Elon Musk is not the only tech billionaire on the hunt for metals to fuel the green energy transition.
Earlier this week, Midnight Sun Mining Corp (TSX-V:MMA, OTCQB:MDNGF) announced it had entered an earn-in agreement with a billionaire-backed resource company to explore the Dumbwa target within its Solwezi copper project in Zambia, potentially paving the way for significant development in copper exploration.
The Canadian firm has aligned itself with KoBold Metals, a California-based mineral exploration company that aims to drive the clean energy future by accelerating the discovery of critical metals.
That ethos has attracted world-class investors, including billionaires Bill Gates and Jeff Bezos. KoBold is known for its use of AI tools to determine which data to collect at each exploration step to maximize uncertainty reduction. The company is involved in exploring over 60 projects across the globe and is focused on discovering new ethical sources of critical metals, including copper, cobalt, lithium, and nickel, which are essential for the electric vehicle revolution and clean energy transition.
Under the agreement, KoBold can earn a 75% interest in the Dumbwa area by spending US$15 million on exploration expenses and making cash payments totaling US$500,000 over four and a half years. KoBold plans to launch a drill campaign in 2024 to explore the structural targets at Dumbwa, while Midnight Sun retains ownership of the remaining 3,982 kilometers of the Solwezi project for further exploration activities.
Adrian O'Brien, director of marketing and communications for Midnight Sun Mining, discussed the company's background in Zambia, which is known for its significant copper deposits.
“We've been working there for the last 10 or 12 years on developing these big copper systems, which are either difficult or time intensive – but the payoff is huge if you're successful,” O’Brien told Proactive.
And, having Bill Gates back KoBold Metals is significant, O’Brien acknowledged. “He is involved behind the scenes, which adds substantial credibility. Moreover, KoBold Metals themselves are at the bleeding edge, pushing the boundaries of the mining industry. They combine AI and novel technology with traditional geoscience to accelerate exploration.
“By using AI at every step, they aim to cut exploration timelines from 10 years to three to four."
Dumbwa is one of four key prospects within Midnight Sun's 506-kilometer Solwezi project. While KoBold Metals focuses on exploring Dumbwa, Midnight Sun plans to continue exploration on its other licenses, as well as the portions of the license where Dumbwa is located, not subject to the earn-in agreement.