Eclipse Metals Ltd (ASX:EPM) can expect to receive up to $5 million in exploration expenditure from Rio Tinto Exploration, in exchange for a 90% interest in one of Eclipse’s Northern Territory uranium projects.
Rio Tinto Exploration Pty Ltd is a wholly owned subsidiary of Rio Tinto Ltd (ASX:RIO).
Eclipse’s Liverpool Uranium Project tenements, containing the Devil’s Elbow prospect, is situated in the world class Alligator Rivers Uranium Field in the Northern Territory.
The Devil’s Elbow Prospect is situated 24 kilometres from Cameco Australia’s Caramel Uranium resource and 41 kilometres southeast of the former Nabarlek Uranium Mine.
Samples from shallow trenching in 1987 and 1989 in the region yielded high grade uranium assays, including 4.40% U3O8 and 5.8% U3O8, along with 38.1 g/t gold and 28.02 g/t palladium.
During stage 1, Rio Tinto can spend $1.5 million for sole-funded exploration within 3 years to earn an initial 65% joint venture interest.
Rio Tinto may then elect to earn a 75% joint venture interest by spending an additional $2.0 million over a further 3 year period.
In the event that Eclipse elects not to contribute to maintain a 25% joint venture interest, Rio Tinto can sole fund a further $1.5 million expenditure over 2 years to earn a 90% joint venture interest.
The agreement with Rio Tinto has opened the possibility for Eclipse’s exploration targets to get first-class technical assessment by one of the world’s largest mining and exploration companies.
Rio Tinto will also have the right of first refusal over Eclipse’s other uranium tenements in the Northern Territory.
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