Teck Commits $15M to Earn 75% Stake in Dreadnought’s Money Intrusion JV

Strategic Partnership to Accelerate Base Metals Exploration

Dreadnought Resources Ltd has formalised a significant farm-in and joint venture agreement with Canadian mining giant Teck Resources Limited, injecting $15 million in exploration funding into the Money Intrusion nickel-copper-cobalt-platinum group elements (Ni-Cu-Co-PGE) prospect within the Mangaroon project in Western Australia. This partnership marks a pivotal step for Dreadnought, leveraging Teck’s expertise and capital to fast-track the development of a promising magmatic sulphide system.

The agreement grants Teck the right to earn a 75% interest in five tenements covering the Money Intrusion by sole funding $15 million in exploration expenditure over a 6.5-year period, including a firm $1 million commitment within the first 18 months. Alongside this, Teck will provide $450,000 in staged cash payments to Dreadnought, underpinning the junior’s financial position as it continues to focus on its gold assets at Mangaroon.

Early Drilling Highlights Robust Mineralisation

The Money Intrusion has already demonstrated encouraging results from initial drilling campaigns conducted in 2022 and 2023. Notably, hole REYRC013 intersected 23 metres grading 0.50% nickel, 0.51% copper, 0.02% cobalt, and 0.49 grams per tonne of combined platinum group elements (3PGE) starting at 36 metres depth. Within this interval, a higher-grade 2-metre section returned 3.32% nickel and 2.88% copper, underscoring the prospect’s potential for significant base and critical metals mineralisation.

These results validate the Money Intrusion as a fertile magmatic sulphide system, with the intrusion itself extending approximately 45 kilometres and exhibiting outcropping mineralisation along much of its length. Despite this scale, only a fraction of the strike has been drill-tested, leaving substantial exploration upside.

Maintaining Focus on Gold While Expanding Metals Exposure

Dreadnought’s Managing Director Dean Tuck emphasised that the joint venture with Teck complements rather than detracts from the company’s core gold exploration strategy at Mangaroon. The farm-in agreement is structured to ensure Dreadnought retains full ownership of its gold prospects, while gaining exposure to the critical metals essential for the global energy transition.

“Partnering with Teck, a leader in responsible resource development, provides our shareholders with a unique opportunity to participate in the nickel and copper potential of Money Intrusion, alongside our ongoing gold initiatives,” Tuck said. “We look forward to advancing exploration together and uncovering the metals needed for a sustainable future.”

Next Steps and Market Implications

Exploration activities under Teck’s management are slated to commence in June 2025, beginning with geological and geophysical surveys designed to refine targets and expand understanding of the intrusion’s mineralisation. The joint venture structure includes provisions for ongoing contributions or dilution, with a fallback 2% net smelter royalty if Teck does not complete the full $15 million expenditure.

This collaboration not only injects substantial capital into the Money Intrusion project but also signals growing investor confidence in the Mangaroon region’s base and critical metals potential. As global demand for nickel, copper, cobalt, and PGEs intensifies, driven by electric vehicle and clean energy technologies, projects like Money Intrusion stand to gain strategic importance.

For Dreadnought, the deal balances risk and reward by sharing exploration costs while maintaining exposure to multiple commodity plays within its portfolio. The market will be watching closely as Teck’s exploration unfolds and the prospect’s scale and grade become clearer.