Global miner Rio Tinto has entered into an agreement to earn up to 75% in TSX-listed Calibre Mining’s Borosi project, in north-east Nicaragua.
The project hosts gold/silver and copper/gold resources in two areas, as well as multiple lesser explored copper/gold skarns, low-sulphidation epithermal gold/silver vein systems and bulk tonnage copper/gold porphyry targets.
Further, Calibre and Rio Tinto also entered into a strategic exploration alliance agreement under which they will work together to identify and acquire exploration concessions in Nicaragua, with a focus on copper/gold porphyry, skarn and epithermal precious metal systems.
Rio Tinto will have a five-year option to acquire a 55% interest in the Borosi project by incurring $10-million in qualifying expenditures, of which $3-million is committed to be incurred within two years of obtaining the necessary permits and approvals.
If Rio Tinto exercises the first option and earns a 55% interest in the Borosi projects, it has the right to earn an additional 10% interest by incurring a further $15-million over a three-year period.
Thereafter, Rio Tinto has the right to earn an additional 10% interest, for an aggregate interest of 75%, by incurring an additional $20-million over a subsequent three-year period.
Calibre has been designated as the initial operator of the field work being completed under the earn-in agreement and will receive a fee equal to 10% of expenditures.