Trilogy Metals Inc. announced that it has formed a joint venture with South32 Limited to conduct mineral exploration activities on certain regions in Alaska.
Under the agreement, Trilogy will grant South32 an option to form a 50/50 partnership with respect to the former’s Alaskan assets, which are collectively known as the Upper Kobuk Mineral Projects (UKMP). For the initial funding, South32 is required to contribute a minimum of $10 million every year for a maximum of three years to keep its privileges in good standing. For the subscription, it also needs to contribute a minimum of $150 million, plus any amount Trilogy would spend on the Arctic projects over the next three years to a maximum of $5 million annually.
The two companies also agreed on a joint mineral exploration program at Bornite, where they will drill a minimum of seven 1,400-meter holes to test the northern extension of the site.
Commenting on the partnership, Trilogy president and CEO Rick Van Nieuwenhuyse said:
“This is a terrific opportunity for Trilogy shareholders. South32 is a global diversified metals and mining company who will bring a wealth of operational experience to the project. Along with our Alaska Native Corporation partner, NANA and their experience as the land owner and co-owner of the Red Dog Mine, one of the largest zinc mines in the world, we have a strong team that will be invaluable as the UKMP progresses towards development.”
Outside of the agreement, Trilogy plans to conduct a $7.1 million program for its Arctic Project, which involves geotechnical drilling to test, identify, and assess potential locations for all mine-related facilities. Basically, this is done to complete a pre-feasibility study for the project to be completed in the first quarter of 2018.