Lion Copper and Gold Corp (TSX-V:LEO, OTCQB:LCGMF) announced that Nuton LLC, a subsidiary of Rio Tinto, has formally opted into Stage 2b of the option to earn-in agreement, a significant step forward in the development of the Yerington copper project.
As part of the agreement inked in October 2023, Stage 2b entails full funding of $10 million dedicated to completing a pre-feasibility study for Yerington. The study is projected to conclude in the third quarter of 2024.
Additionally, Nuton has provided an additional $1.5 million, advancing Stage 3 funding for exploration in specific sections of the Bear deposit.
The funds, totaling $11.5 million, are set to be deposited into Lion CG's accounts by the end of December 2023.
The money will be allocated based on a mutually agreed-upon detailed work scope between Lion CG and Nuton.
Travis Naugle, CEO of Lion CG, told investors that the company is “thrilled” to begin a pre-feasibility study evaluating Nuton technologies and their potential to unlock value at Yerington.
"With Nuton's support, we will methodically advance both the study and ongoing drilling efforts to demonstrate the exceptional prospects we see emerging here in Nevada,” Naugle said.
Bear land package agreement
Lion said it had also entered into a fourth amendment to the option to purchase agreement with Circle Bar N Ranch, LLC, concerning a private land parcel adjacent to the Yerington project for the Bear land package. The option to purchase can be exercised for $12 million on or before June 15, 2025, $13 million on or before June 15, 2026, or $14 million on or before June 15, 2027.
Lion Copper and Gold is a Canadian-based company focused on advancing its flagship copper assets in Yerington, Nevada.
Nuton LLC, an innovative venture aiming to support Rio Tinto's copper business, boasts a portfolio of proprietary copper leach-related technologies. These technologies, developed over almost 30 years, aim to economically unlock copper from primary sulfide resources worldwide through leaching, achieving market-leading recovery rates and promoting sustainability across various domains.