KEX will have the right to earn a 60% interest in Elder Creek by investing $18 million over a maximum of seven years
McEwen Copper signs binding term sheet with Rio Tinto subsidiary for the Elder Creek property. (Credit: Rio Tinto)
McEwen Copper Inc., a subsidiary of McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), is pleased to announce that it has entered into a binding term sheet with Kennecott Exploration Company (“KEX”), a subsidiary of Rio Tinto, for an option to earn a 60% interest in and joint venture the Elder Creek property in Nevada (see Figure 1) by spending US$18 million.
The principal terms of the agreement are:
KEX will have the right to earn a 60% interest in Elder Creek by investing $18 million over a maximum of seven years (the “Expenditure Commitment”).
KEX will be the operator of the Elder Creek project during the term of the agreement.
Following completion of the Expenditure Commitment, KEX and McEwen Copper will form an unincorporated 60:40 joint venture.
Other customary representations, warranties and conditions.
McEwen Copper Inc. holds 100% interest in the Los Azules copper project in San Juan, Argentina and the Elder Creek project in Nevada, USA. McEwen Mining Inc. (NYSE/TSX: MUX) owns a 68% share of McEwen Copper.
This Project consists of 577 unpatented mining claims in Humboldt and Lander counties, Nevada. It is prospective for porphyry copper mineralization and well placed in a district hosting several large copper and gold mines, including Marigold, Lone Tree and Phoenix. McEwen Mining Inc. holds a 1.25% net smelter return (NSR) royalty on all the claims that comprise the Elder Creek property.
Source: Company Press Release