JOHANNESBURG (miningweekly.com) – Diversified miner South32 has entered into an option agreement with TSX-listed Trilogy Metals in respect of its Upper Kobuk Mineral Project (UKMP).
UKMP is located in the Ambler mining district, in Alaska, and includes the Bornite and Arctic deposits.
South32 will provide Trilogy with $30-million over three years, with the funds to be used to test the extension of the high-grade copper resource at UKMP’s Bornite deposit.
“This is another step in our strategy to identify opportunities to add value to our portfolio by investing through the drill bit,” CEO Graham Kerr said.
The initial funding will be paid in tranches of $10-million a year, with the decision to proceed to years two and three of the agreement subject to exploration results.
At any time during the three-year period, South32 may exercise the option to form a joint venture by contributing $150-million, plus any amounts Trilogy spends on the Arctic project, to a maximum of $5-million a year, less the initial funding.