Kingsrose and BHP enter exploration alliance agreements

This follows on from the Company’s successful participation in the BHP Xplor programme.

Highlights:

• Kingsrose and BHP have signed two exploration alliance agreements.
• The Alliances will be carried out over three stages and span agreed areas of interest in Norway and Finland, exploring for nickel and copper. The combined terms of the Alliances include:
  • Project Generation Phase: BHP to sole fund up to US$20 million in regional generative exploration over up to 4 years across belt scale areas of interest in Norway and Finland for the exclusive right to select targets to become Defined Projects.
  • Earn-In Phase: 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 7 years from commencement of the Earn-in Phase.
  • Joint Venture 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.
• Kingsrose shall operate the Alliances during the Project Generation and Earn-In Phases and shall be entitled to charge a management fee to cover overhead costs associated with the Alliances.
• Kingsrose and BHP hold mutual rights of first refusal on the sale of any equity interest in the Joint Venture company or dilution royalty.
• The Alliances exclude Kingsrose’s Penikat and Råna projects, which Kingsrose shall continue to advance independently.

Kingsrose Managing Director, Fabian Baker, commented “Following our participation in the inaugural BHP Xplor programme, 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. 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.”

Read the article online at: https://www.globalminingreview.com/mining/23052024/kingsrose-and-bhp-enter-exploration-alliance-agreements/