Teck partners with PolyMet to develop Minnesota mining projects 

Canadian diversified miner Teck Resources and Glencore-backed PolyMet Mining have agreed to form a joint venture to advance their copper and nickel mining projects in the established Iron Range mining region of Minnesota, US. 

The new 50-50 joint venture, named NewRange Copper Nickel, is expected to help unlock a new domestic critical metals supply for the low-carbon transition through responsible mining. 

The two firms will fund the project, with $170m of the initial budget for permitting and engineering work for PolyMet Mining’s NorthMet project and Teck’s Mesaba mineral deposit.

The NorthMet and Mesaba projects are estimated to hold measured and indicated resources of 795Mt and 1,740Mt, respectively, and further inferred resources of 458Mt and 1,612Mt, respectively. 

PolyMet chairman, president and CEO Jon Cherry said: “With both projects representing approximately half of the known resources of Minnesota’s Duluth Complex under NewRange Copper Nickel, Minnesota emerges as a global leader and major force in developing strategic minerals to feed the North American supply chain for clean energy technologies, electric mobility and modern societal use.” 

Gold producer Polymetal looks to offload Russian assets 

Polymetal International is weighing the sale of its Russian assets to avert the impact of sanctions imposed by Western nations against Russia in the wake of Moscow’s invasion of Ukraine.

In Kazakhstan, Polymetal currently has an annual gold production capacity exceeding 500Koz. The region contributed revenues of $984m in 2021.

Polymetal said that the potential deal’s primary objective is to restore shareholder value by helping “appropriately value” its Kazakhstani assets while reducing the risks of its ongoing operations. 

Upon closing of the potential transaction, Polymetal intends to focus primarily on its operations in Kazakhstan. 

In a press statement, Polymetal said: “The company has been considering a potential modification of its asset holding structure, which would ensure distinct ownership in the various jurisdictions in which the company operates. 

“The company believes that the potential transaction would also increase the likelihood of the company’s ability to re-enter all the relevant equity and sustainability indices and regain a significantly wider institutional audience.” 

High Tide Resources to purchase Clearcut Lithium project in Canada 

High Tide Resources has signed an option agreement with undisclosed firms to acquire a 100% stake in the Clearcut Lithium project in Quebec, Canada. 

Under the agreement, High Tide will have the option to pick a 100% interest in the property by making $100,000 in aggregate cash payments and issuing one million of its common shares to the vendors. High Tide will also incur $1m in exploration expenditures on or before the agreement’s third-anniversary date.

Furthermore, the vendors will retain a 2% net smelter royalty, of which 0.5% may be bought by High Tide for $1m. High Tide will also make additional milestone payments of $500,000 upon filing a positive feasibility study and $1m once the project starts commercial production.

Currently, High Tide owns a 100% interest in the Labrador West Iron project located in Labrador City, Newfoundland and Labrador, as well as a 100% stake in the Lac Pegma copper-nickel-cobalt deposit located 50km south-east of Fermont, Quebec. 

High Tide director, president and interim CEO Steve Roebuck said: “Adding the Clearcut Lithium project to High Tide’s project portfolio is a low-risk and potentially high-reward opportunity for all our shareholders."

Chile’s Supreme Court ratifies Pascua Lama mine shutdown 

The Supreme Court of Chile has endorsed the closure of the $8.5bn Pascua Lama gold and copper mining project, owned by Barrick Gold’s Chilean subsidiary Compañía Minera Nevada SpA. 

Located in the Andes Mountains, on the Chilean-Argentine border, the Pascua-Lama project had been put on hold since 2013 owing to environmental concerns. The court’s ruling rejected the appeals filed against the First Environmental Court’s judgment made in September 2020 to permanently shutter the mine. 

The company faced 33 charges linked to flora, fauna, human environment, water quality and glaciers, among others. This latest ruling confirms the legality of the final closure sanction for the mine and a series of fines applied to the mining project by Chilean environmental regulator Superintendence of the Environment.

The Superintendent of the Environment Emanuel Ibarra said: “The ruling of the Supreme Court, together with supporting our investigation, also ratifies the sentence of the First Environmental Court, which confirmed the definitive closure sanction of the Pascua Lama project issued by this Superintendency, as well as a series of fines that were applied.

Archer to acquire Wallbridge Mining’s nickel assets 

Archer Exploration has agreed to acquire nickel assets, rights and obligations in Quebec and Ontario, Canada, from Wallbridge Mining, in an all-share deal worth around $41.2m (C$53.6m). 

The transaction will result in the creation of a Canadian publicly-traded nickel exploration and development company. The deal includes the sale of nickel assets comprising 2,046 mining titles covering an area of around 67,000ha, as well as a 100% stake in the Grasset nickel sulphide project in Quebec. 

Archer will acquire all of Wallbridge’s property, assets, rights and obligations related to its portfolio of nickel assets. In exchange, Wallbridge will receive $41.6m (C$53.6m) in upfront consideration, comprising 198.6 million Archer common shares. 

Archer expects the acquisition to position it as a leading nickel sulphide-focused exploration and development company in Canada with assets in the mining jurisdictions of Quebec and Ontario.

The company anticipates the Grasset project to hold significant expansion potential. 

Wallbridge and Archer will also sign a five-year exploration cooperation agreement pertaining to the Grasset property. The two firms will undertake exploration works to establish a mineral resource at the property. 

If successful, the companies will form a joint venture to explore, develop and operate such mineral resources. 

Archer interim CEO Keith Bodnarchuk said: “Our team has searched worldwide to identify and secure an attractive land portfolio that features an advanced nickel sulphide resource with apparent upside that is complemented by an exciting pipeline of high-impact nickel sulphide exploration targets.” 

South32 to offload copper and nickel royalty portfolio to Anglo Pacific 

Mining firm South32 has signed a deal to sell a portfolio of royalties over advanced development stage copper and nickel projects to UK-based Anglo Pacific Group for a consideration of $185m.

The transaction also includes further contingent considerations of up to $15m. 

The royalty portfolio for sale includes a 2% net smelter return (NSR) royalty on the West Musgrave copper and nickel project in Australia along with a 2% NSR royalty on the Santo Domingo copper project in Chile.

It also includes a 1.5% realised value royalty on the Nifty copper mine in Western Australia and a 5% NSR royalty on the producing Carlota copper mine in Arizona, US. 

Under the agreed terms, Anglo Pacific will make a cash payment of $47.6m and issue $82.4m worth of shares to South32. This will result in the diversified miner owning a stake of 16.9% in Anglo Pacific. 

Furthermore, Anglo Pacific will make six quarterly cash payments that will add up to $55m in total. These will largely be self-financed by cash flow generated from its current asset portfolio. 

Anglo Pacific CEO Marc Bishop Lafleche said: “Anglo Pacific is now firmly positioned as the leading, future-facing commodities royalty and streaming company with copper, nickel and cobalt at the core of its commodity exposure. 

“The decarbonisation of the global economy will be very metal intensive, with sizable copper and nickel supply deficits expected to emerge over the next decade.

"We believe this is an attractive copper and nickel entry point with substantial commodity price upside potential, all the while meeting our disciplined approach to acquisitions and robust sustainability criteria.”