Halo Minerals PLC
28 September 2026
HALO MINERALS PLC
("Halo Minerals", the "Company" and, together with its subsidiaries, the “Group”)
Playa Verde advances towards FID
Class 3 EngineeringUpdate Confirms Development Case
Halo Minerals plc (AIM: HALO), the copper development company focused on the recovery of critical minerals fromlegacyminingwaste,ispleasedtoannouncecompletionoftheBIOSMining&Infrastructure("BIOSMI")Class3engineeringandcostupdateforthePlayaVerdecopperandgoldtailingsreprocessingprojectinChile("PlayaVerde"orthe"Project").
The BIOS MI update establishes a current technical and cost basis for Playa Verde using 2026 market conditions and represents a significant milestone in the Company's pathway towards Final InvestmentDecision("FID"),projectfinancingandconstruction.ThecapitalandoperatingcostestimatesareclassifiedasAACEClass3,withanestimatedaccuracyrangeof-10%/+15%,consistentwithabasicengineeringandbankable-feasibilitylevelofdefinition.
The update confirms a defined development case based on processing of approximately 5 million tonnes of material per annum, producing approximately 8,640 tonnesofrecoveredcopper and 1,400 ounces of goldannuallythroughacombinationofLME-gradecoppercathodeandcopper-goldconcentrateproduction,andadvancestheProjectthroughtheremainingFIDworkstreamsrequiredforconstructionreadiness.
InvestmentHighlights
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Class3capitalcostestimateofapproximatelyUS$92.8million,excludingVAT,basedonathird-partydredgingservicemodel. Comprising:
- US$70.2 million costs for the engineering, procurement and construction contract;
- US$22.6 million for general and administrative, project administration and contingency costs.
- EstimatedoperatingcostofapproximatelyUS$2.20/lbrecoveredcopperunderthebasecasescenario.
- Productionprofilebasedonapproximately5.0Mtpa (million tonnes per annum) throughputoveraninitialseven-yearoperatinglife.
- Targetsteady-stateproductionofapproximately8,640tonnesofrecoveredcopper plus 1,400 ounces of goldperannum.
- Indicativeimplementationscheduleofapproximately18months,withstudyplanningassumptionssupportingapotentialOctober2028 operationalstart-up.
- Potentialvalue-engineeringopportunityidentifiedwhich,ifvalidatedduringdetailedengineering,couldreduceCAPEXbyapproximatelyUS$6 million to US$10million.
- CompletionoftheBIOSMIupdateenablestheCompanytotransitionfocusfromengineeringvalidationtowardsfinancingexecution,commercialcontractingandFIDreadiness.
Andrew Dennan,ChiefExecutiveOfficerofHaloMinerals,commented:
"CompletionoftheBIOSMIClass3engineeringandcostupdaterepresentsanimportantstepinconvertingPlayaVerdefromanadvancedtechnicalprojectintoafinancingandconstructionproposition.
“The update establishes a current capital and operating cost basis, confirms the defined process routeandprovidestheplatformfromwhichwecancompletetheremainingworkrequiredforFinalInvestmentDecision.Ourfocusisnowonvalueengineering,theupdatedCPR,permitting,commercialcontractingandassemblyofanappropriateprojectfinancingpackage.
“Playa Verde offers investors a de-risked differentiated exposure to copper through the recovery of historical tailings in Chile, with a defined production plan and a development capital requirement thatwebelieveiscapableofsupportingarangeoffinancingsolutions.Withourlender-gradevirtualdataroompopulatedandengagementwithprospectivefinancingandcommercialcounterpartiesprogressing,the Playa Verde projecthas robust economics and is rapidly progressing intothenextphaseofprojectdelivery.
“WewillcontinuetoapplyadisciplinedandtransparentapproachasweadvancetheProjecttowardsFID."
AdvancedCopperDevelopmentOpportunity
Playa Verde represents an advanced copper development project based on historical surface-deposited copper-bearing tailings located in Chile's AtacamaRegion.Unlikeaconventionalgreenfieldminingproject,PlayaVerdebenefitsfromadefined JORC compliantresourcebase,apreviouslyestablishedprocessingroute,extensivehistoricalengineeringworkandaclearpathwaytowardspermitting, securing financingandconstruction.
The BIOS MI update confirms that the Project remains based on the processing route previously defined in its definitive feasibility study (“DFS”) and incorporates screening, agitated acidleaching,solventextractionandelectrowinning,neutralisationandwatertreatment,andflotationconcentration.Theengineeringupdateprovidesan updated capitalandoperatingcostbasiswhilemaintainingthecoretechnicaldesignestablishedthroughprevioustechnicalwork.
Capital-EfficientScaleandFinancingPotential
ManagementbelievesPlayaVerdeispositionedwithinadevelopmentscalethatispotentiallysuitableforadiversifiedfinancingstrategyincorporatinginstitutional and/or private credit projectfinance,strategicinvestmentandcommodity-linkedfundingsolutions including prepayment and/or royalty/stream financing. The BIOS MI Class 3 Study CAPEX estimate of US$92.8 million serves as the expected upper limit of costs needed to complete the construction phase of the project and represents only an approximate 3.5% increase over the 2016 DFS study case despite a decade of inflationary cost pressure. This is also subject to a number of ongoing optimisations targeting CAPEX reduction which include the opportunity to adapt the process flow sheet to reduce the number of belt filters from eight to two and include four pressure filters in the dewatering sections before and after leaching as well as optimising the budgetary quotations received over the summer through the upcoming competitive tendering process for construction. It is estimated that CAPEX could be reduced by a further US$ 6 million to US$10 million as the process continues.
The Company's current focus is to complete the remaining technical, commercial and financing workstreams required to conclude construction financing and take a FID. The ongoing financing processissupportedbyasubstantiallypopulatedinstitutionalvirtualdataroom,updatedtechnicaldocumentation,commercialengagementwithprospectiveofftakecounterparties andcompletionoftheremainingFIDreadinessactivities.
FIDCatalystsandValueDrivers
Theprincipalprogrammescurrentlybeingadvancedinclude:
- CompletionoftheupdatedCompetentPerson'sReportandupdatedprojectresourceevaluation - commissioned in early September 2026.
- Completionofvalueengineeringandoptimisationprogrammes, with a view to realising meaningful CAPEX reductions.
- Progressionofpermittingandenvironmentalworkstreams - already in process and positioned to accelerate following receipt of mining use of beach easement which is expected by 31 December 2026.
- Advancementofthehumanhealthandstakeholderengagementprogrammes - initiated in April 2026.
- Finalisationoflong-termpowerandsulphuricacidprocurementstrategies, to optimise operational costs and secure supplier price stability.
- CompletionofEPCandmajorequipmenttenderpreparation.
- Progressionofcommercialdiscussionswithpotentialofftake,financingandstrategicpartners.
- Establishmentofapreferredprojectfinancingstructurecapableofsupportingconstructionandcommissioning.
FinancingStrategy
Haloisevaluatingarangeoffundingsolutionsthatmayincludeseniorprojectdebt,strategicinvestment,royaltyandstreamingfinance,equipmentfinanceandofftake-linked prepaymentfundingstructures, discussions with financing and commercial counterparties are ongoing.
TheCompany'sobjectiveistodevelopanappropriatelybalancedcapitalstructurewhichalignsrepaymentobligationswiththeProject'santicipatedoperatingcashgenerationprofilewhilemaintainingfundingflexibilitythroughoutconstructionandramp-up.
StrategicImportanceofPlayaVerde
ManagementbelievesPlayaVerdeoffersinvestors adifferentiatedexposuretocopperthroughtherecoveryandreprocessingofhistoricaltailingsinChile,oneoftheworld'sleadingcopper-producingjurisdictions.
The Project is designed to recover copper and gold from historical tailings deposited at Chañaral whilst supporting the long-termmanagementofalegacymining-impactedcoastalenvironment.TheCompanybelievesthiscombinationofcopperproduction,resourcerecoveryandenvironmentalstewardshipprovidesadistinctivedevelopmentpropositionwithintheglobalcriticalmineralssector.
The advancement of Playa Verde is occurring against a backdrop of growing global demand for copper linked to electricity networks, energy infrastructure, electrification,digitalisation,artificialintelligenceinfrastructureanddatacentres.Industryanalysiscontinuestohighlightcopperasoneofthekeystrategicmetalsrequiredtosupportenergytransitionanddigitalinfrastructuredevelopmentoverthecomingdecades.
ImplementationProgrammeandOutlook
TheBIOSMIstudyassumesanindicativeimplementationperiodofapproximately18monthscomprisingengineering,procurement,construction,commissioningandstart-upactivitiesrunninginparallel.Thestudyplanningcaseassumesprojectstart-upinOctober2028.
Thistimelineremainssubjecttocompletionoffinancing,permitting,detailedengineering,procurement,constructionandcommissioningactivitiesandshouldnotbeviewedasformalproductionguidance.
TheCompanywillcontinuetoupdateshareholdersassignificanttechnical,permitting,commercialandfinancingmilestonesareachieved.
Qualified Person
The technical information contained in this disclosure has been read and approved by Mr Orlando Rojas Vercelotti, a Civil Mine Engineer for EMI Ingenieros y Consultores S.A. and a Competent Person as defined in the JORC Code (2012) and acts as a Qualified Person under the AIM Rules - Note for Mining and Oil & Gas Companies. This announcement contains inside information for the purposes of article 7 of the UK Market Abuse Regulation. The Directors of the Company are responsible for the release of this announcement.
Enquiries:
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Halo Minerals PLC |
Via Tavistock below |
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Andrew Dennan, Chief Executive Officer Frank Jackson, Chief Financial Officer |
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Cairn Financial Advisers LLP (NOMAD) |
+44 20 7213 0880 |
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Ludovico Lazzaretti Liam Murray James Western |
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Global Investment Strategy (Broker) |
+44 20 7048 9045 |
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Christopher Kipling |
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Tavistock (Public Relations) |
+44 20 7920 3150 |
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Nick Elwes Gareth Tredway Jack Seward |
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Forward Looking Statements
This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the Company's ability to execute and implement future plans, and the occurrence of unexpected events.Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.
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