A subsidiary of Rio Tinto will fund up to $25 million in exploration to earn an 80 per cent stake in the Thomson Project from its owner, Legacy Minerals, under a new farm-in agreement.
The Thomson Project is situated near the southern margin of the Thomson Orogen, spanning a vast area and representing one of the most extensive tenements in New South Wales.
It has been likened to a successful project in the Paterson Province in Western Australia, where the Winu project was uncovered, producing three million tonnes of copper and eight million ounces of silver.
“Securing one of the world’s largest mining companies as a partner on the Thomson Project is of huge significance,” Legacy Minerals chief executive officer and managing director Christopher Byrne said.
“It allows Legacy Minerals to leverage Rio Tinto’s global expertise in discovery, development and its knowledge of intrusion-related copper and gold systems through its discovery of the Winu deposit in 2017.
“The agreement demonstrates the company’s ability to identify, secure and execute on clear strategic goals, articulated just over 12 months ago with the acquisition of the Thomson Project for $200,000.”
Under the agreement, Rio Tinto Exploration must fund a minimum of $400,000 in exploration activities within the first six months at the Thomson site and provide a $50,000 cash payment to Legacy Minerals.
At a later date, the Rio Tinto subsidiary can earn an initial 75 per cent interest by sole-funding $5 million of exploration over five years, which includes at least 3,000 metres of drilling.
A further five per cent can be earned from that point, requiring an additional $20 million and another 7,000 metres of drilling or the definition of a JORC-compliant mineral resource.
