First Quantum Minerals (TSX: FM) has entered into an agreement with Boss Energy (ASX: BOE) to potentially earn up to 75% of any base and precious metals development at Boss Energy’s Honeymoon uranium project. With a market capitalization of US$25 billion, First Quantum currently operates eight mines worldwide, including operations in Mauritania, Finland, Panama, Turkey, Spain, Zambia, and ownership of the Ravensthorpe nickel mine in Western Australia.
This partnership allows Boss Energy to maintain its focus on revitalizing the mothballed Honeymoon uranium mine while leveraging the exploration and funding capabilities of First Quantum. The agreement stipulates that First Quantum can earn a 51% interest in any base or precious metals discovery at Honeymoon by investing $6 million in exploration activities. Subsequently, First Quantum has the option to increase their ownership stake to 75% by solely funding all expenditures up to the decision-to-mine stage.
Boss Energy’s Managing Director, Duncan Craib, expressed enthusiasm for the collaboration, emphasizing the benefits of having a global industry leader like First Quantum fund exploration activities at Honeymoon. This strategic partnership allows Boss Energy to focus on its goal of becoming Australia’s next uranium producer while gaining exposure to potential success in base and precious metals exploration.
Situated 12km from the Kalkaroo copper-cobalt-gold deposit owned by Havilah Resources (ASX: HAV), the Honeymoon site is located in the Curnamona mineral province, known for its mineral prospectivity. The region is considered highly prospective for various mineral styles, including iron oxide copper gold, Zambia Copper Belt style copper and cobalt, and Broken Hill and Mt Isa style zinc-lead-silver mineralization. Additionally, nearby deposits such as Kalkaroo and Portia further highlight the mineral-rich nature of the area.
Overall, the partnership between First Quantum Minerals and Boss Energy represents a strategic move towards unlocking the mineral potential of the Honeymoon uranium project and surrounding region, positioning both companies for future success in base and precious metals exploration and production.
