Canada’s Midland Exploration Inc has signed a funding agreement with BHP-owned Rio Algom Limited for nickel exploration in Quebec, the company announced. The partnership aims to identify, test and develop high-quality exploration of new significant nickel deposits in the Nunavik territory.
During the first phase of the partnership, for first two years BHP will fund the exploration 100pc with CAD1.4mn ($1.48mn) annually, while Midland will be the operator of the project.
BHP may further the exploration work of up to CAD700,000 before being granted the right to become the operator of any designated project in the second phase (testing phase). The total budget of the testing phase is CAD4mn, during which, BHP and Midland will fund 75pc and 25pc, respectively.
After that, BHP may decide if it wants to proceed with the third phase. During the third phase, the companies will form a joint venture with initial participating interests being 70pc for BHP and 30pc for Midland.
Last year, Midland and Rio Algom had signed another funding deal for copper exploration in the same area that included the Mythril copper-gold-molybdenum-silver project in James Bay Eeyou Istchee.
Midland Exploration Inc is a gold, platinum group elements and base metals explorer based in Quebec, while Rio Algom Limited is a wholly-owned subsidiary of BHP Group.
($1 = CAD 1.32130)