EV Resources Ltd (ASX:EVR) has signed three additional non-binding memorandums of understanding (MOUs) with regional antimony miners, lifting potential third-party feedstock supply for its Tecomatlán Processing Plant in Puebla, Mexico, to more than 50% of plant capacity.
The company now has four non-binding MOUs covering 2,330–2,430 tons per month of feedstock, equivalent to about 50%–60% of Tecomatlán’s nameplate capacity based on a 28-day operating month.
The latest agreements add potential supply from existing antimony operations in Guerrero and Puebla, including 200–300 tons per month grading 6% antimony, 80 tonnes per month grading more than 5% antimony and 50 tonnes per month grading more than 5% antimony.
The agreements support EVR's hub-and-spoke strategy, under which Tecomatlán would process ore from regional third-party miners that would otherwise face long transport distances to smelters.
MOUs provide framework for future supply contracts
The MOUs are non-binding and remain subject to definitive purchase contracts, delivery orders, due diligence, sampling and metallurgical characterisation.
The agreements set out commercial variables including grade, water content, impurity levels, deleterious minerals, recoveries and logistics costs.
Managing director Mike Brown described the feedstock pipeline as a “major de-risking milestone” as EVR targets a transition from developer to producer.
"Establishing a pipeline of over 50% of the Tecomatlán Plant’s feedstock capacity through these four regional MOUs is a major de-risking milestone for EVR as we target a transition from developer to producer. By positioning Tecomatlán as a highly efficient, regional hub-and-spoke processing facility, we are solving a significant logistical pain point for local miners who currently face prohibitive transport costs to distant smelters. This mutually beneficial model gives us a clear, low-CAPEX pathway to near-term production. With dry commissioning of the grinding circuit already complete, our focus is finalising definitive supply contracts and optimising our concentrate grades to capitalise on the acute global shortage of antimony.”
EVR is also evaluating a potential 400-tonne stockpile grading 16% antimony from one supplier, which could provide high-grade commissioning feedstock ahead of production.
The company has one further MOU in advanced negotiations and has identified additional ore-producing properties in Oaxaca that could increase future feedstock availability.
Targeting antimony
EV Resources is a critical minerals exploration and development company focused on the North American antimony supply chain.
Its portfolio includes the Tecomatlán Processing Plant in Puebla, the Los Lirios Antimony Project in Oaxaca, 50 kilometres from Tecomatlán, and the Dollar and Milton antimony projects in Nevada, USA.
The company is targeting first antimony concentrate production from Tecomatlán in the second half of calendar 2026.
Upcoming work includes receiving Falcon gravity concentrators at site, advancing further regional feedstock discussions, completing metallurgical and characterisation studies, conducting third-stage cleaning optimisation test work and securing grid interconnection approval from Mexico’s Comisión Federal de Electricidad.
EVR said the Tecomatlán plant offered a near-term, low-capex production pathway at a time of continuing global antimony supply constraints.