McEwen Copper Inc, a subsidiary of McEwen Mining Inc, has entered into a binding term sheet with Kennecott Exploration Company (KEX), a subsidiary of Rio Tinto.
The binding term sheet is for an option to earn a 60% interest in and joint venture the Elder Creek property in Nevada 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 US$18 million over a maximum of seven years.
- 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.