FPX Nickel Corp. [TSXV-FPX] has announced the expansion of a global generative exploration alliance with Japan Organization for Metals and Energy Security (JOGMEC).
“We are pleased with our progress during Year One of our Generative Alliance with JOGMEC and look forward to increasing momentum through a significantly expanded Year Two budget,’’ said Andrew Osterloh, FPX’s Senior Vice-President of Projects and Operations.
When the alliance was announced in April, 2023, FPX said the aim was to carry out worldwide mineral exploration activities for the identification and acquisition of high-quality properties which are prospective for the same style of awaruite nickel mineralization as contained at the company’s flagship Baptiste nickel project in central British Columbia.
Baptiste is located in the Decar Nickel District, a greenfield discovery of nickel mineralization in the form of a naturally-occurring nickel-iron alloy called awaruite. Covering 245 square kilometres, it represents a promising target for bulk tonnage, open pit mining, the company has said.
During the first phase of the Generative Alliance, JOGMEC, pledged to fund at 100%, up to $650,000 per year for a minimum of two years. Each of the parties agreed appoint two representatives to a management committee to oversee exploration activities. FPX agreed to be the operator over the initial two-year term, earning a fee equal to 10% of the alliance expenditures.
The alliance was expected to benefit from the extensive global database developed by FPX between 2010 and 2014, when the company performed reconnaissance exploration activities for awaruite nickel targets in over a dozen countries across four continents.
On Thursday, the companies said that building on Year One progress and positive momentum achieved to date, they have agreed to an expand the year two budget from a planned $650,000 to $1.5 million.
“Through ongoing evaluations in five international and three Canadian jurisdictions, the Generative Alliance program remains on track to define Designated Projects to be joint ventured by FPX and JOGMEC, starting in year two,’’ the companies said.
In keeping with that goal, the Generative Alliance program has staked approximately 120 square kilometres of prospective ground in British Columbia.
FPX Nickel shares were unchanged Thursday at 29.5 cents. The shares are currently trading in a 52-week range of 61 cents and 25 cents.
“Our shared vision of realizing new globally significant awaruite nickel deposits remains resolute, and with ongoing evaluations in multiple Canadian and International jurisdictions, we are on track to achieve our shared objective of defining Designated Projects, starting in Year Two,” said Osterloh.
