Australian junior exploration company Kingsrose Mining has completed the 100% acquisition of the Jakon nickel-copper-cobalt project in central Finland from Rio Tinto Exploration Finland.
This move bolsters Kingsrose’s position within the Kotalahti nickel-copper-cobalt belt and aligns with its exploration alliance with mining giant BHP in Finland.
The acquisition comprises the 205km² Jakon project area, including two exploration permits and six exploration reservations.
The Jakon project features several high-priority nickel-copper-cobalt targets identified during the 2023 BHP Xplor programme.
It is strategically located near the former Hitura nickel-copper mine and is believed to be underexplored for high-grade sulphide mineralisation.
The acquisition is fully funded by BHP, subject to the ongoing activity of the alliance.
The terms include an initial payment of €75,000 ($78,344) split into two equal instalments, the first upon signing and the second a year later.
Additionally, a €5m payment is due within 90 days of a positive final investment decision (FID) to construct a mine within the Jakon project area.
A 1% net smelter royalty payable to Rio Tinto is also part of the agreement, with an option for Kingsrose to buy back 0.25% of this royalty for €5m within 90 days of the FID.
The acquisition terms for 100% ownership of the Jakon Project are structured to facilitate immediate control and future development, with deferred payments and contingent considerations linked to the project’s advancement towards a mining operation.
Kingsrose Mining managing director Fabian Baker said: “The Jakon acquisition is an exciting addition to our Exploration Alliance with BHP in Finland. The project strengthens our position within the Kotalahti Nickel-CopperBelt, providing a pipeline of exploration opportunities including drilled prospects that are open for further exploration growth. Kingsrose plans to utilise extensive datasets from RTX and deploy advanced exploration methodologies to prioritise exploration camps for further exploration.
“While our local teams in Scandinavia have been conducting due diligence and closing the acquisition of this project under the BHP Exploration Alliance, our business development team has continued its global search for assets to strengthen our project portfolio in addition to the ongoing Alliances.”
The project area, now part of Kingsrose’s 1,198km² holdings under the BHP Exploration Alliance, has shown “significant” nickel-copper sulphide intercepts from historical drilling by Rio Tinto between 2019 and 2022. These findings suggest the potential for further exploration and development.
