Hillgrove Resources Ltd. Secures 80 % Stake in Mutooroo Copper Project through Farm‑In Agreement with Havilah Resources

Hillgrove Resources Limited (ASX: HGO) announced that it has entered into a binding farm‑in agreement with Havilah Resources Limited (ASX: HAV). The agreement gives Hillgrove the right to earn an 80 % interest in the Mutooroo Copper Project, located in South Australia’s Curnamona Province, subject to the satisfaction of predefined conditions.

Structure of the Partnership

The two parties have executed a Farm‑In Agreement that will facilitate the formation of an unincorporated joint venture. Under this arrangement, Hillgrove will be responsible for conducting a Pre‑Feasibility Study (PFS) to evaluate the feasibility of processing Mutooroo ore through Hillgrove’s existing Kanmantoo processing facility. The study will examine technical and economic parameters, including ore characteristics, processing flows, capital and operating costs, and potential revenue streams.

Strategic Rationale

Hillgrove’s management has highlighted several benefits to the partnership:

  • Rapid Access to a Proven Resource – Mutooroo is an established copper project that has already attracted investment and possesses a clear resource base.
  • Cost Efficiency – By leveraging the Kanmantoo facility, Hillgrove can avoid building new processing infrastructure, thereby reducing capital expenditure and accelerating the path to production.
  • Portfolio Diversification – The partnership complements Hillgrove’s broader focus on minerals such as gold, silver, lead, zinc, and natural gas, adding a high‑grade copper asset to its exploration pipeline.

Financial Snapshot

  • Market Capitalisation – AUD 143 390 000
  • Share Price (20 May 2026) – AUD 0.043
  • 52‑Week High – AUD 0.061 (29 Jan 2026)
  • 52‑Week Low – AUD 0.03 (23 Nov 2025)
  • Price‑to‑Earnings Ratio – 1 264.71

The announcement follows a recent proposal to issue 116 ,279 070 new shares at an option price of AUD 0.052, scheduled for a placement on 30 June 2026. This capital raise is intended to fund exploration, development, and the execution of the PFS for Mutooroo.

Implications for Investors

The farm‑in deal is expected to enhance Hillgrove’s asset base without incurring the full cost of a new project outright. Investors will watch the progress of the PFS closely, as its outcome will determine whether Hillgrove can proceed to a full feasibility study and, ultimately, to construction.

Conclusion

Hillgrove Resources Ltd.’s partnership with Havilah Resources marks a significant step in its strategy to build a diversified mineral portfolio. By securing an 80 % stake in the Mutooroo Copper Project through a farm‑in arrangement, Hillgrove positions itself to capitalize on a high‑grade copper asset while managing capital intensity and leveraging existing processing infrastructure. The forthcoming Pre‑Feasibility Study will be a critical milestone, providing the data needed to gauge the project’s commercial viability and to guide future investment decisions.