Shares in West Perth-based Kingrose Mining rose 21 percent early on Wednesday following news that the company had signed multiple alliance exploration licenses with global resources powerhouse, BHP. By 11:55 AM WST, Kingrose shares were trading at 5.7 cents.
Kingrose, previously featured in last year's BHP Xplor program—an accelerator for aspiring companies—will collaborate with BHP on a three-staged process focusing on copper and nickel exploration across Norway and Finland.
During the BHP Xplor program, Kingrose secured over 3,800 square kilometers of exploration licenses in these countries and identified several early-stage copper-nickel targets. BHP has agreed to fund $31 million in regional generative exploration activities over four years within this area of interest.
BHP can earn an initial 51 percent stake by spending $9.3 million within two years of the second stage's start. This stake could increase to 75 percent with a further investment of $46.5 million by the seventh year, requiring a minimum annual spend of $6.2 million. If BHP secures a 51 percent stake but does not reach 75 percent ownership, its control will revert to 49 percent, with Kingrose holding the remaining 51 percent and having the casting vote during the final joint venture phase.
Kingrose will oversee the alliance during both the project generation and earn-in stages while continuing to operate its existing projects in Finland and Norway independently.
"The terms of these alliances are industry-leading in fostering collaboration and the opportunity for mutual value creation between a major and junior company," said Kingrose managing director Fabian Baker. "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."
This strategic partnership positions Kingrose Mining for significant growth and highlights the potential for discovering substantial mineral deposits in the region.
