ASX-listed High-Tech Metals (HTM) has executed a nonbinding memorandum of understanding (MoU) with Wiluna Mining Corporation (WMC) to evaluate the potential for toll treatment of ore from HTM’s Mt Fisher project at WMC’s processing facility, in Western Australia.

Under the terms of the MoU, the parties will progress technical and commercial discussions regarding a possible future toll treatment arrangement, under which WMC would receive, crush, mill and treat gold-bearing ore using its existing processing infrastructure, provided the ore meets WMC’s technical and metallurgical specifications.

The MoU is nonbinding and does not oblige either party to proceed with a transaction, process ore or deliver ore. Any toll treatment arrangement would remain subject to further metallurgical and technical assessments, agreement on commercial terms and processing schedules and execution of a separate binding toll treatment agreement.

HTM may propose to deliver ore from its Mt Fisher and Mt Eureka projects, provided such material meets WMC’s ore acceptance criteria and a future agreement is executed.

The Wiluna processing plant is a fully operational carbon-in-pulp facility with a nominal capacity of about 2.1-million tonnes a year, located about 180 km from HTM’s Mt Fisher and Mt Eureka projects.

“The MoU with WMC provides a constructive framework to evaluate potential toll treatment options using existing regional infrastructure. While nonbinding, it allows both parties to progress technical and commercial discussions in parallel with ongoing metallurgical work and mine planning.

“Access to established processing infrastructure is an important consideration as we continue to assess capital-efficient development pathways across our project portfolio. Importantly, it aligns with our strategy of pursuing capital-efficient development options and positions High-Tech to unlock value from our Mt Fisher and Mt Eureka projects in a disciplined and timely manner,” HTM CEO James Merrillees said on January 7.

The Wagtail deposit, adjacent to HTM’s Mt Fisher and Mt Eureka Projects, is being advanced by SSH Mining under a separate agreement, with evaluation of potential processing at Wiluna providing additional flexibility for mine planning.

“This MoU is a positive step in evaluating development options across the Mt Fisher and Wagtail projects. From SSH Mining’s perspective, having the opportunity to assess potential processing solutions using established regional infrastructure supports disciplined mine planning and sequencing.

“At Wagtail, our focus is on advancing drilling, technical studies and mine planning under the mining agreement with HTM. Evaluating potential toll treatment options in parallel provides additional flexibility as the project progresses toward development decisions,” SSH Mining COO Sam Baker said.

The MoU reflects a shared intent between HTM and WMC to evaluate a toll treatment solution that could support a capital-efficient development pathway for ore from the Mt Fisher and Mt Eureka projects.

Access to an established, large-scale processing facility within the region is a key strategic consideration for HTM as it advances mine planning, logistics and funding options.

The MoU enables the company to assess processing compatibility and metallurgical performance, evaluate potential campaign-based production scenarios, integrate processing options into broader mine planning and advance discussions with funding and contracting counterparties with greater clarity around potential processing routes.

The Wiluna processing plant, located about 120 km from HTM’s Mt Fisher and Mt Eureka projects, is one of the region’s largest operating gold plants, offering immediate capability for high-volume toll processing without requiring capital expenditure from HTM.

HTM’s recently executed mining agreement with SSH Mining over the high-grade Wagtail deposit will see SSH Mining will fund pre-feasibility works, drilling and mine planning at Wagtail and, subject to a decision to mine, undertake mining activities under a cost-plus-10% structure, with participation in 25% of net project profits and HTM retaining a 75% free-carried interest. SSH Mining is also responsible for haulage and logistics.

While the MoU with WMC is nonbinding, HTM considers the Wiluna processing facility a logical regional processing option for Wagtail material as part of its broader development strategy. Any processing of Wagtail ore would remain subject to technical assessment, ore specification requirements, commercial agreement, execution of a binding toll treatment agreement and relevant approvals.