South32 has entered into an option agreement with Trilogy Metals Inc., formerly NovaCopper Inc., in respect of Trilogy’s Upper Kobuk Mineral Projects (UKMP) located in the Ambler Mining District in Alaska. The UKMP includes the Bornite and Arctic deposits.
South32 will provide US$30M (Initial Funding) over three years, which will be used to test the extension of the high-grade copper resource at Trilogy’s Bornite deposit. The Initial Funding will be paid in tranches of US$10M/yr, with the decision to proceed to year 2 and 3 subject to exploration results.
At any time during the 3 year period South32 may exercise the option to form a 50-50 joint venture.
South32 Chief Executive Officer, Graham Kerr, said: “This is another step in our strategy to identify opportunities to add value to our portfolio by investing through the drill bit.”
“We are pleased to be partnering with Trilogy and NANA, the Inupiat-owned Alaska Native Corporation in the region, and we are looking forward to working together to explore the potential of the UKMP deposits.”