Kingsrose adds nickel-copper-cobalt project to Finland portfolio
Article Courtesy of mining.com.au
Kingsrose adds nickel-copper-cobalt project to Finland portfolio - Mining.com.au
Author: Aaliyah Rogan
Kingsrose Mining (ASX:KRM) is acquiring the Jakon Nickel-Copper-Cobalt Project in Central Finland, from Rio Tinto Exploration Finland, as part of its exploration alliance with BHP (ASX:BHP).
The Jakon Project, covering 205km2, bolsters Kingsrose’s presence in Central Finland which now comprises 1,198km2 under the BHP alliance.
Upon signing an asset purchase agreement, Kingsrose, which has a market capitalisation of $27.88 million, will make an initial payment of €37,500 ($62,524) to Rio Tinto.
The company will pay an additional €37,500 on the first anniversary of the agreement, as well as a €5 million cash payment within 90 days after conducting a final investment decision.
Rio Tinto will also be granted a 1% net smelter return royalty, with Kingsrose retaining the option to repurchase 0.25% of the royalty for €5 million in cash.
The acquisition cost will be funded by BHP under the alliance, if the partnership is still active at the time each payment is due.
Kingsrose Mining Managing Director Fabian Baker says Jakon strengthens the company’s position within the Kotalahti Nickel-Copper Belt, providing a pipeline of exploration opportunities.
“Kingsrose plans to utilise extensive datasets from Rio Tinto Exploration and deploy advanced exploration methodologies to prioritise exploration camps for further exploration,” Baker says.
“While our local teams in Scandinavia have been conducting due diligence and closing the acquisition of this project under the BHP Exploration Alliance, our business development team has continued its global search for assets to strengthen our project portfolio in addition to the ongoing alliances.”
Kingsrose considers Jakon highly prospective for further discoveries. The project features several priority nickel-copper-cobalt targets uncovered from Kingsrose’s target generation work during the 2023 BHP Xplor Program.
