Shares of Prairie Mining (LON: PDZ) are rallying Wednesday after announcing that it has entered into an earn-in agreement with Greenfields Exploration to acquire an interest of up to 80% in the Arctic Rift Copper project in Greenland.
Commenting on the deal, Prairie Mining said the Arctic Rift Copper project is a “significant, large-scale project with historical exploration results indicative of an extensive mineral system with potential to host world-class copper deposits.”
The ARC mineral system is a known prospective for basalt, fault, and sedimentary rock-hosted copper mineralisation. However, it is almost unexplored, which Prairie believes will give it a first-mover advantage.
Prairie will earn an 80% interest in the project by spending A$3.5 million on the project within three years to receive a 51% interest. Once they have spent a further A$3.5 million within four years, the company will earn an additional 19% interest.
If they spend another A$3 million within five years, the company will earn a further 10% interest, taking the total interest to 80%.
Prairie's CEO Ben Stoikovich commented: “The ARC project marks Prairie's first move into the energy metals space. Copper is integral to the energy transition, with copper consumption over the next 25 years forecast to be more than has ever been mined.”
Prairie Mining shares are currently trading at 18p, up 12.5% from Tuesday's close, making it one of the biggest gainers in London on Wednesday.
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