ArcWest signs earn-in agreement with Freeport-McMoRan
Published by Will Owen,
Global Mining Review,
ArcWest Exploration Inc. is pleased to announce that it has entered into an earn-in agreement with Freeport-McMoRan Mineral Properties Canada Inc. to advance ArcWest’s Todd Creek copper-gold (Cu-Au) project, located in BC’s Golden Triangle.
ArcWest’s 100% owned Todd Creek project adjoins Newcrest Mining’s Brucejack mine property; in March 2022, Newcrest acquired Pretium Resources and its Brucejack mine in a transaction valued at CAN$3.5 billion. The Todd Creek project is also situated approximately 40 km southeast of Seabridge Gold’s giant KSM-Iron Cap porphyry Cu-Au deposits and Tudor Gold’s Treaty Creek Au-Ag-Cu project.
Collectively, the KSM-Iron Cap and Treaty Creek deposits represent one of the largest Au-Cu concentrations in North America. Contained metal within Proven plus Probable Reserves at KSM-Iron Cap total 38.8 million oz Au, 183 million oz Ag and 10.2 billion pounds of copper. Tudor has released a measured plus indicated resource estimate for Treaty Creek totalling 17 million oz Au and 93 million oz Ag.
Under the terms of the earn-in agreement, Freeport has a two-stage option to earn up to an 80% ownership interest in the Todd Creek project over up to a 10-year period.
To earn an initial 51% interest, Freeport is required to fund CAN$20 million of work expenditures over a 5-year period and make staged cash payments to ArcWest totalling CAN$900 000. ArcWest will be the operator during the initial earn-in period.
Upon Freeport earning such 51% interest, it can elect, at its sole discretion, to earn an additional 29% ownership interest in the Todd Creek project (for a total 80% interest) by sole funding a further CAN$30 million within the following five years and make staged cash payments to ArcWest totalling CAN$750 000.
Once Freeport has finalised its earned ownership interest at either the 51% or 80% level, each party will be responsible for funding its pro rata share of project costs on a 51:49 or 80:20 basis.
Tyler Ruks, President and CEO of ArcWest, comments:
“ArcWest looks forward to advancing our Todd Creek project in partnership with Freeport, one of the world’s largest copper miners and a team with a track record of global copper-gold discoveries that have proceeded to mine development. ArcWest’s Todd Creek project is host to one of the largest underexplored copper-gold systems in BC’s Golden Triangle, and Freeport’s endorsement of the project is a testament to its potential for hosting a world class copper-gold deposit. ArcWest is in discussions with multiple mining companies regarding potential earn-in agreements for our additional copper-gold projects.”
Read the article online at: https://www.globalminingreview.com/mining/14032023/arcwest-signs-earn-in-agreement-with-freeport-mcmoran/
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