Two junior miners have reported receiving considerable strategic investment in the last few days, demonstrating rising levels of interest in the sector from large scale investors. The Solactive Global Junior Miners Total Return Index has been picking up speed recently, partly as the result of renewed optimism in the markets as investors contemplate a potential Fed cut.
Sumitomo Metals Canada last week said it was taking a 9.9% stake in Canadian-listed FPX Nickel Corp [TSXV:FPX], entering the stock through a private placement. The total consideration is expected to be in the region of C$14.4m.
FTX is developing the Baptiste Nickel Project within the Decar Nickel District in British Columbia. It is focused on the exploration for awaruite ore, an alloy metal of nickel and iron that can be recovered through a less carbon-intensive process than existing nickel materials.
The placement gives Sumitomo the the right of second offer for a cumulative 60,000 tonnes of nickel from Baptiste with the timing and annual volume yet to be negotiated. The placement also gives Sumitomo the opportunity to evaluate the project in detail and it is anticipated it will also be providing further technical expertise to the upcoming feasibility study.
Sumitomo has a Long Term Vision strategy in place which requires it to achieve 150,000 tonnes of nickel per year.
Empire Metals in Saudi deal for titanium mine
In the UK AIM-quoted Empire Metals [LON:EEE] has raised £3m before expenses through the placing of shares of no par value from a strategic investor in Saudi Arabia, TransOceanic Minerals. This will help it to advance the development of its Pitfield titanium project in Australia.
Empire Metals said today that the net proceeds of the placing will be primarily used to allow it to continue to expand the reverse circulation drilling at Pitfield and to undertake additional diamond core drilling for petrology, mineralogical and metallurgical studies. These programmes will be in addition to the current RC drill programme, the final results from the first phase being announced shortly with the second, already funded, phase expected to commence in February.
- BWA exploring mineral resources in Cameroon and Canada
- Andrada progressing well with its substantial lithium deposit
- Fission Uranium poised to start two-prong drill program on high priority Athabasca targets
This is being hailed as an important milestone for Empire Metals as the strategic partnership not only recognises the global significance of the Pitfield project but with the on-going support of TransOceanic Minerals and potential future partnerships in Saudi Arabia, the AIM-listed miner will have the capacity to expand project development and accelerate value creation.
Empire Metals’ strategy is to develop a pipeline of projects at different stages in the development curve. The Pitfield project has demonstrated a newly recognised giant mineral system that it says “hosts a globally significant titanium discovery.” Empire is also advancing the Eclipse-Gindalbie Project in Western Australia, which is prospective for high-grade gold and also kaolin used to produce high-purity alumina, an essential component in lithium-ion batteries.
Empire has just confirmed its latest set of results this morning from Pitfield, for the entire 40 RC drillhole programme completed in December 2023, confirming TiO2 mineralisation present in every metre, starting from or near surface, in all holes drilled. All drillholes ended in TiO2 mineralisation.
