District Metals (DMX.V) has announced it was notified by Boliden that the Swedish company will not be continuing the earn-in and joint venture agreement with the company on the Tomtebo and Stollberg projects in Sweden’s Bergslagen mining district. That option agreement originally allowed Boliden to earn up to an 85% interest in the Tomtebo base metals project by incurring C$10M in exploration expenditures during a four year period. As the agreement has now come to an end, District Metals will retain 100% ownership of Tomtebo.
It will be interesting to see what District’s plans are for Tomtebo and its base metals portfolio in general. The company’s sole focus is going towards the flagship Viken vanadium-uranium project and the other uranium assets in the portfolio and we can’t see District changing its course. Pursuing a new joint venture partner may be the best approach here.
Disclosure: The author has a small long position in District Metals. District is a sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
