Kingsrose Mining Gains After Signing Exploration Partnership With BHP

Kingsrose Mining Ltd (ASX: KRM) has entered into a landmark exploration alliance agreement with BHP Group Ltd (ASX: BHP).

This follows on from Kingsrose’s successful participation in the BHP Xplor program.

The alliance will be carried out over three stages and spans agreed areas of interest in Norway and Finland.

Kingsrose shares closed 21% higher on Wednesday, at A$0.57.

Belt scale areas of interest

Notably, BHP will sole fund up to US$20 million (A$31 million) in regional generative exploration over up to 4 years.

This will be 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% by sole funding a further up to US$36 million (A$56 million) over 7 years.

Thereafter, subject to BHP exercising the option to establish a joint venture, the parties shall fund joint venture activities on a pro-rata basis.

Target: Tier-1 deposits

Kingsrose shall operate the alliances during the project generation and earn-in phases and shall be entitled to charge a management fee.

Kingsrose Managing Director Fabian Baker said: “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.”

  

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