Titan Minerals Ltd (ASX:TTM, OTC:TTTNF) has executed a letter of offer for a potential joint venture with Hancock Prospecting subsidiary, Hanrine Ecuadorian Exploration and Mining S.A, to acquire up to an 8o% ownership interest in Titan’s Linderos Copper Project in Ecuador.
Titan CEO Melanie Leighton said, “This joint venture deal is an excellent outcome for Titan shareholders, with Hanrine set to spend up to US$120 million (A$180 million) to earn 80% in the Linderos Project.
“We are very pleased to be partnering with Hancock’s Ecuadorian subsidiary company, Hanrine, who has both the balance sheet and capability to fully explore and develop the Linderos Project.
"The agreement represents a fantastic endorsement of our belief in the Linderos Project’s potential to host a large-scale copper porphyry system."
About Linderos
The Linderos Copper Project is an early-stage exploration project, consisting of four contiguous mineral concessions totalling 143 square kilometres in southern Ecuador that are fully permitted for exploration and small-scale mining.
Surface geochemistry and geophysics highlight the presence of multiple porphyry centres across the project, with evidence for shallow epithermal gold systems also observed in mapping and geochemistry.
Most exploration at Linderos has been completed at the Copper Ridge porphyry and Meseta gold prospects.
“Hanrine clearly sees the opportunity for large-scale copper, both at the Linderos Copper Project and in Ecuador, an emerging mining jurisdiction, having made considerable investment into exploration in Ecuador over recent years,” Leighton added.
Proposed terms
The proposed earn-in and joint venture terms comprise the following key milestones:
- US$2 million payment to Titan to earn an initial 5%;
- 10,000 metres of drilling, or additional expenditure of US$8 million, whichever occurs first, to earn an additional 25% (total earn in 30%);
- 15,000 metres of drilling, or additional expenditure of US$12 million, whichever occurs first to earn an additional 21% (total earn in 51%). Once Hanrine has earnt 51%, it will pay Titan an additional US$1 million; and
- At the Decision to Mine, or at total expenditure of US$120 million, whichever occurs first, Hanrine will earn an additional 29% (total earn in 80%).
The transaction is subject to the execution of formal binding documents and the completion of Hanrine's due diligence investigations, which should be completed today.