Small Canadian mining company Explorex Resources has announced the abandonment of its plan to purchase the Hautalampi cobalt, nickel and copper project in eastern Finland due to the inability to secure adequate financing up front.
Vancouver-based Explorex revealed its intention to acquire the Finnish project in November 2018 and was supposed to pay FinnishCobalt $ 1.9 million plus $ 3 million in company stock over four years.
Explorex was also said to have spent $ 3 million on exploration by year two. On top of that, at the end of the gain, as well as the payment of 1.5% net royalties on metals to the three Finnish companies which jointly own FinnCobalt, Alandra Oy, Kiviralli Oy and Tetra Ekberg Oy. As soon as commercial production was declared to Hautalampi, the owners would have received $ 1.5 million in shares.
While Explorex conceded that it did not expect to be able to find sufficient funding to move forward with the acquisition, the company has indicated that it is willing to continue advancing the project over a period of time. non-exclusive basis.
“We recognize Hautalampi’s merits and will continue to look for ways to support the acquisition,” said Managing Director Gary Schellenber.
Hautalampi underwent pre-production development in the mid-1980s and underwent extensive engineering that supported a feasibility study in 2009.
Explorex’s current focus is the cobalt-manganese base metal project, Kagoot Brook in New Brunswick, Canada. The company also has an interest in the Handlebar cobalt-nickel-copper project in British Columbia and is actively seeking other assets to increase its real estate portfolio.