Kingsrose Mining Cash-Backed and Expanding

Click to View: Kingsrose Mining Cash-Backed and Expanding Nickel-Copper-Cobalt Exposure in Finland - JustStocks

Source: juststocks.com/au

Author: John Phillips

Kingsrose Mining Ltd (ASX:KRM) is well-funded with $27 million in cash at the end of 2024, and has a current market capitilisation of $28 million.

The company is now starting to utilise its strong treasury position, and will acquire the Jakon nickel-copper-cobalt project in Central Finland from Rio Tinto Exploration Finland Oy (RTX).

Jakon is located in the Kotalahti Nickel-Copper-Cobalt Belt, proximal to the past-producing Hitura Ni-Cu mine.

The belt is a historically significant mining region known for its magmatic nickel sulfide deposits.

It has attracted renewed exploration interest due to the increasing global demand for battery metals, particularly for electric vehicles and renewable energy storage.

Strategy

This strategic move will form part of Kingsrose’s Exploration Alliance with BHP in Finland.

The acquisition cost is funded by BHP under the Alliance, subject to the Alliance remaining active at the time of each payment.

Terms include:

• €37,500 cash payable on signing and €37,500 cash payable on the one-year anniversary of signing;
• €5,000,000 cash payable within 90 days of a positive final investment decision to construct a mine within the Jakon project area; and
• 1% net smelter royalty payable to RTX, with the right for Kingsrose to buyback 0.25% of the royalty for €5,000,000 at any time prior to 90 days following the final investment decision.

Global search for assets

Fabian Baker, managing director, noted that the company continues its search for additional assets:

“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.”