Commander Resources Ltd. has announced that project partner Fjordland Exploration Inc. will shell out $1.2 million for the exploration of the South Voisey’s Bay nickel-copper-cobalt project in Canada, Mining.com reported.
In a March 4 statement, Commander Resources said Fjordland’s strategic investor, High Power Exploration Inc. (HPX), will take care of the funding.
Under the terms of the deal, Fjordland owns a 35 percent interest in the project and may gain as much as 100 percent in the property as long as it gives Commander Resources $8 million for exploration costs. The payment can come in tranches of $290,000. In addition, Fjordland should issue Commander Resources shares totaling to 4.5 million.
Discovered only more than two decades ago, the Voisey’s Bay mine area has been eyed by both Fjordland and Commander for nickel deposits. The firms have partnered in research and development to learn more about what Voisey’s Bay can offer and continued to do so despite the hype on the exploration of the area dying down in 2002 due to an economic crisis.
Spanning 29,400 hectares in central Labrador, the area covers parts of the Pants Lake Gabbro Complex. It is also located south of the Voisey’s Bay nickel deposit, which belongs to the Toronto-based Vale Ltd.
Recently, Commander Resources noted that Fjordland has concluded a 1,469-meter drill program at the base of the Worm Gabbro. It yielded a 3.9-meter interval of semi-massive to massive sulfide. These sulfides were comprised of pyrrhotite, pentlandite and chalcopyrite with a 0.37 percent grade of nickel, while copper grades stood at 0.27 percent and cobalt at 0.1 percent.
The drilling program for this year will adopt many and varied “high-quality untested” conductor devices. The statement added that these were the products of loads of historic geophysical surveys coupled with geological information from last year’s drilling program.
Commander Resources is a Canadian firm that engages in exploration that is made possible through selling partnerships such as that with Fjordland. The company also puts property assets on sale, from which the firm secures royalties, to fund its exploration programs. It has majority stakes in Maritime Resources Corp. and Aston Bay Holdings.
As for Fjordland, about 30 percent of it is owned by HPX. The two firms have a separate agreement wherein the former has agreed to fund about $7.4 million in expenditures and $290,000 in property payments for a project with the said affiliate.
Privately owned, HPX is a mineral exploration company with expertise in technologies. The technological advancements it offers help other mining firms survey optimization and processing, among others.
How injecting trillions into the economy may favor Bitcoin
Bitcoin has had a 25% drop in the last 30 days. However, the cryptocurrency may be on a very positive...
The corona crisis increases demand for loan via Fintech platforms
The Brazilian Fintech sector is developing in the light of the new coronavirus pandemic. A large number of companies now...
3 business intelligence trends to watch for in 2020
The Business Intelligence (BI) market will reach $40 billion by 2025, according to Research and Markets. The world economy is...
Agreement on the prices of medical cannabis in Germany
The costs for the health insurance companies in Germany, due to the drug price regulation, experienced a 100% increase. After...
The tourism sector in Spain asks the government for real help
The tourism sector has already practically lost the summer and expects that recovery will be much slower than previously estimated....
Featured5 days ago
The pandemic is just the trigger of an inevitable recession
Africa6 days ago
Angola might devalue the kwanza, as the country’s economy is threatened
Featured5 days ago
The winners of the Online F10 FinTech Hackathon 2020
Business6 days ago
Real estate is at risk because of the exogenous crisis caused by COVID-19