Canadian junior Midland Exploration has executed a funding agreement with BHP for nickel exploration in Quebec.
The strategic alliance between Midland and BHP’s Rio Algom will focus on identifying, testing and developing high-quality exploration targets in a large area of interest in the Nunavik territory.
During the first phase of the Alliance, BHP will fund at 100% up to C$1.4-million a year for two years.
Midland is acting as operator and the main objective is to generate, identify and secure, within the area of interest, exploration projects to be advanced to a drill-ready stage through further exploration work.
BHP may propose additional exploration work for up to C$700 000 before advancing an identified project to the second phase.
Following the first phase, one or more specific exploration targets may be advanced to a second phase to be further developed as a separate designated project.
In the third phase, a formal joint venture (JV) would be formed with initial participating interests being 70% BHP and 30% Midland. Both parties would contribute to the expenses pro-rata to their participating interests. BHP would be the operator for all JV projects.
Midland says several high-quality targets will be visited during the first field programme that is planned to be conducted during September.