonne-per-day processing plant, which includes crushing circuits, flotation systems, and backup power generation, positions EV Resources among the few junior mining firms globally with a direct line to scalable production infrastructure for antimony. This deal is not just about asset acquisition; it represents a tactical inflection point for EV Resources as it races to meet the needs of critical mineral supply chains in North America and beyond.

Why does EV Resources believe near-term antimony production is within reach in Mexico?

The plant acquisition allows EV Resources to leapfrog traditional timelines typically associated with processing infrastructure development. The site, situated in Tecomatlán in the state of Puebla, was previously used to process ore from local artisanal mining operations and comes with an existing layout that includes jaw and cone crushers, three ball mills, and a flotation circuit, all of which are key for processing antimony-bearing ore into saleable concentrate.

Managing Director Mike Brown stated that this acquisition reduces development risk and fast-tracks the company’s entry into the critical minerals production space. He emphasized that EV Resources can begin refurbishment and operational preparations immediately, pending the conclusion of a 40-day legal and technical due diligence process. With low-capex upgrade requirements and a national grid connection only 100 meters away, the facility promises both speed and cost-efficiency. The company also indicated that it will initially source ore from nearby artisanal miners, enabling rapid throughput and potential early revenue generation even before its own Los Lirios ore comes online.

EV Resources intends to use the refurbished facility to produce an antimony concentrate, with the possibility of including silver and gold credits depending on the ore body. This dual-output structure would not only enhance the economic viability of the operation but also provide flexible downstream marketing options.

How does this tie into North America’s critical mineral supply chain strategies?

EV Resources is leveraging geopolitical tailwinds and regional supply chain gaps to reposition itself as a North America-aligned critical minerals developer. With China currently dominating the global supply of antimony, the U.S. Department of Defense has flagged the metal as essential for national security, including applications in semiconductors, batteries, flame retardants, and military-grade alloys.

EV Resources’ ability to bring supply online in Mexico—just south of the U.S. border—offers potential strategic alignment with U.S. government procurement initiatives. The company also holds two advanced-stage antimony projects in Nevada, where historical data from the U.S. Geological Survey suggests high-grade potential. EV Resources is working on a three-pronged roadmap: initiate production at Los Lirios in Mexico, execute short-term sales via artisanal miner-sourced feedstock, and accelerate exploration in Nevada to eventually create a domestic U.S. supply node.

Analysts tracking North American resource independence efforts have noted that companies like EV Resources, which combine physical assets with regulatory proximity to U.S. markets, are well-positioned to capture institutional attention and potential government partnerships—provided they can demonstrate early production capacity and operational credibility.

What are the commercial terms and why is the deal structure significant for EVR’s balance sheet?

The processing plant has been secured via EV Resources’ fully owned Mexican subsidiary, Stibcorp S.A. de C.V., through an agreement with Diseño y Manufactura Estructural S.A. de C.V. The total purchase price is USD 1.8 million plus VAT, but instead of a lump sum payment, the agreement is spread across five staged payments, giving the Australian exploration firm valuable capital flexibility.

The initial deposit was set at USD 25,000, with a 40-day due diligence period allowing the company to thoroughly assess legal, technical, and operational dimensions before full commitment. Following that, the lease payments are broken into four installments, culminating in February 2026. Importantly, all payments—excluding the non-refundable deposit—are credited towards the purchase price.

This structure gives EV Resources immediate access to the facility for planning and light refurbishment activities without significantly drawing down on its working capital. The company emphasized that this financial flexibility is a cornerstone of its strategy to build a self-funded path to production, particularly if early-stage output from artisanal miners begins to generate cash flow.

How is the ASX market responding to EVR’s 2025 strategy pivot?

As of the October 20 close, EV Resources Limited had a market capitalization of approximately AUD 32 million. The stock has been one of the top performers on the ASX in the basic materials category this year, delivering a one-year return of over 254.53%. Year-to-date in 2025, the stock is up a staggering 333.33%, outperforming both its sector peers and the broader ASX 200 index, which returned 245.49% over the same period.

Trading volume for the session stood at 23.96 million shares, sharply above the four-week average of 17.4 million, reflecting heightened interest following the strategic infrastructure announcement. Despite its low absolute share price of AUD 0.013, the trading activity suggests significant speculative momentum and possible retail rotation into the stock on news of near-term production capability.

Institutional sentiment remains neutral due to a lack of formal broker coverage and no declared dividend or earnings guidance. EV Resources reported an EPS of –AUD 0.002 and a book value per share of AUD 0.001. However, the operational update is expected to shift the narrative toward potential revenue generation, giving investors a clearer sense of monetization strategy.

What milestones could define EV Resources’ next 12 months of execution?

Over the next year, EV Resources is expected to focus on several operational and strategic milestones. The completion of due diligence on the Tecomatlán plant is expected within the next 40 days, after which staged lease payments will continue and refurbishment plans can be executed. A successful application to connect to the Mexican national power grid would significantly lower operating costs and help accelerate commissioning.

The company is also in discussions to formalize supply agreements with local artisanal miners, which would allow it to begin producing and selling antimony concentrate ahead of full-scale mine development at Los Lirios. In parallel, the firm will ramp up drilling at Los Lirios and its Nevada-based projects, potentially laying the groundwork for longer-term production growth and resource expansion.

If these near-term actions are executed efficiently, EV Resources could graduate from a pure exploration profile to a vertically integrated critical mineral producer. Such a shift would not only enhance shareholder value but also open the door to future strategic partnerships, offtake agreements, or even acquisition interest from larger players seeking exposure to the antimony space.

Key takeaways: Why EV Resources is attracting investor attention in the critical minerals space

• EV Resources Limited (ASX: EVR) has secured a 150-tonne-per-day antimony processing facility in Puebla, Mexico, under a lease-to-own deal valued at USD 1.8 million.
• The plant is located just 50 kilometers from the company’s Los Lirios Antimony Project, with existing infrastructure such as crushers, flotation systems, and backup power generation.
• The facility allows EV Resources to bypass long development timelines and target near-term antimony concentrate production by sourcing feedstock from local artisanal miners.
• The move aligns with U.S. Department of Defense priorities for critical mineral supply diversification and positions EV Resources as a potential early-stage supplier for North America.
• The deal structure includes flexible staged payments, preserving capital while enabling immediate operational control and refurbishment planning.
• The stock closed up 8.33% at AUD 0.013 on October 20, 2025, and has delivered a 254.53% one-year return, outperforming broader indices.
• Key 12-month catalysts include finalizing due diligence, securing grid power, executing supply agreements, and progressing Nevada-based antimony projects.