Rio Tinto Group Signs Farm-In, Joint Venture Term Sheet With LCL Resources Unit; LCL Resources Shares Jump 23%

MT Newswires Live10-26

Rio Tinto Group (ASX:RIO) signed a binding farm-in and joint venture term sheet with an LCL Resources (ASX:LCL) subsidiary, allowing the company to earn up to an 80% interest in the Liamu project in Papua New Guinea, according to a Monday filing with the Australian bourse.

The company may earn an initial 51% of the project under the deal by funding at least AU$6 million of exploration within five years, and may earn a further 29% interest by spending AU$40 million, or by defining a JORC-compliant mineral resource of at least 1 million tonnes of copper or copper equivalent and completing a scoping study, the filing said.

LCL Resources will be the exploration operator during the farm-in period, with programs and budgets set yearly by the company in consultation with LCL, per the filing.

LCL Resources shares rose past 23% in morning trade Monday.

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