The copper price surged to a new all-time high earlier this week, breaking through US$11,770 per tonne on the London Metal Exchange.
The metal has now climbed by more than 30% since early January, helping to drive strong gains for some of the leading ASX copper stocks.
For example, shares in the world's biggest copper miner BHP Group Ltd (ASX: BHP) are currently flirting with 52-week highs.
Overall, BHP shares have risen by about 13.6% since the start of the year to $45.39 per share at the time of writing.
Pure-play ASX 200 copper stocks have performed even better.
Shares in Capstone Copper Corp (ASX: CSC) have soared by 43% in the same period, with Sandfire Resources Ltd (ASX: SFR) shares also rocketing by 81%.
But one lesser-known copper exploration stock has stolen the spotlight in recent weeks.
That company is Havilah Resources Ltd (ASX: HAV), and a major development in November sent its share price soaring.
Let's take a closer look at what unfolded.
Image source: Getty Images
Diversified ASX exploration stock
Havilah operates a portfolio of five exploration projects scattered across the Curnamona Province in northeastern South Australia.
Collectively, these assets are prospective for various commodities such as copper, gold, uranium, and iron ore.
However, the group's flagship asset is the Kalkaroo copper, gold, and cobalt project.
Management believes Kalkaroo represents one of the larger undeveloped open-pit copper deposits in Australia.
It contains 1.1 million tonnes of copper, 3.1 million ounces of gold, and 23,200 tonnes of cobalt.
And last month, Havilah signed a transformative agreement with Sandfire that could move Kalkaroo closer to production.
What happened?
In essence, the two ASX copper stocks agreed to jointly advance Kalkaroo and form a strategic exploration alliance across the Curnamona Province.
Under the agreement, Sandfire can earn an 80% interest in Kalkaroo through a two-stage earn-in structure.
Firstly, the deal involves a $105 million upfront consideration to Havilah, comprising 70% Sandfire shares and 30% cash.
Secondly, Sandfire committed to spending another $105 million after completing a new pre-feasibility study (PFS) assessing the merits of building a mine at Kalkaroo.
Separately, Sandfire will also spend $30 million in regional exploration as it looks to unearth new copper mineralisation across the Curnamona Province.
Havilah Resources Technical Director, Dr Chris Giles, commented:
We are very pleased to have reached a binding agreement with Sandfire that provides for completion of a new Kalkaroo PFS, including a substantial drilling program targeting resource upgrade and expansion…
Immediate value for Havilah shareholders will be realised via an upfront payment, which also gives Havilah a direct stake in Sandfire's successful global mining operations via the share component.
Havliah share price in focus
The market appeared to back the agreement.
Since the deal was revealed, shares in Havilah have moved from $0.27 a month ago to $0.57 per share at the time of writing.
This equates to a 111% return for shareholders in this ASX copper stock.
For comparison, the All Ordinaries Index (ASX: XAO) is down by around 1.8% across the same timeframe.
