BHP (ASX, LON, NYSE: BHP) and Australian junior miner Kingsrose Mining (ASX: KRM) announced on Wednesday the signing of two joint exploration agreements aimed at developing nickel and copper assets in Norway and Finland. This partnership marks a significant step for both companies, with BHP potentially investing $56 million over the next decade to secure up to a 75% stake in Kingsrose’s assets.
The agreement will unfold in three phases. Initially, BHP will fund up to $20 million for regional generative exploration over a four-year period in selected areas of interest across the two Nordic countries. This phase grants BHP exclusive rights to choose which targets will advance as projects.
Kingsrose Mining has been expanding its portfolio of critical minerals projects, focusing on nickel, copper, and platinum group metals in Norway and Finland. In the second phase of the partnership, BHP can earn up to a 75% stake by contributing an additional $36 million over seven years. Throughout both phases, Kingsrose will manage the ventures and receive a management fee to cover overhead costs.
This collaboration excludes Kingsrose’s existing Penikat and Råna projects, which the company plans to continue developing independently. The news of the agreements led to a surge in Kingsrose’s stock, which jumped over 21% to 57 Australian cents by the close of trading in Sydney, giving the company a market capitalization of just over A$40 million.
