ASX-listed emerging antimony supplier EV Resources has now signed four non-binding memorandums of understanding (MoUs) that have secured between 2 330 t and 2430 t a month of feedstock for its Tecomatlán antimony processing plant, in Mexico, ahead of the company mining its own ore.

EV Resources is refurbishing and installing a two-stage gravity concentrator circuit at the Tecomatlán processing plant, which offers a low-cost and highly efficient processing path for antimony. The plant is expected to initially process third-party sourced ore and eventually material from EV Resources' Los Lirios mine, which is located 50 km away. 

At Los Lirios, first-pass drilling has confirmed a laterally extensive carbonate replacement system, with the company advancing towards a maiden resource estimate.

EV Resources also owns the Dollar and Milton antimony development projects, in Nevada.

The MoUs for feedstock comprise between 50% and 60% of the Tecomatlán plant's nameplate capacity.

With three of the MoUs having been executed with existing antimony mining operations, it provides supply diversification and an opportunity to validate the company's hub-and-spoke strategy.

The first MoU, which was previously signed, comprises 2 000 t a month of antimony grading 5%, with material needing to travel less than ten kilometres to get to the plant.

The three new MoUs, which are located between 130 km and 350 km away from the plant, comprise between 50 t and 300 t a month of antimony grading between 5% and 6%.

One additional MoU is in advanced discussions and expected to be finalised shortly, providing further feedstock upside for EV Resources.

EV Resources has, concurrently, started with optimisation studies and testing of third-stage cleaning options to establish whether there is a cost benefit in cleaning to improve antimony concentrate grades.

The executed MoUs ultimately establish a defined pathway toward third-party feedstock supply and potential near-term cash flow generation as the Tecomatlán plant moves towards targeted production.