Copper-gold explorer Titan Minerals (ASX:TTM) has locked in a joint venture and earn-in deal for its Linderos Copper Project in Ecuador with a subsidiary of Gina Rinehart’s Hancock Prospecting.
Hanrine Ecuadorian Exploration and Mining can earn up to an 80% interest in the Linderos Project by either meeting certain exploration milestones or spending up to US$120 million ($177.4 million) to advance the project to a decision to mine.
The company can earn an initial 5% stake by paying US$2 million within 30 days of execution of the agreement.
Titan CEO Melanie Leighton says the company is well advanced in its technical discussions with Hanrine, which is ready to start exploration activities at the Linderos Copper Project, with the expansion of the camp being the first task on the priority list.
“We are pleased to be partnering with Hanrine, who have a well-established team in-country with the technical capability and financial capacity for us to mutually benefit from exploration success alongside contribution to the economy of Ecuador,” she says.
The partners are preparing to begin a 10,000m drilling campaign.
Titan Minerals, which has a market capitalisation of $83.2 million, believes Linderos has the potential to host a tier one copper porphyry system.
The company says the Linderos Project is an early-intermediate stage exploration project with high-grade epithermal gold and porphyry style copper-gold mineralisation confirmed by drilling.
The Project is located 20km west of Titan’s Dynasty Gold Project and comprises four contiguous concessions spanning 143km2, with all concessions fully permitted for exploration and small-scale mining.
Soil geochemistry and magnetic/radiometric geophysical surveys have highlighted the presence of multiple porphyry centres across the project, with evidence of shallow epithermal gold systems also observed in surface mapping and geochemistry.
The Linderos Project is largely underexplored, with the Copper Ridge Porphyry and Meseta Gold prospects being the most advanced.
An induced polarisation (IP) geophysical survey completed over Copper Ridge has unveiled a much larger porphyry system, with 3D IP inversion modelling revealing a +2km porphyry alteration footprint.
Under the JV and earn-in deal, which is now binding, Hanrine can increase its initial 5% stake to 30% by completing 10km in depth of drilling or spending US$8 million, whichever occurs first, within three years.
To boost its interest to 51%, Hanrine must complete an additional 15km of new drilling, or spend a further US$12 million within seven years.
The final 29% interest can be earned by progressing the project to a decision to mine or reaching a total spend of US$120 million within 15 years of the signing of the agreement.
Hanrine will pay an additional US$1 million to Titan within 30 days once it reaches a 51% interest in the Linderos Project.
Titan will be free carried during the earn-in period up until Hanrine acquires an 80% stake in the project.
Write to Angela East at Mining.com.au
Images: Titan Minerals
