80 Mile PLC, a company listed on the AIM, FSE, and OTC exchanges, has announced the signing of a Heads of Terms (HoT) agreement with USFM Corporation, a US-based partner, regarding the Disko-Nuussuaq project in Greenland. The agreement outlines that USFM will invest $30 million over three years to acquire 51% of the project. In return, 80 Mile will retain a 49% interest, fully funded until the completion of the earn-in period. The company will act as the project operator and will receive a management fee equal to 12.5% of the total expenditure, as well as a £500,000 cash payment upon signing the definitive agreements.
The agreement specifies that the entire investment will be allocated to drilling activities, rather than data reprocessing. USFM is committed to spending $10 million on drilling within 10 months of signing the HoT, marking a significant step towards the project’s realization, which is set to begin in spring or summer 2026. This drilling phase is seen as crucial for confirming the potential of the area, which could host significant resources of copper, nickel, cobalt, and platinum-group elements (PGE).
A Promising Project at the Heart of Critical Resources
The Disko project, located in western Greenland, is considered one of the most promising deposits for strategic minerals, particularly due to its proximity to operations of large companies such as Anglo American. With a favorable geological environment and untapped resource potential, the site is at the center of discussions on global supply security for critical minerals. Roderick McIllree, Executive Director of 80 Mile, highlighted the importance of this partnership, noting that USFM’s funding will help accelerate drilling and resource definition, while 80 Mile maintains operational leadership during the project’s early stages.
This partnership is especially strategic given the current surge in interest for critical minerals due to their vital role in energy transition and electrification. The U.S. commitment to diversifying its sources of rare and valuable minerals has increased interest in Greenland, which is rich in natural resources. In this context, the agreement with USFM represents a significant step for 80 Mile, which intends to capitalize on the growing demand for these raw materials.
Terms and Financial Structure of the Agreement
The agreement stipulates that the $30 million will be paid in three equal tranches of $10 million over three years, allowing USFM to progressively acquire a 51% stake in the project. At each stage, 80 Mile will continue to manage operations. In addition to the initial £500,000 payment upon signing the definitive agreements, 80 Mile will receive ongoing management fees of 12.5% on all expenditure incurred within the project.
The transaction is subject to several conditions, including the signing of the definitive agreements, shareholder approvals from both parties, and approval by the Greenland government of the proposed work program. If the project is canceled or the joint venture terminates, the assets contributed by each party will revert to them, while USFM will bear the full cost of site restoration.
The agreement also includes a six-month exclusivity period, providing both parties time to finalize the necessary approvals before the deadline of May 1, 2026.
Long-Term Implications for the Development of Disko
The partnership with USFM marks an important milestone for 80 Mile’s ambitions in mineral exploration in Greenland. This project is part of a broader trend of increasing exploration of critical resources, especially nickel and cobalt, key minerals for battery industries and energy transition technologies. As Greenland becomes a key hub for researching and exploiting these resources, the Disko project could play a central role in global supply.
