The South32 Ltd (ASX: S32) share price has taken a hit today after making an announcement to the ASX. S32 shares have fallen 2.27% at the time of writing to $2.80.
The catalyst for this move appears to be a reaction to the aforementioned announcement South32 made to the ASX. This provided notice that the company has "exercised its option to acquire a 50% interest in a joint venture company that will own the Upper Kobuk Mineral Projects located in northwest Alaska." The joint venture will be alongside Trilogy Metals Inc. – a Canadian/American mining company.
The projects are located in the Ambler Mining District and includes "the high grade, polymetallic Arctic deposit, the Bornite copper deposit and a highly prospective regional exploration portfolio."
Trilogy will be contributing its existing Project assets to the venture, whilst South32 will be contributing US $145 million in cash.
South32 Chief Executive Officer, Graham Kerr had this to say about the announcement:
Investing in exploration to create shareholder value is integral to our Group's strategy. Forming the UKMP Joint Venture will be another important milestone as we reshape and improve our portfolio, by adding high-quality copper and base metals development options.
The decision to exercise the option follows a successful exploration partnership with Trilogy Metals and is an exciting step forward.
