PERTH (miningweekly.com) – A subsidiary of mining major Rio Tinto has struck an earn-in and joint venture (JV) agreement with ASX-listed junior Alderan Resources over the Frisco copper project, in Utah.
Under the terms of the agreement, Rio subsidiary Kennecott Exploration could earn up to a 70% interest in the project by spending $30-million over three stages.
The exploration company could obtain an initial 55% interest in the project area within the first four years, by spending $6-million. An additional 10% interest could be acquired by spending an additional $9-million over the subsequent three-year period following the first earn-in.
A further 5% interest could then be acquired by Kennecott spending $15-million over a further three-year period.
Kennecott would have the right to form a JV at any time following the initial earn-in, which would see the two companies contribute proportionately to project funding.
Alderan MD Peter Williams on Monday said that the company was delighted to have Kennecott as a partner in the exploration of Frisco, which was a validation of the prospectivity of the project and a major step forward in unlocking the potential of the area.
The earn-in is expected to provide a significant source of funding and exploration expertise to unlock the value of the Frisco project, enabling Alderan to pursue lower-cost exploration opportunities within its existing portfolio and potentially new projects.