Boliden Mineral Canada, a subsidiary of Sweden’s Boliden AB (STO:BOL,OTC Pink:BDNNY), has entered into a definitive agreement with Golden Sky Minerals (TSXV:AUEN,OTC Pink:LCKYF) to spend up to C$20 million on exploration of the Rayfield copper-gold property in British Columbia.
The agreement grants Boliden the right to earn up to an 80 percent interest in Golden Sky’s wholly owned Rayfield project by funding staged expenditures and cash payments over six years.
The Rayfield and Gjoll properties together cover 87,660 hectares within the Quesnel Trough, a prolific porphyry copper belt that hosts some of Canada’s largest operating mines, including Highland Valley, Gibraltar, and New Afton.
Despite its long history of production, significant areas of the belt remain under explored.
“This partnership is transformational for Golden Sky. Boliden’s decision to collaborate with us on Rayfield-Gjoll validates the district-scale copper-gold potential of this project,” said John Newell, president and CEO of Golden Sky.
Early exploration has outlined a sizable target at Rayfield. A 2024 geophysical survey identified a 600 by 1,100 metre chargeability and resistivity anomaly closely associated with gold and copper mineralization, supported by results from historical drilling.
Under the agreement, Golden Sky will remain the project operator during the earn-in period. Should Boliden complete its investment, the joint venture will move forward with pro-rata funding obligations based on ownership.
Copper demand is projected to rise sharply in coming decades as electrification drives investment in renewable energy, transmission grids, and electric vehicles.
Companies with exposure to large-scale porphyry systems in politically stable jurisdictions are increasingly viewed as well-positioned to benefit.
The deal in British Columbia also follows a milestone for Boliden in its home market.
Just one day before announcing the Golden Sky agreement, the Swedish company secured a mining concession for its Laver deposit in northern Sweden.
The concession grants rights to extract copper, gold, silver, and molybdenum, though additional environmental permits will be required before a final investment decision can be made.
“We naturally welcome this news. The Laver deposit has the potential to make a substantial contribution, particularly to Europe’s copper supply,” said Stefan Romedahl, director of Boliden Mines, in a September 2 press release.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
