EV Resources Limited (ASX:EVR) has reported significant operational progress at its Tecomatlán Processing Plant in Oaxaca, Mexico, marking another step forward in its strategy to transition into near-term antimony production. The company confirmed that all three ball mills at the Facility have now been fully refurbished and successfully dry commissioned, alongside the execution of an initial third-party feedstock agreement.

On 14 May 2026, EV Resources shares closed flat at AUD 0.0090, reflecting no intraday movement, while the stock remains slightly lower over the past year as the company continues to advance its transition from development to production.

The latest update highlights key milestones in plant readiness and Supply chain development, both of which are central to EV Resources’ goal of achieving first antimony concentrate production in the second half of calendar year 2026.

Tecomatlán Plant Reaches Key Commissioning Stage With Ball Mills Completed

A major focus of the announcement was the successful dry commissioning of all three ball mills at the Tecomatlán Processing Plant. The company confirmed that Phase 1 refurbishment work has now reached an advanced stage, with only minor mechanical adjustments remaining before wet commissioning begins.

The grinding circuit is a core component of the processing flowsheet, and successful dry commissioning is considered an important validation step for mechanical integrity and operational readiness. According to EV Resources, this milestone enables the transition toward introducing process water, slurry, and eventually ore feed into the system.

The three ball mills, which were included as part of the plant Acquisition, are described as newly installed units that have not previously been used. Their successful commissioning supports the company’s broader plan to progress systematically toward full plant operation.

EV Resources stated that this progress materially reduces operational uncertainty as it moves closer to initiating wet commissioning and subsequent production testing phases.

Falcon Concentrator Installation Progressing Alongside Circuit Build-Out

Alongside the grinding circuit milestone, EV Resources also provided an update on key processing equipment required for the plant’s concentration circuit.

The company confirmed that the first of two Falcon gravity concentrators has been crated and prepared for shipment to the Tecomatlán site. These units are expected to form a central part of the plant’s antimony concentration process once installed.

The integration of gravity separation equipment is intended to complement the milling circuit and support efficient recovery of antimony concentrate as the plant transitions into commissioning and production phases.

This equipment installation forms part of a broader phased approach to commissioning, with each stage contributing to incremental de-risking of the plant’s operational readiness.

Initial Feedstock Agreement Secured With Nearby Mining Operation

In a parallel development, EV Resources announced the execution of a non-binding Memorandum of Understanding (MoU) through its Mexican Subsidiary Stibcorp S.A. de C.V., securing a framework for third-party ore supply to the Tecomatlán Plant.

The agreement has been signed with a local private mining group operating a site located approximately 8 kilometres from the processing plant. The proximity of the supply source is expected to provide logistical advantages during the plant’s ramp-up phase.

Under the terms of the MoU, the anticipated supply includes approximately 500 tonnes per week, or around 2,000 tonnes per month, with material grading around 5% antimony (Sb). The feedstock will include both low-grade material ranging from 5% to 29% Sb, and higher-grade material exceeding 30% Sb, delivered at a particle size of approximately six inches.

EV Resources noted that the nearby operation is already active, with mining, sorting, and transport infrastructure in place. The company also highlighted that the mining property is understood to be in good legal standing with environmental permits in place.

While the agreement remains non-binding, it establishes a framework for future definitive supply and purchase contracts, subject to pricing and assay-based adjustments.

Strategic Importance of Third-Party Feedstock Supply

The company emphasised that securing early-stage feedstock supply is a key element in reducing operational risk ahead of commissioning. The ability to process third-party ore is expected to support plant utilisation during ramp-up and provide continuity of operations prior to full-scale production from EV Resources’ own projects.

The Tecomatlán facility has been designed as a multi-source processing plant, capable of handling ore from multiple suppliers. This flexibility is intended to accelerate the pathway to production while EV Resources advances development work at its Los Lirios Antimony Project.

The company is also actively engaging with additional regional mining operators across Oaxaca and surrounding areas to secure further feedstock agreements. The region has a long history of antimony production, and EV Resources believes its proximity to existing operations provides a Competitive Advantage for attracting third-party ore supply.

Pathway to First Antimony Production Targeted for 2H CY2026

EV Resources reiterated that its commissioning program remains aligned with its objective of achieving first antimony concentrate production in the second half of calendar year 2026.

The successful dry commissioning of the grinding circuit, combined with the progress in securing third-party feedstock, represents a coordinated advancement of both operational and supply-side readiness.

The company stated that metallurgical recovery testing is ongoing using representative samples from the newly secured feedstock sources. These tests are intended to help define plant performance characteristics as commissioning progresses.

Once wet commissioning begins, the plant will transition through staged operational testing, incorporating water, slurry, and ore feed integration.

Regional Positioning and Supply Chain Strategy

EV Resources continues to position the Tecomatlán Processing Plant as a central hub for antimony processing in the region. The company’s strategy is based on utilising near-term third-party feedstock while simultaneously developing its flagship Los Lirios Antimony Project, located approximately 50 kilometres from the plant.

The plant is intended to operate as a flexible processing facility, reducing reliance on any single ore source and supporting higher utilisation rates during early production phases.

EV Resources also noted ongoing discussions with additional regional miners, with the aim of expanding its third-party supply base across Oaxaca and neighbouring regions.

The company highlighted that proximity to existing mining operations reduces transportation costs and improves commercial attractiveness for local producers seeking processing solutions.

What This Means for Investors

The latest update from EV Resources reflects continued progress toward operational readiness at the Tecomatlán Processing Plant, with both mechanical commissioning milestones and feedstock arrangements advancing in parallel.

While the share price remained flat on the day, the announcement provides further visibility on the company’s near-term production roadmap and its strategy to establish early-stage Cash Flow through third-party ore processing.

Investors are likely to focus on the transition from dry to wet commissioning, installation of gravity separation equipment, and further developments in feedstock agreements as key near-term catalysts.

The combination of plant readiness progress and early supply chain formation supports EV Resources’ stated objective of achieving first antimony production in the second half of 2026.