80 Mile PLC Secures $30 Million US Joint Venture for Greenland’s Disko-Nuussuaq Project 

80 Mile PLC (80M.L), an exploration and development company with assets in Greenland, Finland, and Italy, has entered a binding Heads of Terms (HoT) with USFM Corporation, a U.S.-based group, to jointly develop the Disko-Nuussuaq project in West Greenland.

This strategic partnership will see the US Partner invest $30 million to acquire a 51% stake in the Disko project.

The agreement stipulates that 80 Mile will remain the operator of the project, leveraging its expertise in Greenland's resource landscape. The company will receive a management fee equivalent to 12.5% of total expenditures, along with a £500,000 cash payment upon the signing of definitive agreements.

Under the HoT, the $30 million investment is earmarked for drilling activities, with a minimum of $10 million allocated to drilling-related expenses within the first 10 months of signing. This focus on drilling aims to rapidly advance resource definition at Disko. 80 Mile will be free carried for its 49% interest until completion of the earn in.

The Disko-Nuussuaq project is strategically located on the south-west coast of Greenland and exhibits the potential to host mineralization similar to the Norilsk-Talnakh nickel/copper sulphide mine in Russia. The project area has identified seven significant Magmatic Massive Sulphide (MMS) targets, with the largest spanning 5.9 kilometres in length and 1.1 kilometres in width.

Key Financial Terms & Considerations:

• US$30 Million Investment: USFM Corporation will fund $30 million in project expenditure to earn a 51% stake.
• Operational Management: 80 Mile will act as the operational manager and receive a 12.5% management fee on all expenditures.
• Upfront Payment: A £500,000 payment to 80 Mile upon signing definitive agreements.
• Exclusivity: Both parties have agreed to exclusivity until May 1, 2026.

Driver Breakdown:

1. Strategic Location: Disko's location in Greenland positions it within a region of growing geopolitical importance for critical resources.
2. Drilling Focus: The agreement's emphasis on drilling accelerates the timeline for resource definition and potential future development.
3. Experienced Operator: 80 Mile's role as operator ensures continuity and leverages their existing knowledge of the project and Greenland's regulatory environment.

AskTraders Takeaway:

The joint venture is viewed as a major catalyst for 80 Mile, providing the necessary capital to aggressively explore and define the resource potential at Disko. The agreement with USFM Corporation signals confidence in the project's prospects and could attract further investor attention. Markets will be watching for the signing of definitive agreements and the commencement of drilling activities.

Roderick McIllree, Executive Director of 80 Mile, stated, “This joint venture represents another major milestone for both Disko and 80 Mile. The funding structure has been purpose built to accelerate drilling and resource definition while preserving our operational leadership through the project's most decisive early stages.”