BHP Refocuses on Finnmark Alliance with Kingsrose
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Source: mining.com.au
Author: Maddison Elliott
BHP (ASX:BHP) has opted to redirect future funding of Kingsrose Mining’s (ASX:KRM) exploration activities at Central Finland into the Finnmark Alliance.
The company has granted US$3.5 million ($5.39 million) to Kingsrose for its second year of exploration at the Finnmark area, as approved by the Management Committee of the Finnmark Alliance.
Kingsrose has already received a total of US$5.84 million in funding from the first year of its alliance partnership program, exceeding the required US$5 million listed in the agreement.
The alliance will complete a prospectivity assessment to develop camps of intrusions for copper, nickel and platinum group element (PGE) sulphides as both companies believe the region holds potential for “significant” discoveries.
Meanwhile, Kingsrose has entered into an option agreement to acquire the Gallujavri project from EMX Royalty to expand its Finnmark exploration tenure.
On signing of the agreement, the alliance will pay $38,000 in cash and agree to pay $665,000 over four years to cover annual work commitments.
A payment of $150,000 will give Kingsrose a 100% interest in the project, along with the grant of a 1% net smelter return royalty, of which it can buy back 0.25% for $3.75 million before the end of the option exercise.
Historical work at the project has identified occurrences of disseminated pyrrhotite-pentlandite and minor chalcopyrite with anomalous nickel, copper and platinum group elements concentrations along its 16km trend.
Kingsrose, which has a market capitalisation of $24.11 million, was the first listed company to secure a partnership with BHP through its Xplor initiative, as reported by Mining.com.au.
This exploration will contribute to the overall advancement of the company, with Managing Director Fabian Baker saying it is one of the “largest” generative programs globally.
“It is a rare opportunity to explore entire mineral belts from first principles; we are grateful to BHP for supporting these efforts financially and with the support and expertise of their multidisciplinary teams,”Baker says.
“The upcoming work program will produce proprietary datasets over more than 200 kilometres strike of the Karasjok and Kautokeino Greenstone Belts, to define the most prospective areas for potential ‘camps’ of copper-nickel-PGE sulphide mineral deposits.”
Kingsrose Mining is a critical minerals explorer that is committed to providing a clean energy future through its projects in Finland and Norway.
