Shares in 80 Mile PLC (AIM:80M, OTCQB:BLLYF) rose as much as 12% in early trading after the explorer agreed a $30 million joint venture with USFM Corporation to develop its Disko-Nuussuaq nickel and copper project in Greenland.
Under the binding heads of terms, USFM will fund the investment to earn a 51% stake, while 80 Mile will retain 49% and act as project operator.
The deal includes a £500,000 payment to 80 Mile upon signing definitive agreements and a 12.5% management fee on all expenditure. At least $10 million must be spent on drilling within ten months, ensuring funds are used for exploration rather than data reprocessing.
The Disko project, known for its Norilsk-style mineralisation, is considered one of the most promising targets for copper, nickel, cobalt and platinum group metals in Greenland.
Executive director Roderick McIllree said the partnership was “a major milestone” that will accelerate drilling and resource definition “while preserving operational leadership”.
After their early burst, the shares settled at 0.81p, up 3%. Year-to-date, the stock is up 200%.