Why is EV Resources Limited entering a strategic partnership with Wogen Resources Ltd and Xcelsior Capital Advisors Ltd to progress the Los Lirios Antimony Project?
EV Resources Limited (ASX: EVR) has signed a non-binding Memorandum of Understanding with Wogen Resources Ltd and Xcelsior Capital Advisors Ltd to progress the Los Lirios Antimony Project in Oaxaca, Mexico. The framework agreement covers a proposed secured debt facility of between US$2 million and US$3 million, exclusive offtake rights for antimony products, and technical and market support as EV Resources works toward a pilot-scale restart of production. The move coincides with the company’s new exploration program, launched in mid-August, creating a twin track of field activity and financing designed to accelerate development.
What commitments are included in the MOU and how could they shape the project’s near-term trajectory?
The MOU outlines a multi-pronged collaboration. Wogen and Xcelsior Capital Advisors will work together on a secured debt package of US$2 million to US$3 million, with proceeds earmarked for project development and pilot plant construction. Wogen would receive exclusive offtake rights for antimony products once a definitive scoping study is completed and final agreements executed. Both counterparties are expected to provide technical input and market insights to guide EV Resources on product specifications, pricing, and sales strategy.
To cement the relationship, EV Resources will issue 10 million unlisted options—five million each to Wogen and Xcelsior Capital Advisors—exercisable at AUD 0.01 and expiring in four years. The MOU itself is non-binding beyond confidentiality and legal provisions, with a term of 12 months and subject to regulatory approvals and successful due diligence.
How does the funding proposal align with EV Resources’ plan for a 100-tonne-per-day pilot plant?
EV Resources has made clear that its initial development goal is a 100 tonne-per-day processing facility, designed to treat ore from Los Lirios alongside feed sourced from third parties. The company is already in discussions with owners of production-permitted plant sites and has commenced metallurgical test work and flowsheet design. Engagement with equipment suppliers is also underway.
The proposed financing structure is seen as a bridge to advance this pilot plant initiative, while the offtake arrangement with Wogen provides early market certainty for output. Management has stressed that the simplicity of the Los Lirios mineralogy—stibiconite and stibnite that lend themselves to gravity and flotation recovery—supports a cost-efficient pathway to early revenues.
Why does EV Resources view this as the right moment to move Los Lirios forward?
Management points to the tightening of global antimony supply as the key driver. China, the dominant producer, has imposed export bans, creating shortages and higher prices for downstream industries. With antimony designated as a critical mineral by multiple governments, demand from defence, flame-retardant applications, and energy storage technologies has intensified.
EV Resources Executive Director Hugh Callaghan said current market conditions were already showing signs of strain, with supply challenges and price surges for end users. He noted that with military stockpiles running low, government-backed initiatives to secure new sources of antimony could create lasting demand for projects outside China.
What makes Los Lirios distinctive in terms of grades and processing potential?
Los Lirios, in which EV Resources holds a 70 percent stake, has produced strong grades in sampling programs. Individual surface samples have returned up to 62.99 percent Sb, while other notable results include 29.17 percent Sb and 20.44 percent Sb. Composite results have averaged 4.45 percent Sb, with exceptionally low impurities reported.
Mineralogical studies indicate a split of approximately 69.5 percent stibiconite and 30.5 percent stibnite—both fully liberated and highly amenable to gravity separation. This makes the orebody particularly attractive for low-cost, scalable processing. Management highlights that these attributes, combined with strong continuity across historic pits, underpin the case for a rapid restart at pilot scale.
What exploration activities are underway and when can investors expect the next results?
The exploration program commenced on 18 August and is designed both to confirm the size and grade of the deposit and to feed directly into the pilot plant plan. Work includes 15 trenches at 50-metre spacing across historical pits, mapping and sampling across a seven-kilometre strike, and comprehensive metallurgical testing. Drilling is scheduled to begin in December following trenching results due by October.
The program is being managed by EVR Mexico President Miguel Barahona, supported by veteran Mexican geologist Mariano Carrizales, who has three decades of experience in antimony. Competent Person Jocelyn Pelletier is overseeing reporting standards. Management says these results will be critical for resource estimation and project design, and will provide data to underpin financing and offtake negotiations.
What is the strategic significance of Los Lirios to allied supply chains?
EV Resources is positioning the project as a new, secure source of antimony for markets concerned about reliance on China. The company has repeatedly framed its efforts as aligned with U.S. and allied critical minerals priorities. By securing Wogen, a global trading house with reach across five continents, and Xcelsior Capital Advisors, a financier focused on metals supply chains, EV Resources believes it has added credibility to its strategy.
The company is cautious, however, to stress the forward-looking nature of its statements. It notes risks around commodity prices, financing availability, permitting, and the geological continuity of mineralization, and emphasizes that there can be no guarantee the project will reach full-scale production as currently envisaged.
How has EV Resources’ stock been trading, and what does investor sentiment suggest?
Shares in EV Resources were last trading at AUD 0.01 on 21 August, down 9.09 percent for the session, with volumes exceeding 500,000 shares. Despite recent volatility, the stock has delivered a one-year return of 172.72 percent, reflecting periodic bursts of investor enthusiasm for critical minerals exposure. The company has 2.23 billion ordinary shares on issue and a market capitalization of approximately AUD 22.28 million, ranking mid-pack in both sector and broader ASX benchmarks.
For institutional investors, the key catalysts in the months ahead include trenching results, progress on definitive finance and offtake agreements, and clarity around pilot plant permitting. Analysts note that while the proposed debt package is modest relative to the potential scale of Los Lirios, it could be sufficient to validate the pilot operation and open the door to larger financings if early results prove compelling.
How should investors weigh risk and upside from this stage?
Market observers suggest that the MOU signals EV Resources’ ability to attract recognized partners and outline a path to funding—no small feat for a micro-cap explorer. The option package issued to Wogen and Xcelsior Capital Advisors at AUD 0.01 reinforces the alignment of interests in proving up Los Lirios.
At the same time, investors face familiar risks for early-stage developers: execution delays, potential permitting hurdles, and the possibility that trenching and drilling may not confirm grades or continuity at commercial scale. The near-term test will be whether EV Resources can meet its October and December exploration milestones while converting the MOU into binding agreements. Success on both fronts could mark Los Lirios as one of the few credible non-Chinese antimony sources advancing toward production in the current supply-constrained environment.
Discover more from Business-News-Today.com
Subscribe to get the latest posts sent to your email.
