Sandfire Resources (ASX:SFR) said it is close to finalizing transaction agreements with Havilah Resources (ASX:HAV) as part of a binding term sheet to advance the Kalkaroo project in South Australia, according to a Tuesday filing with the Australian bourse.

The company may earn an 80% stake in the project through a two-stage earn-in structure under the agreement, the filing said.

Sandfire Resources shares fell 2% in afternoon trade on Tuesday, while Havilah Resources shares were down 3%.