Bayrock Resources to acquire battery metals projects in Sweden from EMX Royalty

Australia-based Bayrock Resources, through its fully-owned subsidiary — Swedish Nickel, has entered into an option agreement to acquire from Canada-based EMX Royalty.

The deal will give EMX Royalty a stake of up to 6% in Bayrock Resources along with annual advance royalty payments, and 3% net smelter return (NSR) royalty interests, work commitments, and other considerations.

Bayrock Resources has a pre-existing nickel mining asset in Sweden.

The projects being acquired by the company include the Kukasjarvi Project, Notträsk Project, Vuostok Project, Fiskelträsk Project, and Skogträsk Project, which are all located in the Fennoscandian Shield in north-eastern Sweden.

Bayrock Resources to acquire battery metals projects in Sweden from EMX Royalty. Map courtesy of EMX Royalty Corp.

According to EMX Royalty, the five battery metals projects are located within a belt of mafic-ultramafic intrusive complexes that sit on either side of the Sweden-Finland border.

The Canadian precious, base, and battery metals royalty company said that the belt of intrusions hosts various nickel-sulphide deposits that include the Sakatti and Kevitsa deposits in Finland.

The company added that the projects involved in the deal have historical drill defined zones of nickel copper mineralisation that also indicate variable enrichments in cobalt and platinum-group-elements (PGE).

EMX Royalty stated: “The Agreement with Swedish Nickel/Bayrock represents another example of EMX’s execution of the royalty generation aspect of its business model. EMX began exploration programmes for nickel-copper-cobalt-PGE deposits in the Nordic countries in 2016, at a time of lower battery metal prices and when there was little commercial interest in these types of projects.

“Improvements in the battery metals markets in recent years have led to a resurgence in interest in battery metals projects, especially in stable political jurisdictions such as the Nordic countries.”

As per the terms of the agreement, Swedish Nickel can purchase 100% stakes in any or all of the battery metals projects through cash or stock to EMX Royalty and by carrying out work on individual projects during an option period of 36 months.

The closing of the deal is subject to approval from the Australian Securities Exchange (ASX).

Recently, EMX Royalty wrapped up the initial closing of a previously announced deal to acquire 0.418% NSR royalty on the operating Caserones copper-molybdenum mine in Chile for $34.1 million.