South32 Ltd. exercised its previous option to acquire a 50% interest in a joint venture company with Trilogy Metals Inc., which will own the latter's Upper Kobuk Mineral Projects in northwest Alaska.

Trilogy will contribute all of its assets associated with the copper projects and South32 will contribute US$145 million.

The joint venture will be established in February 2020, and will retain US$87.5 million of the subscription payment to fund its activities and exploration programs.

The remaining US$57.5 million will be loaned back to South32, according to the Dec. 20 release.

The Upper Kobuk Mineral Projects include the polymetallic Arctic deposit, the Bornite copper deposit and a highly prospective regional exploration portfolio.