A strategic investment by BHP Billiton Canada in Midland Exploration (TSXV: MD) will support the junior company’s work on copper exploration in northern Quebec including at its Mythril copper-gold-molybdenum-silver project in James Bay Eeyou Istchee.
BHP is acquiring 3.44 million units of Midland at $1.70 per unit for $5.9 million. Each unit consists of one common share and one common share purchase warrant, which allows it to acquire a common share for $2.05 per share over an 18-month period.
In addition, BHP has the right to participate in future financings to maintain its pro rata non-diluted ownership stake or increase its ownership to a maximum of 19.99% on a fully diluted basis.
Midland has various partnerships and option agreements on many of its projects with industry heavyweights including Agnico Eagle Mines (TXS: AEM; NYSE: AEM), Teck Resources (TSX.TECK.A; NYSE: TECK), Iamgold (TSX: IMG; NYSE: IAG), Osisko Mining (TSX: OSK), Altius Minerals Corp. (TSX: ALS), Soquem, Nuvavik Mineral Exploration Fund and Abcourt Mines Inc. (TSXV: ABI).
Midland kicked off the first drill campaign at its 100%-owned Mythril discovery in February.
Drilling will target a series of induced polarization anomalies that are coincident with showings of copper, gold, molybdenum and silver at surface, as well as float fields, that were discovered in 2018, as well as with strong copper-molybdenum soil anomalies.
The target area of the anomalies is greater than 2 km in length by hundreds of metres in width and the initial campaign will consist of nine holes for a 2,200 metre drill program.
Mythril is hosted in Archean rocks of the Superior province and there has been no historic drilling on the project.
News of BHP’s investment sent Midland’s shares up by 8% or $0.10 apiece to $1.35 at mid-day.
Over the last year its shares have traded in a range of $0.66 and $1.46.
(This article first appeared in The Northern Miner)
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