Proactive's Tylah Tully breaks down 'Just the Facts' from Titan Minerals Ltd (ASX:TTM, OTC:TTTNF) latest ASX announcement.
It's entered a joint venture and earn-in agreement with Hanrine Ecuadorian Exploration and Mining, a subsidiary of Hancock Prospecting, for the Linderos Copper Project in southern Ecuador.
The deal allows Hanrine to invest up to US$120 million to acquire up to 80% of the project. An initial payment of US$2.01 million is part of the agreement, with Titan already receiving US$250,000 and a further US$1.75 million pending. Hanrine will also fund a 10,000-metre drilling campaign and can initially earn a 5% stake, with the potential to increase this to 51% by completing 25 kilometres of drilling in three stages. The final 29% can be earned either through a decision to mine or by investing the full US$120 million within 15 years.
Titan will be free carried during the earn-in period, and if its ownership falls below 10%, its interest will convert to a 2.7% net smelter royalty.
The Linderos Copper Project, covering 143 square kilometres, has shown promising results in copper porphyry and epithermal gold systems, and Titan looks forward to commencing exploration activities.