BHP (NYSE: BHP) is investing in Midland Exploration (TSXV: MD) to support the junior's copper exploration in northern Quebec, including its Mythril copper-gold-molybdenum-silver project in James Bay Eeyou Istchee.
BHP is acquiring 3.44 units of Midland at $1.70 per unit for $5.9 million. Each unit consists of one share and one warrant that allows the holder to buy another share for $2.05 per share over 18 months.
BHP has the right to participate in future financings to maintain its pro rata non-diluted ownership stake or increase its ownership to a maximum of 19.99% on a fully diluted basis.
Midland has various partnerships and option agreements with industry players, including Agnico Eagle Mines (TXS: AEM; NYSE: AEM), Teck Resources (TSX.TECK.A; NYSE: TECK), Iamgold (TSX: IMG; NYSE: IAG), Osisko Mining (TSX: OSK), Altius Minerals (TSX: ALS), Soquem, Nuvavik Mineral Exploration Fund and Abcourt Mines (TSXV: ABI).
Midland kicked off the first drill campaign at its 100%-owned Mythril discovery in February.
Drilling will target a series of induced polarization anomalies that are coincident with showings of copper, gold, molybdenum and silver at surface, as well as float fields, discovered in 2018, as well as with strong copper-molybdenum soil anomalies.
The target area of the anomalies is greater than 2 km in length and hundreds of metres in width, and the initial campaign will consist of nine holes for a 2,200-metre drill program.
Mythril is hosted in Archean rocks of the Superior province, and there has been no historic drilling on the project.
News of BHP's investment sent Midland's shares up by 8%, or 10 ?, to $1.35. Its shares have traded with a 52-week range of 66 ? to $1.46. The junior has an $88-million market capitalization.