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Rio Tinto enters CAD 30 million copper option with Canadian junior

Mining News - Published on Wed, 15 May 2019

Image Source: Rio Tinto
Rio Tinto has entered an option agreement to earn up to 80% of Forum Energy Metals’ Janice Lake copper project in Saskatchewan by spending up to CAD 30 million on exploration. Forum's first drill hole at the project last year had intersected 18.5m at 0.94% copper and 6.7g/t silver from 58.5m. The junior had entered an agreement in February 2018 to acquire 100% of Janice Lake from Transition Metals Corp, for staged payments totalling USD 250,000 over four years, spending the same amount on exploration within six months and issuing 8 million shares.

Under the new option to JV agreement, Forum said Rio Tinto Exploration Canada could earn up to 51% of the project by spending USD 10 million in exploration, paying USD 490,000 in cash and paying the remaining USD 200,000 owed to Transition from the above agreement. Rio could earn a further 29% by spending an additional USD 20 million on exploration and paying USD 150,000 in cash to Forum.

Forum said that upon vesting an interest, Rio could then elect to form a joint venture.

Forum president and CEO Rick Mazur said that "Their expertise and proprietary technology will add significant value to potentially making an economic copper discovery at Janice Lake for our shareholders."

Forum also has a partnership with Rio Tinto Canada Uranium Corp, which has a 60% interest in Forum's Henday project in the Athabasca Basin, however the major did not have an exploration programme planned there this year.

Forum recently doubled the size of the Janice Lake copper project through staking to 19,312ha and said the full extent of the 52km trend of the Wollaston copper belt was yet to be explored.

Source :

Posted By : Rabi Wangkhem on Wed, 15 May 2019
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