Titan Minerals Ltd (ASX:TTM, OTC:TTTNF) has struck a joint venture and earn-in deal with Hanrine Ecuadorian Exploration and Mining SA, a wholly owned subsidiary of the high-profile Hancock Prospecting Pty Ltd, for the Linderos Copper Project in Ecuador.
Funding up to US$120 million
Hanrine has the potential to acquire up to an 80% interest in the project by meeting specific milestones or through funding of up to US$120 million (A$180 million).
The agreement includes an initial payment of US$2.01 million, of which US$0.25 million has already been received by Titan, with US$1.75 million pending.
The next step for Hanrine is to fund a 10,000-metre drilling campaign, which is already in advanced planning stages.
Under the agreement's terms, Hanrine will initially earn a 5% stake in the project, with the potential to reach 80% by achieving further exploration milestones or a decision to mine.
Hanrine must also complete up to 25 kilometres of new drilling over three stages to increase its ownership to 51%.
The final 29% ownership is tied to either a decision to mine or a total investment of US$120 million within 15 years.
Titan will be free carried during the earn-in period, and if its ownership dilutes below 10%, its interest will convert to a 2.7% net smelter royalty.
The Linderos Copper Project, comprising 143 square kilometres in southern Ecuador, shows promising results from surface geochemistry and geophysics, with strong potential for both copper porphyry and epithermal gold systems.
Significant mineralisation
Initial drilling at the Copper Ridge Porphyry prospect revealed significant mineralisation, including intersections such as 308 metres at 0.4% copper equivalent from shallow depths.
Titan CEO Melanie Leighton said: “We are very pleased to have entered into formal binding arrangements with Hanrine for the Linderos Copper Project.
“The JV and earn-in agreement represents endorsement of what we believe is an exciting early-stage porphyry copper-gold discovery.
Contribution to the Ecuadorian economy
“We are well advanced in our technical discussions with Hanrine who are ready to commence exploration activities at the Linderos Copper Project, with expansion of the camp being the first task on the priority list to ensure seamless and efficient operations once drilling commences.
“We are pleased to be partnering with Hanrine, who have a well-established team in-country with the technical capability and financial capacity for us to mutually benefit from exploration success alongside contribution to the economy of Ecuador.
“We look forward to providing further updates on logistics and exploration activities as we prepare for commencement of the initial 10,000 metre drilling campaign at Linderos.”