Kingsrose Mining and BHP launch pioneering exploration partnership in Norway and Finland

The share price of Kingsrose Mining (ASX: KRM) leapt 17% in early trading after it revealed it had entered into exploration alliance agreements with mining giant BHP Group (ASX: BHP).

The two companies have agreed to work together across large areas of interest in Norway and Finland.

The formation of this collaboration follows Kingsrose’s successful participation in a recent BHP Xplor programme, in which it outlined the Scandinavian opportunity.

Fostering collaboration

Kingsrose managing director Fabian Baker said participating in the inaugural BHP Xplor programme had opened up an exciting opportunity.

“The terms of these alliances are industry-leading in how they foster collaboration and the opportunity for mutual value creation between a major and a junior company,” Mr Baker said.

The two alliances will be carried out over three stages and explore for nickel and copper in agreed areas of interest in Norway and Finland.

The combined terms include BHP solely funding up to $31 million in regional generative exploration over up to four years across belt-scale areas of interest in Norway and Finland for the exclusive right to select targets to become defined projects.

In the earn-in phase, BHP may earn up to 75% in two stages by solely funding a further up to $56m over seven years from the commencement of the phase.

Rare opportunity

“The exploration tenements held by Kingsrose in Norway and Finland represent a rare exploration opportunity with respect to their scale and prospectivity for discovery,” Mr Baker said.

“The alliances will see significant exploration expenditure across these mineral belts with the objective of discovering Tier-1 mineral deposits.”

“We look forward to continuing our collaboration with the team at BHP and delivering successful and responsible exploration in Norway and Finland.”

Declining discovery rates

BHP vice president of exploration Sonia Scarcelli said the Xplor programme had been developed to address the challenge of declining global discovery rates by building an industry-first platform for cross-industry collaboration, talent sharing and lifting of exploration operating standards.

“BHP is pleased to continue its collaboration with Kingsrose, who represent a leading explorer both technically and in their responsible approach to mineral exploration.”

Kingsrose has identified two highly-prospective mineral belts in Norway and Finland, which are host to numerous historical and recent mineral discoveries.

It has earmarked numerous early-stage nickel-copper exploration targets and secured more than 3,800 square kilometres of exploration licences or reservations across the two belts.

This process was supported and enhanced by the innovative BHP Xplor programme during 2023.