Blackstone Minerals has made a strategic investment in ASX-listed Corazon Mining’s historically significant Lake Lynn nickel-copper-cobalt project northwest of Thompson in Manitoba, Canada. The initial investment of about $2 million will earn Blackstone a 14.32 per cent stake in the exploration and development company and importantly secure another supply of battery metals.
Corazon has interests in nickel-copper-cobalt assets in Canada and Australia. Its wholly owned Lynn Lake project has a historical mining and current mineral resource of 168 thousand tonnes of nickel, 81.7Kt of copper and 7.9Kt of cobalt. The project is one of Canada’s most plentiful nickel producing mining centres and was mined for 24 years until its closure in 1976.
The nickel-focused pair have inked a Memorandum of Understanding, or “MoU” that will see collaboration in the upstream and downstream production of nickel and cobalt products to meet demand from the growing battery metals industry. Notably, the alliance could see potential offtakes and joint ventures according to the company.
The Lynn Lake project boasts a sizeable resource that will bolster Blackstone’s upstream supply for its vertically integrated business strategy.
To add scalability, part of Blackstone’s investment will be tipped into testing nearby electro-magnetic targets.
The optics of the deal are attractive to Blackstone who considers the Lake Lynn project to be de-risked based on proven historical production and exceptional flotation results achieved by Corazon in 2019.
The transaction also builds upon Blackstone’s recent strategic investment in Flying Mining Corporation’s 44 million tonne Minago nickel sulphide project also located in Manitoba, Canada.
Like Vietnam, the Manitoba province in Canada has extreme hydropower potential that aligns well with Blackstone’s commitment to sustainable mining practices.
The duo will also form a steering committee between them to assess opportunities to enter supply, offtake and financing arrangements relating to production at Lynn Lake.
Blackstone’s Managing Director, Scott Williamson said: “Blackstone’s recent Ta Khoa Nickel Project Pre-feasibility study demonstrated the economic value and importance of securing upstream supply for its vertically integrated business. The Lynn Lake project boasts a meaningful nickel-copper-cobalt resource that the Company believes has potential for a significant valuation uplift based on integration with the Ta Khoa Refinery. We are also very excited by the exploration potential at the Fraser Lake Complex and look forward to collaborating with the Corazon management team to progress mine planning and development activities.”
The MoU with Corazon is another link in the supply chain secured for Blackstone in its quest to become a supplier of choice to the battery industry. As the electric revolution gathers momentum Blackstone appears keen to increase its footprint globally in order to develop its nickel-copper-cobalt arsenal.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
