The agreement covers the Zapadni Majdanpek, Majdanpek Pojas and Donje Nevlje exploration licences which are prospective for copper-gold.
They are within the Western Tethyan Metallogenic Belt in Eastern Europe, which hosts numerous tier-one copper-gold porphyry and associated mineral deposits.
Shares up to 4.7 cents
Shares reached a high of 4.7 cents after the company emerged from a trading halt and in mid-afternoon were still trading more than 20% higher than the previous close.
The joint venture provides Rio Tinto with the option, but not the obligation, to spend up to
US$31.5 million to earn up to a 75% project-level interest over three stages.
Rio delivers “tremendous depth of experience”
Raiden executive director Dusko Ljubojevic said: “Rio Tinto delivers a tremendous depth of experience in these styles of mineralisation and a commitment to the Western Tethyan belt, together with funding capacity to unlock the potential of world-class projects.
“In our opinion, this validates the prospectivity of our licences and we look forward to working closely with the Rio team and realising the potential of the JV properties.
“It also enables us to focus on exploration in our retained licences to rapidly deploy our planned exploration program."