Canadian junior mining firm Explorex Resources has announced the scrapping of plans to buy the Hautalampi cobalt, nickel and copper project in eastern Finland due to the inability to secure adequate funding in advance.
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Credit: Explorex
Vancouver-based Explorex unveiled their intention to acquire the Finnish project in November 2018 and were supposed to pay FinnCobalt $1.9 million plus a $3 million value in company shares over a four year period.
Explorex were also to have spent $3 million in exploration before the second year. In addition to this, upon completion of the earn-in, as well as paying 1.5% in net metals royalties to the three Finnish firms who jointly own FinnCobalt, Alandra Oy, Kiviralli Oy and Tetra Ekberg Oy. As soon as commercial production was declared in Hautalampi, the owners would have received $1.5 million in shares.
While Explorex conceded that they didn't foresee being able to source enough funding to move forward on the acquisition, the company made it aware that it was open to proceeding towards the project's advancement on a non-exclusive basis.
“We recognise the merits of Hautalampi and will continue to pursue avenues to support the acquisition,” said chief executive Gary Schellenber.
Hautalampi was the focus of pre-production development in the mid-1980s and has undergone extensive engineering that supported a 2009 feasibility study.
The current focus of Explorex is on cobalt-manganese base metal project, Kagoot Brook in New Brunswick, Canada. The firm has also interest in the Handlebar cobalt-nickel-copper project in British Columbia and is actively sourcing further assets to increase its property portfolio.
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