The projects are expected to double Barksdale's property position within the Patagonia mining district in Arizona
Barksdale Resources has signed an agreement to acquire two copper exploration projects in the US from Rio Tinto’s subsidiary Kennecott Exploration Company.
The acquisition includes the Goat Canyon and Canelo copper projects, located in Santa Cruz County, Arizona.
With the addition of two copper porphyry exploration projects, the company will expand its presence in the largest copper producing state in the US.
The projects are expected to double Barksdale’s property position to approximately 30,910 acres from 12,300 acres within the Patagonia mining district in the state.
Currently, the company is advancing the Sunnyside copper-zinc-lead-silver and San Antonio copper projects in the mining district.
Barksdale president and CEO Rick Trotman said: “This acquisition further expands our exciting pipeline of exploration projects within the Patagonia mining district.
“I am excited to not only more than double our footprint within this prolific mineral district, but also add several high-quality copper porphyry drill targets to the portfolio.”
Located nearly 10km northwest of Barksdale’s Sunnyside project in Santa Cruz County, Goat Canyon is an early-stage porphyry copper-molybdenum exploration project.
Cover approximately 8,650 acres, the property comprises 430 federal mining claims.
Located within the Patagonia mining district, the Canelo project is an early-stage copper porphyry and skarn/CRD exploration project. The property consists of 433 federal mining claims, covering an area of nearly 8,700 acres.
Under the terms of the deal, Barksdale will also acquire certain raw geophysical data that covers its Sunnyside and San Antonio projects.
The transaction consist of $35,000 in cash as well as a 2.0% net smelter return (NSR) royalty that covers both properties.
Barksdale owns the right to repurchase half of the NSR at any time for a cash payment of $10m.
Kennecott will also receive a one-time cash payment of $3.5m, in the event of a mine on either property enters into commercial operations.