Legacy Minerals (ASX:LGM) has entered into a farm-in and joint venture option agreement with Rio Tinto (ASX:RIO) to acquire 80% of the Thomson Project in New South Wales.
Under the agreement with Rio Tinto’s subsidiary Rio Tinto Exploration, the mining giant will solely fund up to $25 million of staged exploration expenditure to earn the majority joint venture interest in the project.
Upon exercising the option to farm-in, Rio Tinto Exploration can earn an initial 75% JV interest by solely funding $5 million of exploration within five years, including a minimum of 3,000m of drilling.
Once phase one is completed, Rio Tinto may earn a further 5% interest by funding an additional $20 million within five years. The company will also complete at least 7,000m of drilling or defining a JORC-compliant mineral resource.
Legacy will act as operator of the exploration activities for the option stage under the technical oversight of Rio Tinto.
Legacy CEO Christopher Byrne says the partnership supports the belief that this underexplored province has potential to host intrusion-related copper-gold systems.
“Securing one of the world’s largest mining companies as a partner on the Thomson Project is of huge significance,” Byrne says.
“It allows Legacy Minerals to leverage Rio Tinto’s global expertise in discovery, development, and its knowledge of intrusion-related copper and gold systems through its discovery of the Winu deposit in 2017.”
Byrne adds that the deal shows the company’s ability to identify, secure, and execute on clear strategic goals.
“Legacy Minerals will maintain focus on our exploration across our epithermal gold and silver projects including the 1.2 million ounce gold-equivalent Mt Carrington Project,” he says.
The Thomson Project, covering 5,500km2, is located near the southern margin of the Thomson Orogen near the interpreted contact with the Lachlan Fold Belt and the Delamerian Orogen.
Legacy Minerals is a gold, copper, and base metals explorer focused on discoveries in New South Wales.
Write to Aaliyah Rogan at Mining.com.au
Images: Legacy Minerals
