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Highlights
USFM Corporation will fund USD 30 million to earn a 51 percent interest in the Disko project.
80 Mile will receive a 12.5 percent management fee and a GBP 500,000 cash payment on signing definitive agreements.
A minimum of USD 10 million will be allocated to drilling activities within 10 months of HoT signing.
80 Mile PLC (LSE:80M), an exploration and development company listed on AIM, FSE, and OTC.BLLYF, has announced a strategic agreement with USFM Corporation (US Partner) to advance its Disko-Nuussuaq project in West Greenland. Under the terms of a Binding Head of Terms (HoT), USFM will provide USD 30 million in funding to earn a 51 percent stake in the project, while 80 Mile retains operational control and a management fee.
USD 30 Million Funding Agreement Secured
Under the HoT, USFM Corporation will provide an initial USD 30 million to acquire a 51 percent legal and beneficial interest in the Disko-Nuussuaq licences. 80 Mile will retain a 49 percent interest and be carried through the earn-in period, after which it may contribute further funds or dilute its interest. The funding is specifically earmarked for project development, ensuring that at least USD 10 million is directed to drilling operations within the first 10 months.
Operational Management and Financial Terms
80 Mile will continue to act as operator for the Disko project. The company will receive a 12.5 percent management fee on all expenditure incurred under the proposed transaction. In addition, a GBP 500,000 payment will be made upon signing of the definitive agreements. The HoT also outlines that, in the event of project cancellation or joint venture termination, contributed assets will revert to each party where practicable, and the US Partner will assume responsibility for all site restoration costs.
Collaboration and Talent Development
USFM Corporation, based in Golden, Colorado, plans to involve professors and recent graduates from the Colorado School of Mines in the project. Two interns will also be selected to support the drilling programme scheduled for spring/summer 2026. In addition, Roderick McIllree is expected to join the board of USFM Corporation as a representative of 80 Mile, pending the completion of definitive agreements and required approvals.
Conditions and Regulatory Approvals
Completion of the transaction remains subject to several conditions, including definitive agreements reflecting the HoT, shareholder approvals, and Greenland Government approval of the proposed work programme. All necessary regulatory, tax, and third-party consents must also be obtained. The HoT includes an exclusivity period running until 1 May 2026 or the completion of the transaction, whichever occurs first.
80M shares last traded at GBX 0.85 per share.
