Kingsrose Mining and BHP have signed two industry-leading exploration alliance agreements, under which the latter will provide funding for regional mineral exploration for nickel and copper across areas of interest in Norway and Finland.
“Following our participation in the inaugural BHP Xplor program, it is incredibly exciting to be announcing these exploration alliances with BHP, one of the world’s leading mining companies. The terms of these alliances are industry-leading in how they foster collaboration and the opportunity for mutual value creation between a major and junior company,” said Kingsrose Managing Director Fabian Baker.
“The exploration tenements held by Kingsrose in Norway and Finland represent a rare exploration opportunity with respect to their scale and prospectivity for discovery. The alliances will see significant exploration expenditure across these mineral belts with the objective of discovering Tier-1 mineral deposits. We look forward to continuing our collaboration with the team at BHP and delivering successful and responsible exploration in Norway and Finland.”
The alliances will be carried out over three stages: Project Generation, Earn-In Phase, and Joint Venture Phase. Under the terms of the agreements, BHP will solely fund up to US$20 million in regional generative exploration over four years across belt scale areas of interest in Norway and Finland for the exclusive right to select targets to become Defined Projects.
In respect of each Defined Project, BHP may earn up to 75% in two stages by sole funding a further up to US$36 million over seven years from commencement of the Earn-in Phase. Thereafter, subject to BHP exercising the option to establish a joint venture, the parties shall fund joint venture activities on a pro-rata basis. If either party’s interest in a joint venture dilutes below 10%, their interest in the Joint Venture shall be converted to a 2% net-smelter royalty.
The alliances exclude Kingsrose’s Penikat and Råna projects, which the company shall continue to advance independently.
Source: Kingsrose Mining