Kingsrose Mining (ASX: KRM) has completed a full acquisition of the Jakon nickel-copper-cobalt project in central Finland from Rio Tinto Exploration Finland, significantly expanding its exploration footprint within the prospective Kotalahti nickel-copper-cobalt belt.
The acquisition aligns with Kingsrose’s ongoing exploration alliance with mining giant BHP in Finland.
The Jakon project encompasses a 205 square kilometres area, including two exploration permits and six exploration reservations.
Notably, the project features several high-priority nickel-copper-cobalt targets that were identified during the 2023 BHP Xplor programme.
Its strategic location near the former Hitura nickel-copper mine positions it as a potentially underexplored region for high-grade sulphide mineralisation.
The acquisition is fully funded by BHP and structured with staged payments tied to the project’s advancement.
The initial payment of €75,000 (AU$126,000) is split into two instalments.
A more substantial €5 million (AU$8.4 million) payment is contingent upon a positive final investment decision (FID) to construct a mine within the Jakon project area.
The agreement also includes a 1 per cent net smelter royalty payable to Rio Tinto, with Kingsrose retaining the option to buy back 0.25 per cent of the royalty for €5 million (AU$8.4 million) within 90 days of the FID.
Kingsrose Mining Managing Director Fabian Baker expressed enthusiasm about the acquisition, stating: “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.”
Baker also noted that the company’s business development team is actively seeking additional assets to further strengthen its project portfolio, alongside its ongoing alliances.
Historical drilling by Rio Tinto between 2019 and 2022 revealed “significant” nickel-copper sulphide intercepts within the project area, now part of Kingsrose’s 1,198 square kilometres holdings under the BHP Exploration Alliance.
These findings underscore the potential for further exploration and development.
The acquisition terms are structured to facilitate immediate control and future development of the Jakon Project, with deferred payments and contingent considerations linked to the project’s advancement towards a mining operation.