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Kingsrose Mining Limited (ASX: KRM) has entered into an Option Agreement to purchase Rana Nickel AS (Target), a Norwegian incorporated entity that holds a 100% interest in 19 exploration licences (EMX Licences) totalling 183sq. km adjacent to the brownfield Råna Nickel-Copper-Cobalt (Ni-Cu-Co) project held by Kingsrose under a joint venture.

Råna Project Highlights

• The Råna project has demonstrated potential for discovery of massive sulphide Ni-Cu-Co mineralization and is underexplored using modern deposit models and exploration methods.

• Kingsrose now controls contiguous exploration rights totalling 208sq. km across the entire Råna intrusion, which includes the past producing, underground Bruvann nickel mine.

• Historical exploration adits at the Eiterdalen prospect in the southeast of the EMX Licences intercepted nickel-copper-cobalt massive sulphide mineralization near surface which remains open and underexplored. Historical rockchip sampling returned a maximum assay of 1.8% nickel, 0.3% copper and 0.1% cobalt.

Option Agreement Highlights

• Kingsrose can acquire a 100% interest in the Target by a) making A$30,000 and NOK75,000 (A$10,750 at FX of NOK1.00 to A$0.1433) cash payments upon execution of the Option Agreement and b) making another cash payment of A$100,000 and spending a minimum of A$150,000 on exploration during a 12-month option period. Upon exercise of the option, Kingsrose will:

o Provide EMX with a 2.5% NSR royalty interest in the EMX Licences. On or before the eighth anniversary after exercise of the option, Kingsrose has the option to purchase 0.5% of the NSR on the EMX Licences by paying EMX A$1,200,000.

o To maintain its interest in the EMX Licences, Kingsrose will spend additional exploration expenditures of A$150,000 by the second anniversary, A$350,000 by the third anniversary, and A$350,000 by the fourth anniversary of the agreement, respectively, for a total of A$1,000,000 in exploration expenditures within four years.

o Pay to EMX annual advance royalty (AAR) payments of A$25,000 commencing on the third anniversary of the agreement, with the AAR payment increasing 10% each year thereafter (but capped at an annual payment of A$75,000).

o A milestone cash payment of A$250,000 will be made to EMX upon completion of the first 10,000m of drilling on the EMX Licences.

o An additional milestone cash payment of A$500,000, will be made to EMX upon disclosure of a Mineral Resource from within the EMX Licences.

“This Option Agreement secures an additional 183sq. km of prospective ground adjacent to the Company’s brownfield Råna Nickel-Copper-Cobalt project,” Managing Director, Fabian Baker, said.

“The presence of massive sulphide nickel-copper-cobalt mineralization in multiple locations across the enlarged project area indicates that the intrusion is fertile and highly prospective.

“Modern deposit models for this style of mineralization have not been applied at Råna, which presents an excellent opportunity for Kingsrose to develop a large-scale exploration play. We plan to conduct deep penetrating geophysical surveys in combination with geological mapping and geochemical modelling to generate drill targets for testing from mid-2023 onwards.”

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